Iowa school board association leader fired

DES MOINES -- The Iowa Association of School Boards has ousted executive director Maxine Kilcrease, saying she requested and accepted a salary increase of more than $100,000 without approval of the board of directors.

IASB Board President Russ Wiesley said Kilcrease's activities have damaged the organization's reputation.

The board voted unanimously Thursday to terminate Kilcrease, who worked at the IASB less than a year.

“We believe this to be in the best interest of the association,” Wiesley said at a Friday news conference announcing the decision. “As a board, we feel we were misled and blocked from information, and it has caused a huge amount of distress for this critical Iowa organization that we so deeply care about.”

The association recently put Kilcrease on administrative leave and has been investigating why she was being paid a salary officials say amounted to $367,000 per year when her annual salary was set at $210,000.

Kilcrease's attorney, Sean Spellman, said the board has continued to provide misinformation, but he would not elaborate.

“We disagree with the board's decision, and Ms. Kilcrease is prepared to take all legal remedies she can to address the situation,” Spellman said.

Attorney Nolden Gentry, who is representing the IASB, said they will request that Kilcrease repay about $50,000 that was over and above what she would have earned. IASB officials say she paid back $59,000 in early March.

The IASB also cited Kilcrease's decision to provide significant raises to a few employees at a time when other employees were terminated for financial reasons as a reason they were letting Kilcrease go.

Wiesley said Kilcrease informed the IASB's executive committee in February she would have to make significant staff cuts.

“I told her at that time that could not happen until we had a full financial picture,” Wiesley said.

Auditors at an outside auditing firm have said IASB management blocked them from sharing their concerns about the association's financial practices with the IASB's board of directors.

Board President-elect Lee Ann Grimley verified with the auditing firm earlier this month that there had been a large increase in Kilcrease's salary, IASB officials said.

IASB officials said Kilcrease has refused to cooperate with an investigation into allegations of impropriety in the operation of IASB.

The organization alleges Kilcrease violated IASB policy by failing to use a competitive bidding process for projects over $10,000 and failing to obtain board approval for projects over $75,000, by breaking them into smaller pieces.

Wiesley said the IASB is reinforcing internal policies and controls and reviewing all of the IASB's business services to ensure they are operating effectively.

The search for an IASB interim director and financial directors is expected to begin immediately.

The Legislature's Government Oversight Committee has been holding hearings over what happened at the IASB, which represents public school districts across the state.

Kilcrease has not appeared at those hearings.

The Legislative Council on Friday unanimously approved giving the oversight committee subpoena powers and authorized the committee to meet over the interim to continue its investigation of the IASB.

The subpoena power is the same given the committee during its CIETC probe in 2006, Senate Majority Leader Mike Gronstal, D-Council Bluffs, said.

Lawmakers also have questioned credit card policies at the IASB after former chief financial officer Kevin

Schick allegedly used an association credit card to purchase airplane tickets to Bora Bora.

Wiesley said the IASB has been in touch with the Federal Bureau of Investigation, Des Moines Police Department, Polk County Attorney's Office and the Iowa Attorney General's Office, among others.

Iowa Attorney General Tom Miller said his office is looking into the matter.

“I think Iowans have every right to be concerned,” Miller said. “The school board association is largely funded by public money of one type or another. That money should be spent right.”

The IASB board on Thursday also voted to decrease dues by 5 percent next year, recognizing state funding cuts imposed last year. The organization represents 361 Iowa public school districts, as well as community colleges and area education agencies.

“We want to get back to focusing on our members, as that's what's important to us,” Wiesley said.