Eric Bruder
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Eric Bruder was an at-large member of the St. Joseph School District Board of Education in Missouri. He was first appointed to the board on April 10, 2015. Bruder was appointed to replace former member Dan Colgan, after he resigned from his position on March 5, 2015. After he was appointed, Bruder said, “It’s a good board and I think we can work together going forward, and I think I bring a unique set of talents to the board to be able to provide the analysis necessary and to ask the tough questions to push the district forward.” Bruder lost his re-election bid on April 5, 2016.[1]
Bruder ran for a full term on the board in 2016. He was defeated in the general election held on April 5, 2016.[2]
Biography
Bruder has worked as the president and CEO of Van Am Tool & Engineering in St. Joseph since August 2014. He previously worked as the executive vice-president and chief operating officer for Wireco for 21 years. He earned a bachelor's degree in electronics engineering technology from Missouri Western State University and an MBA from Rockhurst University. Bruder is a U.S. Army combat veteran. He served as a sergeant from August 1987 to July 1991.[1][3]
Bruder serves on a number of other boards, including the Missouri Western State University (MWSU) Craig School of Business Advisory Board, the United Missouri Bank Advisory Board and the MWSU Foundation Board of Directors. He received the MWSU Engineering Technology Community Excellence Award and the MWSU Distinguished Alumni Award in 2011, and in 2010, he received the MWSU Athletic Department Silver Anniversary Award.[4]
Elections
2016
Two of the seven seats on the St. Joseph School District school board were up for general election on April 5, 2016. The seats of first-term incumbent Brad Haggard and April 2015 appointee Eric Bruder were up for election. Bruder filed for re-election. He was joined on the ballot by challengers John Paul Leo Stehr, Maggie Elder, Art Van Meter, Sarah Hochschwender, Kathy Northup, Bryan Green, Teresa Simmons, Michael Dulcan and Tami Pasley. Green and Pasley defeated the other eight candidates in the April election and will take seats on the St. Joseph school board in May.[2]
Results
| St. Joseph School District, At-Large General Election, 3-year terms, 2016 |
||
|---|---|---|
| Candidate | Vote % | Votes |
 Bryan Green |
22.74% | 3,145 |
| Tami Pasley |
17.23% | 2,382 |
| Eric Bruder Incumbent | 16.06% | 2,221 |
| Kathy Northup | 14.22% | 1,967 |
| Art Van Meter | 11.43% | 1,581 |
| Maggie Elder | 6.34% | 877 |
| Teresa Simmons | 6.20% | 857 |
| Sarah Hochschwender | 3.00% | 415 |
| Michael Dulcan | 1.61% | 222 |
| John Paul Leo Stehr | 0.99% | 137 |
| Write-in votes | 0.17% | 24 |
| Total Votes (100) | 13,828 | |
| Source: Buchanan County Clerk, "Election Summary Report OFFICIAL," accessed May 3, 2016 | ||
Funding
Bruder did not report any campaign funding in the election.[5]
Endorsements
Bruder was endorsed in the race by the News Press Now editorial board.[6]
Issues
Investigations into accounting and hiring practices
The St. Joseph School District faced investigations by the Missouri State Auditor, the United States Department of Education, and the Federal Bureau of Investigation related to stipends issued by former Superintendent Fred Czerwonka. The former superintendent, appointed in July 2013, allegedly used a rebate from the district's insurance provider to distribute $270,000 in stipends to 54 administrators without board approval. District policy required a report to the school board and a deposit of any excess funds including refunds from vendors. Czerwonka, district Human Resources Director Doug Flowers, and school board member Dan Colgan also faced accusations of using their positions to guarantee promotions within the district and raises for family members.
On January 20, 2015, both Czerwonka and Chief Operating Officer (COO) Rick Hartigan were placed on paid administrative leave. The board later voted in February 2015 to fire Czerwonka. Hartigan was fired a week later, and Flowers left the district with a severance package in July 2015.[7]
Beau Musser involvement, suspension and departure
The flashpoint for the mismanagement allegations was a school board meeting on March 24, 2014. Board member Chris Danford presented information she received from district residents about the stipends offered by Czerwonka. Beau Musser, the district's chief financial officer (CFO) at the time, also revealed that he received a list of stipend recipients from Flowers. Musser was placed on paid leave on March 28, 2014, after the superintendent presented him with several accusations of sexual harassment against district employees. The CFO claimed in a lawsuit against the district that Czerwonka offered to drop the harassment claims if he resigned from his position. During Musser's time as CFO, he found that the district could not account for 4,000 gallons of fuel, failed to follow bidding procedures for district vehicles and approved $189,000 in consulting fees without board approval.
