Breaking News! Joint Finance Votes to Eliminate QEO

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April 20, 2009

On Thursday, April, 16th, 2009, the Joint Finance Committee of legislature voted to eliminate the QEO Legislation as part of its review of the state budget. While specifics are still being worked out, it is clear that the initiative to eliminate the Qualified Economic Offer (QEO) is alive and well. The companion legislation that eliminates the greatest weight/greater weight criteria from teacher bargaining is still being discussed and its likelihood of passage is not clear.

School districts must be prepared for this likely event. School districts should make sure that they have distributed the base costing to the local association in compliance with the current QEO law. School districts should also keep track of the many cost savings initiatives that have been undertaken to address the budget shortfalls being experienced in your local district. This information will be critical if the school district is forced to interest arbitration by the local teacher association. In addition, administrators should collect information regarding local economic conditions and settlements in private companies as additional information that may be valuable if the district is required to proceed to interest arbitration.

It is not clear for certain whether the QEO law will be eliminated at this time, although the signs certainly indicate that the Legislature will pass legislation eliminating the QEO some time in the future. It is important for school districts to recognize that interest arbitration with teacher associations may become the next step in the bargaining arena.

Please contact any of the attorneys on the School Districts Focus Team of Ruder Ware for help preparing for and addressing contract negotiations with your local teacher association.

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