Boards considering salary reductions must give notice by July 1

The state’s ever-worsening budget crisis has caused great uncertainty for school district and county office of education governing board members as they develop budgets for the 2009-10 school year. For boards considering the possibility of salary reductions, specific steps must be taken by July 1, advises Richard Hamilton, director of CSBA’s Education Legal Alliance.

Based on a court decision in the 1970s, the Education Code requires that boards make no changes to the terms of teacher contracts, including salary reductions, after July 1 because the contracts are automatically renewed. However, subsequent salary increases for both certificated and classified staff are permissible.

Although the court decision predated the advent of collective bargaining, Hamilton said many attorneys are acting “in an abundance of caution” and advising district and county office clients to adopt a resolution prior to July 1 that sets forth the possibility of salary reductions in the upcoming school year; boards should also direct that notice be given to all personnel—including both represented and unrepresented certificated and classified staff.

“Because salary reductions have not been required in the past, there is a lot of uncertainty,” Hamilton said. “Many attorneys are taking a cautious approach and making this recommendation in order to minimize challenges. We agree.”

The board may need to employ other strategies to reduce salaries, Hamilton added, depending on the status of the district's negotiations. Those strategies may include initiating negotiations; public disclosure (or “sunshining”) of proposals to be discussed in those negotiations; and possibly declaring an impasse in negotiations.

This year it is especially critical that boards work closely with district legal counsel, Hamilton advised.

“No one has seen a budget situation like this one, and boards are considering cost-cutting measures that have never been tested,” he said. “Actions like reducing salaries or using the Aug. 15 layoff authorization are new territory, and it's important that boards take all actions necessary to put the district in the best possible legal position.”