LT 7/22/08 Kling is the next Shoe to Drop

Another one bites the dust. This was the rumor at yesterday's BOE meeting but there was no announcement during the meeting. Looking at what is left of the ECASD Administration during the meeting was pretty sobering. In just a couple of years the departed include: H. Hart, L. Hitman, T. Beardsley, D. Johnson, G. Butler, J. Leary, and, I hope (SOON?!?!), W. Klaus. My understanding is that some of this may have been planned, but where is Succession Planning? Again, more failure of leadership to do even the basic level of planning! Maria

Updated: 7/21/2008 11:42:01 PM

John Wallace was appointed Monday as the interim executive director of administration, filling the renamed deputy superintendent position vacated earlier this month by Gregg Butler. Wallace currently is South Middle School principal.

School official linked to Klaus case resigns

By Julian Emerson and Christena T. O'Brien By Julian Emerson and Christena T. O'Brien
Leader-Telegram staff Leader-Telegram staff
A series of telephone conversations between former Eau Claire school district Superintendent Bill Klaus and Personnel Director Jim Kling last fall foreshadowed Kling's resignation as a district employee Monday.

Those conversations reveal that while Kling - whose resignation is effective Aug. 15 - was following up on questions about whether Klaus was eligible to begin receiving retirement stipend payments totalling $267,209 even though he hadn't retired, the personnel director appeared to back Klaus receiving that money, according to records obtained by the Leader-Telegram.

During discussion of Klaus' stipend on Sept. 28, records show, Kling told Klaus, "I don't think there is going to be an issue (with Klaus receiving his stipend), but I'm going to find out and make sure everything is OK for you and how it impacts you ... I'll see if I can get some answers."

Twelve days later, records show Kling again seemed to back Klaus receiving his stipend. In a reply to a phone message from Klaus regarding his stipend earlier on Oct. 10, Kling replied, "I don't know what is taking so long (to resolve the stipend issue). It shouldn't be that difficult, but who knows."

According to Kling's account to police investigating the Klaus contract issue, Kling had initiated a payment schedule for Klaus to begin receiving stipend payments, but that process was interrupted after concerns were raised about that money being paid out.

Those accounts are in accordance with statements Kling gave to the Eau Claire school board during its inquiry of the Klaus contract issue, sources familiar with that investigation said. Board members have expressed frustration with Kling's apparent willingness to work on behalf of Klaus receiving his stipend as well as his failure to tell them about the matter prior to inquiries about the stipend payments by the Leader-Telegram and district employees last fall.

Board members also said they were upset with Kling's handling of repeated Leader-Telegram requests for information related to Klaus' contract change. Kling responded to portions of the request but delayed responses on others. He said he was directed by former board President Mike O'Brien to not supply the newspaper with the information it requested.

Kling, who has been with the district since 2000, said Monday his decision to resign and retire is something he had been contemplating for some time. Initially, he planned to retire next year, but Kling said he thought now was as good a time to retire with new Superintendent Ron Heilmann starting July 1.

Kling didn't discuss whether his resignation was because of the Klaus contract issue, but board President Carol Craig said Monday that played a part in his leaving.

"It does speak to the issues raised during the inquiry, and it also speaks to the issue that Mr. Kling is inclined to want to retire," she said Monday. "Both of those are mutually kind of entangled."

In the police investigation into the contract matter, Kling said that sometime in February 2007 Klaus told him his contract had been altered to include his receiving his stipend payments at age 53 rather than the previously stated age 55. Kling said he told Klaus "that was very good for him," and didn't think much about the matter until last summer, when Klaus asked him if necessary paperwork had been completed for Klaus to begin getting his stipend on Aug. 1.

Kling said he next met with central office employees and determined that Klaus' contract did not authorize him to begin receiving those payments, and told Klaus that further verification was needed before payments could begin.

Klaus then directed his executive assistant, Patti Iverson, to compose a document directing that Klaus' stipend payments begin Aug. 1, and had former board President Carol Olson sign and backdate it, making it appear to be part of changes to Klaus' contract approved on Feb. 5, 2007.

Kling subsequently set up a schedule for Klaus to begin receiving his monthly stipend payments. That schedule was sent to the Business Services Department in late August, but Business Services Director Dan Van De Water questioned whether Klaus could receive that money because Klaus hadn't retired and the payments could cause Social Security and income tax issues.

District administrators met the following week and referred the issue to the Davis and Kuelthau law firm instead of the Weld, Riley, Prenn and Ricci firm of Eau Claire, of which then-board President O'Brien is an employee. Several follow-up meetings occurred before the board voted on Oct. 22 to deny the retirement stipend to Klaus until he reaches age 55.