The Court of Public Opinion has weighed in and I have not seen a single apologist for Klaus in the Letters to the Editor. This is in contrast to many anonymous comments in the LT online version who are happy to defend Bill and Carol behind the screen of anonymity. But for those citizens who are signing their names and willing to state their opinions in the full light of day it is all "Thumbs Down!" on this illegal (maybe it did not reach the strict definition of criminal), unethical and GREEDY behavior of Carol and Bill.
Maria
Updated: 7/22/2008 5:52:02 PM
Just fire him!
I have read so much about the Bill Klaus case. Why wasn't he put on unpaid leave? Why, as a taxpayer, should we be paying for him? By now he should have been fired! Why are we, as taxpayers, paying someone who is so dishonest? Why hasn't former school board President Carol Olson been punished? And why is the school board member who can't remember what happened, Mary Kneer, still there?
If it didn't cost so much, we should recall all those who have not asked for Klaus' firing. If there are more members of our school system involved, they should be punished or released.
I would not want my children or grandchildren in a school where Klaus is involved. Where and when would our children learn to be honest and respectable citizens? It really leaves all our children wondering what is right from wrong. Let's see him get fired!
KAREN ADANK
Eau Claire
Updated: 7/24/2008 6:22:01 PM
Get it over with
I really don't care about the "he said-she said" theory. I feel the whole fiasco with the Eau Claire school board was started by former Superintendent Bill Klaus. It seems that the person who directed the changes, as well as the persons who altered the contract, should be dismissed from their positions.
We've already spent far too much money on attorney fees, paid leave, etc. It's about time to put this matter to rest.
HOWARD F. PRINCE
Eau Claire
Updated: 7/26/2008 3:07:02 AM
To move forward, school board must do the right thing
The issue: The Eau Claire school board moves closer to cutting ex-Superintendent Bill Klaus loose.
Our view: Even if he doesn't deserve it, Klaus probably will get the stipend money that started the controversy in the first place.
MoveOn.org, the liberal online activist group, got its start in 1998 with a simple petition urging Congress to "move on" from the effort to impeach President Clinton.
If the "move on" slogan hadn't been in use for 10 years, the Eau Claire school board probably would want to adopt it now. Since April, they've been involved in the public controversy surrounding former school Superintendent Bill Klaus. As the situation - which stems from Klaus' effort to backdate his contract and collect his retirement stipend early, before he retired, and without board approval - has dragged forward, most everyone involved has suffered from a diminished reputation. It's understandable that the board would want to conclude the matter sooner rather than later. Moving on would remove the cloud hanging over board members' heads. More importantly, it would allow the district to focus on its core mission, which is educating children, not haggling over contracts.
It seems that the school board may be close to moving on by cutting Klaus loose for good (last year, he became Northstar Middle School principal, but he's been on paid leave since the scandal broke). The board is in a difficult position: On one hand, it wants to avoid more negative publicity; on the other, it wants to avoid a costly, protracted lawsuit with Klaus (whose attorney has threatened one). Board members could fire Klaus, give him nothing and see him in court, or they could buy out his contract - which runs through 2012 and includes a $267,209 stipend - and see themselves ousted by irate voters.
Compromise is almost inevitable, and the two sides are scheduled to meet Monday. For unethically manipulating the system to try to get early access to a quarter-million taxpayer dollars, Klaus probably deserves something close to option No. 1; however, for practical reasons - namely the cost of litigation and the possibility Klaus would win it - the final deal will probably be closer to option No. 2.
The board already has given signs it may go that route. Last week, it accepted the resignation of Jim Kling, the district's executive director of personnel. The Klaus controversy contributed to Kling's departure: According to an article published Tuesday, "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."
So how did the board express its "frustration" with Kling? They gave him 90 percent of his $148,500 retirement stipend - which he wasn't even eligible for, having only worked in the district eight years instead of the required 10. To put it more bluntly, the board is buying off an administrator embroiled in a controversy about trying to collect stipend payments before they were owed by giving him stipend payments before they are owed.
Considering this precedent, and the cost of taking Klaus to court, the board may be unable to move on without further tarnishing its reputation.
- Tom Giffey, editorial page editor
Updated: 7/30/2008 6:52:02 PM
School board folly continues
Our Eau Claire school board continues to display its ineptness by approving a $148,500 retirement stipend for Jim Kling, the outgoing executive director of personnel. To be eligible, his contract apparently required him to reach retirement age and work in the district for 10 years. Working less than eight years doesn't meet the requirements.
Why negotiate contracts with these people? The present school board won't adhere to them anyway. Thus, the administrators and educators know this and their greed forces them to take advantage. This kind of action by the school board continues to take money away from the classrooms where it is needed and our children are taught.
Just who does this school board represent and work for? The administrators and educators, or the citizens, taxpayers and parents? I think it is obvious! Unfortunately, I predict more folly will soon be forthcoming.
