BILL ANALYSIS Ó
AB 215
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ASSEMBLY THIRD READING
AB
215 (Alejo)
As Amended May 4, 2015
Majority vote
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|Committee |Votes |Ayes |Noes |
| | | | |
| | | | |
|----------------+------+---------------------+---------------------|
|Education |6-1 |O'Donnell, Kim, |Chávez |
| | |McCarty, Santiago, | |
| | |Thurmond, Weber | |
| | | | |
| | | | |
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SUMMARY: Reduces the maximum cash settlement that may be paid to
a school district superintendent in the case of terminations of
employment. Specifically for contracts of employment negotiated
on or after January 1, 2016. Specifically, this bill:
1)Reduces the maximum cash settlement that may be paid to a school
district superintendent from 18 times the monthly salary to 12
times the monthly salary, unless the superintendent was
dismissed for cause, in which case the maximum cash settlement
is six times the monthly salary.
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2)Reduces the maximum cash settlement that may be paid to a school
district superintendent in the case of a termination in which
the school district believes and subsequently confirms that the
superintendent has engaged in fraud, misappropriation of funds,
or other illegal fiscal practices from six times the monthly
salary to three times the monthly salary.
FISCAL EFFECT: Unknown. This bill is keyed non-fiscal by the
Legislative Counsel.
COMMENTS: This bill reduces from 18 times the monthly salary to
12 times the monthly salary the maximum cash settlement that may
be paid to a school district superintendent whose employment has
been terminated. In the case of a termination in which the school
district believes and subsequently confirms that the
superintendent has engaged in fraud, misappropriation of funds, or
other illegal fiscal practices, this bill reduces the maximum cash
settlement from six times the monthly salary to three times the
monthly salary. In no case can the amount of the cash settlement
exceed the number of unexpired months on the contract.
According to the California Department of Education (CDE) the
average annual salaries for unified school district
superintendents, by district size, in 2012-13 as follows:
1)One hundred sixteen thousand six hundred six dollars for
districts with less than 1,500 average daily attendance (ADA);
2)One hundred fifty-one thousand nine hundred twelve dollars for
districts with 1,500 to 4,999 ADA;
3)One hundred eighty-three thousand five hundred fifty-seven
dollars for districts with 5,000 to 9,999 ADA;
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4)Two hundred six thousand two hundred ninety-two dollars for
districts with 10,000 to 19,999 ADA; and
5)Two hundred twenty-seven thousand one hundred eighty-three
dollars for districts with more than 20,000 ADA.
There is considerable variance around these averages. Information
provided by the author's office shows that the highest salaries
range from $265,773 to $322,159. With salaries in this range, the
maximum cash settlement could range from $398,660 to $483,239
under existing law.
Arguments in support. The author's office argues that, "by
placing a cap on district superintendent's severance pay, we can
save money for students, begin to improve our school
administrative processes, and demonstrate fiscal discipline in the
administration of taxpayer dollars."
Arguments in opposition. Opponents argue that superintendents are
at-will employees, who have no due process rights and can be
terminated any time without cause. This action can end the career
of a superintendent. Rather than being extra pay or a gift of
public funds, cash settlements are damages paid to a
superintendent "who is released by breach of contact."
Analysis Prepared by:
Rick Pratt / ED. / (916) 319-2087 FN: 0000458
AB 215
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