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Thursday, September 18, 2008
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Gmeinder leaves school board 'Lack of confidence' in business manager Steve Dickinson cited Staff Writer The Brainerd School Board's longest-serving and most outspoken member resigned Wednesday, citing her "lack of confidence in the business manager," Steve Dickinson, as a reason for her sudden departure.
Ruth Gmeinder said she would have resigned at Monday's special board meeting but couldn't because there wasn't an open portion of this closed meeting when it would have been most appropriate.
Instead, Gmeinder handed in her resignation to board chair Reed Campbell Wednesday afternoon at his office.
In her letter, Gmeinder wrote: "It is with a heavy heart that I write this letter, but after considerable thought I have decided to resign from the Brainerd School Board. I feel a fiduciary responsibility to the citizens of the Brainerd School District who elected me and I can no longer remain in this capacity because of my lack of confidence in the business manager."
Gmeinder went on to thank those who have supported her during the nearly 20 years she's served on the board, adding that she has thoroughly enjoyed her years of service.
Gmeinder said in a phone interview that board members have encouraged her to stay but they also understood her reasons for leaving. She said she spoke with board attorney Tom Fitzpatrick Tuesday to make sure no additional expenses would be incurred by the district because of her resignation. She has three years left on her four-year term. The board will now need to appoint someone to her seat for a one-year term and then the position will be up for re-election for a special two-year term with the three other board seats up for re-election next year.
Gmeinder declined to cite specifics on why she has lost her confidence in Dickinson, director of business services for the district, but she said she has thought about this for a long time and it hasn't been one incident but recurring issues. She did say the recent discovery of an extra $1.6 million in the district's unreserved fund balance after the board cut $5.5 million was a "deciding factor" in her resignation. The board members can only make decisions based on information they are given and some information given to the board may not have been the right information, she said.
"This particular topic has been a source of frustration for me for so long that it has affected my health," said Gmeinder. "I can't live with my conscience any longer, and the excess fund balance was the deciding factor. I really hated to end my career like this. I really did. ... I don't really want to say so much because I care so much about the integrity of the school district. I don't want it to be harmed any more than it is."
Dickinson declined an interview.
In a written response via e-mail, Dickinson provided the following statement:
"I am stunned to hear that Ruthie is resigning," said Dickinson. "She has been an outstanding board member. This recent news about having more in our fund balance than originally projected has been challenging for all of us to communicate. But the bottom line is that it is good news. We have gone through this past year together, setting our budget, revising our budget and making budget reductions based on the best information possible at that time. Our audit firm assisted us mid-year to confirm our revenue budgets. I will continue my style of open, honest communication, providing the district with the best budgeting decisions possible and with the best information available. They say 'hindsight is 20/20.' This is a situation where it is too easy to second-guess decisions. I would understand if Ruthie is struggling with that now."
Gmeinder said she has the utmost respect and confidence in Superintendent Steve Razidlo and his support staff.
"I would like to see some very strong financial support for Steve Razidlo who is just starting his superintendency and truly wants to succeed," said Gmeinder. "He needs a really good, strong financial adviser."
Razidlo said he is sad that Gmeinder is stepping down from the board.
"The district has benefited from Ruth's leadership as a past chair of the board and presently as chair of the curriculum committee and as an outstanding member of this community who has seen the ups and downs that a school district can go through," said Razidlo. "We're thankful for her long-standing support and experience, her work with staff and gifts she's given to children. We hope that Ruth stays active in her desire to promote literacy and she's talked about that with me. We hope she is able to work with us to do that."
When asked for his reaction to Gmeinder's reasons for resigning, Razidlo said, "I do not share all of Mrs. Gmeinder's feelings."
"We are thankful that Ruth has served the interests of the community and the board for so long and we hope that she feels peace from making this decision," said Razidlo. "I think that this is a very difficult time for our district and the last 12 months have been especially difficult for all board members. This is a very difficult time to be a board member."
Board member Bob Nystrom said he shares Gmeinder's frustration. He explained what he believes led to Gmeinder's resignation.
Nystrom, who serves as finance committee chair, said since the summer of 2007, the district has projected an unreserved fund balance around $240,000 remaining on June 30, 2008. He said by June 30, 97-98 percent of the district's budgeted expenses had been paid and revenues received and Dickinson was still projecting the balance to be around $240,000.
Nystrom said he asked Dickinson at a July 14 finance committee meeting if that number was still accurate and Dickinson told him it may be higher, but he didn't specify amounts. Nystrom said at the Aug. 26 community budget committee meeting Dickinson said there was going to be more money coming in, but again, didn't specify amounts.
The board learned at its Sept. 8 finance committee meeting that the unreserved fund balance for June 30, 2008, was actually at $1.85 million after auditors came in to close out the books.
Nystrom said he and board chair Reed Campbell met with Razidlo and Dickinson last Thursday to find out when they knew about these extra funds. Nystrom said Dickinson told him his office staff knew in June that the balance would be at least $800,000, or about $600,000 over, but that doesn't account for the additional $1 million in extra funds.
"I don't think he did anything wrong, there was no wrongdoing," Nystrom said of Dickinson. "It's just a total lack of communication and if we as a board knew this information earlier in the summer we could have discussed putting back some more teachers. But we're only as good as the information we receive. We need to trust our main administrative staff to give us complete information to make those recommendations."
"I'm just a very frustrated board member right now and angry," Nystrom said. "It's a good situation to have almost $2 million in our fund balance but the cuts were too deep. ... This was the final straw. I've been on the finance committee for seven years, chair of the finance committee for almost three years, and to me, this is an embarrassment. I find out from the auditor and not from the superintendent and the business manager? And I think Ruth shares the same feeling."
Nystrom said Gmeinder's resignation is a great loss to the school district.
"She's been an outstanding board member," said Nystrom. "She's got such a great understanding of public education. With her voice gone it is a huge loss to the board. It is a sad day for our district that she felt she had to resign."
"It is very sad news to lose our most tenured, our most outspoken board member," said Campbell. "It's a tragedy and doesn't make me feel good but again, she's been struggling over this for quite some time and it has affected her health. I'd love to try to talk her out of it but if she's unable to sleep at night and anguishing over this decision ... We have to figure out what the next step is and how to fill her position."
"While not completely unexpected, the decision of Ruth Gmeinder to resign saddens me," said board member Lew Hudson. "In her two decades on the board she has contributed much wisdom."
Hudson now becomes the senior member of the board with 15 years of service. He declined to comment on Gmeinder's reasons for leaving because he hadn't had time to discuss the issue with school staff or other board members.
"The district has lost a wonderful and dedicated school board member," said board member Ruth Nelson. "Ruth has served this district with honor for many years and she will be missed. Ruth has always been passionate about doing what is in the best interest of the students. Personally, I am very saddened by this news."
"Obviously we're all sad to see Ruth step away from the board," board member Kent Montgomery said. "For 20 years she's provided some tremendous leadership and real solid decision-making and we're going to miss that, in addition to missing Ruth as a person, too."
Montgomery declined to provide his reaction to the reasons Gmeinder gave for her resignation.
"Those are her opinions," Montgomery said of Gmeinder. "I want to look into things a bit more. She had her opinions and I'm still forming mine and looking into the situation."
Gmeinder has served on the school board since 1989. She is a 1998 Brainerd Citizen of the Year and is active in the Brainerd Noon Rotary Club where she's been involved in its Project Literacy campaign.
Razidlo said a special board meeting likely will be called for sometime next week to discuss the process of appointing someone to Gmeinder's board seat for a one-year term.
JODIE TWEED may be reached at jodie.tweed@brainerddispatch.com or 855-5858.
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