BILL MARKIN
Eau Claire
Updated: 7/30/2008
Klaus controversy raises questions
I would like to add my thoughts to the voluminous media coverage of the effort to determine the beginning payment date for the "retirement stipend" of former Eau Claire school district Superintendent Bill Klaus.
1. At a regular board meeting, it was discussed, agreed upon and recorded that Klaus' retirement age be reduced from 55 to 53.
2. It was further approved by the board that at retirement, the amount of his stipend would be based on his salary as superintendent.
3. Klaus did not retire at age 53. Instead, he requested he be allowed to step down as superintendent to become principal at Northstar Middle School.
In the public sector, this is termed a change in position, not a retirement. There was no lapse in Klaus' employment. Why now has the date of retirement become an issue? The issue should be that Klaus was instrumental in creating a document stating payments from his so-called retirement stipend should begin on Aug. 1, 2007. Further, in July 2007, he requested the former board president sign the document and backdate her signature fraudulently.
Why wasn't this request made to the board for interpretation, clarification and recording, if proper? The "$64,000 Question" is this: How did this document get into his personnel file without having first been seen and reviewed?
Another question: Why were the minutes for a school board meeting approved if such a glaring and important omission was made in them? At which meeting were the minutes approved, and what members were in attendance? Was Klaus there or did he have access to check them after publication?
What are our young people thinking of this fiasco made by responsible adults, people in whom we want them to place their trust and emulate?
GEORGIE GLADWELL
Eau Claire
Updated: 7/31/2008 4:52:02 PM
L-T Klaus editorial right on
The July 16 It Seems to Me column ("Editorial's call for charges in Klaus case unwarranted") raises some questions. If the writer is so certain that there was no wrongdoing in the attempted backdating of Bill Klaus' contract, then why did Klaus go to Carol Olson, who was no longer on the Eau Claire school board? The bottom line is that she had no right to sign a contract for the board when she was not a member of the board. What other business would allow an ex-employee to sign contracts and backdate them? Can we continue to write checks against an account that we closed? No! What's the difference?
The Leader-Telegram was right on with its editorial. I just hope the taxpayers (voters) remember this incident at election time. We need a new school board. When six people can't agree on something as major as several hundred thousand dollars, we are in big trouble. And let's not forget the member who tunes out the important stuff during the meetings.
I own land and pay taxes in the Eau Claire school district, so I am very interested in what happens. We need good, hardworking and honest people to run for school board. The taxpayers are getting ripped off on these deals. Why hire someone for more money than the one leaving? Maybe hiring someone with fewer years of experience would give a new outlook to the school system. We're in a recession. The taxpayers cannot afford top dollar for employees.
As for Eau Claire County District Attorney Richard White, if he thinks he cannot win a prosecution against someone, then he is right not to pursue it. I wish he had stated why he switched to the Democratic Party just now. It's my understanding that the teachers union supports the Democratic Party.
KATINA P. COX
Menomonie
Updated: 8/1/2008 6:12:02 PM
Keep pressure on
The headline of a July 23 letter about former Eau Claire school district Superintendent Bill Klaus expressed it very clearly: "Just fire him!" Instead, the school board and district administrators have the audacity to reward Jim Kling, the outgoing executive director of personnel, with his own unearned stipend and continue to hide behind closed doors with their "investigation."
I hope Leader-Telegram reporters and readers will continue to keep pressure on the board for full disclosure of all the shady details that have been kept from the taxpayers.
The same scrutiny should also be kept on the Eau Claire County Board and its confusion about personnel and cash needed for the new jail, and its refusal to have a referendum for taxpayer approval of the project.
No wonder the Leader-Telegram reported July 23 that Wisconsin's property taxes were the ninth highest in the country, or "4.4 percent of personal income in 2006."
GEORGE REINBACHER
Eau Claire
Updated: 8/5/2008
Innocent? Hardly
The author of the July 16 It Seems to Me column ("Editorial's call for charges in Klaus case unwarranted") needs to get in touch with reality. Does he think O.J. Simpson is innocent too? Bill Klaus, Carol Olson, Mike O'Brien and Patti Iverson, along with other school officials are all guilty of playing a role regarding the terms of Klaus' contract. The only thing they are sorry about is getting caught. I applaud the Leader-Telegram for breaking this story and the outstanding job reporter Julian Emerson has done.
I do not live in Eau Claire County, but if I did, I would find a way to vote District Attorney Rich White out of office this fall. He should have taken this to trial. I doubt any jury would have found Klaus not guilty. If Klaus is fired, he will be the one to file the lawsuit, which will put him in a more favorable position. I think Eau Claire needs to take a good look at its district attorney as well as its school board.
