n Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 1 of 211 Page ID #:20 '··

1 John A. Vogt (State Bar No. 198677) 2 javogt@jonesday.com
EdwardS. Chang (State Bar No. 241682) . 3 JONESDAY
4 3161 Michelson Drive Suite 800
5 Irvine, CA 92612.4408
6 Telephone: +1.949.851.3939
Facsimile: +1.949.553.7539 7
8 Michael A. Carvin (Pro Hac Vice To Be Filed) macarvin@JonesDay .com
9 James M. Burnham (Pro Hac Vice To Be Filed) 10 JONESDAY
51 Louisiana Avenue, N.W. II Washington, D.C. 20001.2113 12 Telephone: +1.202.879.3939
Facsimile: + 1.202.626.1700 13
14 Michael E. Rosman (Pro Hac Vice To Be Filed) rosman@cir-usa.org
15 Center for Individual Rights
16 1233 20th St. NW, Suite 300 Washington, DC 20036
17 Telephone: + 1.202.833.8400
18 ATIORNEYS FOR PLAINTIFFS
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20

UNITED STATES DISTRICT COURT

21

CENTRAL DISTRICT OF CALIFORNIA

22

SOUTHERN DMSION

23

24 REBECCA FRIEDRICHS; SCOTI

25

WILFORD; JELENA FIGUEROA; GEORGE W. WIDTE, JR.; KEVIN

26 ROUGHTON; PEGGY SEARCY;

27

JOSE ~SO; HARLAN ELRICH; KAREN CUEN; IRENE ZAVALA;

28 CHRISTIAN EDUCATORS

Case No. SAC'V1U7i JST(CWxl COMPLAINT

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 2 of 211 Page ID #:21

1 ASSOCIATION INTERNATIONAL,

2

Plaintiffs,

3 v.
4

5

CALIFORNIA TEACHERS ASSOCIATION; NATIONAL

6 EDUCATION ASSOCIATION;

7

SAVANNA DISTRICT TEACHERS ASSOCIATION, CTA/NEA;

8 SADDLEBACK VALLEY

9

EDUCATORS ASSOCIATION; ORANGE UNIFIED EDUCATION

10 ASSOCIATION, INC.; KERN HIGH

11

SCHOOL TEACHERS ASSOCIATION; NATIONAL

12 EDUCATION ASSOCIATION-

13 JURUPA; SANTA ANA EDUCATORS ASSOCIATION, INC.;

14 TEACHERS ASSOCIATION OF

15 NORWALK-LA MIRADA AREA; SANGER UNIFIED TEACHERS

16 ASSOCIATION; ASSOCIATED

17 CHINO TEACHERS; SAN LUIS OBISPO COUNTY EDUCATION

18 ASSOCIATION; SUE JOHNSON;

19 CLINT HARWICK; MICHAEL L. CHRISTENSEN; DONALD E.

20 CARTER; ELLIOTT DUCHON;

21 THELMA MELENDEZ DE SANTA ANA; RUTH PEREZ; MARCUS P.

22 JOHNSON; WAYNE JOSEPH;

23 JULIAN D. CROCKER,

24

Defendants.

25

26

27

28

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 3 of 211 Page ID #:22

1

Plaintiffs Rebecca Friedrichs, Scott Wilford, Jelena Figueroa, George W.

2 White, Jr., Kevin Roughton, Peggy Searcy, Jose Manso, Harlan Elrich, Karen Cuen,

3 Irene Zavala, and Christian Educators Association International (“CEAI”), by and

4 through their undersigned counsel, allege as follows:

5

INTRODUCTION

6

1. The First Amendment to the United States Constitution protects the

7 individual rights of free speech and free association, including the right to withhold

8 support from political causes and activities that conflict with one’s beliefs. “When a

9 State establishes an ‘agency shop’ that exacts compulsory union fees as a condition

10 of public employment, the dissenting employee is forced to support financially an

11 organization with whose principles and demands he may disagree. Because a

12 public-sector union takes many positions during collective bargaining that have

13 powerful political and civic consequences, the compulsory fees constitute a form of

14 compelled speech and association that imposes a significant impingement on First

15 Amendment rights.” Knox v. Serv. Emps. Int’l Union, Local 1000, 132 S. Ct. 2277,

16 2289 (2012) (citations and alterations omitted).

17

2. The State of California (the “State”) and its public school districts, in

18 cooperation with the California Teachers Association (“CTA”) and the other named

19 Defendants, maintain an “agency shop” arrangement that injures public school

20 teachers, including Plaintiffs, by forcing them to make financial contributions to

21 teachers’ unions as a condition of public employment. This agency-shop

22 arrangement is established and maintained under color of State law, the California

23 Educational Employment Relations Act (“EERA”), Cal. Gov’t Code § 3540 et seq.

24 Each year, the unions estimate a breakdown of expenditures that will be

25 “chargeable” (i.e., germane to collective bargaining) and “non-chargeable” (i.e.,

26 political or ideological and not germane to collective bargaining). Teachers are

27 required to contribute to the union’s “chargeable” expenditures. Teachers who wish

28 to avoid contributing to a union’s “non-chargeable” expenditures are annually forced

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1 to affirmatively express that they do not wish to contribute. Each year they must

2 send the union a new notice indicating their objection.

3

3. This “opt out” process is unnecessarily burdensome and time-

4 consuming and is susceptible to resistance and pressure from the unions and their

5 members.

6

4. Even if a teacher successfully completes the “opt out” process, he or

7 she is still forced to pay the “chargeable” portion of fees to support the union’s

8 collective-bargaining activities. Any teacher who objects to the union’s

9 classification of certain expenditures as “chargeable” must bear the additional

10 burden and expense of filing a legal challenge.

11

5. California’s “agency shop” arrangement violates Plaintiffs’ First

12 Amendment rights in two distinct ways. First, the agency-shop arrangement violates

13 their rights of free speech and association by forcing them to contribute to so-called

14 “chargeable” union expenditures germane to collective bargaining, even though

15 those contributions provide economic support to “non-chargeable” union activities

16 and even though many of the “chargeable” expenditures and collective-bargaining

17 activities are contrary to Plaintiffs’ personal interests and political beliefs. Second,

18 the agency-shop arrangement violates Plaintiffs’ rights of free speech and

19 association by forcing them to undergo an “opt out” process each year to avoid

20 contributing to political and ideological expenditures that the unions concede are not

21 germane to collective bargaining.

22

6. These severe infringements on Plaintiffs’ rights to free speech and

23 association cannot withstand First Amendment scrutiny. Laws mandating

24 compulsory speech and association must be narrowly tailored to serve a compelling

25 government interest. California’s “agency shop” arrangement cannot meet that

26 standard. Requiring forced contributions of non-members for collective bargaining-

27 efforts in the public sector serves no compelling state interest and is not narrowly

28 tailored. Requiring non-members to contribute to “non-chargeable” union

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Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 5 of 211 Page ID #:24

1 expenditures unless they go through an annual opt-out process also serves no

2 compelling state interest and is not narrowly tailored.

3

7. It is clear that the California’s “agency shop” does not serve the

4 interests of all public school teachers. In the course of collective bargaining, unions

5 frequently take politically controversial positions that contradict the deeply held

6 beliefs of some teachers, who do not believe the policies advocated by unions to be

7 in their best interest, or in the best interest of society at large. For example, unions

8 consistently “bargain” for provisions requiring increased State spending, and against

9 important educational reforms which some teachers believe would benefit teachers,

10 students, and taxpayers. Even in purely material terms, “seniority” protections and

11 other employment protections advocated by unions benefit some teachers at the

12 expense of other teachers who would fare better under an alternative system.

13

8. Recognizing that compulsory agency fees violate the First Amendment

14 will not undermine the unions’ authority or entitlement to engage in collective

15 bargaining. The unions will remain the exclusive collective-bargaining agents in

16 each school district as long as they retain the support of a majority of teachers in

17 those districts. Public school teachers will, therefore, remain fully entitled to join

18 together and collectively bargain through the unions for any and all desired labor

19 protections.

20

9. Given the severe and ongoing infringement of Plaintiffs’ rights to free

21 speech and free association, Plaintiffs respectfully request that this Court declare

22 that California’s practice of forcing non-union members to contribute funds to

23 unions, including funds to support their collective-bargaining activities, violates the

24 First Amendment, and enjoin Defendants from enforcing this unconstitutional

25 arrangement.

26

10. Plaintiffs additionally request that this Court declare that the

27 Defendants’ practice of requiring an annual affirmative “opt out” to avoid

28

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Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 6 of 211 Page ID #:25

1 contributing to “non-chargeable” union expenditures violates the First Amendment,

2 and enjoin Defendants from imposing this unconstitutional burden.

3

PARTIES

4

11. Plaintiff Rebecca Friedrichs has been a public school teacher in the

5 Savanna School District for 25 years. She resigned her union membership in 2012

6 and opted out of paying the non-chargeable portion of the agency fees. But for

7 California’s “agency shop” arrangement, Ms. Friedrichs would not pay fees to or

8 otherwise subsidize the teachers’ union, and she objects to the State’s forced

9 subsidization policy. She objects to many of the unions’ public policy positions,

10 including positions taken in collective bargaining.

11

12. Plaintiff Scott Wilford has been a public school teacher in California

12 for 20 years. He has been a teacher in the Saddleback Valley School District for 14

13 years. He resigned his union membership in 2009. Every year since, he has opted

14 out of paying the non-chargeable portion of the agency fees. But for California’s

15 “agency shop” arrangement, Mr. Wilford would not pay fees to or otherwise

16 subsidize the teachers’ union, and he objects to the State’s forced subsidization

17 policy. He objects to many of the unions’ public policy positions, including

18 positions taken in collective bargaining.

19

13. Plaintiff Jelena Figueroa has been a public school teacher in the Orange

20 Unified School District for ten years. She resigned her union membership in 2008.

21 Every year since, she has opted out of paying the non-chargeable portion of the

22 agency fees. But for California’s “agency shop” arrangement, Ms. Figueroa would

23 not pay fees to or otherwise subsidize the teachers’ union, and she objects to the

24 State’s forced subsidization policy. She objects to many of the unions’ public policy

25 positions, including positions taken in collective bargaining.

26

14. Plaintiff George W. White, Jr., has been a public school teacher in the

27 Kern High School District for 28 years. He resigned his union membership in 2000.

28 Every year since, he has opted out of paying the non-chargeable portion of the

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Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 7 of 211 Page ID #:26

1 agency fees. But for California’s “agency shop” arrangement, Mr. White would not

2 pay fees to or otherwise subsidize the teachers’ union, and he objects to the State’s

3 forced subsidization policy. He objects to many of the unions’ public policy

4 positions, including positions taken in collective bargaining.

5

15. Plaintiff Kevin Roughton has been a public school teacher in the Jurupa

6 Unified School District for eleven years. He resigned his union membership in

7 2008. Every year since, he has opted out of paying the non-chargeable portion of

8 the agency fees. But for California’s “agency shop” arrangement, Mr. Roughton

9 would not pay fees to or otherwise subsidize the teachers’ union, and he objects to

10 the State’s forced subsidization policy. He objects to many of the unions’ public

11 policy positions, including positions taken in collective bargaining.

12

16. Plaintiff Peggy Searcy has been a public school teacher in the Santa

13 Ana Unified School District for 23 years. She resigned her union membership in or

14 about 2010. Every year since, she has opted out of paying the non-chargeable

15 portion of the agency fees. But for California’s “agency shop” arrangement, Ms.

16 Searcy would not pay fees to or otherwise subsidize the teachers’ union, and she

17 objects to the State’s forced subsidization policy. She objects to many of the

18 unions’ public policy positions, including positions taken in collective bargaining.

19

17. Plaintiff Jose Manso began teaching in 1979. He left the profession for

20 a 23-year period and returned to teaching fulltime in the Norwalk-La Mirada Unified

21 School District in 2002. He resigned his union membership in 2010. Every year

22 since, he has opted out of paying the non-chargeable portion of the agency fees. But

23 for California’s “agency shop” arrangement, Mr. Manso would not pay fees to or

24 otherwise subsidize the teachers’ union, and he objects to the State’s forced

25 subsidization policy. He objects to many of the unions’ public policy positions,

26 including positions taken in collective bargaining.