A press release issued by the district in November 2014 revealed that Musser would be returning to work, with the transitional assistance of OMNI Employment Management Services, an HR consulting firm. In addition, documents obtained by the St. Joseph News-Press stated that the district would conduct an investigation into whether the initial suspension of Musser by administrators was justified.[8]
On March 26, 2015, in an executive session, the St. Joseph Board of Trustees voted 5-0 to settle Musser's lawsuit against the district charging wrongful termination, breach of contract, and slander. "We are relieved that we are at this point," said board member Chris Danford. On April 10, 2015, the district announced that it was paying Musser $450,000 to settle the slander lawsuit. The full agreement can be read here.
On September 10, 2015, Musser resigned from his position effective October 14, 2015. Initial reports stated he intended to keep his new job private.[9]
Secret tapes, superintendent fired
It was revealed in a January 2015 Ballotpedia report that then-CFO Beau Musser had secretly taped conversations from crucial meetings with Czerwonka and other district officials. Those tapes were reviewed by lawyers involved in Musser's lawsuit, in addition to the FBI.
On January 20, 2015, after a closed door session, Czerwonka and Chief Operating Officer Rick Hartigan were both put on paid administrative leave by a vote of four to one. Board members Kappy Hodges, Lori Prussman, Chris Danford, and Brad Haggard all voted in favor of the two men being placed on leave. Dan Colgan was the only board member to vote against it. However, Martin Rucker was not present for the meeting and told News-Press he was working in Jefferson City and could not make it to the meeting. Dennis Snethen attended the meeting with members of the state auditor's office, after which he left and did not return for the vote about Czerwonka and Hartigan's leaves.[10] Both exited the building without comment. On February 20, 2015, the school board voted 6-0 in a closed executive session to fire Czerwonka. Colgan was the only board member not present at the meeting. On May 2, 2015, Czerwonka sent his letter of resignation to the St. Joseph News-Press, skipping the appeals process allowed by his contract.
Dr. Jake Long served as the acting superintendent from Czerwonka's ousting through the end of the 2014-2015 school year. Shortly after taking the position, Long announced his intention to resign from the district and to take the superintendent position at Mountain Home Public Schools in Arkansas.
On June 4, 2015, the school board voted to hire Princeton Superintendent Robert Newhart as interim superintendent. Newhart took office on July 1, 2015, with a one-year contract and a salary of $174,500.[11] Following the announcement, St. Joseph Board President Brad Haggard stated, "Dr. Newhart has all the qualities we are looking for in an interim superintendent. We will lean on his leadership and experience as we continue to focus on making key changes in the district." Chris Danford insisted, "I believe he's the right person to lead us as we continue to clean things up."[12]
2015 financial audit report, "poor" rating
On February 17, 2015, a 53-page financial report was released by the Missouri State Auditor. Approximately 250 parents and community members attended its release at a new elementary school that opened in 2014. Missouri Auditor Thomas Schweich (R) revealed his findings to the crowd: a widespread lack of financial control. Schweich pointed to stipends unknown and unapproved by the school board, financial mismanagement that is now speculated to date back as far as 2000. The total number of dollars involved in the stipend system could range from $25 million over eight years to $40 million over 14 years. In either case, says Schweich, "a staggering amount of money" is involved.
At the forefront, the audit points to two of the district's top administrators, former Superintendent Fred Czerwonka and Chief Operating Officer Rick Hartigan, for adding thousands of dollars to their compensation without board approval and for other expenses charged to the district. For example, Czerwonka was given an additional $6,000 on top of his $190,000 salary for having a graduate degree. That degree is required for the position and was not listed anywhere in Czerwonka's contract. Hartigan’s base salary in 2014 was $97,700; however, he received an additional $35,343 in stipends for being on the superintendent’s council, night duty, longevity, and for something simply labeled "additional." According to Schweich, no one at the district could explain what this "additional" expense could be.
Schweich also rated the district’s performance as "poor." St. Joseph is the only Missouri school district to be rated that low by the state auditor’s office. According to school board member Chris Danford, the strain of this investigation hurt the district's students. "We don’t have textbooks for everyone. We have larger classes. I mean, we could have done so much more for our students. They don’t get those years back." The audit also said the district had too many no-bid contracts, did not have an adequate system for tracking district property such as cell phones and tablets, and had too many employees with credit cards.
