BILL ANALYSIS                                                                                                                                                                                                    �






                          SENATE COMMITTEE ON EDUCATION
                              Alan Lowenthal, Chair
                             2011-12 Regular Session
                                         

          BILL NO:       AB 1908
          AUTHOR:        Alejo
          INTRODUCED:    February 22, 2012
          FISCAL COMM:   Yes            HEARING DATE:  June 13, 2012
          URGENCY:       No             CONSULTANT:Beth Graybill

           SUBJECT  :  Classified employees:  Notice of layoff.
          
          SUMMARY   

          This bill increases, from 45 to 60 days, the layoff notice 
          requirement for classified employees working in California 
          public schools and community colleges.

           BACKGROUND  

          Existing law requires classified employees working in public 
          schools and California Community Colleges (CCC) to be 
          provided written notice not less than 45 days prior to the 
          effective date of a layoff.  When positions must be 
          eliminated at the end of the school year due to the 
          expiration of a specially funded program, affected employees 
          must be given written notice on or before April 29 of the 
          year in question.  (If the termination date of the program is 
          other than June 30, the notice must be given not less than 45 
          days before the effective date of the layoff.)  Notices must 
          inform employees of their displacement rights in lower 
          classifications, if any, as well as reinstatement rights.  
          (Education Code � 45117, � 88017)  

           ANALYSIS  

           This bill

              1)   Requires classified employees working public schools 
               and community colleges to be given notice of layoff not 
               less than 60 days prior to the effective date of the 
               layoff.  

             2)   Requires local agencies and school districts to be 
               reimbursed for costs if the Commission on State Mandates 




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               determines that this act contains costs mandated by the 
               state.  

           STAFF COMMENTS  

           1)   Different rules  :  By law, faculty and classified 
               employees who work for schools or community colleges are 
               entitled to advance written notice of an impending 
               layoff, although the timelines for those notices differ 
               for certificated and classified staff.  Permanent 
               certificated employees continue in their position unless 
               they receive a notice on or before March 15th that they 
               will be laid off for the following school year.  These 
               preliminary notices serve to provide certificated staff 
               early warning that they may be laid off for the 
               following school year and inform them of their right to 
               request a hearing.  School districts must issue final 
               layoff notices to certificated staff by May 15th.  
               Classified employees, on the other hand, who can laid 
               off at any time for lack of work or lack of funds, must 
               be given written notice at least 45 days prior to the 
               effective date of the layoff and do not receive 
               preliminary notice.  The existing 45-day notice 
               requirement was established by AB 290 (Firebaugh, 
               Chapter 880, 2003); previously, the notice period was 30 
               days.  Classified employees are typically noticed after 
               governing boards adopt budgets that reduce or eliminate 
               services provided by classified employees.  

           2)   Need for the bill  .  According to the author, the current 
               45-day layoff notice for classified staff is inequitable 
               and does not provide sufficient time for an employee to 
               prepare for the loss of his or her job.  Supporters 
               state that "the state's budget crisis has dramatically 
               impacted classified school employees, 30,000 of whom 
               have been laid off and the majority of those who remain 
               being placed on some type of furlough."  The author 
               maintains increasing the timeline from 45 to 60 days 
               addresses the inequity in current law with regard to 
               layoff notices and gives a classified employee two 
               additional weeks to prepare for the layoff and find a 
               new job.  

           3)   Is a 60-day notice reasonable  ?  The sponsor of AB 1908, 
               The California School Employees Association (CSEA), 
               states that "the additional two weeks of notice will not 




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               require school districts to employ classified employees 
               for additional days, but will simply require them to 
               plan further ahead, something they already do for 
               teachers and administrators."  However, opponents argue 
               that the modified timelines would require districts to 
               keep classified staff on the payroll longer, which could 
               reduce the savings they would have otherwise achieved.  
               Districts could also issue more layoff notices than may 
               actually be necessary in order to ensure they meet their 
               savings targets.  

          Opponents also argue that the increased timeline reduces the 
               flexibility of local educational agencies to address 
               unanticipated issues that may arise during the school 
               year, such as mid-year cuts, budget triggers, or 
               shortfalls in property tax revenue, a problem of 
               particular concern to Community Colleges that are 
               experiencing unexpected revenue shortfall due to lower 
               property tax and student fee revenues than originally 
               estimated.  Further, some district business officers 
               have noted that under the provisions of this bill, 
               notices for classified and certificated staff could 
               overlap and need to be done at the same governing board 
               meeting, which could increase workloads for human 
               resource departments at a time they are busy with 
               certificated staff layoffs and hearings.  

           4)   A subject for bargaining  ?  Current law establishes a 
               minimum timeline for providing notice prior to a layoff, 
               but does not prohibit a longer period of notice.  Could 
               a 60-day notice requirement be negotiated at the local 
               level through the collective bargaining process?  

           5)   Misalignment of state budget cycle and layoff timelines  . 
                The significant disconnect between the state budget 
               cycle and the statutory timelines for layoff notices 
               requires school districts to adopt their budgets prior 
               to enactment of the Budget Act.  In essence, local 
               educational agencies must make educated guesses about 
               their budgets based largely on the Governor's proposed 
               budget released each January.  A March 2012 report from 
               the Legislative Analyst's Office (LAO) on the teacher 
               layoff process in California noted that the disconnect 
               leads to districts issuing more layoff notices than may 
               be necessary as they try to protect against budget 
               uncertainties.  Could the earlier notice timeline 




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               proposed by this bill result in a similar 
               over-notification problem?  Finally, staff notes that 
               the LAO recommended aligning the layoff timeline for 
               certificated staff with the state budget process to 
               better enable local educational agencies to make 
               decisions that reflect the Budget Act.  This policy 
               proposed by this bill runs counter to that 
               recommendation.  

           SUPPORT
           
          American Federation of State, County and Municipal Employees, 
          AFL-CIO
          California Federation of Teachers
          California Labor Federation
          California Professional Firefighters
          California School Employees Association
          Laborers' International Union of North America, Local 777
          Los Angeles Unified School District
          Service Employees International Union

           OPPOSITION
           
          Association of California Community College Administrators
          Association of California School Administrators
          California School Boards Association
          California Association of School Business Officials
          Community College League of California