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Governor Indicates Layoffs are Still Okay After AB 114

As a follow-up to our Client Update on AB 114, we have attached a copy of the Governor’s letter on AB 114.

It provides substantial support that school districts retain authority to engage in prudent fiscal management for the 2011/2012 fiscal year – despite the AB 114 language to “maintain staffing and program levels.”

In part, the Governor states:

“In fashioning their local budgets, school boards may nevertheless need to make reductions due to cost increases, loss of federal funds, enrollment declines or other factors. AB 114 does not interfere with these local school board decisions. School boards should take all reasonable steps to balance their budgets and to maintain positive cash balances.” [Emphasis added.]

The Governor’s letter rebuts likely union arguments that AB 114 requires a District to rescind layoff notices or otherwise maintain the exact program and staffing levels that were in place for 2010/2011.

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