In re Non-Reemployment of Isch6/30/1998
Decided: April 3, 1998
RELEASE FOR PUBLICATION BY ORDER OF THE COURT OF CIVIL APPEALS
APPEAL FROM THE DISTRICT COURT OF OKLAHOMA COUNTY, OKLAHOMA
HONORABLE NILES JACKSON, JUDGE
AFFIRMED
Plaintiffs/Appellants Jack Isch, Frederick Gaston, Robert Hollis, James Kiper, Cleeta John Rogers, Marilyn Blackburn and John McCormick (Appellants) seek review of the trial court's order affirming a decision of Defendant/Appellee Oklahoma Independent School District No. I-89 of the State of Oklahoma (Appellee) not to renew the employment contracts of Appellants, all "support employees" of Appellee as that term is defined by statute. In this proceeding, Appellants assert (1) Appellee failed to demonstrate a statutory condition precedent, i.e., either "cause," "lack of funds," or "lack of work," for their non-reemployment, (2) Appellee acted arbitrarily and/or capriciously in making the non-reemployment decision, and (3) Appellee violated Appellants' due process rights, as well as the Oklahoma Open Meetings Act, in the conduct of hearing on Appellants' objections to Appellee's non-reemployment decision. However, we find no error as alleged and affirm the order of the trial court.
During the 1995-96 school year, Appellee's governing Board of Education (Board), together with the Superintendent and Deputy Superintendent of Schools, set a goal to reduce administrative costs and redirect expenditure of all available funds toward prioritized needs of the school district. As part of the administrative cost reduction, Appellee proposed a two-step approach to reduce administrative staff, first through a voluntary retirement bonus program, and second (in perceived accord with established Board policies) through a reduction in force, with overall reductions in staff to include three positions in the Office of General Counsel and the six positions in the Superintendent's office held by Appellants.
Although notified of the possible impact of the proposed reduction in force on their positions, none of Appellants elected to take part in the voluntary retirement bonus program. When proposed and draft budgets for the next school year revealed expected revenue shortfalls, Appellee implemented its proposed reduction in force program to include the non-reemployment of Appellants, and notified Appellants thereof, as well as Appellants' due process right to a hearing before the Board on the non-reemployment decision.
At hearing before the Board, Appellants attempted to show that Appellee's budget for the upcoming year did not show a "lack of funds" sufficient to justify Appellants' non-reemployment, the facts and figures rather revealing both $8,000,000.00 in new spending for the upcoming year, as well as a projected $4,000,000.00 mid-term adjustment "windfall" for the current year. Appellee presented evidence arguably showing a revenue shortfall even taking into consideration mid-term adjustments, as well as District "needs" in excess of $50,000,000.00. Upon consideration of the argument and testimony presented, Board determined not to re-employ Appellants, finding:
ased on the evidence presented, there exists a lack of funds or insufficient revenue to meet all of the priority financial needs and demands of the District. In addition to the needs reflected in the proposed budget for fiscal year '96 and '97, the financial demands of the District include, among others: maintaining an adequate General Fund balance, providing for an adequate reserve for the Workers' Compensation Fund, providing funds in a legal and appropriate manner, to provide for the 1993 bonds issue project overruns, and completion, and improving maintenance
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