LT 7/24/08

Updated: 7/24/2008 11:17:01 PM
Klaus, board consider their options
By Julian Emerson
Leader-Telegram staff
Former Eau Claire school district Superintendent Bill Klaus reportedly has cleaned out his Northstar Middle School principal's office, but whether he's leaving the district remains uncertain.

Klaus and the school board are scheduled to meet Monday, at which time he and the board could reach agreement on his employment status and bring an end to the three-month board investigation into issues involving Klaus' contract.

Board members and other sources with knowledge of the situation said it's anyone's guess whether the two sides will reach an accord Monday. The outcome likely will hinge on Klaus' willingness to reach middle ground with the board, those sources said.

Among the options to resolve the issue are Klaus' dismissal - which could result in a lawsuit against the district depending on terms of the board's offer - and Klaus receiving his $267,209 retirement stipend payment and possible additional compensation for his contract that runs through June 2012.

The meeting will be the latest in a series as the board investigated changes to Klaus' contract designed to allow him to begin receiving retirement stipend payments last summer, earlier than previously allowed. Stipends are payments given to teachers and administrators in the Eau Claire school district upon retirement for up to five years in addition to what they receive from the Wisconsin Retirement System. New hires no longer will receive stipends when they retire.

Board members have said little publicly about what punishment, if any, they deem appropriate for Klaus' attempt to access his retirement stipend despite the fact he hadn't retired and without the knowledge of at least some of the board. The board subsequently voted in October against granting Klaus that money, which he said he wanted early in case he died before retiring.

Sources familiar with the board's investigation of Klaus' contract said board members' stances regarding Klaus vary, ranging from firing him with no buyout of his contract to paying Klaus his stipend and buying out at least a portion of his contract.

Those scenarios likely wouldn't be enough to persuade Klaus to agree to a settlement, according to statements in recent weeks by Klaus' lawyer, Thomas Guelzow of Eau Claire.

Guelzow has said he would advise Klaus to sue the school district if any settlement agreement doesn't include Klaus' full stipend payment and a buyout of the remainder of his contract.

Those significantly different stances could make an agreement Monday unlikely. But there are signs the two sides may have softened their positions somewhat and that a deal could be worked out.

Klaus' cleaning out his office - confirmed Thursday by district officials - points to his not remaining as Northstar principal. Guelzow previously said Klaus, who was placed on paid administrative leave in April, intended to remain working as principal at the school.

Board members, meanwhile, have expressed a desire to resolve the Klaus matter before the start of the upcoming school year. On Monday they approved an agreement with Personnel Director Jim Kling allowing him to resign and retire Aug. 15, the most recent sign the board wants to move beyond the Klaus issue.

Kling was among a group of district administrators who failed to notify board members of concerns about Klaus' contract after learning of it last summer, when Klaus requested that former school board President Carol Olson sign and backdate a memo authorizing his stipend payments to begin last August. Olson signed the memo even though she was no longer a board member and apparently without the knowledge of the board at that time.

Board members have expressed frustration with Kling's apparent willingness to work on behalf of Klaus receiving his stipend and about his failure to fulfill repeated Leader-Telegram requests under the state Open Records Law for information related to Klaus' contract.

Despite that frustration, the board decided to pay Kling, 64, a $148,500 retirement stipend he didn't qualify for.

As part of the deal, Kling will receive 90 percent of the stipend he would have been eligible for had he remained in that position for one more year. District rules stipulate that administrators must work at least 10 years here to qualify for retirement stipends, and Kling had worked here since 2000.

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