ALICE DROSKE
Elk Mound
I do NOT agree with Hal Davis on the following letter. This mess WILL impact education because the money and time spent on digging out of this mess has cost dollars and efforts from moving our district ahead with so many other pressing issues. In addition, the bitter taste of cynicism and lack of trust will be with citizens and taxpayers a LONG time and harm chances of any referendum any time soon. Maria
Updated: 8/5/2008
Klaus mess won't impact education
The Bill Klaus contract mess will have little impact on our schools. They will go on being the great schools they are in spite of stipends, contracts, and Brett Favre's on-again, off-again retirement.
The education of our students depends entirely on the dedication of teachers, school-level support staff and administrators. I doubt if a single math lesson, choir concert, drama production, field trip, or anything else that really matters will be missed because of this situation.
It can have a lasting impact only if residents reduce support for the resources our schools need to continue their core mission. At some time in the future, the school board will have to come to the public with a referendum to provide continuing support. It would be sad to see such a referendum viewed through the lens of this incident. When we are done stirring this pot, let's throw it out and let the stink go away.
HAL DAVIS
Eau Claire
Updated: 8/5/2008
Teachers no fans of buyouts
A letter published Friday commented on the Bill Klaus situation and District Attorney Rich White's decision not to prosecute. The letter ended with this non sequitur: "It's my understanding that the teachers union supports the Democratic Party."
The fact is, administrators don't belong to the teachers union. I seriously doubt any Eau Claire teacher is happy with the money being tied up for legal fees, extra board meetings and buyouts. Many teachers have been told that there "just isn't any money" when more services are needed or when they have an idea to improve student learning.
These administrator buyouts happen more frequently than most people know. They directly deplete the funds available for student services. It seems administrators, particularly in bigger districts, experience the same phenomena associated with politicians who go to Madison or Washington: Their initial intentions are honorable, but as time passes they get so involved with the power of the position that they lose touch with reality.
Perhaps administrators should be required to teach a year for every five they serve as administrators. Oops, maybe not.
JOHN KANNEL
Eau Claire
Updated: 8/5/2008
Golden parachute possible for Klaus
Who will be paying former Eau Claire schools Superintendent Bill Klaus' legal expenses? I hope not the Eau Claire school district. If it is, that shouldn't shock anyone, considering the way the entire situation has been handled. I have a feeling that he will get out of this mess in better financial shape than anyone could have imagined.
KEN KOOPMANN
Altoona
Updated: 8/5/2008
Give Klaus his day in court
The Leader-Telegram is to be commended for its tenacious reporting of the issues surrounding the attempt of former Eau Claire schools Superintendent Bill Klaus to obtain an early stipend and a backdated document being belatedly inserted into the files. There is little consolation in this knowledge, because these sordid events are being played out against the backdrop of closing schools, packed classrooms, maintenance reductions and essential program cuts. Ultimately, the students, teachers, support staff, taxpayers and community at large are being asked to make sacrifices and suffer the consequences. This is particularly galling because Klaus is demanding a buyout of his dubiously extended contract and the stipend as well.
Even though past events did not sink to the level of blatant criminality, there still are civil violations of law and, we all acknowledge, reasonable standards of behavior. The school board challenges students with a strict code of conduct. In the future, I suppose, if little Johnny gets caught changing his "F" in the teacher's grade book, he might demand at least a "B+" to allow everyone to put his matter behind them. If the superintendent is held to no standard whatsoever, why should a student?
Much more is at stake here than paying off someone who threatens a lawsuit if he doesn't get his way. By setting into motion a chain of events that culminated in fake documents and clandestine activity to get them into the file, the former superintendent essentially shredded his own contract. In order to truly set this episode behind us and restore confidence in the board, these events need to come out in the open. If we believe there are indeed minimal standards of behavior and they have been grossly violated, we should confidently let the former superintendent have his day in court.
TOM PONTY
Eau Claire
Updated: 8/5/2008
Make Klaus pay
One more thing about the Bill Klaus case. I agree - and anyone I talk to agrees - with the letter published July 23: "Just fire him!"
The writer left just one thing out: What is his mistake going to cost me? He should also be made to pay for the legal expense (lawyers, closed meetings, the district attorney's investigation, etc.) he has incurred for us. If people that run the school board think they are all so "high and mighty," some of them should be let go too.
With so many dishonest people in charge of our children, why do you think there are more parents homeschooling?
NORMA OTTERSON
Eau Claire
Wednesday, August 6, 2008
Tuesday, August 5, 2008
LT article 8/5/08
Updated: 8/4/2008 11:42:01 PM
Board to disclose Klaus decision Friday
By Julian Emerson
Leader-Telegram staff
Former Eau Claire school district Superintendent Bill Klaus' future with the district remains a mystery despite the fact the school board on Monday reached a decision regarding his employment.
The decision marks an apparent resolution to the controversial Klaus contract saga that has prompted school board and police investigations and led to the resignation of Personnel Director Jim Kling and possibly Klaus' dismissal.
But board members weren't releasing any details about their decision, saying they won't convey that information until Friday morning.
