Scott Richardson - McDaniel, Richardson, & Calhoun PLLC Startup Lessons: Hiccups and Legal Quirks in Forming the New Jacksonville School District Scott Richardson - McDaniel, Richardson, & Calhoun PLLC

How do you get a new District? It takes a long time and a lot of work. For An Act to Be Entitled AN ACT TO CREATE A PROCEDURE FOR THE CREATION OF A SCHOOL DISTRICT BY DETACHMENT; AND FOR OTHER PURPOSES Act 1673 of 2001 Petition to the State Board of Education Independent Feasibility Study Map of Proposed District Signed by 10% of Voters in Detachment Area Describe Effect on Desegregation Opinion from Attorney General on Desegregation Effect Election of the Voters in Detachment Area 60 Days from Date of SBE Order

How do you get a new District?

What did they forget? Consent of the School District They Were Detaching From

Bench-Slap

Where do you go from there? If at first you don't succeed. . . Rewrite the rules. Detachment Election Sept. 16, 2014 95% voter approval

And then try again.

Next steps . . . Nov. 13, 2014 SBE Order appointed initial Board of Directors Dec. 1, 2014, Interim Superintendent Bobby Lester hired. April 16, 2015, Superintendent Tony Wood hired.

You have a District, now what. . . Two key pieces of information to determine District revenue? Assessment Average Daily Membership Per student funding based on prior year third quarter Average Daily Membership (ADM)

How to count students in a District that didn’t exist the prior year. Enrollment in District Schools? Permit Transfers? School zone changes? School Age Students Residing in the District? Private School Students? Charter School Students? Transfer Students?

The Downside of Miscounting Students Declining Enrollment Facilities Wealth Index Compounding effect of loss of students

How JNPSD counted students: Enrolled the prior year and residing in the District boundaries.

Unintended Consequences Act 1673 of 2001 6-13-1402. Minimum Area and Attendance Requirements. A new district may not be created in an area with less than four thousand (4,000) students in average daily membership. Act 372 of 2015

You have money, now what? Salary Schedule: What can you pay staff? Time to Build a Staff Salary Schedule: What can you pay staff? How many positions can you support?

How do you staff the schools? No provision in the law for transfer of certified or classified contracts between districts. 6-17-304 Employment of teacher obligated to another school district — liability of hiring school district. (a) Any school district which employs a teacher or administrator whom the school district knows, or should have known, is contractually obligated to another school district shall be liable to the other school district for an amount of money equal to the salary in the violated contract exclusive of fringe benefits.

RIF and Roll Remaining District must terminate the contracts of the staff in the detaching territory. New District must hire a whole new staff. Problems? Staff Morale District policies on RIF’d employees

Dual Seniority Center Policy

New District Spends 8 Months Hiring Staff. Normal District Hiring Process 6-17-304 Employment of teacher obligated to another school district — liability of hiring school district. (a) Any school district which employs a teacher or administrator whom the school district knows, or should have known, is contractually obligated to another school district shall be liable to the other school district for an amount of money equal to the salary in the violated contract exclusive of fringe benefits. Not hiring everyone. New contracts go out prior to May 1 Teachers have 30 days to sign contracts. Teachers have 10 days from last day of school year to resign. By June 9 Staff is “contractually obligated.”

New District Spends 8 Months Hiring Staff. JNPSD 15-16 Hiring Process 6-17-304 Employment of teacher obligated to another school district — liability of hiring school district. (a) Any school district which employs a teacher or administrator whom the school district knows, or should have known, is contractually obligated to another school district shall be liable to the other school district for an amount of money equal to the salary in the violated contract exclusive of fringe benefits. Hiring completely new staff. New contracts go out as staff are selected. Teachers have 30 days to sign contracts. No Staff is “contractually obligated” until 30 days after contract issued AND teacher signs contract. Effect: certified staff a free to leave for any other district.