27

18. Plaintiff Harlan Elrich has been a public school teacher for over 26

28 years and has been a public school teacher in California for over 20 years. He has

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Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 8 of 211 Page ID #:27

1 been a teacher in the Sanger Unified School District for 8 years. He resigned his

2 union membership in 2012 and opted out of paying the non-chargeable portion of

3 the agency fees. But for California’s “agency shop” arrangement, Mr. Elrich would

4 not pay fees to or otherwise subsidize the teachers’ union, and he objects to the

5 State’s forced subsidization policy. He objects to many of the unions’ public policy

6 positions, including positions taken in collective bargaining.

7

19. Plaintiff Karen Cuen has been a public school teacher in California for

8 25 years. She has been a teacher in the Chino Valley Unified School District for 20

9 years. She resigned her union membership in 1997. Every year since, she has opted

10 out of paying the non-chargeable portion of the agency fees. But for California’s

11 “agency shop” arrangement, Ms. Cuen would not pay fees to or otherwise subsidize

12 the teachers’ union, and she objects to the State’s forced subsidization policy. She

13 objects to many of the unions’ public policy positions, including positions taken in

14 collective bargaining.

15

20. Plaintiff Irene Zavala has been a public school teacher in California for

16 13 years. She began teaching in San Luis Obispo County in 2012. She resigned her

17 union membership in 2001. Because of her religious principles, Mrs. Zavala is a

18 religious objector under Cal. Gov’t Code § 3546.3 (providing that “any employee

19 who is a member of a religious body whose traditional tenets or teachings include

20 objections to joining or financially supporting employee organizations shall not be

21 required to join, maintain membership in, or financially support any employee

22 organization as a condition of employment; except that such employee may be

23 required, in lieu of a service fee, to pay sums equal to such service fee either to a

24 nonreligious, nonlabor organization, charitable fund . . . chosen by such employee

25 from a list of at least three such funds, designated in the organizational security

26 arrangement”). To qualify as a religious objector under her union’s collective-

27 bargaining agreement and California law, id., Mrs. Zavala had to send a letter

28 confirming her religious objections to making contributions to the union. She then

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Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 9 of 211 Page ID #:28

1 had to engage in protracted e-mail correspondence with union and district officials

2 to ensure that her objections were processed. In accordance with State law, once

3 Mrs. Zavala’s objection was properly processed, she was required to donate the full

4 amount of the agency fee—not merely the chargeable portion—to one of three State-

5 approved charities specified in the collective-bargaining agreement. See San Luis

6 Obispo County Collective Bargaining Agreement, Art. 12.4.2 (attached as Ex. A).

7 But for California’s “agency shop” arrangement, Mrs. Zavala would not pay fees to

8 or otherwise subsidize the teachers’ union, would decide for herself how much to

9 donate in charitable contributions every year, and would not have her charitable

10 contributions constrained by a collective-bargaining agreement. She objects to the

11 State’s agency-shop law, and to many of the unions’ public policy positions,

12 including positions taken in collective bargaining.

13

21. Plaintiff CEAI is a non-profit religious organization that is the only

14 professional association specifically serving Christians working in public schools.

15 Founded and incorporated in the state of California, CEAI’s membership consists of

16 teachers, administrators, and para-professionals, and many other public and private

17 school employees. In addition, CEAI offers associate membership to parents,

18 pastors, school-board members, youth leaders, and others concerned or interested in

19 the education of the nation’s children. CEAI has approximately 600 members in the

20 State of California, most of whom are subject to the unconstitutional arrangements

21 outlined herein. Some of the individual Plaintiffs here—Kevin Roughton, Irene

22 Zavala, Peggy Searcy, Jose Manso, Rebecca Friedrichs, and Harlan Elrich—are

23 CEAI members. CEAI and its members object on policy grounds to the positions

24 taken by teachers’ unions in the collective bargaining process and outside of that

25 process. The interests that CEAI seeks to protect in this lawsuit are germane to the

26 organization’s purpose, and neither the claims asserted nor the relief requested

27 require the participation in this lawsuit of CEAI’s individual members. In addition,

28 Defendants’ conduct pursuant to the State’s agency-shop laws has the effect of

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1 creating a drain on CEAI’s resources. There is a direct conflict between CEAI’s

2 mission and the challenged agency-shop arrangements, and CEAI engages in

3 counseling, referral, advocacy, and educational services relating to California’s

4 agency-shop arrangements, independently of this litigation.

5

22. Defendant National Education Association (“NEA”) is the largest

6 teachers’ union in the United States and one of the largest public-sector unions. It

7 receives a share of the agency fees that are extracted from Plaintiffs and other

8 public-school teachers under California’s agency-shop laws. It has annual revenues

9 of over $400 million per year. NEA is a major participant in political activities at

10 the national, state, and local levels.

11

23. Defendant California Teachers Association (“CTA”) is the state

12 affiliate of NEA. It is the largest teachers’ union in California and one of the largest

13 public-employee unions in the United States. It receives a share of the agency fees

14 that are extracted from Plaintiffs and other public-school teachers under California’s

15 agency-shop laws. It has annual revenues of over $175 million per year. CTA is a

16 major participant in California politics and is heavily active at all levels of state and

17 local government.

18

24. Defendant Savanna District Teachers Association, CTA/NEA is the

19 local union that is recognized as the exclusive bargaining representative in the

20 Savanna School District. Its state affiliate is CTA and its national affiliate is NEA.

21

25. Defendant Saddleback Valley Educators Association is the local union

22 that is recognized as the exclusive bargaining representative in the Saddleback

23 Valley Unified School District. Its state affiliate is CTA and its national affiliate is

24 NEA.

25

26. Defendant Orange Unified Education Association, Inc. is the local

26 union that is recognized as the exclusive bargaining representative in the Orange

27 Unified School District. Its state affiliate is CTA and its national affiliate is NEA.

28

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Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 11 of 211 Page ID #:30

1

27. Defendant Kern High School Teachers Association is the local union

2 that is recognized as the exclusive bargaining representative in the Kern High

3 School District. Its state affiliate is CTA and its national affiliate is NEA.

4

28. Defendant National Education Association-Jurupa is the local union

5 that is recognized as the exclusive bargaining representative in the Jurupa Unified

6 School District. Its state affiliate is CTA and its national affiliate is NEA.

7

29. Defendant Santa Ana Educators Association, Inc. is the local union that

8 is recognized as the exclusive bargaining representative in the Santa Ana Unified

9 School District. Its state affiliate is CTA and its national affiliate is NEA.

10

30. Defendant Teachers Association of Norwalk-La Mirada Area is the

11 local union that is recognized as the exclusive bargaining representative in the

12 Norwalk-La Mirada Unified School District. Its state affiliate is CTA and its

13 national affiliate is NEA.

14

31. Defendant Sanger Unified Teachers Association is the local union that

15 is recognized as the exclusive bargaining representative in the Sanger Unified

16 School District. Its state affiliate is CTA and its national affiliate is NEA.

17

32. Defendant Associated Chino Teachers is the local union that is

18 recognized as the exclusive bargaining representative in the Chino Valley Unified

19 School District. Its state affiliate is CTA and its national affiliate is NEA.

20

33. The San Luis Obispo County Education Association is the local union

21 that is recognized as the exclusive bargaining representative in the San Luis Obispo

22 County Office of Education. Its state affiliate is CTA and its national affiliate is

23 NEA.

24

34. Defendant school superintendents are the executive officers in charge

25 of the school districts that employ Plaintiff teachers, pay Plaintiff teachers’ wages,

26 and process all deductions therefrom, including for union dues and “agency fees”

27 pursuant to “agency shop” arrangements authorized by State law. Cal. Gov’t Code §

28

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Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 12 of 211 Page ID #:31

1 3540 et seq., Cal. Educ. Code § 45061. Defendant school superintendents are sued

2 in their official capacity.

3

35. Defendant Sue Johnson is the superintendent of Savanna School

4 District, and is the executive officer who implements the deduction of agency fees

5 from the paychecks of Plaintiff Rebecca Friedrichs.

6

36. Defendant Clint Harwick is the superintendent of the Saddleback

7 Valley Unified School District, and is the executive officer who implements the

8 deduction of agency fees from the paychecks of Plaintiff Scott Wilford.

9

37. Defendant Michael L. Christensen is the superintendent of the Orange

10 Unified School District, and is the executive officer who implements the deduction

11 of agency fees from the paychecks of Plaintiff Jelena Figueroa.

12

38. Defendant Donald E. Carter is the superintendent of the Kern High

13 School District, and is the executive officer who implements the deduction of

14 agency fees from the paychecks of Plaintiff George W. White, Jr.

15

39. Defendant Elliott Duchon is the superintendent of the Jurupa Unified

16 School District, and is the executive officer who implements the deduction of

17 agency fees from the paychecks of Plaintiff Kevin Roughton.

18

40. Defendant Thelma Meléndez de Santa Ana is the superintendent of the

19 Santa Ana Unified School District, and is the executive officer who implements the

20 deduction of agency fees from the paychecks of Plaintiff Peggy Searcy.

21

41. Defendant Ruth Pérez is the superintendent of the Norwalk-La Mirada

22 Unified School District, and is the executive officer who implements the deduction

23 of agency fees from the paychecks of Plaintiff Jose Manso.

24

42. Defendant Marcus P. Johnson is the superintendent of the Sanger

25 Unified School District, and is the executive officer who implements the deduction

26 of agency fees from the paychecks of Plaintiff Harlan Elrich.

27

28

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1

43. Defendant Wayne Joseph is the superintendent of the Chino Valley

2 Unified School District, and is the executive officer who implements the deduction

3 of agency fees from the paychecks of Plaintiff Karen Cuen.

4

44. Defendant Julian D. Crocker is the superintendent of the San Luis

5 Obispo County Office of Education, and is the executive officer who implements the

6 deduction of agency fees from the paychecks of Plaintiff Irene Zavala.

7

JURISDICTION AND VENUE

8

45. This is an action under the Federal Civil Rights Act of 1871, 42 U.S.C.

9 § 1983, to redress the deprivation, under color of state law, of rights, privileges and

10 immunities secured to Plaintiffs by the Constitution of the United States, particularly

11 the First and Fourteenth Amendments

12

46. This Court has subject-matter jurisdiction over this action under 28

13 U.S.C. §§ 1331 and 1343(a)(3)-(4). Declaratory relief is authorized by 28 U.S.C.

14 §§ 2201 and 2202 and Federal Rule of Civil Procedure 57.

15

47. Venue is proper in this district under 28 U.S.C. § 1391(b).

16

48. An actual controversy currently exists between the parties concerning

17 the constitutionality of California’s “agency shop” arrangement. That controversy is

18 justiciable in character, and relief is necessary to preserve Plaintiffs’ rights and

19 prevent future harm to Plaintiffs.

20

49. California’s “agency shop” arrangement imposes a cognizable injury on

21 Plaintiffs by forcing them or their members to contribute money in support of union

22 activities, and by forcing them to bear a substantial burden in order to “opt out” of

23 supporting union activities that the unions themselves classify as political and

24 unrelated to collective bargaining.

25

FACTUAL ALLEGATIONS

26 I. California’s “Agency Shop” Law for Public-School Teachers

27

50. Under California law, a union may become the exclusive bargaining

28 representative for “public school employees” in a bargaining unit (usually a public

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1 school district) by submitting adequate proof that a majority of such employees in

2 the unit wish to be represented exclusively by the union. Cal. Gov’t Code §§ 3544,

3 3544.1. “Public school employee” for these purposes is statutorily defined as “a

4 person employed by a public school employer except persons elected by popular

5 vote, persons appointed by the Governor of this state, management employees, and

6 confidential employees [who facilitate employee relations on behalf of

7 management].” Id. § 3540.1(j). When a union is designated as the exclusive

8 representative, all the “public school employees” in that district are represented

9 exclusively by the union for purposes of bargaining with the district. Id.

10 § 3543.1(a).

11

51. California law defines the “terms and conditions of employment,”

12 concerning which the unions may collectively bargain, to include a wide range of

13 issues at the heart of education policy. Id. § 3543.2(a). These topics of collective

14 bargaining include wages, hours of employment, and other terms and conditions of

15 employment, such as “health and welfare benefits,” “leave,” “transfer and

16 reassignment policies,” “safety conditions of employment,” “class size,” and

17 “procedures to be used for the evaluation of employees.” Id.