"We're not going to give out those details right now," board President Carol Craig said.
Craig said the board is waiting until Friday to allow school district attorney Kirk Strang of the Davis and Kuelthau law firm time to draft its decision and "give this the kind of review it needs."
Eau Claire attorney Thomas Guelzow, who is representing Klaus, said Monday afternoon he wasn't aware of the board's decision regarding Klaus. He said the board's waiting until Friday to announce that action seemed unusual but might allow for negotiations of whatever terms the board reached.
Last month the board negotiated a settlement with Kling in which he received a $148,500 retirement stipend payment, posing the possibility of a similar action for Klaus.
Guelzow has previously said any settlement Klaus would agree to would have to include his full $267,209 retirement stipend plus a buyout of the remainder of Klaus' contract, which ends in 2012. On Monday Guelzow seemed to have softened his stance but said any agreement "still has to be something reasonable that offers fair compensation to Bill."
Guelzow criticized the board for its failure to interview former board members Carol Olson and JoAnne Evans during its investigation, given that they voted on Klaus' contract approved Feb. 5, 2007. Last week Guelzow presented the board with affidavits signed by Olson and Evans stating that the board intended Klaus' retirement stipend payments begin at age 53 instead of 55 when they previously were allowed.
Controversy about Klaus' contract surfaced in April after revelations that he directed Olson - no longer a board member at the time - to sign and backdate a document allowing Klaus 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.
Last summer Klaus became Northstar Middle School principal. He was placed on paid leave on April 30 pending investigation results.
Board to disclose Klaus decision Friday
By Julian Emerson
Leader-Telegram staff
Former Eau Claire school district Superintendent Bill Klaus' future with the district remains a mystery despite the fact the school board on Monday reached a decision regarding his employment.
The decision marks an apparent resolution to the controversial Klaus contract saga that has prompted school board and police investigations and led to the resignation of Personnel Director Jim Kling and possibly Klaus' dismissal.
But board members weren't releasing any details about their decision, saying they won't convey that information until Friday morning.
"We're not going to give out those details right now," board President Carol Craig said.
Craig said the board is waiting until Friday to allow school district attorney Kirk Strang of the Davis and Kuelthau law firm time to draft its decision and "give this the kind of review it needs."
Eau Claire attorney Thomas Guelzow, who is representing Klaus, said Monday afternoon he wasn't aware of the board's decision regarding Klaus. He said the board's waiting until Friday to announce that action seemed unusual but might allow for negotiations of whatever terms the board reached.
Last month the board negotiated a settlement with Kling in which he received a $148,500 retirement stipend payment, posing the possibility of a similar action for Klaus.
Guelzow has previously said any settlement Klaus would agree to would have to include his full $267,209 retirement stipend plus a buyout of the remainder of Klaus' contract, which ends in 2012. On Monday Guelzow seemed to have softened his stance but said any agreement "still has to be something reasonable that offers fair compensation to Bill."
Guelzow criticized the board for its failure to interview former board members Carol Olson and JoAnne Evans during its investigation, given that they voted on Klaus' contract approved Feb. 5, 2007. Last week Guelzow presented the board with affidavits signed by Olson and Evans stating that the board intended Klaus' retirement stipend payments begin at age 53 instead of 55 when they previously were allowed.
Controversy about Klaus' contract surfaced in April after revelations that he directed Olson - no longer a board member at the time - to sign and backdate a document allowing Klaus 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.
Last summer Klaus became Northstar Middle School principal. He was placed on paid leave on April 30 pending investigation results.
LT article 8/4/08
Updated: 8/4/2008 12:22:02 PM
Board decides Klaus' case, but delays announcement
By Julian Emerson
Leader-Telegram staff
The Eau Claire school board has reached a decision regarding former Superintendent Bill Klaus' future with the district but isn't scheduled to release details about it until Friday.
Board President Carol Craig announced that the board had reached a board decision late this morning, but she refused to provide additional details. Left unsaid is whether Klaus will remain as a district employee.
Today's meeting was the latest in a series since revelations in April that Klaus had directed former school board President Carol Olson to sign and backdate a document allowing payment of Klaus' $267, 209 retirement stipend to begin last August, two years earlier than previously allowed. Several board members said they didn't approve that change to Klaus' contract finalized in February 2007.
The board's decision has been delayed by a number of factors, including questions about the stipend matter and concerns about whether the board must legally buy out the remainder of Klaus' contract, which ends in 2012.
Board decides Klaus' case, but delays announcement
By Julian Emerson
Leader-Telegram staff
The Eau Claire school board has reached a decision regarding former Superintendent Bill Klaus' future with the district but isn't scheduled to release details about it until Friday.
Board President Carol Craig announced that the board had reached a board decision late this morning, but she refused to provide additional details. Left unsaid is whether Klaus will remain as a district employee.
