Volume I, No. 15

February 26, 2009

Can School Districts Initiate Another Round of Certificated Employee Layoffs after March 15?

By David Walrath -- dwalrath@m-w-h.com

Education Code Section 44955.5 allows school districts to initiate additional certificated employee layoff  if:  “During the time period between five days after the enactment of the Budget Act and August 15 of the fiscal year to which the Budget Act applies, if the governing board of a school district determines that its total revenue limit per unit of average daily attendance for the fiscal year of that Budget Act has not increased by at least 2 percent, and if in the opinion of the governing board it is therefore necessary to decrease the number of permanent employees in the district, the governing board may terminate the services of any permanent or probationary certificated employees of the district, including employees holding a position that requires an administrative or supervisory credential.”    

While the plain reading of the Education Code Section would appear to allow school districts to conduct another round of certificated employee layoffs later in the year and before August 15th because the 2009-10 budget clearly has a lower total revenue limit per ADA compared to the 2008-09 revenue limit per ADA. The question, however, is how the state will allocate federal stimulus dollars for K-12 education. If the Governor and Legislature decide to allocate the funds as a reduction in the revenue limit deficit factors, then schools could have a greater than a 2% increase between 2008-09 and 2009-10 even if the 2009-10 revenue limit is still below the 2007-08 funding level.  

Until the federal general purpose stimulus allocation legislation is enacted, school districts should not assume that there will be a later opportunity to reopen certificated employee layoff procedures.