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TO:         REB
FROM:   LKB
DATE:   
June 6, 2007
RE:         Contingency Budgets and Salaries – Request by Roger Seward

 

Question presented: When must a salary increase agreement (for non-collective bargaining employees) be in place in order to be includable in a school district’s contingency budget?

Answer:  Although no statute or regulation directly deals with this issue, a 2000 Commissioner’s opinion indicates that the agreement must be in place before the school district must develop a contingency budget, i.e. prior to the final budget vote.

The general standard for items allowed to be included in a contingency budget is that the item is a legal obligation of the school district or is necessary to maintain educational programs, preserve property, or ensure health and safety of students or staff.  1995 Op Comm Ed No. 13492

Increases in teachers’ salaries included in contingency budgets are addressed specifically in Education Law §2023 (4).  Salaries of non-professional employees may not be increased by a BOE if the proposed budget is defeated, unless the BOE has been previously bound by a collective bargaining agreement or it is impossible to find qualified replacements.  Re Reinhardt Op Comr Ed No. 9466.  However, an Education Department opinion states that increased salaries of non-professional staff are allowable if the additional necessary duties of such staff account for the increase.  1995 NY Educ. Dep’t Lexis 1, No. 13328.

Staff salary increases included in contingency budgets pursuant to agreements entered into before budget votes would be permissible contingent expenses as legal obligations of the school district.  In contrast, agreements made after rejection of a proposed budget would most likely not be considered contractual obligations of the district and thus not includable in the contingency budget.  This was the opinion expressed by the Commissioner in regards to payments made to independent contractors/consultants where the board resolution obligating the district to pay was passed after the voters failed to approve the proposed budget.  200 Op Comm Ed No. 14353.

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