Today's meeting was the latest in a series since revelations in April that Klaus had directed former school board President Carol Olson to sign and backdate a document allowing payment of Klaus' $267, 209 retirement stipend to begin last August, two years earlier than previously allowed. Several board members said they didn't approve that change to Klaus' contract finalized in February 2007.
The board's decision has been delayed by a number of factors, including questions about the stipend matter and concerns about whether the board must legally buy out the remainder of Klaus' contract, which ends in 2012.
LT article 7/28/08
Updated: 7/28/2008 11:32:02 PM
Board considers possible severance deal with Klaus
By Julian Emerson
Leader-Telegram staff
The Eau Claire school board still hasn't reached a decision regarding former Superintendent Bill Klaus' future with the district, but that action appears to be coming soon, sources close to the situation said.
Board members and Klaus met Monday night in the latest of a series of meetings during the last three months as the board continues its investigation of Klaus' attempt to access his retirement stipend earlier than previously allowed in his contract.
Monday's meeting - which included discussion with Klaus - continued late into the night as the board contemplated a possible severance agreement with him. Resolution of the contentious matter likely will involve one of two options: a deal in which the two sides agree to a buyout of Klaus' contract or an offer by the board that Klaus could contest and take to court.
Either way, it doesn't appear likely Klaus will remain a district employee long term.
Klaus' lawyer, Eau Claire attorney Thomas Guelzow, has said Klaus intends to retain his Northstar Middle School principal job and noted he would recommend Klaus contest any board action to fire him without a full buyout of his contract and payment of his $267,209 stipend.
However, district officials last week said Klaus has cleaned out his office at Northstar, prompting questions about his remaining in that position.
Board members have expressed a desire to move beyond the contract controversy before the start of the upcoming school year. Reaching an agreement with Klaus would presumably do away with concerns about lawsuit-related costs if Klaus were to contest his possible firing.
But the board may not be willing to buy out Klaus' contract to resolve the matter, especially given public sentiment against that action.
Klaus' stipend payments became an issue after an April 19 Leader-Telegram story detailed how former board President Carol Olson, at Klaus' request, signed and backdated a document that would have allowed Klaus to begin receiving his stipend - retirement pay in addition to that available as part of the Wisconsin Retirement System - last August. The document would have ensured that Klaus started receiving that money at age 53 instead of 55. District officials say Klaus has not received his stipend money.
Board considers possible severance deal with Klaus
By Julian Emerson
Leader-Telegram staff
The Eau Claire school board still hasn't reached a decision regarding former Superintendent Bill Klaus' future with the district, but that action appears to be coming soon, sources close to the situation said.
Board members and Klaus met Monday night in the latest of a series of meetings during the last three months as the board continues its investigation of Klaus' attempt to access his retirement stipend earlier than previously allowed in his contract.
Monday's meeting - which included discussion with Klaus - continued late into the night as the board contemplated a possible severance agreement with him. Resolution of the contentious matter likely will involve one of two options: a deal in which the two sides agree to a buyout of Klaus' contract or an offer by the board that Klaus could contest and take to court.
Either way, it doesn't appear likely Klaus will remain a district employee long term.
Klaus' lawyer, Eau Claire attorney Thomas Guelzow, has said Klaus intends to retain his Northstar Middle School principal job and noted he would recommend Klaus contest any board action to fire him without a full buyout of his contract and payment of his $267,209 stipend.
However, district officials last week said Klaus has cleaned out his office at Northstar, prompting questions about his remaining in that position.
Board members have expressed a desire to move beyond the contract controversy before the start of the upcoming school year. Reaching an agreement with Klaus would presumably do away with concerns about lawsuit-related costs if Klaus were to contest his possible firing.
But the board may not be willing to buy out Klaus' contract to resolve the matter, especially given public sentiment against that action.
Klaus' stipend payments became an issue after an April 19 Leader-Telegram story detailed how former board President Carol Olson, at Klaus' request, signed and backdated a document that would have allowed Klaus to begin receiving his stipend - retirement pay in addition to that available as part of the Wisconsin Retirement System - last August. The document would have ensured that Klaus started receiving that money at age 53 instead of 55. District officials say Klaus has not received his stipend money.
LT article 7/26/08
Folks,
This is one of my favorite articles in this series in that it definitely shows that Klaus, Olson, O'Brien and Evans all agree that there was NO motion to approve the stipend at age 53 and that their "modus operandi" routinely was to have these little "sidebar" discussions to make decisions in the operation of the district. The fact that other members of the BOE approved the contract without even reading it is NUTS and, again, highlights how unprofessional this has been for so many years under the leadership of Olson, Klaus and O'Brien (with Evans and Kneer and Wogahn as their biggest cheerleaders).