Allegations of nepotism
Nepotism was also a significant problem in the district, according to Missouri Auditor Thomas Schweich (R). The audit singled out Human Resources Director Doug Flowers and school board member Dan Colgan, a retired St. Joseph superintendent. Doug's wife Tammy Flowers and Czerwonka's wife Wendy both received controversial promotions and raises in 2014. According to district sources, both women were recently interviewed by the FBI in their district offices.
In regard to Colgan, the audit criticized the district for providing him with medical insurance for life when he retired in 2005. In 2014, the amount paid for Colgan's medical insurance was $4,600. Additionally, Colgan’s son, Mark, also managed the district’s warehouse. In 2014, he was promoted, and given a $16,226 raise. The audit said no documentation detailing Mark Colgan’s additional duties was created. The position also required a master’s degree, which Mark Colgan did not have.
The audit stated that the district "has not established adequate policies and procedures for the hiring, supervising and tracking of related employees."
Reaction to financial report
Following the release of the audit, acting superintendent Dr. Jake Long said the district would continue to make improvements with regard to the auditor's recommendations. District officials said that many of the changes were underway since April 2014, when they were alerted to some of the financial issues. Those issues could not be discussed previously because of auditor investigation confidentiality issues. At the time Long stated, "[District officials are] not going to wait until the problem comes out to change it if it’s wrong and the wrong process to go about doing it.”
Then-CFO Beau Musser commented on the tough decisions the district would have to face in regards to payroll and accounting, as a result of the audit. Musser said he was in favor of adequate payroll staff so that oversight was provided for those concerns. "We have a $120 million budget and we have one accounts payable clerk. Any organization our size would be wise to have a purchasing manager and have a lot more control," he commented.
Board member Kappy Hodges stated the district would follow any budget recommendations set forth by the auditor and would also conduct a market analysis salary and expenditure study. Hodges thought accountability was the answer: "I think we need to hold people accountable that made bad judgment calls that are more than just a simple mistake," he said.[13]
Audit by the IRS
In June 2015, the district was notified by the IRS that auditors from the agency would be arriving to examine "a wide variety of information."[14] A press release from the district stated that the audit would include board minutes, organizational charts and termination agreements, among other documents. Board member Brad Haggard said that the district "[intended] to fully comply and answer each of the items addressed in the IRS request."[14]
Initially thought to have been completed within three days, the IRS announced in mid-August 2015 that the audit would take a full year to be finalized. Along with this news, the board was also asked to move forward with recommendations put forth by the state audit released in February 2015. There was no statement from the IRS as the agency does not comment on ongoing audits.[15]
Colgan resigns, charged with federal crime
After the state audit revealed many discrepancies in the financial records of the school district, the pension of former board member and superintendent Dan Colgan came under its own investigation by the Missouri Public School Retirement System (PSRS) in September 2015. On September 18, 2015, the board unanimously voted to "discontinue current and future health care coverage payments for Colgan," according to St. Joe Channel.[16]
"Legally, he should have never been given this coverage. It is unlawful to extend this special privilege to one former employee over all other employees," said board member Lori Prussman. At issue was the fact that Colgan had been reimbursed for his insurance payments. All retired employees have the right to access the district's healthcare, but they are supposed to pay premiums to do so. Colgan "should have been required to pay premiums for the coverage and not been reimbursed for it by the district," according to W. Joseph Hatley, an attorney for the board of education.[16]
Colgan worked for the St. Joseph School District for 38 years in various positions including teacher, human resources director and superintendent. He retired in 2006 and joined the board in 2010. After seeing news coverage of the state audit, the PSRS decided to review Colgan's retirement income. The FBI contacted the executive director of PSRS requesting results from the pension investigation once it was completed.[17]
A school employee's pension is based on the three-highest years of compensation while employed by the school district. Colgan's compensation increased by approximately $35,000 in his last three years of employment in the district. Those final increases in compensation could have increased his annual retirement income from $132,000 to $162,000, according to News-Press Now. The PSRS investigation was initiated to determine whether the increases were approved by the board and in accordance with Colgan's contract.[17]