18

52. Under State law, a union that has been recognized as the exclusive

19 bargaining representative for a school district can enter into an agency-shop

20 arrangement (also known as an “organizational security agreement”) with that

21 district. While teachers in the district are not required to become members of the

22 union, they are required to pay fees to the union as a condition of their employment.

23 Id. § 3546(a). State law authorizes the union to collect these “agency fees” from all

24 teachers in the district to fund the union’s operations and expenditures. Id. Under

25 California law, the category of expenses covered by agency fees “may include, but

26 shall not necessarily be limited to, the cost of lobbying activities designed to foster

27 collective bargaining negotiations and contract administration, or to secure for the

28 represented employees advantages in wages, hours, and other conditions of

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1 employment in addition to those secured through meeting and negotiating with the

2 employer.” Id. § 3546(b). Under the statute, the full amount of the “agency fee”

3 charged to non-members is determined by the union and “shall not exceed the dues

4 that are payable by members” of the union. Id. § 3546(a). In practice, the amount

5 of agency fees is typically equivalent to the amount of union dues.

6

53. If a teacher chooses to be a member of the union that is the exclusive

7 representative in his or her district, the school district collects the full amount of

8 union dues from that teacher and forwards them to the union. Id. § 3543.1(d). See

9 also Cal. Educ. Code §§ 45060, 45061, 45061.5, 45168. Non-union teachers are

10 required to pay the above-described “agency fees” to the union. Each year, the

11 union must send out a “Hudson” notice indicating the percentage of the agency fees

12 that will be “non-chargeable,” i.e., “not devoted to the cost of negotiations, contract

13 administration, and other activities of the employee organization that are germane to

14 its function as the exclusive bargaining representative.” Cal. Gov’t Code § 3546(a).

15 If a teacher who is not a member of the union affirmatively responds to the notice by

16 indicating he or she would like to “opt out” of paying the “non-chargeable” portion

17 of the fee, he or she is entitled to a rebate or fee reduction for that year. Id.; see also

18 Regs. of Cal. Pub. Emp’t Relations Bd. § 32992. Absent such an affirmative “opt

19 out,” the non-member pays the full amount of the fee.

20

54. Under State law, each school district may deduct agency fees from

21 teachers’ paychecks and pay the fees to the union recognized for that district. Cal.

22 Gov’t Code § 3546(a). Alternatively, “any employee may pay service fees directly

23 to the [union] in lieu of having such service fees deducted from the salary or wage

24 order.” Cal. Educ. Code § 45061. The amount of the total agency fee is determined

25 by the union based on an estimate of its expenditures in the coming year. The

26 “chargeable” and “non-chargeable” portions of the fee are calculated by the union

27 based on an audited financial report for a recent year of the union’s expenditures.

28 The union is required to include the audited financial report along with the

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Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 16 of 211 Page ID #:35

1 breakdown of “chargeable” and “non-chargeable” expenditures in the annual

2 “Hudson” notice sent out to teachers. See Regs. of Cal. Pub. Emp’t Relations Bd.

3 § 32992(b)(1).

4

55. An agency fee payer who disagrees with the union’s determination of

5 the chargeable portion of the agency fee may file a challenge with the union after

6 receiving the “Hudson” notice. Upon receipt of an agency fee challenge, the union

7 must request a prompt hearing regarding the agency-fee breakdown before an

8 impartial decisionmaker selected by either the American Arbitration Association or

9 the California State Mediation Service. Id. § 32994.

10 II. The “Agency Shop” Arrangements in California’s Public School

11

Districts

12

56. Under color of state law, Cal. Gov’t Code § 3540 et seq., Defendant

13 local unions have been designated the exclusive bargaining agents for the school

14 districts in which Plaintiffs are employed as teachers.

15

57. Under color of State law, id., Defendant local unions have entered into

16 agency-shop agreements with the school districts where Plaintiffs are employed as

17 teachers. These agreements include provisions requiring that all teachers in these

18 districts either join the unions, or else pay agency fees to the unions. The

19 agreements also provide that teachers must contribute to “non-chargeable” union

20 expenditures unless they go through an opt-out process.

21

58. For each school district in which Plaintiffs are employed, the total

22 agency-fee amount is determined by the local union that is recognized as the

23 exclusive bargaining representative for that district, often in collaboration with CTA.

24 After the local union or CTA informs the school district of the annual agency-fee

25 amount, the school district automatically deducts that amount in pro rata shares from

26 the teacher’s regular paychecks (or, in some cases, the “chargeable” portions of the

27 fee for teachers who “opted out” of “non-chargeable” fees) unless the teacher

28 informs the district that he or she will pay the union directly. The school district

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Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 17 of 211 Page ID #:36

1 sends the deducted amounts directly to the local union, which then distributes part of

2 the fees to CTA and NEA.

3

59. For each school district in which Plaintiffs are employed, the local

4 union’s agency fee includes “affiliate fees” for both CTA and NEA, which are the

5 state and national affiliates of the local union. The amount of the affiliate fees are

6 uniform in every school district because they are determined on a statewide and

7 nationwide basis by CTA and NEA, respectively.

8

60. For each school district in which Plaintiffs are employed, CTA and

9 NEA “affiliate fees” are treated as partially “chargeable.” The “chargeable” portion

10 of the “affiliate fees” is based on the “chargeable” portion of all statewide and

11 nationwide expenditures by CTA and NEA. Thus, the portions of CTA and NEA

12 “affiliate fees” deemed “chargeable” to teachers in local school districts are not

13 designed to correspond to actual collective-bargaining expenditures made by CTA

14 and NEA within those districts. Rather, they are based on the overall breakdown of

15 CTA and NEA “chargeable” expenditures in California and the United States,

16 respectively.

17

61. For each school district in which plaintiffs are employed, the

18 “chargeable” and “non-chargeable” portions of the agency fees are calculated based

19 on an audit of the union expenditures in a recent year. The auditors confirm that the

20 union expenditures were made as indicated, but do not confirm that the union has

21 properly classified the expenditures as “chargeable” or “non-chargeable.”

22

62. Teachers who are not union members receive an annual “Hudson”

23 notice each fall, giving them a breakdown of the “chargeable” and “non-chargeable”

24 portion of the agency fee. Upon receiving this notice, teachers who are not union

25 members have the option of undergoing the “opt out” process, which requires them

26 to object to the “non-chargeable” portion of the agency fee within approximately six

27 weeks. If a teacher succeeds in making a timely objection, the union either refrains

28 from collecting the non-chargeable portion of the agency fee or sends a “rebate”

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Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 18 of 211 Page ID #:37

1 check to the teacher equal to the non-chargeable portion of the annual agency fee.

2 Teachers who receive the “Hudson” notice also have the option to file a legal

3 challenge to the union’s calculation of the “chargeable” and “non-chargeable”

4 portions of the agency fee.

5

63. Annual dues (or agency fees for non-members) typically consume

6 roughly two percent of a new teacher’s salary, and sometimes increase regardless of

7 whether there is an increase in teacher pay. The total amount of annual dues

8 generally exceeds $1,000 per teacher, while the amount of the refund received by

9 nonmembers who successfully opt out of the non-chargeable portion of their agency

10 fees is generally around $350 to $400.

11

64. In order to participate in this “opt out” process, the teacher cannot be a

12 member of the union. This means that teachers who “opt out” must forgo the ability

13 to obtain direct benefits through the union, some of which benefits are typically (and

14 would likely otherwise be) obtainable through one’s employer. For example,

15 teachers who “opt out” are unable to obtain disability insurance as part of their

16 employment package. See, e.g., CTA, Member Benefits,

17 http://archive.cta.org/MemberBenefits/Disability.html (“Most school districts do not

18 provide disability insurance coverage for their employees.”); id. (“The CTA

19 Voluntary Disability Plan provides benefits to members when they become totally

20 disabled for any reason.”). Such insurance is necessary to, among other things,

21 provide teachers on maternity leave with monies approximating their regular salary.

22 Most school districts provide only differential pay during maternity leave (that is,

23 “the amount remaining of your salary after the district pays a substitute to fill your

24 position,” CTA, Pregnancy and Parental Leave Rights,

25 http://ctainvest.org/home/insurance-estate-planning/disability-long-term/pregnancy-

26 and-parental-leave-rights.aspx), leaving disability insurance to make up the

27 difference). See CTA, Member Benefits; CTA, How is CTA saving you money?,

28

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Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 19 of 211 Page ID #:38
1 http://www.cta.org/Professional-Development/Publications/2012/12/December-
2 2012-Educator-Magazine/How-CTA-is-saving-you-money.aspx.
3 65. The defendant unions invoke teachers’ inability to obtain disability
4 insurance through their school district employers when encouraging non-members to
5 join the union. See, e.g., Kern High Teachers Association Letter (undated) (“If you
6 join CTA, you are eligible for income protection [in the event of a disability]
7 through the insurance provider The Standard.”) (attached as Ex. B).
8 66. Plaintiffs or their members are subject to these “agency shop”
9 arrangements in the school districts where they teach.
10 67. In recent years, NEA has deemed approximately 40 percent of its
11 expenditures to be “chargeable.” CTA has deemed approximately 65 percent of its
12 expenditures to be “chargeable.” Local unions often use the same chargeability
13 percentage as CTA. This practice is apparently based on a “local union
14 presumption,” which presumes that local unions tend to spend as much or more of
15 their budgets on collective bargaining as do their state affiliates.
16 68. Dues and agency fees yield significant revenues for the unions. For
17 example, CTA’s revenue in 2009 was $186 million, primarily from membership
18 dues and fees. In 2011, it was over $191 million, over $178 million of which came
19 from membership dues and fees.
20 69. CTA spent over $211 million in political expenditures from 2000
21 through 2009. CTA’s largest single expenditure, of over $26 million, was made to
22 successfully oppose Proposition 38 on the 2000 ballot, which would have enacted a
23 school-voucher system in California and thereby increased the potential employment
24 pool for teachers. CTA also spent over $50 million to oppose three ballot initiatives
25 in 2005, including Proposition 74, which sought to make changes in the
26 probationary period for California school teachers; Proposition 75, which sought to
27 prohibit the use of public employee agency fees for political contributions without
28
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Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 20 of 211 Page ID #:39

1 individual employees’ prior consent; and Proposition 76, concerning state spending

2 and minimum school-funding requirements. See California Fair Political Practices

3 Commission, Big Money Talks, at 11-12 (Mar. 2010),

4 http://www.fppc.ca.gov/reports/Report38104.pdf. CTA also takes public positions

5 on a wide range of issues both related and unrelated to the educational system. For

6 example, CTA opposes school vouchers (CTA, Issues & Action: Vouchers,

7 http://www.cta.org/Issues-and-Action/Education-Reform/Vouchers.aspx) and

8 supports immigration reform that provides “timely legalization without regard to

9 national origin” (CTA, Issues in Action: Immigration, http://www.cta.org/en/Issues-

10 and-Action/Ongoing-Issues/Immigration.aspx).

11

70. CTA is a major donor to the California Democratic Party. From 2003

12 to 2012, CTA spent nearly $102 million on political contributions, with only 0.08

13 percent of that money going to Republicans. See Troy Senik, The Worst Union in

14 America, City Journal (Spring 2012). CTA also spends money on direct political

15 advocacy, much of which is on issues with no connection to education. For

16 example, the California Teachers Association spent over $1 million in opposition to

17 Proposition 8 (the gay marriage initiative). See, e.g., Evelyn Larrubia, $1 million

18 from teachers’ union to oppose Prop. 8, L.A. Times (Oct. 17, 2008),

19 http://articles.latimes.com/2008/oct/17/local/me-teachers17.

20

71. CTA also encourages its members to engage in extensive political

21 activism in the public schools where they work. For example, as part of a recent

22 campaign to lobby the State Legislature on school funding issues, see State of

23 Emergency, About (explaining the reasons for CTA’s lobbying campaign),

24 http://castateofemergency.com/?page_id=158, CTA distributed a list of practices

25 that it suggested to its teacher-members as ways to further CTA’s campaign in their

26 classrooms. For example, CTA suggested that teachers:

27

x “Take ½ photo of Assembly members and have kids draw the other half

28

with a message stating what they want for their teachers,” State of

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Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 21 of 211 Page ID #:40

1

Emergency, State Council Ideas for Potential Activities, at 1,

2

http://www.eiaonline.com/CTAStateofEmergencyIdeas.pdf,

3

x Have their “students create a BIG poster on a school bus that is sent to

4

Sacramento,” id. at 5,

5

x Organize a “Student Video Contest” in which those teachers would

6

conduct a “contest for youth to create a video about what education

7

costs would mean to them,” id. at 10.