Also, the fact that the multiple and overlapping contracts that gave Klaus so much security over a number of years that is just plain ILLEGAL in the state of Wisconsin upholds my previous statements that our highly paid and "Interest Conflicted" legal counsel, Steve Weld of the Weld Riley firm were NOT EVEN DOING THEIR JOBS while collecting the big bucks and protecting their buddies on the board.
Maria
Updated: 7/26/2008 11:07:01 PM
Klaus tells police stipend talk was 'side debate'
By Julian Emerson
Leader-Telegram staff
Perhaps the strongest evidence that the Eau Claire school board never formally approved allowing former Eau Claire school Superintendent Bill Klaus to access his retirement stipend last summer comes from Klaus himself.
During an interview with an Eau Claire Police Department investigator in May, Klaus acknowledged that no board member made a motion to change Klaus' contract to allow him to begin receiving his $267,209 retirement stipend starting last August.
Instead, Klaus told police that discussion of his stipend took place as one of numerous "side debates" occurring during the January 2007 closed-session board meeting where alterations to Klaus' contract were contemplated, according to a 400-page investigative report of the Klaus stipend matter.
"Deputy Chief (Eric) Larsen asked Klaus if there was a specific motion made by any board member approving the early stipend.
"Klaus said there was not," the report states.
The board's failure to formally approve the change allowing Klaus to obtain his stipend runs contrary to common governmental practice that stipulates that any expenditure of taxpayer money - such as Klaus' stipend - requires an official motion and approval by a governing board. Stipend payments are paid to retiring administrators and teachers on top of Wisconsin Retirement System benefits they receive. New school district hires no longer will receive stipends when they retire.
Klaus believed that the board's approval of his contract on Feb. 5 to move from superintendent to become principal of Northstar Middle School included approval of the early stipend provision. But legal experts familiar with Wisconsin school district law said Klaus' obtaining that money required a motion by a board member to move up the stipend payments, followed by discussion of the topic by the full board and vote on the matter prior to final contract approval.
"That's just the way that governmental bodies are supposed to conduct business," said Ronald Rutlin, a lawyer with the Ruder Ware law firm in Wausau, who has worked with school districts for three decades. Several other attorneys who work with school districts contacted by the Leader-Telegram agreed with Rutlin but asked not to be identified.
The lack of formal discussion and documentation of Klaus receiving his retirement stipend early not only veers from accepted practice but might explain board members' differing accounts about whether they approved Klaus accessing that money at age 53 instead of age 55 as previously stated in his contract. Klaus turned 53 last July.
Three board members - Carol Craig, Brent Wogahn and Trish Cummins - said the board never discussed Klaus receiving that money early. Board member Mary Kneer said she doesn't remember whether the board approved that provision.
In contrast, former board members Carol Olson, JoAnne Evans and Mike O'Brien, who were present at that meeting, said they believe Klaus' obtaining his stipend early was part of the contract they approved.
However, in their accounts to police, none of the former board members said they remember the board voting on the stipend issue. Instead, they described the board's action regarding the stipend in more vague terms, saying Klaus' receiving his stipend "was not made clear" and that his obtaining that money "could very well have been the intent" of the board.
Klaus' lawyer, Thomas Guelzow of Eau Claire, blames the board's "shoddy procedures" for the mix-up involving Klaus' stipend and said Eau Claire County District Attorney Rich White's decision not to file criminal charges in the matter shows there is a lack of clarity regarding Klaus' contract.
Granting Klaus his stipend is not mentioned in board minutes of Jan. 8 and Jan. 22, when changes to Klaus' contract were discussed.
Adding to confusion about the contract is the fact several board members said they didn't review Klaus' contract before voting on it. The contract was signed by Olson and Evans, but which other board members, if any, reviewed the document before it was finalized remains unclear.
Klaus' stipend payments became an issue after an April 19 Leader-Telegram story detailing how former board President Olson, at Klaus' request, signed and backdated a document allowing Klaus to begin receiving his monthly stipend payments last August, two years earlier than called for in previous versions of Klaus' contract.
Olson was no longer a board member when she signed the document, and other board members said they were unaware of the contract change. Klaus did not receive his stipend payments, and the board voted in October that he is not eligible for them until age 55.
Stipend questioned
The accounts of Olson, Evans and O'Brien to police cast further doubts about the validity of Klaus receiving his stipend before age 55.
Those former board members told police that when they learned of Klaus' request to access his stipend early, they consulted district Personnel Director Jim Kling about changing the wording of the stipend portion of Klaus' contract to make those payments happen.
However, Kling told Klaus in July 2007 - five months after Klaus' contract was approved - that he needed further documentation besides Klaus' contract before granting the early retirement stipend, according to the police report.
"It was determined that although (Klaus') age in the contract for (stipend) eligibility was 53, more authorization was needed before I would approve stipend payment to begin," Kling told police.
Kling disputed the notion he was involved in crafting the early retirement portion of Klaus' contract. He told investigators those board members did not seek his input on that topic and that "he is certain he was not present for any such conversation" at meetings when Klaus' contract was discussed.
