Newberg Superintendent Placed on Paid Leave While Suing District for $2.5 Million

By Rebecca Wallis

NEWBERG, OR – September 25, 2024

On the evening of September 24, 2024, the Newberg-Dundee Public Schools Board of Directors voted to place Superintendent Dr. Stephen Phillips on paid administrative leave, pending the results of an independent investigation. The motion, introduced by Vice-Chair Director James Wolfer and seconded by Director Nancy Woodward, stated: “Move that the Newberg School District Board of Directors place Dr. Stephen Phillips on paid administrative leave pending the results of an independent investigation currently being conducted.” The motion passed with six votes in favor, with Director Trevor DeHart abstaining.

This decision comes at a time when Dr. Phillips had already been on Family and Medical Leave Act (FMLA) leave since June 2024. The board had been preparing for his potential departure by appointing former superintendent Dr. Paula Radich, unpaid appointment, as an interim leader during Phillips’ absence. In July, the board also provided Phillips with a 12-month notice of contract termination, effective July 2025, without cause. The decision to place Phillips on paid administrative leave is unrelated to the $2.5 million lawsuit he filed against the district earlier the same day.

Background: FMLA Leave and Contract Termination

Before the administrative leave, Phillips had been out of his superintendent role for several months due to health concerns brought on by the stress of ongoing conflicts with the board. His lawsuit, filed under case number 24CV46320, alleges that the board wrongfully blamed him for the district’s financial troubles and mishandled the situation by seeking his termination without valid cause. Phillips is seeking damages for harm to his reputation and future employment prospects, citing the board’s continued attempts to terminate him for cause even after the 12-month termination notice.

At the heart of Phillips’ lawsuit is the district’s financial crisis, which became apparent in the spring of 2024. According to his complaint, Phillips was not aware of the budget shortfall until May 2024, when it was disclosed publicly. He claims the district’s business manager had repeatedly assured the board that finances were in good order, making the board’s later decision to blame him for the budget mismanagement unfair. Phillips also details growing tensions with board member Jeremy Hayden, whose spouse was among the employees Phillips recommended for non-renewal, leading to increasingly hostile interactions from Hayden.

Administrative Leave and Investigation

The board’s decision to place Phillips on leave stems from an independent investigation that had been initiated before they were aware of the lawsuit. The exact nature of the investigation remains undisclosed. The board emphasized that Phillips would remain on paid administrative leave until the investigation concludes. Despite the lawsuit, the investigation and the administrative leave are unrelated, as the board had already planned board action as shown on the Board agenda.

This latest development is part of an ongoing conflict between Phillips and the school board, which dates back to his appointment in 2022 during a politically charged period. His tenure has been marked by challenges, particularly around sensitive topics like LGBTQ+ rights and the district’s handling of those issues.

Interim Superintendent Search

With Phillips’ extended absence on FMLA leave and the board’s decision to place him on leave, the district has already begun searching for a new interim superintendent. This search signals that the district is preparing for Phillips’ departure, especially since his contract termination is already set for July 2025. The district’s leadership is in flux, and finding a stable interim leader is a top priority as it faces significant financial and administrative challenges.

The board’s decision to place Phillips on leave has sparked varied reactions within the community. Some community members have questioned the board’s handling of the situation, while others, including some members of the teachers’ union, have supported the board’s actions, citing concerns over Phillips’ leadership style and management of sensitive issues.

Community Reaction and Next Steps

As the district awaits the results of the independent investigation, Phillips’ lawsuit continues in court. His claims of wrongful blame in the budget crisis and continued attempts to terminate him for cause will likely be key factors in determining his future with the district. Meanwhile, the board’s search for a long-term interim superintendent continues, as the district seeks to stabilize its leadership.

The next regular board meeting is scheduled for October 10, 2024, where updates on the investigation and the superintendent search are expected. As the situation unfolds, Yamhill County News will provide ongoing coverage.

Photo Credit Yamhill County News File