Superintendent Pay Transparency Act Update

Kelley Baker kbaker@hslegalfirm.com

Karen Haase khaase@hslegalfirm.com @KarenHaase

Steve Williams

Bobby Truhe

swilliams@hslegalfirm.com @SteveisEsteban

btruhe@hslegalfirm.com @btruhe

You're Reviewing and Updating Contracts: Don't Forget the Superintendent Pay Transparency Act The Superintendent Pay Transparency Act has been in effect for several months now, and we're happy to report no casualties. Now that ESUs and districts are in the full swing of the busy bargaining season, we wanted to remind you of a few considerations with respect to the Act. November and December are often the months in which the board will evaluate their superintendents and ESU administrators and make decisions on contract changes and renewals. Any actual changes to your contract should be posted 2 days after that meeting along with an updated Schedule D. The Act requires you to post the superintendent or administrator contract 3 days before the board meeting where it will be discussed and also post the finalized contract 2 days after it has been approved and/or amended by the board at the meeting. Most districts and ESUs have placed the contract and Schedule D "in a prominent place" on their websites. If you have the current contract and Schedule D posted, you do not have to do anything else prior to the board at which the superintendent/administrator is evaluated. You do not have to guess or estimate what the board may give for a raise or predict any other changes that the board may make to the contract.

Many contracts have automatic renewal terms. Even if your contract has an automatic renewal term, you will have to comply with the Act if that automatic renewal means any new or additional "future costs" for the district or ESU. Unless you are receiving a salary of $0 (and we know some of your patrons think that would be overpaying you), any contract renewal will almost always lead to "future costs" for the district or ESU. This is true for many reasons, including increased salary, increases in health care premiums, etc. Any time a board meeting or automatic renewal adjusts so much as one cent of future costs, you must publish the updated contract and Schedule D on your website.

For example, if the contract automatically renews on December 15, your board should consider the contract at its meeting before that date. Many contracts require the superintendent or administrator to remind the board of these upcoming dates. If the board does not cancel or nonrenew your contract, it will be deemed renewed since the board can only take action at a public meeting.

So after the meeting at which the board considers and elects to permit the contract to renew, you should post the "new" contract (even if it hasn't technically renewed yet) and an updated Schedule D within 2 days after that board meeting.

While this is certainly the most conservative approach, automatic renewal terms do not fit neatly within the requirements of the Act. We recommend this approach to be certain no requirements are missed.

Some districts have an automatic renewal term in December but don't decide on things such as superintendent salary until the spring. Those districts may well have to comply with the Act for both meetings if either produces a change in "future costs" for administrative services. What that means from a practical perspective is that the superintendent/administrator contract should remain on the district's website and the district should update Schedule D both after the automatic renewal and after the board sets the next year's salary increase (if any).

If you have questions, we recommend that you consult with your school district’s attorney or call Kelley, Karen, Steve or Bobby.

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