A new KSTP 5 INVESTIGATES report has found that Rochester Public Schools spent more than a quarter of a million dollars on a professional development program run by superintendent Dr. Kent Pekel’s wife, Dr. Katie Pekel.
Dr. Kent Pekel joined the district in 2021 and earns a yearly salary of $242,000. Reading proficiency scores have declined under his tenure, from 51.4 percent to 47.8 percent. Mathematics proficiency scores have increased .6 percent from 2021’s 40.1 percent proficiency to 2025’s 40.7 percent proficiency.
Superintendent Pekel argues that there was no wrongdoing in the district’s choice to send principals to Minnesota Principals Academy. From KSTP 5 Investigates:
“Our family gets no direct benefit at all,” Pekel said. “She earns a salary that has nothing to do with the number of participants in the program or from Rochester.”
Pekel is adamant that he has been transparent about his wife’s role and insists there is no conflict.
The University of Minnesota’s Minnesota Principals Academy was created nearly two decades ago in collaboration with the Minnesota Department of Education, Minnesota Elementary School Principals’ Association, the Minnesota Association of Secondary School Principals, and the University of Minnesota. Over the years, 786 people have enrolled from at least 163 school districts throughout the state.
Rochester has a strong presence at the Minnesota Principals Academy. KSTP 5 INVESTIGTATES found that only two other districts sent more principals to the academy than Rochester Schools.
Two ethics experts who spoke to KSTP 5 INVESTIGATES argued that Pekel’s involvement represents a clear conflict of interest. Pekel should have recused himself from any deliberations or decisions made concerning the program. From KSTP 5 INVESTIGATES:
Richard Painter, a former White House ethics lawyer, who spoke to 5 INVESTIGATES in his personal capacity, says this type of public spending presents a clear conflict of interest.
“One cannot, in a government position, make decisions about a contract with your spouse’s employer,” Painter said. “That’s a fundamental conflict of interest.”
Mitchell Hamline Law Professor David Schultz said there’s “no question about it.”
“Using his position that encourages people to then use public dollars to go help pay for his wife’s salary, of which he benefits from, that’s the conflict of interest,” Schultz said.
It’s somewhat possible that Pekel and Rochester’s school board members were unaware of the dubious legality of the situation. When Pekel advocated that Rochester principals attend the training program, he did so openly. From KSTP 5 INVESTIGATES:
In an email to 5 INVESTIGATES, School Board Chair Cathy Nathan said that back in 2022, “the superintendent shared his intention to have Rochester principals participate in the Minnesota Principals Academy… and the role of Dr. Katie Pekel.”
The email added that “the chair and vice chair concluded that there was no conflict of interest because neither the superintendent nor his wife would receive any financial or career benefit.”
Nathan declined an interview request and walked away when approached by 5 INVESTIGATES at a recent board meeting.
Ignorance of proper ethical conduct might serve as a temporary excuse, but it won’t be fully sufficient for the long-term health of the district.
Rochester’s financial and cultural issues run deep, and further investigation of potential financial misconduct might be warranted. In 2023, the school faced a heavy budget shortfall, in part because previous administrators hired staff at a faster rate than enrollment. At the time, the Mayo Clinic gifted Rochester $10 million to avoid significant redistricting issues related to the shortfall. Student discipline problems remained high in 2024. And, as of 2025, an advocacy group filed a civil rights suit against the district, alleging discrimination on the basis of race directed towards white teachers.
In a state currently reeling from numerous discoveries of fraud, public leaders must ensure that their actions are clearly above board. The discovery of Rochester’s potentially illicit spending should, at minimum, prompt calls for increased state oversight and remedial ethics training for the district’s leaders.
