Lancaster ISD withholds superintendent’s paycheck, continuing a relationship that should’ve been severed

by Jeff Melcher

LANCASTER — So, according to the settlement agreement, Larry Lewis and Lancaster ISD were to be done with each other by the end of July this year.

Is it over?

Sadly, it's never that simple.

Less than two weeks before the July 31st final termination date, the school district found reason to take a new action. The last July paycheck to Lewis was withheld. This was because, as the district saw it, Lewis had violated the settlement agreement. He had a new employer. The settlement agreement (below; see page 3) clearly anticipated the possibility that Lewis would find a new job and set out the next steps. Those steps included providing written notice and an immediate resignation.

The school's attorneys had documentation (probably something like the file below), showing Lewis had begun working with AFLAC insurance in December of 2008). Since Lewis had not provided this information nor resigned, the district was withholding his last paycheck. (It is not clear how the district decided not to attempt recovery of payments made earlier.)

Lewis and his attorneys responded in early August. This already dragged the LISD/Lewis relationship out past the anticipated July 31, 2009 separation date. Lewis's attorney provided a series of documents, represented to be from 2007, indicating the Lewis/AFLAC relationship was "old news." And in a followup, Lewis's attorney warned he would be sending the district an invoice for his time and effort, as the "prevailing party" in the dispute.

The payment records for the school district's current fiscal year show they were still paying Lewis as late as August 25th. But even beyond that, Lewis asserted a claim to even more payments owed him, to cover his costs associated with his health insurance benefits.

So, at present, the relationship and disputes appear to be ongoing.

It's perhaps worth a look back at the "old news" regarding Lewis's relationship with AFLAC. According to records provided by his attorneys, Lewis approached the board about a "consulting" position with AFLAC in October, 2007.

This is the context for the request Lewis made 1 October, 2007.

For context, let's review 2007. The year opened with questions about finances, audits, and the district's Chief Financial Officer, Eugene Smith. By summer, a controversial, and possibly money-saving proposal for a "four-day week" was being widely discussed. Academic and Financial ratings from TEA dropped in August of that year. On September 27, 2007 the Texas Education Agency had announced intentions to come audit Lewis's books.

And Eugene Smith learned he was about to be arrested for embezzlement from his previous employers.

According to a letter written by former Lancaster ISD trustee Russ Johnson, (released by Lewis's attorney Rich Hill, below), Lewis asked the board for permission to take on a second job in his spare time. According to Johnson, this happened during an executive session scheduled for hearing an employee grievance. (State law, as the district notes, calls for such permission to be discussed and approved in open session -- see the Education Code chapter 11, paragraph(e).)

Johnson's 2009 letter is reinforced by a similar letter (below) by former trustee Sue Mendoza. This is odd, because according to the district's records of that board meeting, she was not there that evening. She, of course, did not vote regarding the executive session, either.

Another letter from former trustee Shelia Stanmore is, reputedly, also claiming similar recollection. The letter is being reviewed by the state attorney general to determine whether or not it may be released.

Another letter released this summer via Lewis's attorney is apparently dated October 5, 2007. This was from former Lancaster ISD board president Ed Kirkland, below. It reads "Pursuant to the provisions outlined in your Second Amended Employment Contract, this letter shall serve as written consent from the Lancaster Independent School District, Board of Trustees for you to provide consulting services to American Family Life Assurance Company of Columbus ("AFLAC")."

Lewis's "Second Amended Employment Contract" (the first document below) was superseded in March 2008 by the "Third Amended Employment Contract" (the second document below).

The October 2007, permission to "consult" with AFLAC is offered as evidence that the December 2008 licensing contract with AFLAC was, or should have been known, to the current board during their settlement negotiations with Lewis. The letter from Ed Kirkland appears to be key to the matter.

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