The parents of children whose images were allegedly used by an employee of Stillwater Area Public Schools to produce child pornography using artificial intelligence placed district officials on notice Wednesday that they plan to sue the district.

The claim stems from federal criminal charges filed earlier this year against William Michael Haslach, 30, of Maplewood, who worked for the district as an Adventure Club seasonal employee during the summers of 2021-2024.

Haslach, who also worked for the North St. Paul-Maplewood-Oakdale School District, allegedly used his position as a lunch/recess monitor, traffic guard and summer youth programs assistant to take photos of children in his care. Haslach then allegedly used those images to produce “morphed/computer generated/AI photos of those minors engaging in sexually explicit conduct,” according to U.S. Attorney’s Office.

Haslach also has been charged with possessing and receiving child pornography.

“This case shows how far behind the technological and legal curve our schools and lawmakers have fallen,” said Imran Ali, a Stillwater attorney who is representing the two sets of parents planning to sue Stillwater Area Public Schools. “Haslach was trusted with children and betrayed that trust by taking their photos and using AI to morph them into explicit, computer-generated images.”

“This victimization could have been prevented, but the schools and the Legislature have failed to act,” Ali said during a press conference at the Eckberg Lammers Law Firm announcing the notice of a claim to be filed and the start of an investigation. “These parents want to make sure no other family suffers the same horror.”

William Michael Haslach (Courtesy of the Ramsey County Sheriff’s Office)

Haslach worked at Stillwater Middle School during the summer of 2021, at Lake Elmo Elementary during the summers of 2022 and 2024, and at Oak-Land Middle School during the summer of 2023; his last date of employment with the district was in August 2024, district officials said.

He worked for the North St. Paul-Maplewood-Oakdale School District from September 2021 until earlier this year, when he was charged criminally, officials said. His jobs were at Cowern and Richardson elementary schools and North St. Paul High School, district officials said.

Ali said there has been a growing pattern of school employees across the state abusing their positions of trust. During a news conference on Wednesday, he urged school district officials and state lawmakers to establish strict policies governing staff use of personal cell phones and images of children in their care.

“We trust our schools to keep our kids safe – including from predators who misuse technology,” Ali said. “This case should be a wake-up call for every school district in Minnesota.”

Ali said he expects more parents to join the potential litigation against the school district. Two other sets of parents contacted his office after the press conference on Wednesday, he said.

Strengthening protocols

Mike Funk, superintendent of Stillwater Area Public Schools, said Wednesday that he could not comment on specific allegations regarding Haslach because of pending litigation.

“The safety of our students is our top priority,” Funk said. “As a school community, we are deeply saddened that some of our students were among the victims in this case involving a former Adventure Club employee.”

Funk said the district has continued to strengthen its protocols for student supervision and implemented the following safeguards for school-age child care:

Staff may not use cell phones at any time when students are present.
Staff may not take pictures of students unless pre-approved by a supervisor, and photos may only be taken using a district-owned device.

The district this year also adopted “the most stringent personal-device policy in Minnesota” — a policy that bans student use of cellphones and other electronic devices during the school day at all levels — from pre-K through 12th grade, Funk said.

In addition, district officials have added a mandatory 90-minute training program on Sexual Exploitation Awareness and Response for all district staff, he said.

“We remain committed to maintaining a safe and supportive environment for every student in our care, and we will continue working closely with families, staff and law-enforcement partners to uphold the highest standards of safety,” Funk said in a statement.

Federal charges

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According to the indictment filed in U.S. District Court, Haslach “received and possessed child pornography involving children that were abused by others — children that Haslach did not have access to personally.”

Investigators are working to determine whether Haslach distributed the morphed/AI photos that he created to others, according to the U.S. Attorney’s office. “Currently, there are strong indications that he did,” officials said. “Law enforcement will continue to update victims as the investigation progresses.”

Haslach was originally charged in Ramsey County District Court in January, but those charges were later dismissed because of the federal indictment, officials said.

By CHRISTOPHER RUGABER

WASHINGTON (AP) — Two Federal Reserve officials expressed opposition Wednesday to another interest rate cut at the central bank’s next meeting in December, further muddying the outlook for the Fed’s next steps.

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The remarks by Susan Collins, president of the Federal Reserve Bank of Boston, and Raphael Bostic, president of the Atlanta Fed, suggest that the central bank’s rate-setting committee could be tilting against what had been an expected third straight cut next month.

The officials cited several reasons for keeping rates unchanged, after a reduction in September and in October. They argued that inflation is stubbornly elevated and has been above the Fed’s 2% target for nearly five years, while the economy is resilient and doesn’t appear to need more rate cuts. The job market is stumbling, with hiring nearly at a standstill, but layoffs still seem muted, they said.

Another factor has been the government shutdown, which has cut off the economic data the Fed relies on to discern the economy’s path. On Wednesday White House spokeswoman Karoline Leavitt said that the jobs and inflation reports for October would likely never be released.

“Formulating an economic outlook is challenging — and the limited data compounds the difficulty,” Collins said in a speech in Boston.

“It will likely be appropriate to keep policy rates at the current level for some time … in this highly uncertain environment,” she added.

That is a shift from her previous speech in October, when she expressed support for at least one more rate cut.

Earlier Wednesday, Bostic said he remains concerned inflation is too high, and added that, “I … favor keeping the funds rate steady until we see clear evidence that inflation is again moving meaningfully toward its 2% target.” Bostic said earlier Wednesday that he will retire when his current term ends on Feb. 28, 2026.