8

72. In coordination with their express political advocacy, California’s

9 teachers’ unions routinely take positions in the collective-bargaining process that

10 have profound political and budgeting consequences.

11

73. NEA likewise engages in widespread political advocacy on a wide

12 range of issues. This includes support for firearm restrictions (NEA, Sign the

13 petition to keep students safe from gun violence, http://educationvotes.nea.org/gun-

14 violence-petition/) and support for the Affordable Care Act (NEA, Affordable

15 Health Care for America, http://www.nea.org/home/16326.htm).

16

74. CTA classifies expenditures as being “chargeable”—and thus germane

17 to collective bargaining—even when those expenditures appear to have little to do

18 with collective bargaining. For example, in 2010-2011:

19

x CTA classified its expenditures on “Human Rights Programs,” including a

20

“Gay/Lesbian Program,” as being 100% chargeable. See CTA Combined

21

Financial Statement, at 21 (Aug. 31, 2011) (attached as Ex. C),

22

x CTA classified a “GLBT Conference” as being 71.3% chargeable, id. at

23

23, and

24

x CTA also deems publication and dissemination of its internal magazine,

25

The California Educator, to be 78.4% chargeable, id. at 20.

26 Further, while the documents that CTA gives to teachers do not provide much detail

27 on the activities underlying the listed charges, those documents do further reflect

28 that CTA deems “Regional Services” to be 93.1% chargeable, id. at 17, despite

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Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 22 of 211 Page ID #:41

1 “Regional Services” appearing to contain expenditures on numerous activities of a

2 non-bargaining-related nature. See id. at 28-29 (listing as several targets of

3 “emphasis” in 2010-2011, “[e]xpanding the CTA membership base”; “[a]ssistance

4 with chapter organization”; “identification and development of local issues”;

5 “[o]rganizing and training for political action and community outreach”).

6

75. CTA maintains that “[c]hargeable expenses generally include those

7 related to” policy strategizing or public polling. Id at 34. (“[s]trategic planning and

8 polling on priorities for association activities”).

9

76. NEA likewise classifies expenditures as “chargeable” even when those

10 expenditures appear to have little to do with collective bargaining. For example, in

11 2010-2011, NEA deemed “[p]rovide technical and financial support to affiliates

12 engaged in or preparing to engage in comprehensive salary campaigns” to be 76%

13 chargeable. See NEA Combined Financial Statements at 28 (Aug. 31, 2011)

14 (attached as Ex. D). NEA likewise deemed:

15

x “Provide resources to assist affiliates build capacity to support their

16

initiatives designed to advance pro-public education policies for

17

student learning and workforce quality,” to be 91.5% chargeable, id.,

18

x “Affiliate programs and services that increase membership,” to be

19

73.38% chargeable, id.,

20

x “[B]uild[ing] affiliate capacity for membership growth through project

21

funding and constituency group assistance,” to be 81% chargeable, id.

22

at 35,

23

x “Facilitate[] the development of NEA strategy and operations,”

24

“[i]mplement[] workplace culture initiative,” and “[m]aintain[] NEA

25

records archives,” to be 80.9% chargeable, NEA Letter, Chargable &

26

Nonchargeble Audited Expenditures for the 2010-2011 Fiscal Year, at

27

15 (Aug. 9, 2012) (attached as Ex. E), and

28

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Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 23 of 211 Page ID #:42

1

x Conferences for NEA staff to be 100% chargeable, id. at 16

2

(“Provided learning opportunities through the Leadership Institute that

3

enhance NEA staff’s professional skills and contribute to high

4

performance.”).

5 NEA also deems to be partially chargeable spending such as “[c]ommunicate the

6 NEA beliefs, qualities, and services to engage members and improve target

7 audiences’ recognition of NEA through print and electronic media” (13.36%

8 chargeable), NEA Combined Financial Statements, at 36 (Ex. D), “[i]ncrease

9 efficient use of campaign tools, technology, and resources in all NEA targeted

10 campaigns” (14.09% chargeable), id., and “[p]artner with ethnic minority, civil

11 rights, and other organizations to advance NEA’s commitment to social justice”

12 (36.76% chargeable), NEA Letter, Chargable & Nonchargeble Audited

13 Expenditures for the 2010-2011 Fiscal Year, at 11 (Ex. E).

14

77. NEA has “determined that chargeable activities and expenditures were

15 related to” expenditures that are devoted to setting employment terms in public

16 schools that affect core education policy, NEA Combined Financial Statement, at 41

17 (Ex. D) (“specific terms and conditions of employment that may be negotiable, such

18 as,” for example, “promotions,” “discharge,” and “performance evaluation”), as well

19 as NEA-sponsored award programs, id. at 42 (“NEA award programs”).

20 III. California’s “Agency Shop” Law Violates the First Amendment

21

78. California’s agency-shop arrangement violates the First Amendment

22 rights of Plaintiffs and other public-school teachers who are not voluntary union

23 members. There is no justification—much less a compelling one—for mandating

24 that Plaintiffs make contributions to support collective bargaining and the other

25 activities of California’s teachers’ unions, which are among the most powerful and

26 politically controversial organizations in the State. Particularly given the inherently

27 political nature of collective bargaining and its profound economic consequences,

28 the First Amendment forbids coercing any money from Plaintiffs to fund so-called

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Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 24 of 211 Page ID #:43

1 “chargeable” union expenditures. Moreover, even if the First Amendment did

2 somehow tolerate conditioning public employment on subsidizing the unions, there

3 is still no justification for forcing Plaintiffs and other teachers to pay for political

4 and ideological activities—expenditures that the unions themselves admit are “non-

5 chargeable” under the First Amendment—unless they affirmatively “opt out” of

6 making payments each year.

7 A.

Conditioning Public Employment on the Payment of Mandatory Fees to Support Collective Bargaining is Unconstitutional.

8

79. As the Supreme Court has explained, “compulsory subsidies for private 9

speech are subject to exacting First Amendment scrutiny and cannot be sustained 10

unless two criteria are met. First, there must be a comprehensive regulatory scheme 11

involving a ‘mandated association’ among those who are required to pay the 12

subsidy.” Knox, 132 S. Ct. at 2289 (citing United States v. United Foods, Inc., 533 13

U.S. 405, 414 (2001)). “Such situations are exceedingly rare because . . . mandatory 14

associations are permissible only when they serve a compelling state interest . . . that 15

cannot be achieved through means significantly less restrictive of associational 16

freedoms.” Id. (citation omitted). “Second, even in the rare case where a mandatory 17

association can be justified, compulsory fees can be levied only insofar as they are a 18

‘necessary incident’ of the ‘larger regulatory purpose which justified the required 19

association.’” Id. (quoting United Foods, 533 U.S. at 414). 20

80. Agency-shop arrangements impose a “significant impingement on First 21

Amendment rights” because “[t]he dissenting employee is forced to support 22

financially an organization with whose principles and demands he may disagree.” 23

Ellis v. Bhd. of Ry., Airline & S.S. Clerks, 466 U.S. 435, 455 (1984)). This 24

“impingement” is quite severe because “public-sector union[s] take[] many positions 25

during collective bargaining that have powerful political and civic consequences.” 26

Knox, 132 S. Ct. at 2289. 27

28

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Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 25 of 211 Page ID #:44

1

81. Moreover, “any procedure for exacting [union] fees from unwilling

2 contributors must be carefully tailored to minimize the infringement of free speech

3 rights.” Id. at 2291 (citation omitted). By contrast, “unions have no constitutional

4 entitlement to the fees of nonmember-employees.” Id. (citation omitted). Rather,

5 their “collection of fees from nonmembers is authorized by an act of legislative

6 grace.” Id. (citation omitted).

7

82. California’s agency-shop arrangement does not serve any compelling

8 state interest, nor is it narrowly tailored to serve whatever interest the State may

9 have. There is no compelling or even persuasive evidence that compulsory agency

10 fees are needed to achieve “labor peace” in California or its public schools, or that

11 such a compulsory policy is the least restrictive means of securing equitable policies

12 in public employment.

13 B. The “Opt Out” Requirement for Non-Chargeable Expenditures is

14

Unconstitutional.

15

83. Under the State’s agency-shop provisions, any public school teacher

16 who wishes to withhold contributions to unions’ non-chargeable expenditures must

17 write a letter each year expressing that wish. CTA must receive this letter by a hard 18 deadline or the request to opt out will be denied and the teacher will be required to

19 pay full dues for the subsequent year. No matter how many years in a row a non-

20 member has opted out of paying the political portion of agency fees, that non21 member must still send a letter each year to CTA in order to successfully opt out.

22

84. This requirement to pay for political and ideological activities absent

23 annual, affirmative disapproval constitutes a serious burden on the First Amendment 24 rights of public employees. It also creates an environment susceptible to contrary

25 pressure by union personnel. Finally, given the strong likelihood that individuals

26 who choose not to join the union prefer not to subsidize the union’s explicitly 27 political expenditures by paying full agency fees, nonmembers should be presumed

28 to be non-contributors unless they affirmatively “opt in.” In short, the Constitution

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Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 26 of 211 Page ID #:45

1 requires unions seeking political donations to solicit those donations from non-

2 members through the ordinary process of voluntary, affirmative consent.

3

85. Abood v. Detroit Board of Education, 431 U.S. 209 (1977), upheld the

4 constitutionality of compelling payment of agency fees by public employees and

5 Mitchell v. Los Angeles Unified School District, 963 F.2d 258 (9th Cir. 1992),

6 upheld requiring non-members to “opt out” of paying the “non-chargeable” share of

7 dues. Consequently, stare decisis may restrict the ability of lower federal courts to

8 grant Plaintiffs the relief they seek.

9

FIRST COUNT

10

Exacting Compulsory Fees to Support Collective Bargaining

11

Violates the First Amendment

12

86. Plaintiffs incorporate and reallege each and every allegation contained

13 in the foregoing paragraphs of this Complaint, as though fully set forth herein.

14

87. The First Amendment to the United States Constitution provides:

15 “Congress shall make no law . . . abridging the freedom of speech.”

16

88. The Fourteenth Amendment to the United States Constitution

17 incorporates the protection of the First Amendment against the States, providing:

18 “No State shall make or enforce any law which shall abridge the privileges or

19 immunities of citizens of the United States; nor shall any State deprive any person of

20 life, liberty, or property, without due process of law; nor deny to any person within

21 its jurisdiction the equal protection of the laws.”

22

89. By requiring Plaintiffs to make any financial contributions in support of

23 any union, California’s agency-shop arrangement violates their rights to free speech

24 and association under the First and Fourteenth Amendments to the United States

25 Constitution.

26

90. Plaintiffs have no adequate remedy at law.

27

28

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Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 27 of 211 Page ID #:46

1

SECOND COUNT

2

Requiring “Opt Out” for Non-Chargeable Expenses

3

Violates the First Amendment

4

91. Plaintiffs incorporate and reallege each and every allegation contained

5 in the foregoing paragraphs of this Complaint, as though fully set forth herein.

6

92. By requiring Plaintiffs to undergo “opt out” procedures to avoid

7 making financial contributions in support of “non-chargeable” union expenditures,

8 California’s agency-shop arrangement violates their rights to free speech and

9 association under the First and Fourteenth Amendments to the United States

10 Constitution.

11

93. Plaintiffs have no adequate remedy at law.

12

COSTS AND ATTORNEYS’ FEES

13

94. Pursuant to 42 U.S.C. § 1988, Plaintiffs further seek an award of their

14 costs, including reasonable attorneys’ fees, incurred in the litigation of this case.

15

PRAYER FOR RELIEF

16

An actual controversy has arisen between the parties entitling Plaintiffs to

17 declaratory and injunctive relief.

