Key figure refuses to answer some questions in IASB probe

DES MOINES – The former director of the Iowa Association of School Boards refused to answer some of the questions posed by a legislative panel Thursday, asserting her Fifth Amendment right against self-incrimination.

Maxine Kilcrease, who was ousted from the organization in March, appeared before the Legislature's Government Oversight Committee alongside her attorney, Sean Spellman.

When Kilcrease was fired, IASB officials said she requested and accepted a salary increase without approval of the board of directors. Kilcrease's contract established a $210,000 annual salary, but IASB officials said she was being paid what amounted to $367,000 per year.

Spellman described his client Kilcrease as a valued and respected leader at IASB who inherited a disorganized and financially strapped organization. He said she implemented changes to make the IASB stronger.

Spellman said Kilcrease had a legitimate contract with

IASB that was improperly terminated by the IASB without a thorough investigation.

Kilcrease told lawmakers she could not answer their questions because she did not have access to IASB records containing that information.

When a lawmaker asked Kilcrease to describe the disorganization and financial situation at the IASB, Kilcrease refused.

“I just don't have the information that would make this an accurate and comprehensive response to you,” Kilcrease said.

Kilcrease left the hearing without speaking to reporters.

Rep. Vicki Lensing, an Iowa City Democrat who serves as co-chair of the oversight committee, was disappointed not to get answers from Kilcrease Thursday.

“It was just a little bit frustrating when that was information that would have been helpful,” Lensing said.

Kilcrease's appearance Thursday came after she lost a court battle to quash the subpoena ordering her to appear before committee.

Spellman complained that the oversight committee's hearing was not the proper forum and accused some lawmakers of using “divisive communications” as they investigated Kilcrease's salary increase and other irregularities at the organization.

Sen. Tom Courtney, D-Burlington, previously compared the people involved in the alleged fraud to “common thieves.”

After Kilcrease started as IASB's director in July 2009, other top paid employees saw pay hikes that were later rolled back by the organization's board.

Mary Gannon, an attorney and lobbyist for IASB, said she was called in and told she was getting a pay raise.

Gannon's salary jumped from $96,705 to $125,000 before the board reinstated her previous salary.

While some employees saw bigger paychecks, another longtime employee saw the door.

Margaret Buckton told lawmakers she lost her job with IASB just months after Kilcrease took over as executive director.

“She explained that there was a budget problem, that the board had given her, the executive director, the authority to make staff adjustments, that my position was eliminated and my employment was terminated,” Buckton said.

Credit card practices at the organization also have come under scrutiny after its former chief financial officer was investigated for allegedly using an IASB credit card for airplane tickets to Bora Bora unrelated to business travel.

Lensing said committee is expected to meet again in the coming months after new IASB audits are completed.