LT: August 8th D-Day for Klaus

Updated: 8/8/2008 2:52:02 PM
Kirk Strang, an attorney representing the Eau Claire school district during its investigation of the Bill Klaus contract controversy, discussed the school board's decision Friday to suspend Klaus without pay until June 15.
Klaus suspended for one year

One chapter of the Bill Klaus contract controversy came to an end today, but another could be just beginning.

The Eau Claire school board announced shortly before noon that it has suspended the former superintendent and current Northstar Middle School principal without pay from Aug. 11 through June 15. The district will continue to provide health insurance to Klaus during that time, but he will not accrue additional benefits such as vacation or sick leave.

As part of the decision, Klaus will be eligible to receive his $267,209 retirement stipend upon turning 55 next July but will receive no buyout of his contract, which ends June 30, 2012.

The board's decision apparently ends the nearly four-month investigation into Klaus' attempt to obtain his retirement stipend early. However, the Klaus contract controversy may not be finished but instead could be headed to court.

Klaus' attorney, Tom Guelzow, has said he would advise Klaus to sue the district for wrongful termination if any settlement offer to Klaus doesn't include his stipend and a buyout of the remaining four years of his contract. The total cost of the stipend and buyout would top $800,000.

Controversy about Klaus' contract surfaced in April after revelations that he directed former school board President Carol Olson last summer to sign and backdate a document allowing him to begin receiving his stipend last August.

Several board members said the board never discussed granting Klaus his retirement stipend at age 53, and board meeting minutes don't show the board approved that action. However, other board members said the board intended to give Klaus that money at age 53.

Klaus didn't receive that money after the board in October determined that he couldn't access it until age 55. He said he requested the money early to ensure it went to his family in case he died before retirement.