As a result of the controversy surrounding him, Colgan resigned from his position as a board member on March 5, 2015. The resignation came after much speculation regarding his status, largely because as an elected member, Colgan couldn't have been ousted. There is no law that allows St. Joseph Board of Education members to be recalled by voters. Colgan sent a terse resignation letter to St. Joseph Board President Brad Haggard, calling his decision to resign difficult "as I dearly love the St. Joseph School District." The board took applications for the open seat, which board member Chris Danford said they hoped to fill by the April board meeting. In that meeting, the board voted unanimously to appoint local business executive Eric Bruder to fill the position.[18]
In April 2016, the PSRS completed its investigation and ordered Colgan to return $660,000 in unearned retirement benefits. This was reportedly the most money the state's educator pension system had ever required to be returned.[19] The FBI completed its investigation of Colgan soon thereafter in June 2016, and the bureau charged the former district superintendent with a federal crime. Colgan appeared before a district court judge regarding the charge on June 13, 2016.[20]
Criminal investigation called for, changes in legislation
In the wake of the audit's release, a Missouri state senator is calling for a criminal investigation by the Missouri attorney general of those involved in the scandal. State Sen. Rob Schaaf (R) from St. Joseph deems the actions uncovered by Missouri State Auditor Thomas Schweich "illegal and greatly disturbing." Schaaf said in a statement that he has asked the attorney general to "closely examine the documents the auditor has compiled and bring charges against those responsible for the mishandling of the funds within the St. Joseph public schools." He is also calling for the Governor's Office and the Missouri Department of Elementary and Secondary Education to demand $3.5 million in state aid be returned from the school district.[21]
In addition, Schaaf filed legislation that would shorten school board terms from six years to three years. That bill, Senate Bill 473, passed on April 2, 2015. According to Schaaf, longer terms foster a cozy relationship between the board and administrators, which can prompt the lack of oversight and accountability uncovered by the audit. The bill will also allow St. Joseph voters to recall school board members.[22]
On April 8, 2015, the Missouri General Assembly overrode a gubernatorial veto of a bill that aims to keep superintendents from seeking a seat on the board of a district they previously served. Resigned board member Dan Colgan served as St. Joseph's superintendent for 14 years before he sought election to the board. Missouri Gov. Jay Nixon (D) vetoed the bill on April 3, 2015, saying that the law would prevent too many administrators from seeking office. Lawmakers are pledging to revise the bill to address the governor's questions. “We are committed to addressing the governor’s concerns in another bill and still have two provisions related to the St. Joseph School District we are continuing to work on,” Schaaf said.[23]
Firings continue
A week after the St. Joseph board voted to fire Superintendent Fred Czerwonka, Chief Operating Officer Rick Hartigan was also relieved of his duties at St. Joseph on February 28, 2015. Hartigan had previously been in charge of all district vendor contracts. On the same day, the board demoted Human Resources Director Doug Flowers and offered him a teaching contract for the 2015-2016 school year. In July 2015, the board came to an agreement with Flowers and paid him a $32,000 severance package in order to leave the district.[7] These three top administrators were roundly criticized in a report from the Missouri State Auditor. According to sources, all were interviewed multiple times by the FBI as part of the ongoing investigation.
Grand jury sends subpoena to West Plains School District
In late March 2015, the federal grand jury in Kansas City, Mo., sent a subpoena to West Plains School District, also in Missouri, where Czerwonka served as superintendent from 2009 to 2013. West Plains Superintendent Dr. John Mulford confirmed he received the subpoena in the mail. "The FBI made it clear that the West Plains District is not being investigated," Mulford said. "The subpoena is for records for a former West Plains employee now in St. Joseph." At the same time of the request, the jury sent a fourth subpoena to St. Joseph, with Czerwonka being the link between the two. Sources say the latest subpoena in St. Joseph demands expense reports and time sheets for some top administrators and contracts from certain district vendors.
Financial repercussions
In December 2014, it was disclosed in a report by Ballotpedia that the district could lose up to $2 million in state funding in addition to the slew of federal charges facing them. The Missouri Department of Elementary and Secondary Education notified the district that it was disallowing reimbursement for more than half of the district's summer school classes because they did not follow specific guidelines. Some of these offenses included the class was not being held in a district building and that parents were charged a fee for the class. The district has since disputed some of the charges. To add to the mix, a significant part of the district’s property tax levy sunsets this year. In early May 2015, the St. Joseph school board decided not to renew that levy.[24] The district will lose $6.5 million at a time when the district is already deficit-spending and eating into its reserves. A poll indicated that if the levy had made it to the ballot, 48 percent would have voted against it, 39 percent would have voted to renew it and the remaining 14 percent were undecided.
