From the April 22nd LT

Board members seek answers
Confusion over memo lingers
By Julian Emerson
Leader-Telegram staff
Eau Claire school board members on Monday were left with almost as many questions as answers after revelations about attempted improper early retirement stipend payments to former Superintendent Bill Klaus.

A Leader-Telegram story on Saturday spelled out how former school board President Carol Olson, at Klaus' request, signed a document in late June or early July and backdated it to Feb. 5, 2007, the date the school board had approved changes to Klaus' contract allowing him to become Northstar Middle School principal.

The document stipulated that monthly stipend payments to Klaus begin Aug. 1 despite the fact the board previously had decided that Klaus was not eligible for the stipend until age 55 and upon his retirement. Klaus is 53 and said he did not intend to retire upon receiving his stipend payments.

Olson was no longer a board member when she signed the document, and other board members said they were shocked when they learned in October that Klaus' contract had been amended without their knowledge.

The board subsequently denied the early stipend payment, and Klaus didn't receive any of the $225,000 the school district will pay him as part of his retirement benefits package. Instead, he will be paid that money beginning at his retirement.

Board members had previously declined comment on the matter because of concerns about violating closed-meeting regulations. But on Monday, board members Mike Bollinger and Trish Cummins discussed their concerns about potential legal liability because of attempted contract alterations.

"We know a lot of what happened," Bollinger said of the attempt to alter Klaus' contract, "but there are a lot of questions about what we do next."

The board met in closed session Monday to discuss the issue with district administrators and a Madison lawyer representing the district. Board members said they planned during the meeting to seek more details about attempts to change Klaus' contract and which district officials were responsible for the subsequent cover-up of that incident. Klaus and Olson deny they tried to deceive anyone.

Kling and Klaus acknowledged being at a meeting during the summer with interim Superintendent James Leary and school board President Michael O'Brien regarding the stipend payments.

"As a board member, I think we still have a responsibility to find out who exactly was involved in coming up with this plan, creating this document, and maybe most importantly, concealing it for all of these months," Cummins said.

Answers to those questions could determine whether and to what extent board members may seek discipline for those involved. No matter what the board does, it must be direct in getting answers, said Bollinger, who did not attend Monday's meeting because of a business trip.

Klaus said he first mentioned in January his desire to receive the early stipend payments. He said he sought that money because of concerns that if he died before he retired, his family would not receive that money. Instead, the school district would be exempt from the payout, he said.

In mid-summer, shortly before Klaus was to begin his job at Northstar, he requested the payments again. Kling told Klaus his contract didn't spell out the early payments and that additional verification from the board was needed before payments could begin.

Rather than take up the issue again with the board, Klaus then asked district Executive Secretary Patti Iverson to ask Olson to sign a document making that money available beginning in August. Klaus and Olson defended their actions, saying it was their belief that the early stipend payments were the intent of the Feb. 5 agreement, but other board members disputed that and since have charged Olson and Klaus with attempting a secret agreement.

After denying Klaus' early stipend payments, the school board subsequently added a provision to Klaus' contract ensuring that money - paid out over 60 months - would go to his family if he dies before retiring.

Since December, district officials had refused to release information requested by the Leader-Telegram related to attempted changes to Klaus' contract before granting access to Klaus' personnel file earlier this month.

District officials still have not granted the newspaper's Open Records request for e-mail messages and school board meeting minutes.

Emerson can be reached at 830-5911, (800) 236-7077 or julian.emerson@ecpc.com.