'You guys are lying': Parents challenge Belgrade school officials over $750k payout amid cyber issue

BELGRADE — The Belgrade School District is staring down close to a $1 million budget shortfall for the upcoming school year, just weeks after voters rejected a school levy at the ballot box.

Now, after unexplained decisions regarding the district’s staff and budget within the past month, some in the community say the trust deficit is as glaring as the financial one.

“They wonder why these dipsh*ts can’t pass a levy to save their lives,” one parent said after Monday's School Board meeting.

Despite the budget constraints, the school board quietly authorized $750,000 to “obtain network security and restoration services” on April 17. For parent Jake Feddes, it’s a sum of money requiring an explanation.

“We need transparency with the cyber-data breach, transparency with why the district is starting next year a million dollars in the hole and where that money went,” Feddes said. “Transparency into why the administration is taking pay away from teachers and why our teachers haven’t had computers for the past month because they took them away because of the data breach.”

In a press release issued May 19, Semerad acknowledged ongoing technology issues with the school systems which she said were caused by malware.

“The District has eradicated the known malware from its network environment and continues working to remediate affected systems and return them to service,” the release states. “We anticipate this work will continue into June.”

While speculation has circulated that the $750,000 was used to pay a ransom, Semerad said that the money went toward restoring system functionality and preventing future incidents. The district added that it is working with its insurance provider for reimbursement.

The release states that if affected individuals are identified, they will be notified directly. General information and resources have also been distributed to staff previously, according to the release.

But a district source speaking anonymously said teachers were kept “in the dark” about the cybersecurity issue that allegedly locked them out of school technology and, the source said, even impacted teachers’ personal finances.

“When the superintendent was approached about a teacher’s bank account getting emptied after this data breach, she said that was a coincidence,” the source said.

In a follow up statement to the Chronicle, Semerad confirmed that employees were reminded of the school's protocol for public statements and asked not to speak on behalf of the district.

While the district clerk pointed to declining enrollment to explain part of the looming budget deficit at the Monday meeting, community members lingering afterward warned the bleeding won’t stop soon. One parent addressing the board during public comment said he is considering pulling his daughter from Belgrade schools due to worsening conditions, with other community members alleging that Belgrade teachers and even board members have already done the same.

Regarding slipping enrollment, resident Steve Eaton said during public comment that it’s one of several operational issues he wants the board to fully address. When attempting to raise these issues, Eaton said he and others are routinely brushed off and told they simply don’t have the full story.

“What we don’t know is hidden behind claims of privacy, even when information could be shared responsibly,” Eaton said. “We’ve also heard that the details about the network issues and possible breaches have been kept from the public with staff instructed not to share details.”

In an email to parents Monday afternoon, Semerad initially claimed the cybersecurity investigation had not found evidence that the ongoing “technology issues” were caused by unauthorized access. That position shifted today when she confirmed that malware was, in fact, behind the disruption.

Even before the confirmation, parent Eric Dighans, who spoke during Monday’s board meeting, was not buying the initial explanation.

“The email that came out this afternoon, I thought that was bullsh*t,” Dighans said to the board. “It was worded to just put a shield up over this meeting.”

Dighans criticized the “unprofessional” tone of the email, and said that his concerns were not eased seeing the board members face to face.

“When we bring up the funding situation, eye contact goes away,” Dighans said to the board. “That shows me you guys are lying about something.”

Lacking transparency is the heart of the problem, for Leslie Jensen, who also spoke during the public comment period.

“Our community deserves clear and honest answers regarding the recent technology incident affecting our school district,” Jensen said. “Parents, staff members, and taxpayers have heard conflicting information. Some described it as a cyber-attack or hack while the district has avoided using those terms publicly.”

If it’s not a cyber-attack, Jensen emphasized the community deserves to know what it actually is. Until then, she said, the district will have a hard time making a case for why they should be trusted with more taxpayer funds.

“When communication is vague or incomplete, confidence erodes,” Jensen said. “When confidence erodes, it directly affects the public trust needed to support future levies and bond measures.”