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Elgin`s school district, the second-largest in Illinois, likely will take its search national as it seeks a replacement for Richard D. Wiggall, who will step down as superintendent in 1993 after a 12-year reign marked by labor unrest and financial problems.

”I think with the size of our district we definitely will have to look nationally, but that decision has not been made by the board yet,” said Janet Korman, vice president of the school board of Elgin-based Unit School District 46.

Wiggall, who makes $96,200 a year as head of a district that teaches 28,000 students, told the board this week that he will not attempt to renew his contract when it expires in June. He said it was time to step down and pursue other opportunities.

The reaction to Wiggall`s unexpected announcement has been mixed. Some school board members spoke admiringly of his administrative skills in the face of a difficult job, though a teacher representative criticized Wiggall as uncommunicative and uncooperative.

”All things considered, this is good for the district,” said Scott Eshelman, president of the Elgin Teachers Association and an outspoken critic of Wiggall.

”In my mind, he`s an individual that had a difficult time dealing with lots of different kinds of people,” Eshelman said. ”That did not serve him well.”

Gary Lichthardt, president of U-46 Parents Action Committee, a citizens group formed in the wake of the district`s 1991 strike, said he believed that Wiggall and the district could benefit from a change.

”I think it`s gotten to the point where the superintendent`s job also requires that you be the fall guy: You take the heat when things go wrong and don`t get the credit when things go right,” said Lichthardt, adding that his group had a positive relationship with Wiggall.

Wiggall was traveling Wednesday and could not be reached for comment.

Much of Wiggall`s tenure as Elgin`s superintendent has been marked by conflict and crisis. Since he took over in 1981, the district has endured three teacher strikes and fears that it could face a fourth. The last strike was in 1991.

Last month, however, the district reached a tentative agreement on a new two-year contract with teachers after a negotiating process notable for its lack of acrimony.

Korman said she believed the entire board has worked harder to improve relations with employee groups and said she did not believe Wiggall could be singled out for blame for the contentious relationship with teachers in the past.

”When there is frustration within a district, it`s always easy to lay the blame at someone`s feet,” she said. ”I feel very strongly that Dr. Wiggall has given an incredible amount to the district. He`s a very brilliant man, a good leader who has many wonderful qualities.”

As superintendent, Wiggall has had to grapple continually with state funding shortages and delays. In the current budget, for example, the district lost $1.8 million in annual revenue because of limitations on property-tax increases. Additionally, the state withheld $1.5 million by prorating some aid.

Board officials said they have some ideas about the qualifications they will seek in a new superintendent, including the idea that a good candidate might be one brought to the district from outside.