18

WHEREFORE, Plaintiffs pray that this Court:

19

(A) Enter a judgment declaring that California’s agency-shop law, codified

20 in Cal. Gov’t Code § 3540 et seq., impermissibly abridges Plaintiffs’ First

21 Amendment free speech rights by requiring payment of any fees to any union as a

22 condition of public employment;

23

(B) Enter a judgment declaring that California’s agency shop arrangement,

24 codified in Cal. Gov’t Code § 3540 et seq., impermissibly abridges Plaintiffs’ First

25 Amendment free speech rights by requiring payments in support of “non-

26 chargeable” union expenditures unless they affirmatively opt out of such payments;

27

(C) Enter an injunction barring Defendants from seeking to require non-

28 union employees to pay any monies that support any union or, at a minimum,

- 25 -

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 28 of 211 Page ID #:47

1 baning Defendants from seeking to require payments for "non-chargeable" 2 expenditures from any employee who has not affirmatively stated a willingness to

3 fmancially support such expenditures;

4

(D) Grant Plaintiffs such additional or different reliefas it deems just and

s proper. including an award ofreasonable attorneys' fees and the costs of this action.

6 Dated:
7

April 30. 2013

8

9

10

11
12 Michael A. Carvin. Esq. (Pro Hac Vice To Be Filed) James M. Burnham, Esq. (Pro Hac Vice To Be Filed)
13 JONES DAY
14 51 Louisiana Avenue Washington, DC 20001-2113
15
16 Michael E. Rosman (Pro Hac 'Vice To Be Filed) Center for Individual Rights
17 1233 20th Sl NW, Suite 300 18 Washington DC 20036
19 ATTORNEYSFORPLAnfinFFS

20

21

22

23

24

25

26

27

28

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 29 of 211 Page ID #:48
Exhibit A

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 30 of 211 Page ID #:49
AGREEMENT BETWEEN
SAN LUIS OBISPO COUNTY SUPERINTENDENT OF SCHOOLS AND
SAN LUIS OBISPO COUNTY EDUCATION ASSOCIATION, CALIFORNIA TEACHERS ASSOCIATION/NATIONAL EDUCATION ASSOCIATION
2012-2015
i
SLOCEA/CTA - SLOCOE AGREEMENT - 2012-2015

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 31 of 211 Page ID #:50

TABLE OF CONTENTS

ARTICLE

Page

I INTRODUCTION .............................................................................................................. 1

II RECOGNITION .................................................................................................................2

III SALARY ................. ...........................................................................................................3 Salary Schedules........ ..........................................................................................3 Salary Advancement - Step Increments ..............................................................3 Salary Advancement - Column Movement ........................................................3 Compensation for Job Shares ..............................................................................4 Additional Compensation....................................................................................4

IV HEALTH AND WELFARE BENEFITS ...........................................................................?

V HOURS OF EMPLOYMENT............................................................................................9 Work Year for Alternative Education and Special Education.............................9 Work Year for Child Development Programs.................... .................................9 Extended School Year (Special Education only) ................................................9 Summer School (Community School only) ........................................................9 Alternative Work Schedules...... ........................................................................l O Work day for Alternative Education and Special Education............................. I I Work day for Child Development Programs .....................................................11 Duty-free Lunch Period ..................................................................................... I2 Classroom Interruptions for all Teachers ..........................................................12 Professional Duties- All Teachers ...................................................................12

VI CLASS SIZE ..................................................... ........................................ ....................... 15

VII VACANT POSITIONS/INVOLUNTARY MOVES .......................................................16 Vacant Positions ...................................................................... ..........................16 Emergency/Short-Term Transfer........ .. ... .. .......... ..... ...... ... ... ........... . 17 Involuntary Moves............................................................................................. 18

VIII LEAYES OF ABSENCE ...................................................................................... ...........20 Sick Leave .........................................................................................................20 Personal Necessity Leave ..................................................................................21 Bereavement Leave ....... ....................................................................................21 General Leave....................................................................................................22 Professional Organization Leave.......................................................................22 Health Leave................................................. .......................... ...........................22 Jury Duty ................... ......................................................................................22 Elective Public Office Leave..................... ........................................................22
ii
SLOCEA/CTA - SLOCOE AGREEMENT - 2012-2015

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 32 of 211 Page ID #:51
Professional Growth Leave ........................... ....................................................22 Industrial Accident and Illness Leave... .............................................................23 Immediate Family Defined ................................................................................23 Verification of Ability to Return to Work.........................................................24 Provisions for Fringe Benefits...........................................................................24 Return from Leaves ...........................................................................................24 Concerted Activity.............................................................................................24 Catastrophic Leave ............................................................................................24
Eligibility ..... ..... ...... ........................................ ............................................ 24 Requests for Sick Leave Donation .............................................................25 Donations for Catastrophic Leave ..............................................................25 Hold Harmless ............................................................................................26
IX CERTIFICATED EMPLOYEE EVALUATION PROCEDURES ..................................27
X PEER ASSISTANCE AND REVIEW PROGRAM (PAR).. .. ... .. ............................31 Purpose .........................................................................................................31 Definitions .........................................................................................................31 PAR Committee ................................................................................................32 Program Participation........................................................................................34 Consulting Teachers (CT) .................................................................................36 Other Provisions ................................................................................................38
XI SAFETY CONDITIONS OF EMPLOYMENT...............................................................39
XII EMPLOYEE/MANAGEMENT RIGHTS TO INFORMATION AND COMMUNICATIONS ........................................................40
XIII GRIEVANCE PROCEDURE ..........................................................................................43 Definitions .........................................................................................................43 Formal Level One..............................................................................................44 Formal Level Two .............................................................................................44 Formal Level Three ...........................................................................................45
XIV CONCLUSION ................................................................................................................46 Completion ofNegotiations ..............................................................................46 Past Practices .....................................................................................................46 Severability ........................................................................................................46 Continuation of Economic Benefits ..................................................................46 Duration of Agre·ement......................................................................................47
RECOMMENDED FOR RATIFICATION .....................................................................48 ACCEPTED AND RATIFIED.........................................................................................48
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APPENDICES
SALARY SCHEDULES Teacher/Therapist ........ .. ..................................... ........................................ ................ ... .... ......... .. A-1 Occupational Therapist................................................................................................................. A-2 First Five....................................................................................................................................... A-3 State Preschool ............................................................................................................................. A-4 Stipends and Hourly Rates ........................................ ....................... ................................................ B CATASTROPHIC LEAVE FORMS Catastrophic Leave Forms ................................................................................................................ C CERTIFICATED EVALUATIONS Certificated Staff: Timeline for Evaluating Permanent and Probationary ................................... D-1 Certificated Evaluation Definitions ................................................. ............................................. D-2 Certificated Staff: Self Evaluation Form...................................................................................... D-3 Certificated Staff Evaluation Form .............................................................................................. D-4
Certificated: Summative Evaluation Report Fonn ....................................................................... D-5
Certificated Staff: Classroom Observation Form ......................................................................... D-6 Certificated Staff: Informal Observation/Communication Form ................................................. D-7 Certificated Staff: Performance Improvement Plan ..................................................................... D-8
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ARTICLE I INTRODUCTION 1.1 This Agreement and the provisions contained herein constitute a bilateral and binding agreement by and between the SAN LUIS OBISPO COUNTY SUPERINTENDENT OF SCHOOLS (hereinafter referred to as "Superintendent" or "Employer") and the SAN LUIS OBISPO COUNTY EDUCATION ASSOCIATION, CTAINEA, an employee organization, (hereinafter referred to as "Exclusive Representative" or "Association") and pertain to unit members in the bargaining unit (hereinafter referred to as "employees"). 1.2 This Agreement is entered into pursuant to Sections 3540-3549 ofthe California Government Code (hereinafter referred to as the "Act").
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RECOGNITION 2.1 The Employer recognizes the Association as the Exclusive Representative of certificated
employees, as specified below: 2.1.1 Included: All Occupational Therapists and non-management certificated employees
serving in a position requiring a credential or certification from California Commission on Teacher Credentialing, unless otherwise excluded below. 2.1.2 Excluded: All employees designated by the Employer as management, supervisory, confidential, certificated non-management employees employed for summer school or Extended School Year (ESY) only, Camp Hapitok and substitute teachers.
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ARTICLEID
SALARY
3.1 Effective July 1, 2007, a 4.53% increase was applied to all cells, including the provisional rate, on the certificated salary schedules. Teachers and therapists shall be compensated per the Teacher/Therapist Salary Schedule effective July 1, 2007(excluding Extended School Year (ESY) and summer school). Occupational Therapists shall be compensated per the Educational Occupational Therapist Salary Schedule effective July 1, 2007 (excluding ESY and summer school). State Preschool and First Five Preschool teachers shall be compensated per the attached State Preschool and First Five Preschool Salary Schedules effective July 1, 2007 (See Appendix Al-A4). ESY and summer school pay shall be based on the preceding school year salary schedule.
Salary Schedules 3.2 The salary schedules shall be attached as Appendix Al-A4. Certificated employees advance
on the salary schedule based on years ofexperience (step increments) and units ofeducation (column movement). 3.3 All certificated employees hired onto the Occupational Therapist or Teacher/Therapist salary schedules will receive year for year credit in terms of experience and education.
Salary Advancement- Step Increments
3.4 Step increments shall be granted to those bargaining unit members who qualify. Bargaining unit members in paid status for 60% or greater of a 1.0 Full Time Equivalent (FTE) will receive a step increment every year. Bargaining unit members in paid status for less than 60% of a 1.0 FTE will receive a step increment every other year regardless of the percentage. There will be no accumulation ofpercentages from year to year.
3.5 Time spent in unpaid leave status shall not count toward advancement on the salary schedule.
Salary Advancement -Column Movement 3.6 Column movement shall be granted to those employees who qualify through the
educational development process (progress toward advanced degree program and/or qualifying units/continuing education units.).
Educational Development Process 3.6.1 Notice of intent to qualify for column movement must be filed with the Employer by
May 1st of each year. All work must be completed and verified by the following October 15th.
3.6.2 Each employee is responsible for: • Obtaining prior approval from the appropriate principal or director.
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• Submitting transcripts or documentation by the instructor to verify completion of all work.
• Filing a request for change in salary column on a timely basis each time one is due.

3.6.3

Employees who present transcripts or documentation of qualifying units of credit earned which qualify the employee for a higher column on the salary schedule shall move to the higher column retroactive to their first work day of the current school year. In the event the institution ofhigher education is unable to furnish transcripts by October 15th, upon appropriate written notice from the employee, the Employer shall extend the deadline. The employee shall be placed on the appropriate column of the salary schedule following written institutional verification of completion ofthe units.

Educational Development Requirements 3.6.4 All courses submitted for the purpose of advancement on the salary schedule must
be substantially supportive of the teacher's current assignment in the San Luis Obispo County Office of Education and must have received prior approval from the appropriate principal or director.

3.6.5 All units which an employee seeks to have applied toward salary schedule advancement shall be in the employee's academic major or minor or shall be related to the employee's assignment.

3.6.6 Except for pass-fail courses, courses shall not be eligible for salary credit unless earned with a grade of "C" or higher.

3.6.7 Nothing in this Article precludes the Employer granting salary credit units at its discretion for in-service activities sponsored or conducted by the Employer.

Compensation for Job Shares 3.7 When employees "share" one regular contract, salaries will be based upon the ratio of each
employee's hours of service to a full-time employee's hours e.g., three and one-half hours equals 50% ofsalary. (For more information on alternative work schedules, see Article V Hours ofEmployrnent.)