Federal investigation culminates in prison time for Colgan
In conclusion to the two-year long investigation of the St. Joseph School District, Colgan stood before U.S. District Judge Dean Whipple in a Kansas City courtroom on June 13, 2016. He faced one count of wire fraud, a federal offense, tied to his improper collection of $660,000 from the Missouri Public School Retirement System (PSRS). Colgan pleaded guilty to the charge after reaching a plea bargain with U.S. Attorney Tammy Dickinson and will serve one year and one day in a federal prison facility.[25] Colgan used the internet in his dealings with the PSRS, which meant information was transmitted across state lines as it hit various servers, according to KCUR.[25] This made his actions a federal crime. "Today's criminal felony conviction brings to a conclusion an extensive, thorough investigation into fiscal wrongdoing in the St. Joseph School District. We do not anticipate charges against any additional defendants in the future," stated Dickinson.[25] Colgan reported to prison in September 2016.[25]
Recent news
The link below is to the most recent stories in a Google news search for the terms Eric Bruder St. Joseph School District. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.
See also
| St. Joseph School District | Missouri | School Boards |
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External links
Footnotes
- ↑ 1.0 1.1 News-Press Now, "Eric Bruder chosen as new board member," April 10, 2015
- ↑ 2.0 2.1 Mandy Gillip, "Phone conversation with Joey Austin, director of St. Joseph School District school board public relations," January 20, 2016
- ↑ LinkedIn, "Eric Bruder," accessed June 11, 2015
- ↑ St. Joseph School District, "Eric Bruder application to serve on the board of education," accessed June 11, 2015
- ↑ Missouri Ethics Commission, "Candidate or Committee Name Search," accessed March 31, 2016
- ↑ News Press Now, "Bruder, Van Meter best for schools," March 28, 2016
- ↑ 7.0 7.1 KCUR 89.3, "House Cleaning In The St. Joseph School District Complete," July 30, 2015
- ↑ St. Joseph News-Press, "Firm to investigate Musser suspension," November 5, 2014
- ↑ St. Joseph News Press, "Beau Musser resigns from school district," September 10, 2015
- ↑ St. Joseph News-Press, "Board again waives attorney-client privilege," January 29, 2015
- ↑ St. Joseph Post, "Newhart named interim SJSD Superintendent," June 4, 2015
- ↑ KCUR 89.3, "Scandal Plagued St. Joseph School District Picks Interim Superintendent," June 4, 2015
- ↑ News-Press NOW, "District begins on long road to recovery," February 19, 2015
- ↑ 14.0 14.1 KCUR, "Scandal-Plagued St. Joseph School District Faces IRS Audit," June 22, 2015
- ↑ KCUR, "IRS Audit Of Scandal Ridden St. Joseph School District Will Take One Year," August 11, 2015
- ↑ 16.0 16.1 STJOECHANNEL.com, "Board Votes to Stop Health Insurance Payments for Colgan," September 21, 2015
- ↑ 17.0 17.1 News-Press Now, "Colgan pension under review," September 9, 2015
- ↑ St. Joseph News-Press, "Eric Bruder chosen as new board member," April 13, 2015
- ↑ KCUR, "Former St. Joseph Superintendent To Pay Back $660,000," April 25, 2016
- ↑ KCUR, "Federal Charges In Ongoing Scandal In St. Joseph School District," June 10, 2016
- ↑ St. Joe Channel, "State Lawmaker Calls for Charges in SJSD Investigation," February 18, 2015
- ↑ News-Press Now, "Senate passes school board term limits bill," April 2, 2015
- ↑ News-Press Now, "Lawmakers override Nixon veto of school bill," April 8, 2015
- ↑ News-Press Now, "School board decides against levy bid," May 8, 2015
- ↑ 25.0 25.1 25.2 25.3 KCUR, "Former St. Joseph School Superintendent To Spend A Year In Federal Prison," June 13, 2016
| 2016 St. Joseph School District Elections | |
| Buchanan County, Missouri | |
| Election date: | April 5, 2016 |
| Candidates: | At-large: Incumbent, Eric Bruder • John Paul Leo Stehr • Maggie Elder • Art Van Meter • Sarah Hochschwender • Kathy Northup • Bryan Green • Teresa Simmons • Tami Pasley • Michael Dulcan |
| Important information: | What was at stake? • Key deadlines • Additional elections on the ballot |
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