Their remarks come at an unusually challenging time for the Fed, with the economy facing both weak hiring and elevated inflation. Typically, the Fed would reduce its rate to encourage borrowing, spending and job gains, while it would keep it unchanged — or even raise it — to combat inflation.

The 19 officials on the Fed’s rate-setting committee narrowly supported three rate cuts this year at their September meeting, but Chair Jerome Powell said at a news conference late last month that the committee remains divided and another cut in December was not a “foregone conclusion.”

Federal Reserve Chairman Jerome Powell speaks at a news conference after the Federal Open Market Committee meeting Wednesday, Oct. 29, 2025, at the Federal Reserve Board Building in Washington. (AP Photo/Manuel Balce Ceneta)

David Seif, chief economist for developed markets at Nomura Securities, expects the Fed will skip a rate cut in December and won’t reduce borrowing costs again until March.

“There is a large segment of the Fed that is uncomfortable with a December cut,” Seif said.

Collins also said that additional reductions to the Fed’s rate could, by boosting the economy, accelerate inflation.

“Absent evidence of a notable labor market deterioration, I would be hesitant to ease policy further, especially given the limited information on inflation due to the government shutdown,” she said.

Bostic, meanwhile, said the Atlanta Fed’s surveys of businesses show that many companies intend to raise prices next year, a sign that inflation may not cool anytime soon.

“We cannot breezily assume inflationary pressures will quickly dissipate after a one-time bump in prices from new import duties,” Bostic said, referring to President Donald Trump’s tariffs. “Across all our information sources, I see little to no evidence that we should be sanguine about the forward trajectory of inflation.”

Some Fed officials, such as Fed governor Stephen Miran, have argued that the tariffs will only temporarily lift prices and outside those one-time increases, inflation is cooling.

As the Vikings prepare for an important game against the Chicago Bears, quarterback J.J. McCarthy is dealing with a right hand injury that resulted in him being a limited participant in practice.

He wore a bandage on his right hand during practice on Wednesday afternoon at TCO Performance Center and stood with his hands in his pockets as he talked to reporters afterward.

Though he made it clear that he doesn’t expect it to impact his preparation, the fact that McCarthy was a limited participant is not insignificant.

It’s worth continuing to monitor the situation as this week progresses.

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By JEFFREY COLLINS

COLUMBIA, S.C. (AP) — South Carolina lawmakers improperly gave themselves a $1,500 monthly raise, the state Supreme Court ruled Wednesday in a unanimous decision that will end up cutting legislators’ pay by thousands of dollars.

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The justices said the “ in-district compensation ” qualifies as salary, meaning the increase can’t take effect until after the 2026 election. The General Assembly had made the raises immediate through a budget item earlier this year.

The ruling also eliminates a $1,000 monthly expense payment that all 46 senators and 124 House members receive, reducing their paychecks until legislators approve a new proposal.

The suit was brought by Republican Sen. Wes Climer, who voted against the raise, and one of his constituents.

“Public trust is earned by doing the right thing, even when it’s unpopular. I opposed this pay raise not because the job isn’t demanding, but because how we govern matters,” Climer said in a statement after the ruling.

From left to right, Republican South Carolina Sen. Wes Climer, York County resident Carol Herring, and attorney Dick Harpootlian talk about their case suing the state General Assembly over a pay raise outside the South Carolina Supreme Court building in Columbia, S.C., on Wednesday, Oct. 22, 2025.. (AP Photo/Jeffrey Collins)

No receipts? Court says that means extra pay is salary, not expenses

During arguments before the court last month, attorneys for the House and Senate said the raise was for expenses, not salary, and exempt from the waiting period.

The justices rejected that claim, instead siding with Climer’s attorneys who argued lawmakers themselves called it compensation and since they aren’t required to provide any receipts or documentation, it is salary.

The court acknowledged legislators’ pay hasn’t risen since 1994 and that current compensation is “paltry” compared to the demands of the job. But it noted that until this year the General Assembly had honored the constitutional ban on mid-term raises.

“Where a legislative enactment clearly contravenes our constitution, we have a duty to declare the legislative enactment unconstitutional,” the justices wrote.

Lawmakers warn the pay cut could hinder public service

When the part-time lawmakers return to the state capitol in January, they’ll get a lump sum of $10,400 for their $260-a-day pay for all of 2026. Members are also reimbursed for mileage driving to Columbia and a hotel room.

The loss of the $1,000 monthly payment, which they’ve been getting for decades, surprised many legislators. Some lawmakers said they used their own private salaries for town halls, equipment needed to help constituents or basic expenses.

The ruling ultimately hurts the public, Democratic Rep. Hamilton Grant said, because he expects lawmakers will have to cut back how they serve their constituents unless a politician is independently wealthy.

“The decision is unfortunate and rules in favor of political elitism,” Grant said in a text message. “Taking a pay cut in this economy for any job does not help working South Carolinians.”

Justices outline ways lawmakers could fix the issue

During October arguments, the justices suggested several remedies. Lawmakers could have called and treated the raise more like an expense fund, delayed paying it until 2027, or separated the new money from existing pay so it all wouldn’t have gone away, the justices said.

The in-district compensation raise was proposed late in the budget process by Republican Sen. Shane Martin. He spent about 30 seconds on the Senate floor saying the first raise in 30 years was needed because of inflation and higher costs.

South Carolina already has some of the lowest-paid legislators in the country. Comparisons are tricky because they involve salary, expenses and mileage, but the combination of $22,400 for salary and in-district expenses is well below other part-time legislatures like Alabama and Tennessee, according to the National Conference of State Legislatures.

It’s a lot higher than New Hampshire’s $100-a-year plus mileage but well below full-time lawmakers in California and New York, who earn more than $100,000 annually.