Judge declines to set aside subpoena for Kilcrease, former IASB director

DES MOINES – A judge declined to rule on the request of the former director of the Iowa Association of School Boards to quash a subpoena, clearing the way for her to testify before a legislative committee Thursday.

The IASB fired Maxine Kilcrease in March, saying she requested and accepted a salary increase of more than $100,000 without approval of the board of directors.

The oversight committee issued a subpoena to Kilcrease to appear at its Thursday meeting as the committee continues its investigation into the possible misuse of taxpayer dollars at the IASB.

In seeking to have the subpoena quashed, Kilcrease's attorney, Sean Spellman, expressed concern over statements made by members of the Iowa Legislature's Government Oversight Committee.

Spellman cited a statement by Sen. Tom Courtney, D-Burlington, who compared the people involved in the alleged fraud to “common thieves.”

“We spend over $3 billion a year in this state on education and these people found a way to steal some of it,” Courtney said at the time.

Courtney also said he hoped all those who were involved ended up in prison and stayed there for 100 years.

Polk County District Judge Robert Blink the said the question was whether statements made by committee members rise to the level of a constitutional infringement of Kilcrease's rights, one of the rare exceptions when the Judicial Branch could become involved in the legislative inquiry.

While the statements are understandably of concern, Blink said, those statements do not rise to the level of infringement of constitutional rights.

“As a result, it would be premature for this court to entertain a motion and grant a quash of a subpoena,” Blink said.

Spellman said Kilcrease planned to appear before the committee Thursday. He said she is not required to answer questions.

“Ms. Kilcrease understands her rights and will exercise them accordingly,” Spellman said.

Other current and former employees have agreed to testify Thursday, legislative officials said.

Ahead of Thursday's hearing, the IASB released an update of actions taken recently and new policies adopted to “right the ship.”

They said the initial finding of an audit for 2009 found that other than Kilcrease's salary increase and unauthorized credit card charges by its former chief financial officer, there was no sign of fraud or misuse of money within the IASB programs and services.

The IASB also announced the resignation of past president Jack Hill, who served on the board eight years, and Bill Morain, who began the position of treasurer in January.

IASB officials said they would work immediately to fill the treasurer position and are moving forward to find a longer-term interim director.

The organization also revealed it has received five whistleblower complaints since the beginning of the year and expected to issue a report in the coming weeks.

In addition, the IASB announced it had repaid the federal government nearly $494,000 that it had mistakenly double-billed the government for one of its programs.

The IASB is an organization made up of elected school board members from Iowa's public school districts, community colleges and area education agencies.