Kling and the board reached a resignation and retirement agreement on Monday, prompted in part by Kling's role in the Klaus contract matter.
No retirement
The attempt to pay Klaus his retirement stipend is also questionable given that he didn't officially retire.
According to Klaus' contract, he was eligible to begin receiving his monthly stipend payments upon "district retirement" and age 53. Backers of Klaus receiving that money say the "district retirement" phrase inserted into the contract referred to Klaus' retirement as superintendent.
But others said that phrase refers to the fact that Klaus must retire from the school district before receiving those payments. No other district employee contract has a similar phrase.
Retiring and then continuing to work in the district isn't uncommon. For instance, four district administrators last school year - interim Superintendent James Leary, Deputy Superintendent Gregg Butler, Business Services Director Dan Van De Water and Kling - held those positions despite having previously retired.
However, before working for the district they had officially retired and left school employment for 30 days as required by state law. In contrast, Klaus did not file for retirement and has told the Leader-Telegram he did not intend to retire.
Long-term contract
It's not just the retirement stipend portion of Klaus' contract that is questionable.
In approving Klaus' contract on Feb. 5, 2007, the board ran afoul of state statute 118.24, which limits school district administrator contracts to three-year terms, typically negotiated as two-year terms with the option to add a third year part-way through the first year.
In a sense Klaus' contract does just that. The board approved his employment from July 1, 2009 through June 30, 2011, with the addition of one year later if the board didn't object.
The problem, school law experts said, is that contract was negotiated on top of an existing two-year contract, giving Klaus five year's security at the time the deal was negotiated.
Having consecutive two-year agreements in place is highly unusual, legal experts said, violating the spirit of state law by providing Klaus with such lengthy security.
The longer contract could hinder a possible settlement between Klaus and the board as the two sides look to resolve the contract matter. Guelzow has said any settlement agreeable to Klaus would have to include buyout of the contract and Klaus receiving his stipend.
Emerson can be reached at 830-5911, (800) 236-7077 or julian.emerson@ecpc.com.
This is one of my favorite articles in this series in that it definitely shows that Klaus, Olson, O'Brien and Evans all agree that there was NO motion to approve the stipend at age 53 and that their "modus operandi" routinely was to have these little "sidebar" discussions to make decisions in the operation of the district. The fact that other members of the BOE approved the contract without even reading it is NUTS and, again, highlights how unprofessional this has been for so many years under the leadership of Olson, Klaus and O'Brien (with Evans and Kneer and Wogahn as their biggest cheerleaders).
Also, the fact that the multiple and overlapping contracts that gave Klaus so much security over a number of years that is just plain ILLEGAL in the state of Wisconsin upholds my previous statements that our highly paid and "Interest Conflicted" legal counsel, Steve Weld of the Weld Riley firm were NOT EVEN DOING THEIR JOBS while collecting the big bucks and protecting their buddies on the board.
Maria
Updated: 7/26/2008 11:07:01 PM
Klaus tells police stipend talk was 'side debate'
By Julian Emerson
Leader-Telegram staff
Perhaps the strongest evidence that the Eau Claire school board never formally approved allowing former Eau Claire school Superintendent Bill Klaus to access his retirement stipend last summer comes from Klaus himself.
During an interview with an Eau Claire Police Department investigator in May, Klaus acknowledged that no board member made a motion to change Klaus' contract to allow him to begin receiving his $267,209 retirement stipend starting last August.
Instead, Klaus told police that discussion of his stipend took place as one of numerous "side debates" occurring during the January 2007 closed-session board meeting where alterations to Klaus' contract were contemplated, according to a 400-page investigative report of the Klaus stipend matter.
"Deputy Chief (Eric) Larsen asked Klaus if there was a specific motion made by any board member approving the early stipend.
"Klaus said there was not," the report states.
The board's failure to formally approve the change allowing Klaus to obtain his stipend runs contrary to common governmental practice that stipulates that any expenditure of taxpayer money - such as Klaus' stipend - requires an official motion and approval by a governing board. Stipend payments are paid to retiring administrators and teachers on top of Wisconsin Retirement System benefits they receive. New school district hires no longer will receive stipends when they retire.
Klaus believed that the board's approval of his contract on Feb. 5 to move from superintendent to become principal of Northstar Middle School included approval of the early stipend provision. But legal experts familiar with Wisconsin school district law said Klaus' obtaining that money required a motion by a board member to move up the stipend payments, followed by discussion of the topic by the full board and vote on the matter prior to final contract approval.
"That's just the way that governmental bodies are supposed to conduct business," said Ronald Rutlin, a lawyer with the Ruder Ware law firm in Wausau, who has worked with school districts for three decades. Several other attorneys who work with school districts contacted by the Leader-Telegram agreed with Rutlin but asked not to be identified.
