BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 141|
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THIRD READING
Bill No: AB 141
Author: Knox (D)
Amended: 4/4/00 in Senate
Vote: 27 - Urgency
SENATE PUBLIC EMP. & RET. COMMITTEE : 4-0, 4/10/00
AYES: Ortiz, Karnette, Lewis, Soto
NOT VOTING: Haynes
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : Not relevant
SUBJECT : State teachers' retirement: postretirement
earnings
SOURCE : California Association of School Business
Officials
DIGEST : This bill extends the existing State Teachers'
Retirement System half-year earnings limitation exemption
for retired school administrators who returned to service
to fill a vacancy.
ANALYSIS : Existing STRS law:
1.Allows retired members of the State Teachers' Retirement
System (STRS) to earn up to $19,500 in 1999-2000 for
public school employment. The earnings limitation is
adjusted annually to reflect changes in the Consumer
Price Index. Any creditable earnings in excess of this
CONTINUED
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amount result in a dollar-for-dollar reduction in the
retirement allowance.
2.Also provides for a one half-year exemption from this
earnings limit if retired administrators return to
service during the process of permanently filling a
vacant administrative position. This provision of the
STRS law sunsets July 1, 2003.
This bill:
1.Provides that retired administrators are permitted to
serve for a second half-year and continue to be exempted
from the STRS earnings limitation.
2.Specifies that permission for administrators to serve a
second half-year exempted from the STRS earnings
limitation took effect on 7/31/99 and shall sunset
12/31/00.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 5/1/00)
California Association of School Business Officials
(source)
Association of California School Administrators (ACSA)
Beverly Hills Unified School District
Sacramento City Unified School District
ARGUMENTS IN SUPPORT : According to the Association of
California School Administrators, "Under current law
retired CalSTRS members are limited on the amount of
additional compensation they may earn each year in addition
to their retirement allowance. A school district may
request a six month emergency waiver from this provision if
STRS determines that the district has been unsuccessful in
permanently filling an administrator position despite
several months of recruitment, and the vacancy exists
beyond the control of the district.
"With a shrinking pool of qualified candidates and an
increasing number of retirements, school districts are
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seeking emergency waivers for principals, interim
superintendents and other positions requiring specialized
skills. Despite recruitment efforts in state and out of
state, the pool of top principal and superintendent
candidates is shrinking.
"AB 141 would amend current law to allow a one-time
emergency waiver extension for filling an administrator
position, which would sunset on January 1, 2001, if the
school district continues to meet the emergency criteria as
outlined in current law. This extension would allow a
school or district to avoid a revolving door of top
administrators until a position is permanently filled."
TM:kb 5/1/00 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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