This case provides a summary of a situation in which a newly appointed superintendent and his new chief financial officer of a midsized urban school district uncover a massive set of fiscal problems which had been previously hidden from the Board and most other stakeholders. How do the district's top leaders make decisions about how to address the…

The fiscal year that begins on July 1 for most colleges is expected to bring a wave of layoffs, as institutions grapple with declining state contributions, a falloff in donations, and other budget pressures. Eliminating jobs can create a number of legal pitfalls, including potential lawsuits for breach of contract or discrimination. If handled…

Higher education administrators planning for retrenchment should follow these guidelines: document the financial circumstances justifying retrenchment; devise a long-range financial plan; identify how and by whom retrenchment decisions are made; and know both the interests of and procedural protections available to faculty, staff, and other…

In trying to formulate rules governing financial exigency, professors and administrators alike should adhere to the basic ideas of the AAUP guidelines, thus affirming the values of the tenure system yet retaining the flexibility to respond intelligently to deteriorating financial circumstances. (MSE)

With the passage of Proposition 13, California's community colleges lost an estimated two-thirds of their local revenues. As the largest such system, the Los Angeles Community College District is preparing for the hardest impact. Retrenchment, loss of local control, and legal difficulties are problems it faces. (JMD)

In the view of the ACE Commission on Academic Affairs, the recently adopted revision of Regulation 4 ("Termination of Appointments") of the AAUP do not provide reliable guidance regarding (1) the definition of financial exigency, (2) rule-setting for institutional behavior, and (3) other provisions included in the regulation that could…

The response of courts to terminations resulting from a financial crisis threatening a school is analyzed. That response depends, in part, on whether the teacher is asserting the infringement of a constitutional right, such as freedom of expression, or the deprivation without due process of the law of a property interest, such as a statutory or…

The retrenchment experience of Pennsylvania's state college system is described. The specter of retrenchment scared the campuses into finding new nonpersonnel cuts to make; a policy of intrasystem faculty transfer was finally adopted; and although campus presidents opposed retrenchment, by 1979-80 they were convinced of its necessity. (MLW)

Considerations that can help colleges and universities develop institutionally specific strategies for planning faculty reductions are addressed. It is suggested that an institution can provide a fair and workable reduction plan if it: thoroughly explores alternatives to faculty layoffs; develops explicit standards and procedures for reduction…

The legal developments regarding dismissal of tenured faculty members because of financial exigency are considered. Attention is directed to, the ability of the public or private institution to dismiss and the constitution of a state of financial exigency and a bona fide dismissal. A standard for claiming financial exigency that was suggested by…

Papers from the National Conference on Trusteeship discuss: recent board- president imbroglios; Rutgers legal headaches; governing boards and legal policy changes; 5 percent of operating income set aside to build operating reserve; and how the South Dakota State Board involved campuses in decisions. (Author/MLW)

The involvement of state agencies in program discontinuance in higher education was studied, based on the responses of 46 agencies. It was found that 32 state agencies were actively involved in recommending, initiating, or enforcing actual discontinuances. The following eight categories of obstacles to program discontinuance were identified: legal…