500 Employees hired from Dec. 1, 2015 through August 2016 Total Staff as of Sept. 15, 2016 500 Employees hired from Dec. 1, 2015 through August 2016

Run the Numbers 4,139 Applicants: 2,401 Licensed, 1,737 Classified 514 Total Staff Hired as of Sept. 15, 2016 320 Teachers Previously worked in JNPSD schools. 23 of these quit after being hired 36 went to work for PCSSD 51 Licensed staff quit after being offered a position

Teacher Fair Dismissal Act The Upside Teacher Fair Dismissal Act “Probationary Teacher” means a teacher who has not completed three (3) successive years of employment in the school district in which the teacher is currently employed. ACA 6-17-1502(a)(1)(A) Every Licensed employee subject to TFDA is a probationary employee through the 18-19 school year No appeals to Circuit Court until the 19-20 school year 6-17-1510 Action by Board - Final Decision - Appeal to Circuit Court (a) (1)  Upon conclusion of its hearing with respect to the termination or nonrenewal of a contract of a teacher who has been employed as a full-time teacher by the school district for less than three (3) continuous years, the board of directors shall take action on the recommendations by the superintendent with respect to the termination or nonrenewal of such contract. (2)  The board of directors' decision with regard to nonrenewal of a probationary teacher shall be final.

Public School Employee Fair Hearing Act The Upside Public School Employee Fair Hearing Act “Probationary employee" means an employee who has not completed one (1) year of employment in the school district in which he or she is employed. ACA 6-17-1702(3)(A) Board may extend this by one year. Every Classified employee is a probationary employee through the 16-17 school year No non-renewal hearings until the 17-18 school year 6-17-1703 Termination or nonrenewable - Notice (a) The superintendent of a school district may recommend termination of an employee during the term of any contract or the nonrenewal of a full-time nonprobationary employee's contract provided that he or she gives notice in writing, personally delivered or by letter posted by registered or certified mail to the employee's residence address as reflected in the employee's personnel file. (b) The recommendation of nonrenewal of a full-time nonprobationary employee's contract shall be made no later than thirty (30) calendar days prior to the beginning of the employee's next contract period.

Family Medical Leave Act The Upside Family Medical Leave Act “Eligible employee" means an employee who has been employed for at least 12 months by the employer and for at least 1,250 hours of service during the 12-month period. 29 U.S.C. § 2611 Employees are not eligible for FMLA during the 16-17 school year 29 U.S.C. § 2611 Definitions: (2) Eligible employee (A) In general  The term "eligible employee" means an employee who has been employed— (i) for at least 12 months by the employer with respect to whom leave is requested under section 2612 of this title; and (ii) for at least 1,250 hours of service with such employer during the previous 12-month period.

Race to Master Facilities Plan

Master Facilities Plan Timeline Nov. 14, 2014: JNPSD approved by SBE July 1, 2015: Superintendent start date Feb. 1, 2016: Master Facilities Plan due to DPSAFT for 17-19 funding cycle 14 days prior to Plan adoption: plan must be provided to Joshua Intervenors for input. No specific timeframe: Submission to Federal Court for approval.

Master Facilities Plan Timeline Nov. 14, 2014: JNPSD approved by SBE July 1, 2015: Superintendent start date Sept. 18, 2015: Potential High School sites noticed to Joshua Sept. 28, 2015: Joshua Intervenors notified of proposed Plan Nov. 2, 2015: JNPSD Board approves Plan Dec. 2, 2015: Plan submitted to Federal Court for Approval Jan. 14, 2016: Federal Court approves Facilities Plan Feb. 1, 2016: Master Facilities Plan submitted to DPSAFT for 17-19 funding cycle

Dec. 1, 2015: draft plan due for review conference A New Deadline Act 962 of 2015 Dec. 1, 2015: draft plan due for review conference

Act 962 of 2015 In essence, this is approval or rejection of a District’s Facilities Master Plan.

Projects Approved by Review Conference 2017-19 Partnership Funding Cycle $217 million - State Participation Year 1 Projects $47 million - State Participation Year 2 Projects $264 million total for the 2017-19 Funding Cycle

Source: 7/28/16 DPSAFT Power Point

Source: 7/28/16 DPSAFT Power Point

Source: 7/28/16 DPSAFT Power Point

Questions? Scott Richardson 1020 W. 4th St., Suite 410 Little Rock, AR 72201 o 501-658-5274 scott@mrcfirm.com