Texas Lone Star - September/October 2011

the number of furlough days, and any reduction in pay must be equally distributed over the course of an employee’s contract. If a district adopts a furlough program after the PFRD, a teacher who subsequently resigns is not subject to sanctions against his or her certification for abandonment of contract. Tex. Educ. Code § 21.4021.

Process before furlough
or other salary reduction:

SB 8 establishes a special process that a board must follow before implementing a furlough or other salary reduction proposal. Tex. Educ. Code § 21.4022.

First, the district must use a process to develop the program or proposal that includes involvement of the district’s professional staff. Second, the board must hold a public meeting. At the meeting, the board and district administration must present information regarding options considered for managing the district’s available resources, including consideration of a tax rate increase and use of the district’s available fund balance.

The board and administration must explain how the district intends, through a furlough or other salary reduction, to limit the number of employees who will be discharged or whose contracts will be nonrenewed.

If the district is considering a furlough, the explanation must state the specific number of furlough days proposed.

Finally, the board and administration must provide information regarding the local option residence homestead exemption. The public and employees must be provided an opportunity to comment at the meeting.

A board’s decision to implement a furlough program is final and may not be appealed. Tex. Educ. Code § 21.4022.

Effective date: A board may adopt a furlough program only if the commissioner certifies that the district’s state and local funding per student will be less than 2010-11 levels. Tex. Educ. Code § 21.4021(a). New Texas Education Code Section 42.009 requires the commissioner to make a determination as to funding levels by July 1 of each year. Section 42.009 also sets forth the methodology the commissioner is to use to make the determination. Tex. Educ. Code § 42.009(b).

The commissioner was not able to make a funding level determination under Section 42.009 for 2011-12 because the bill did not take effect by July 1 of this year. Moreover, the PFRD has passed, restricting districts’ ability to unilaterally reduce salaries of contract personnel in conjunction with a furlough. For these reasons, districts will not be able to take advantage of the furlough option created by SB 8 until the 2012-13 school year, at the earliest.

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Conclusion

SB 8 lived up to its promise of increasing school district flexibility. Streamlined hearing processes, repeal of salary protection, and a new furlough option will provide valuable tools for responding to the funding crisis.

However, furloughs and salary reduction flexibility will not apply until the 2012-13 school year, at the earliest. Moreover, districts will need to comply with special procedures before using these new tools. For more information about SB 8 or any other bills from this legislative session, call your school attorney or the TASB Legal Line at 800.580.5345.H