Additional Compensation 3.8 The following qualify for additional compensation at the daily rate of pay, prorated on the
ratio of hours worked to the employee's regular school year workday:

• Professional meetings (as defined in 5.15) requested by administration which occur on a day that the employee is not scheduled to work

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• Duties which are not professional duties as described in 5.15 and which occur outside of the normal scheduled onsite hours (examples include participation in SLOCOE sponsored committees and extra projects requested by administration).
• IEP meetings or meetings with other agencies that are scheduled to start at 4:00P.M. or later, with prior approval by the supervisor, and mutual agreement of the employee and supervisor as to the start time. (Note: Meetings scheduled to start before 4:00P.M., even if they extend beyond 4:00P.M., will not be eligible for additional compensation.) (See also 5.15.2)
If employees are participating as a learner, for example, in CPR training, they will be paid at the curriculum hourly rate. Stipends and hourly rates are attached as Appendix B1.
Mileage - Use o{Automobi/es 3.8.1 Teachers who are assigned to use their own automobiles in the performance of their
duties (including Individual Education Plans (IEPs), staffings, staff meetings, and other mandated meetings) and teachers who are assigned to more than one school per day shall be reimbursed for all such travel at the rate authorized by the County Superintendent ofSchools for all driving done between the first school or designated headquarters (whichever is closer to the teacher's residence) and other schools or assignments. Travel assignments shall not be made to discipline teachers.
Extended School Year (Special Education only) 3.8.2 By March 1st of each school year, the Employer shall poll individual members ofthe
staffto determine which employees desire to work during the Extended School Year (ESY). Employees may apply to work during ESY either in their current assignment or in another assignment within their credential limitations, if any. A $500 stipend shall be awarded to teachers who agree by March 1 to teach a full assignment for ESY. Where a job share occurs, those teachers shall share the stipend which will be prorated accordingly.
3.8.2.1 Each Designated Instructional Services/Related Services (DIS/RS) Itinerant certificated employee who agrees by March 1stto teach Extended School Year (ESY), and applies to work a period oftime less than the full 19 or 20 days (depending upon district calendar), shall be awarded a pro-rated stipend based upon the days worked provided that the employer is able to hire additional qualified staffto meet the program needs.
If the employer is not able to hire qualified staff, the DIS/RS employee will be requested to work the entire assignment as needed per management. If the DIS/RS employee chooses not to do that, he/she will not be awarded the stipend.
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3.8.3

All bargaining unit members who work ESY shall be paid their daily rate ofpay for each day of ESY service. The daily rate of pay shall be prorated on the ratio of the employee's ESY workday to the employee's regular school year workday. (See also 5.7).

Summer School (Alternative Education) 3.8.4 All bargaining unit members who work summer school shall be paid their daily rate of
pay for each day ofsummer school service. The daily rate ofpay shall be prorated on the ratio ofthe employee's summer school workday to the employee's regular school year workday.

Extra Periods for Special Education and Alternative Education 3.8.5 1.0 FTE teachers will be paid their daily rate ofpay for teaching extra periods beyond
their normal seven-hour workday. The daily rate ofpay shall be prorated on the ratio ofhours worked to the employee's regular school year workday.

Early Notification Retirement Incentive 3.8.6 An incentive of $500 will be given to all certificated staff who tum in a signed
retirement letter on or before March I st. The letter needs to state that the certificated employee is retiring effective the end ofthe school year. Once the employee is retired in June, SLOCOE will send the employee $500 (minus the applicable taxes, but not subject to retirement deductions).