The lack of formal discussion and documentation of Klaus receiving his retirement stipend early not only veers from accepted practice but might explain board members' differing accounts about whether they approved Klaus accessing that money at age 53 instead of age 55 as previously stated in his contract. Klaus turned 53 last July.
Three board members - Carol Craig, Brent Wogahn and Trish Cummins - said the board never discussed Klaus receiving that money early. Board member Mary Kneer said she doesn't remember whether the board approved that provision.
In contrast, former board members Carol Olson, JoAnne Evans and Mike O'Brien, who were present at that meeting, said they believe Klaus' obtaining his stipend early was part of the contract they approved.
However, in their accounts to police, none of the former board members said they remember the board voting on the stipend issue. Instead, they described the board's action regarding the stipend in more vague terms, saying Klaus' receiving his stipend "was not made clear" and that his obtaining that money "could very well have been the intent" of the board.
Klaus' lawyer, Thomas Guelzow of Eau Claire, blames the board's "shoddy procedures" for the mix-up involving Klaus' stipend and said Eau Claire County District Attorney Rich White's decision not to file criminal charges in the matter shows there is a lack of clarity regarding Klaus' contract.
Granting Klaus his stipend is not mentioned in board minutes of Jan. 8 and Jan. 22, when changes to Klaus' contract were discussed.
Adding to confusion about the contract is the fact several board members said they didn't review Klaus' contract before voting on it. The contract was signed by Olson and Evans, but which other board members, if any, reviewed the document before it was finalized remains unclear.
Klaus' stipend payments became an issue after an April 19 Leader-Telegram story detailing how former board President Olson, at Klaus' request, signed and backdated a document allowing Klaus to begin receiving his monthly stipend payments last August, two years earlier than called for in previous versions of Klaus' contract.
Olson was no longer a board member when she signed the document, and other board members said they were unaware of the contract change. Klaus did not receive his stipend payments, and the board voted in October that he is not eligible for them until age 55.
Stipend questioned
The accounts of Olson, Evans and O'Brien to police cast further doubts about the validity of Klaus receiving his stipend before age 55.
Those former board members told police that when they learned of Klaus' request to access his stipend early, they consulted district Personnel Director Jim Kling about changing the wording of the stipend portion of Klaus' contract to make those payments happen.
However, Kling told Klaus in July 2007 - five months after Klaus' contract was approved - that he needed further documentation besides Klaus' contract before granting the early retirement stipend, according to the police report.
"It was determined that although (Klaus') age in the contract for (stipend) eligibility was 53, more authorization was needed before I would approve stipend payment to begin," Kling told police.
Kling disputed the notion he was involved in crafting the early retirement portion of Klaus' contract. He told investigators those board members did not seek his input on that topic and that "he is certain he was not present for any such conversation" at meetings when Klaus' contract was discussed.
Kling and the board reached a resignation and retirement agreement on Monday, prompted in part by Kling's role in the Klaus contract matter.
No retirement
The attempt to pay Klaus his retirement stipend is also questionable given that he didn't officially retire.
According to Klaus' contract, he was eligible to begin receiving his monthly stipend payments upon "district retirement" and age 53. Backers of Klaus receiving that money say the "district retirement" phrase inserted into the contract referred to Klaus' retirement as superintendent.
But others said that phrase refers to the fact that Klaus must retire from the school district before receiving those payments. No other district employee contract has a similar phrase.
Retiring and then continuing to work in the district isn't uncommon. For instance, four district administrators last school year - interim Superintendent James Leary, Deputy Superintendent Gregg Butler, Business Services Director Dan Van De Water and Kling - held those positions despite having previously retired.
However, before working for the district they had officially retired and left school employment for 30 days as required by state law. In contrast, Klaus did not file for retirement and has told the Leader-Telegram he did not intend to retire.
Long-term contract
It's not just the retirement stipend portion of Klaus' contract that is questionable.
In approving Klaus' contract on Feb. 5, 2007, the board ran afoul of state statute 118.24, which limits school district administrator contracts to three-year terms, typically negotiated as two-year terms with the option to add a third year part-way through the first year.
In a sense Klaus' contract does just that. The board approved his employment from July 1, 2009 through June 30, 2011, with the addition of one year later if the board didn't object.
The problem, school law experts said, is that contract was negotiated on top of an existing two-year contract, giving Klaus five year's security at the time the deal was negotiated.
Having consecutive two-year agreements in place is highly unusual, legal experts said, violating the spirit of state law by providing Klaus with such lengthy security.
The longer contract could hinder a possible settlement between Klaus and the board as the two sides look to resolve the contract matter. Guelzow has said any settlement agreeable to Klaus would have to include buyout of the contract and Klaus receiving his stipend.
Emerson can be reached at 830-5911, (800) 236-7077 or julian.emerson@ecpc.com.
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.
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.
Tuesday, July 22, 2008
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.
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.
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