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ARTICLE IV
HEALTH AND WELFARE BENEFITS
4.1 The Employer agrees to make a monthly contribution for the insurances set forth in paragraphs 4.1, 4.1. 1-4.1.3 of this Article. The Employer's total annual contribution shall be $6,000.00, plus one-half the total insurance premiums above $6,000.00, as modified by the Cost Containment Committee. The Cost Containment Committee is an advisory body and does not negotiate for the unit. The Employer's contribution is a dollar amount contribution for the health and welfare benefits specified as follows:
4.1. 1 Medical insurance for the employee and eligible dependent(s) pursuant to a selffunded plan administered by Blue Cross/Self-Insured Schools of California (SISC).
4.1.2 Dental insurance for the employee and eligible dependent(s) pursuant to a self-funded plan administered by Delta Dental Service/SISC.
4.1.3 Vision insurance for the employee and eligible dependent(s) pursuant to a self-funded plan administered by Vision Service Plan/SISC.
4.2 Should there be no agreement in regard to the Employer's contribution level for a successor agreement prior to September 15th ofthe current school year the Employer's contribution for the above-specified insurances shall be limited to the actual monthly amount contributed by the Employer as of September lst of the prior year.
4.3 In return for the provision ofhealth and welfare benefits and the payment ofthe premiums, the Employer shall be entitled to select the provider(s) of the above-specified benefits.
4.3.1 There shall be no change in provider(s) without prior notice to the Exclusive Representative and an opportunity for consu ltation.
4.3.2 No change shall constitute an increase of premium to be paid for by the employee during the school year.
4.3.3 Any change ofprovider(s) shall provide benefits and administration equivalent to or better than benefits currently in effect.
4.4 An employee with an assignment of less than a .5 Full Time Equivalent (FTE) is not eligible for health and welfare benefits. For employees with an assignment of.50 or greater FTE, the Employer shall prorate its contribution for health and welfare benefits based upon the ratio of the employee's FTE. For a job share assignment, the SLOCOE health and welfare contribution shall be shared equally or in a percentage that matches the work year of each member of the job-sharing team. Any member contributions that are necessary to maintain coverage must be received by the office in a timely manner. It is recommended that the 7/ 48
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4.5 No in-lieu payments or contributions to programs other than those that the Employer provides above shall be made by the Employer for any employees who elect not to subscribe to the benefits provided by this Article.
4.6 Employees hired on or after July 1, 1983, shall not be eligible for the insurance contributions set forth in SLOCOE Policy#4351.
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ARTICLE V
HOURSOFEMPLOYMENT
WORK YEAR
Work Year for Alternative Education and Special Education 5.1 The annual contract period shall consist of186 days. Days beyond the state mandated days set
for pupil contact may be used for staff development and class preparation.
5.2 Effective July 1, 2000, there is an additional1.65% on-schedule salary increase in recognition ofthe addition ofthree (3) staffdevelopment days to teacher/therapist duty year for a total of 186 duty days per year (excluding child development programs). (Note: lfthe state eliminates or reduces funding, the salary schedule and workdays will be adjusted accordingly.)
5.3 A first-year employee's work year shall be 187 days. New employees may be required to work Extended School Year (ESY) for the first year of employment and on a rotating basis once every three years after that.
5.4 The work year for Juvenile Court School teachers is 186/187 days. These days may be scheduled over the 248 or 249-day instruction year with mutual agreement between the
program manager and teacher. These modifications may include a year-round schedule such
as forty-five/fifteen or changing the traditional summer break to other seasons, and other modifications that are mutually developed. Any schedule consideration is meant to provide the teacher with flexibility and the program with consistency and high professional standards.
Work Year for Child Development Programs 5.5 The work year for State Preschool Program Teachers shall be 178 days.
5.6 The work year for First Five Program Supervisors and First Five Teachers shall be 181 days.
Extended School Ycar (Special Education only) 5.7 For ESY, teachers will be paid for a 5.5 hour work day. Acknowledging this commitment and
service, teachers will have latitude and flexibility in the use of non-instructional time. (see also 3.8.2 and 3.8.3)
5.8 The number of employees' workdays and the employees' working hours for the mandatory ESY program shall be finalized by the Employer following the completion of Individual Education Plans (IEPs) for all students.
Summer School (Community School only) 5.9 Teachers will be paid for a 5.5 hour work day. Acknowledging this commitment and service,
teachers will have latitude and flexibility in the use of non-instructional time.
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Alternative Work Schedules 5.10 Alternative work schedules may include, but are not limited to, job shares, reduced work
loads, and the reduced work schedule program per Education Code 22713.
5.1 0.1 When employees "share" one regular contract, salaries will be based upon the ratio of each employee's hours ofservice to a full-time employee' s hours (e.g., three and onehalf hours equals 50% of salary) (Article ill- Salary, 3.7)
5.1 0.2 An employee with an assignment ofless than a .5 Full Time Equivalent (FTE) is not eligible for health and welfare benefits. For employees with an assignment of.50 or greater FTE, the Employer shall prorate its contribution for health and welfare benefits based upon the ratio ofthe employee's FTE. For ajob share assignment, the SLOCOE health and welfare contribution shall be shared equally or in a percentage that matches the work year of each member of the job-sharing team. Any member contributions that are necessary to maintain coverage must be received by the office in a timely manner. It is recommended that the employee consult with the State Teacher's Retirement System (STRS) representative to determine the impact ofthe assignment on his/her retirement. (Article IV - Health and Welfare, 4.4)
5.1 0.3 Pennanent (tenured) unit members who have satisfactory evaluations may apply to the
Superintendent no later than March 1 ofthe preceding school year for consideration of an alternative work assignment. Employees shall be eligible for an Employer provided pre-retirement reduced-workload option pursuant to Education Code Section 22713. Under extenuating circumstances, the office will consider alternative work schedule assignments, including job share requests after the March 1st deadline referred to in this Article. Employees requesting alternative work schedules will be notified of the acceptance or denial of their request by April 30th. The following conditions must be met:
Job Shares: • Each member ofthe team submitting job-sharing assignment request must meet
all the credential and job description requirements for the requested position.
• If an individual requests a job-sharing assigrunent, the SLOCOE must be able to employ a suitable replacement in the position being left vacant.
• The job-sharing assignment request must include a work schedule accompanied by the recommendation of the principal and director. The request must be approved annually.
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WORKDAY
Work day for Alternative Education and Special Education 5.11 LENGTH OF THE WORKDAY: During the regular school year, the length of the workday
for special education and alternative education, including preparation time, reliefperiods, and time required before and after school, shall be seven hours, or 35 hours per week. The employee's workday shall begin 30 minutes before the first scheduled class or activity and continue until the specified number of hours of work has elapsed.
Release Time (or Alternative Education and Special Education 5.11.1 At the discretion of the supervisor, teachers may, after making prior
arrangements, be granted release time for the following:
• Home or school observation of a child who is recommended for possible placement in that teacher's program.
• Attending staffing and IEP meetings for the children in their classes.
• Preparation of IEP's by employees. Teachers may schedule IEP meetings at flexible times during the day and/or after school, using non-instructional time, administrative/support staff assistance with flexible scheduling, and/or requesting substitute coverage, to ensure that IEP requirement are met without the necessity for routine work outside the school day. It is understood that all regulations regarding appropriate staff attendance and participation in IEP's will be met, as well as adequate supervision and classroom instruction of students in the classroom.
Flexibility in Non-Instructional Time 5.11.2 It is recognized that teachers perform many professional duties outside the identified
seven-hour workday. Mandated duties such as IEP meetings, parent conferences, and staffmeetings significantly extend the teaching day past seven hours. Acknowledging
this commitment and service, teachers will have latitude and flexibility in the use of
non-instructional time during the seven-hour duty day. A duty day, beginning time and ending time, will be established. By notifying the Program Administrator, the teacher may take non-instructional time for personal convenience. This flexibility is not intended to change the duty-day hours on a regular basis, or to be used when professional duties are scheduled during the non-instructional time.
Work day for Child Development Programs 5.12 The Child Development Programs are based upon available funding from the state. For State
Preschool Teachers and First Five Preschool Program Supervisors, the length ofthe workday, including preparation time, reliefperiods, and time required before and after school, shall be five hours per day. For First Five Preschool Teachers, the length of the workday, including
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preparation time, reliefperiods, and time required before and after school, shall be four and a halfhours per day.
Duty-free Lunch Period 5.13 There shall be a duty free lunch of no less than 30 minutes, which is not included in the
workday.
Classroom Interruptions for all Teachers 5.14 To the extent repairs to classrooms are under the control of the Employer, they will be
scheduled after classes have been dismissed for the day whenever possible. Ifrepairs must be scheduled during class time, the teacher will be given a 24-hour notice of the scheduled activity whenever possible.
Professional Duties - All Teachers 5.15 Each teacher is responsible for performing duties which are reasonably related to his/her
regular assignment, depending upon the educational program and pupil needs.
5.15.1 Professional duties under the direction ofthe COE administration and required within the nom1al scheduled on-site hours (excluding lunch) include: • Supervising pupils and activities related to the teacher' s regular assignment. • Participating in professional activities related to the teacher's regular assignment. • Participating in staff development programs relating to the teacher's regular assignment. • Other reasonable related duties as assigned.
5.15.2 Professional duties, which may routinely require work outside the described normal scheduled on-site hours, include: • Planning and preparing lesson plans • Selecting materials for instruction • Reviewing and evaluating work of pupils • Conferring with pupils and/or parents • Keeping records • IEP meetings • Conferences with staff, teacher, parent and/or student • Attendance at prescheduled staff meetings shall be limited to one per month except in unusual circumstances • Participating and supervising Back-to-School, Open House, information nights, and graduation/recognition ceremonies • Child development parent education meetings
IEP meetings or meetings with other agencies shall be scheduled to start before 4:00 P.M. If an IEP meeting or meeting with other agencies is scheduled to start at 4:00
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P.M. or later, with prior approval by the supervisor, and mutual agreement of the employee and supervisor as to the start time, teachers will be compensated for all time from 4:00 P.M. until the end of the meeting at their daily rate of pay. Meetings scheduled to start before 4:00P.M., even ifthey extend beyond 4:00P.M., will not be eligible for additional compensation. (See also 3.8)
Child Development- Additional Responsibilities 5.15.3 Required staff meetings for afternoon child development teachers, including travel
time to the meeting site, shall be scheduled during the regular workday whenever possible. Child development teachers will be reimbursed for mileage at the rate authorized by the County Superintendent of Schools.
5.15.4 Student testing and assessments shall be conducted during regular child development class hours.
5.15.5 All arrangements for yearly support service screenings (vision, hearing, and dental) shall be made by the child development teacher. Ongoing support services (speech therapy, etc.) may be coordinated by the child development teacher.
Special Education - Non-Instructional Program- Related Duties 5.15.6 It is recognized that teachers in some county-operated classes are required to supervise
and/or arrange supervision of the students to a greater extent than regular education
teachers. This student supervision time (contact time) has increased with the program directive that mandates that county-operated classes be aligned with district classes for the daily beginning and ending times.
To address the instructional, supervision, and teacher preparation requirements during the workday, it is acknowledged that there is teacher judgment on blending these components. Teachers, through collaboration with the program supervisors, shall identify regularly scheduled periods during the student day that will allow for noninstructional program-related work to be completed. It is also expected that there will be opportunities for the teacher to complete non-instructional program-related duties while students are on task and supervised by an Instructional Assistant or other approved supervisory staff.
Nothing in these statements is intended to distract or encroach on the instructional minutes as set by statute, or decrease the quality of instruction. It is acknowledged that non-instructional program-related duties are an essential part of the instructional program. Detailed planning, the completion of records, and IEPs are fundamental to the educational program.
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Alternative Education and Special Education - StaffDevelopmentlln-sen lices 5.15.7 The COE may require teachers to attend staffdevelopment/in-service only during the
contract workday and work year. The COE may offer voluntary workshops which teachers may attend outside the contract workday and work year. 5.15.8 The In-service program shall be based upon an Annual Needs Assessment. For the purpose ofthis Article, "In-service" means programs paid for by the San Luis Obispo County Office of Education and presented during the professional workday of the employees. 5.15.9 There shall be an In-service Committee which consists ofthe Assistant Superintendent ofStudent Services or designee and five volunteer teachers. The In-service Committee shall recommend to the Employer, and assist the Employer in implementing, an inservice training program. The In-service Committee shall seek out appropriate programs that will assist in fulfilling the professional needs of the staff.
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ARTICLE VI CLASS SIZE 6.1 The Association and the County Superintendent recognize that providing quality instruction and positive classroom environment is influenced by the support provided by federal and state governments, and the County Office of Education. It is further recognized that the County Office of Education has defined resources established through legislation at the federal and state levels, and that influence on future legislation will be a priority of the Association and County Superintendent. The County Superintendent and the Association leadership will continue to advocate support for education to the appropriate decision makers. Local education advocates and the County Office ofEducation staffwill be informed and solicited for the purpose ofinfluencing representatives to the state and federal governments regarding education-related legislation. Under the Master Plan, the Employer shall attempt to maintain special day classes consistent with state requirements.
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ARTICLE VII
VACANT POSITIONS/INVOLUNTARY MOVES
Vacant Positions 7.1 The Employer shall declare when a position is vacant. A vacant position is created by:
• Splitting a class. • Combining classes. • Creating a new class other than by splitting a class or combining classes. • A non-returning teacher.
7.2 When a vacant position is to be filled, the Employer shall list criteria detailing unique needs of the students, required and desirable teaching skills relevant to the program, and other teacher duties that are required.
7.3 In planning for the upcoming school year, the Human Resources department will send an interest survey to all probationary and permanent certificated staff.
7.4 Upon the determination that a vacant position shall be filled, the Employer shall notify viaemail (and U.S. mail if requested on the interest survey) all bargaining unit members of the vacancy. All notices of vacancies will be advertised for a minimum of six working days. Employees may apply for a transfer to a position with the same job title by submitting a Letter ofInterest to the Human Resources Department. An employee may apply for a position with a different j ob title or a promotion by completing an application.
7.4.1 All announcements shall include the job title; a brief description of the position and duties; required minimum qualifications; the job location (if known); the number of hours per day; the regular hours of work, days Per week, and months per year; the salary range; and the deadline for filing a letter of interest or application.
7.4.2 No final selection shall be made until after the closing date.
7.5 All requests for transfer will expire two weeks before the start of school. Requests will be considered beyond the two weeks before school starts. However, it is difficult to change assigrunents after this time due to impacts on SLOCOE programs.
7.6 All requests for transfer shall be considered and the employee will be interviewed.
7.7 The needs of students/clients will serve as the prime criterion when considering all applications. The following general criteria shall be included in the consideration of each application:
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• The appropriate credentials, certificates, and authorizations held by the applicant.
• The applicant's qualifications by training and/or experience, including previous experience working with the particular type of students or age group.
• Commitment to the criteria as stated in the announcement of vacancy.
• Assessments of the applicant's performance in current and/or past assigned duties utilizing the personnel fi le.
If all criteria as listed above are met by two or more applicants, seniority (the employee's length of service to the SLOCOE) within the San Luis Obispo County Office of Education will be the deciding factor.
7.8 If a request is denied, the applicant may request a meeting to discuss the decision to deny the transfer. The applicant shall be given, upon written request, reasons for the denial in writing.
7.9 When a class is split as set forth in paragraph 7.1 of this Article, the existing teacher shall have first choice ofeither class that results from the split, as long as that teacher possesses the appropriate credentials, certificates, and authorizations for the assignment.
7. 10 If a classroom is to be moved, the employee shall receive at least a 15-calendar day notice before the actual move occurs. The employee shall receive two days ofrelease time or be paid two days at the substitute rate to organize and move materials and supplies. The employees w ill also have the equivalent of two days of classroom Instructional Assistant time.
7.11 The Employer shall fill Extended School Year (ESY) positions based upon employee requests to the extent that those requests fulfill the Employer's requirements for the educational program. Should the Employer be unable to fill any ESY positions with credentialed teachers through the polling process described above, new employees may be required to work ESY for the first year of employment and on a rotating basis every three years after that. Both parties agree to promote participation in ESY. Promotion may in clude, but is not limited to, flyers, posters, memos, e-mails, staffmeeting discussions, etc. (see also Articles 3.8.2, 3.8.3 and 5.7)
Emergency/Shor t-Term Transfer 7.12 In an immediate program emergency where the interests of the program and the safety and
interests of the students has been compromised through circumstances which were unforeseen, unanticipated, thro ugh no fault ofthe administration, and for which adequate time was not allowed for a regular solution, an employee may be transferred or reassigned on an emergency short-term basis. The selection and reassignment of an employee under this
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section will be done at the discretion ofthe Employer after an assessment has been made that detennines that the selection will result in the least disruption ofthe existing program and the best possible solution for the students, but under no circumstances will this Emergency/ShortTerm Transfer be implemented lightly or without due care and consideration of the employee's preference. If, at the end of six (6) weeks, a permanent solution has not been implemented, the Emergency/Short-Term assignment shall not be extended by the Employer except in the case of a voluntary request from the employee. The employee shall be returned to his/her regular assignment. No employee may be assigned under this provision more than one time in any school year.
7.12.1 Emergency/Short-Term shall be defined as a period oftime no longer than six (6) weeks. Every effort shall be made to terminate the Emergency Assignment sooner than six weeks and return the employee to his/her regular assignment.
7.12.2 Unforeseen shall be defined, in part, as a last minute resignation or termination of an employee, a catastrophic injury or illness that is expected to incapacitate the unit member for an extended period oftime, or other incidents which are determined to be immediate and serious in nature.
7.12.3 The employee who is assigned under the Emergency/Short-Term provision shall be entitled to mileage reimbursement calculated round nip from their regular location to the Emergency location for the duration ofthe Emergency assignment at the standard rate that is established by the Employer at the time of the assignment.
7.12.4 The employee shall receive one day per week of the Emergency/Short-Term assignment up to a maximum total ofthree days ofrelease time or be paid one day per week up to a maximum total ofthree days at the substitute rate, to organize materials and lesson plans for the Emergency assignment.
7.12.5 The employee who is assigned under the Emergency/Short-term provision will receive regular and frequent reports ofthe progress toward a solution and updated estimates of the end date ofthe assignment.
Involuntary Moves 7.13 An employee may be involuntarily transferred, reassigned, or transferred-reassigned by the
Employer except as a reprisal for employee activity protected by the Act. "Transfer" is defined as the movement of an employee from one school site to another school site. "Reassignment" is defined as a change in teaching assignment from one subject discipline or age group to another subject discipline or age group at the same school site. "Transferreassignment" is defined as the movement of an employee at one school site to another school site, accompanied by a change in teaching assignment from one subject discipline or age group to another subject discipline or age group.
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means of an involuntary transfer or reassignment if another qualified employee has requested to fill the position.
7.13.2 A written notice of an involuntary move shall be given to the employee as soon as possible and, except in cases ofunusual circumstances, not later than May 1, for the following year.
7.13.3 An involuntary move shall be based upon area of credential and least seniority (as defmed in this Article) as a certificated employee in the San Luis Obispo County Office of Education. The following general criteria shall also be included:
• The applicant's qualifications by training and/or experience, including previous experience working with the particular type of students or age group.
• Assessment ofthe applicant' s performance in current and/or past assigned duties.
If all criteria listed above are met by two or more unit members, seniority date within the SLOCOE will be the deciding factor.
7.13 .4 An involuntary move shall take place only after a meeting between the employee and the supervisor, if such a meeting is requested in writing by the employee. The employee shall have the right to representation by the Association at the meeting and to be notified of the reasons for the move.
7.13 .5 The employee to be involuntarily moved may indicate a preference ofpositions from a list ofavailable vacancies.
7.13.6 The Employer may determine that an involuntary move is an appropriate response to an evaluation which specifies unsatisfactory performance. Ifso, the move shall not be made until completion ofthe remediation process pursuant to the evaluation process included in this Agreement and a determination that the unsatisfactory performance was not modified to the satisfaction of the evaluator.
A list of transfers and changes in assignments for the current school year as compared with the past school year will be made available to the Association upon written request.
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ARTICLE VIII

LEAVES OF ABSENCE

ACCUMULATED LEAVE Sick Leave 8.1 Every full-time employee shall be entitled to I 0 days of sick leave for each year of
employment. Part-time employees shall earn sick leave on the basis ofthe ratio of the parttime employment to full-time employment. An employee who is assigned to work an Extended School Year shall receive one additional day of sick leave for that year.

8.1.1 An employee may use accumulated sick leave at any time during the school year for accident, illness, or quarantine and for medical examinations or treatments for selfor immediate family members.

a. Unused sick leave shall accrue from school year to school year.

b. The Employer shall provide each employee with a written statement ofaccumulated and credited sick leave for the current school year as soon after the beginning ofthe school year as possible, but no later than November 1.

8.1.2 Employees must contact the Employer as soon as the need to be absent is known.

8.1.3 When the employee informs the Employer that the absence will be greater than one day, the employee must notify the Employer ofan intention to return by 4:00p.m. on the workday prior to the day ofreturn.

8.1.4 An employee who has been on sick leave for three or more consecutive days, or who has had any surgical procedure, may be required to furnish a physician's verification of ability to return to work and render service to the Employer.

8.1.5

Female employees shall be entitled to utilize sick leave for the period oftime required to be absent due to pregnancy or childbirth. The period of leave, including the date upon which the leave shall begin, shall be determined by the employee and her doctor. A statement from the employee's doctor as to the begi1ming date ofthe leave shall be filed with the Superintendent. The date of the employee's return to service shall be based upon her doctor's analysis and written verification of the employee's physical ability to render service to the Employer without limitations or restrictions.

8.1.6

If the employee has exhausted all available sick leave, the employee shall be entitled to an additional period offive school months extended sick leave/differential pay (See Ed. Code 44977). Upon written verification ofa physician or practitioner, the amount of salary deduction in any month shall not exceed:

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• The sum which was actually paid a substitute in the position; or
• Ifno substitute was employed, the amount which would have been paid to a substitute had one been employed for the remainder of the illness up to a total period of five school months.
OTHER LEAVES
Personal Necessity Leave 8.2 It is ofmutual interest that the Personal Necessity Leave provides employees the opportunity
to address circumstances which are serious in nature, cannot be expected to be disregarded, necessitate immediate attention, and cannot be dealt with outside the work day. It is further recognized that employees can, and will, be trusted to use personal integrity in determining the need for such leave. Finally, it is recognized that children learn best when their regular teacher is present in the classroom.
8.2.1 Up to ten days of sick leave may be used as Personal Necessity Leave per year. Personal Necessity Leave does not accumulate from year to year.
8.2.2 Whenever possible, employees must request this leave in advance to allow for adequate planning for coverage of duties.
8.2.3 The employer will not require employees to declare the specific reason of the use of this leave. The employee will complete a Request for Leave form indicating that the leave is a personal necessity.
8.2.4 Personal Necessity Leave shall be used for the purposes stated in 8.2 above and shall not be used for association business, personal gain, or recreational purposes.
Bereavement Leave 8.3 Every employee shall be entitled to five days ofpaid noncumulative leave ofabsence because
of the death of any member of the employee's immediate family (as defined in 8.11 of this Article).
8.3 .1 The Employer shall require the use of bereavement leave before other leave days are used for purposes allowed in this paragraph.
8.3 .2 Bereavement leave shall not be deducted from sick leave.
8.3.3 Employees may receive up to one day ofBereavement Leave to attend the funeral ofa student or former student.
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General Leave 8.4 An employee may apply for a leave of absence on an unpaid basis for up to one year. The
application may include a request for consideration of a two-year program. Letters of application are due to the Employer by May 1. A scheduled conference with the Superintendent shall be held unless there are unforeseeable circumstances. The Employer may, at its discretion, grant an unpaid leave to an employee for one year and issue an intent to renew for a second year to allow for a two-year program. At the conclusion ofthe first year, the additional year would be granted. The length ofthe leave, including beginning and ending dates, shall be mutually agreed upon by the employee and the Employer. Upon request, the Employer may extend the leave beyond one year. No more than three employees will be granted leaves in a given school year.
Professional Organization Leave 8.5 An employee who is a state-level officer of an organization ofprofessional employees in the
employee's teaching field (e.g. , speech pathology) shall be released for statewide meetings without loss ofpay. The employee shall be responsible for one-halfofthe cost ofa substitute, if one is used.
Health Leave 8.6 An employee may be granted a leave of absence without pay for reasons ofpoor health. Such
leave is to be specified for a period not to exceed the employee's contract year. A written statement ofneed by a physician is required prior to the leave being granted. An extension of this leave can be granted at the discretion of the Superintendent.
Jury Duty 8.7 An employee shall receive leave without loss ofpay for time the employee is required to be
absent for jury duty. (San Luis Obispo Grand Jury duty is excluded from this provision.) An employee serving on jury duty shall receive regular salary for the period served. The fee received for jury duty, except for mileage and meal allowances, shall be signed over to the Employer.
Elective Public Office Leave 8.8 An employee who is elected to a federal, state, or county office shall be granted a leave of
absence without pay for the duration of the term of office.
Professional Growth Leave 8.9 An employee may receive up to two days of release time with full pay, including registration
fees, per diem, and travel allowance, to be used for the following activities: (1) conferences directly related to the employee's teaching field and (2) observation of model programs. Request for professional leave must be submitted to the program director through the appropriate supervisor two weeks in advance ofthe leave date. Additional release time for the above activities shall be at the discretion of the appropriate supervisor. An employee may
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request to attend professional meetings or conferences without reimbursement ofper diem and travel expenses. Industrial Accident and Illness Leave 8.10 An employee shall be entitled to industrial accident or illness leave for any job-related illness in an amount ofup to a maximum of60 workdays in any one fiscal year for the same accident Should the leave overlap into the next fiscal year, only those days remaining at the end ofthe fiscal year shall be available for utilization by the employee.
8.1 0.1 Such benefits shall be in addition to other sick leave benefits provided by the Employer.
8.1 0.2 When entitlement to this leave has been exhausted, other sick leave shall be utilized.
8.10.3 Employees will report all job-related injuries and illnesses to the Employer within 24 hours of the occurrence, regardless ofwhether or not medical attention is required or whether or not time is lost from work. In the event that the employee's injury or illness prevents the filing of the report within the time limit, the report shall be filed as soon as possible.
8.10.4 The employee's report of an industrial accident or illness shall be kept on file in the Employer's office.
8.10.5 An employee's industrial accident leave shall be suspended automatically for any period the employee is not within the State ofCalifornia unless prior approval ofthe Employer has been granted.
8.10.6 The employee shall endorse all wage loss checks received under the Workers' Compensation Law to the Employer. The Employer, after receipt of the endorsed check, shall issue the employee appropriate salary warrants for payments of the employee's full salary, and shall deduct normal retirement and other authorized deductions.
MISCELLANEOUS PROVISIONS
Immediate Family Defmed 8.11 For the purposes of this Article, immediate family shall be defined as: mother, father,
grandmother, grandfather, or grandchild ofthe employee or the spouse ofthe employee, and the spouse, son, son-in-law, daughter, daughter-in-law, brother, brother-in-law, step-son, stepdaughter, sister, sister-in-law, step-brother, or step-sister ofthe employee or any relative ofthe employee living in the immediate household of the employee.
Verification of Ability to Return to Work 8.12 An employee absent under the provisions ofparagraphs relating to extended illness, industrial
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physician's verification ofability to return to work and render service to the Employer without limitation or restriction prior to returning to work.
8.12.1 Notwithstanding the provisions ofthe above paragraph, an employee who is absent at any time for surgery shall be required to furnish a physician's verification of the employee's ability to return to work and render service to the Employer without limitation or restriction.
8.12.2 Employees on unpaid leaves ofabsence may, as long as the practice is allowed by the insurance company, continue their fringe benefit program eligibility by paying to the Employer the amount ofmoney equal to the premiums for the various fringe benefit programs.
Provisions for Fringe Benefits 8.13 Employees on paid leaves ofabsence shall have all the Employer's contributions set forth in
Article IV paid for them throughout the duration of the leave of absence.
Return from Leaves 8.14 An employee shall notify the Employer ofhis or her intent to return from a leave of absence
no later than May 1 of the school year in which the leave is granted. Failure to notify the Employer by May 1 shall constitute the employee's resignation. Upon return from leave, the employee will return to the position held at the time leave was granted, or to as nearly identical a position as possible.
Concerted Activity 8.15 No employee may utilize or receive any leave provision when the employee or other
employees engage in any concerted activity which interrupts the operation of the Employer.
Catastrophic Leave 8.16 Section 1 -Eligibility: A probationary or permanent (temporary employees are not el igible)
employee who suffers from a catastrophic injury or illness that is expected to incapacitate the unit member for an extended period of time (more than ten days), or who is required to take time off from work to provide care for an immediate family member who suffers from a catastrophic injury or illness, shall be eligible to receive Catastrophic Leave donations from other unit members subject to the restrictions and conditions outlined below:
8.16.1 Before using donated sick leave, the employee must have exhausted all accrued sick leave.
8.16.2 The Catastrophic Leave Committee detern1ines that the employee is unable to work due to the employee's or his/her family member's catastrophic illness or injury.
8.16.3 The maximum amount ofdonated leave shall not exceed five school months.
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8.17 Section 2 - Requests for Sick Leave Donation: An employee who meets the eligibility requirements for Catastrophic Leave may request donation of sick leave from other unit members by submitting a "Catastrophic Leave Request for Donation Form" to the Human Resources Department. The request shall clearly specify the circumstances ofthe catastrophe and the amount of sick leave requested. Appropriate written verification ofthe catastrophic illness or injury must be included with the request. The unit member should be prepared to provide additional documentation on the nature and severity of the illness or injury, if requested. Catastrophic Leave will commence on the same day that the differential sick leave pay calendar begins. The employee will receive full pay, and the employee' s differential pay rights will run concurrently with the Catastrophic Leave.
8.17.1 A committee consisting of two Employer representatives and two representatives appointed by the Association shall be established each fiscal year. One member shall serve as recorder. Minutes shall be kept. The committee shall consider all requests for sick leave donations. The committee may grant, partially grant, or reject a request. All deliberations are confidential and the decisions to grant or deny requests shall require mutual agreement. The decision of the committee is final and not grievable. A written copy of the committee's decision shall be provided to the requesting employee, to the Association, and to the Human Resources Department so that the sick leave can be transferred from the unit member donors to the member's accow1t, if necessary.
8.17.2 Requesting employees should apply for donated sick leave prior to exhausting regular sick leave. At no time shall donated sick leave be applied to a pay period that has been closed and for which a pay warrant was issued.
8.17.3 Donated sick leave shall be established in an individual account for the recipient and will be utilized in a sequence that will use one day from each donor before utilizing the second day from each donor. Unused sick leave will be returned to the donor(s).
8. 17.4 An employee who uses a donated sick leave day shall be paid at his/her regular daily rate. No ·distinction shall be made as to the differing pay rates of the donors or recipients.
8.1 7.5 An employee may not receive the benefits of this leave while receiving monies or leave from Workers' Compensation.
8.18 Section 3 - Donations for Catastrophic Leave:
8.18.1 Donated sick leave may not be used for industrial illness or injury accident.
8.18.2 Donations to the unit member will be made in one-day increments.
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8.18.3 Unit members may only donate five (5) days per school year. 8.18.4 A sick leave donor may not donate sick leave that would cause his/her personal
accrued sick leave to fall below (10) days. 8.18.5 The donor list shall be confidential. 8.19 Section 4 - Hold Harmless: The Association agrees that it will not file, on its own behalfor on behalf of any unit member, any grievance, claim, or lawsuit of any kind related to any attempt by a unit member to retrieve donated sick leave used by another unit member pursuant to this provision. The Association also agrees that it will not file, on its own behalf or on behalf of any unit member, any grievance, claim, or lawsuit of any kind which attempts to challenge in any way the legality or enforcement of this provision. The Association agrees to indemnify and hold harmless the Employer from any loss or damages arising from the implementation of this provision. In the event of any grievance, claim, or lawsuit challenging the legality or enforcement ofthis provision, the Employer may terminate this provision upon written notice to the Association.
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ARTICLE IX

CERTIFICATED EMPLOYEE EVALUATION PROCEDURES

9.1 These provisions constitute the procedures to be utilized for the evaluation and assessment of the instructional performance of certificated employees as set forth in California Education Code Sections 44660, et seq., commonly referred to as the "Stull Bill," or its successor.

9.1. 1 The evaluations shall relate to:

• The progress of pupils toward the established standards of expected student achi evem ent.

• The instructional techniques and strategies used by the employee.

• The employee's adherence to curricular objectives.

• The performance of non-instructional duties and responsibilities as set forth on adopted evaluation forms.

• The establishment and maintenance of a suitable learning environment within the scope of the employee's responsibility.

• Compliance with the Employer's rules, regulations, and policies and applicable state and federal laws and regulations.

9.1.2

It is the responsibility ofthe Superintendent or designee to evaluate or provide for the evaluation of each certificated employee. Evaluation and assessment of certificated employee competence pursuant to this Article shall not include the use ofpublisher's norms established by standardized tests (Education Code Section 4466 l (d)).

9.1 .3 Effective the beginning ofthe 2007-2008 school year, both parties agree to implement the 2000 evaluation system (attached as Appendix D 1-D8).

9.2 The basis for the evaluation includes the items in paragraph 9.1.1 ofthis Article and the forms listed for the Evaluation Systems. If the employee disputes the evaluator's decision on the basis of the employee's evaluation, the employee may appeal the evaluator's decision to the Superintendent or designee.

9.2.1 2000 Evaluation System

a. The evaluation cycle consists of a formal evaluation which must occur at least every other year. A permanent teacher who is not meeting SLOCOE's
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expectations (unsatisfactory on any of the identified criteria) will be placed on a formal evaluation in the subsequent year(s), and referred to the Peer Assistance and Review Program. Probationary teachers will be on probationary-cycle evaluation for two years, or until permanent status is granted, or teacher is nonreelected. A complete copy of the 2000 Evaluation System is attached as Appendices C1-C8 and, by virtue ofthe attachment, becomes a permanent part of this section of the Agreement.

• Components ofthe 2000 Formal Evaluation

)>

Individual Orientation Conference

)>

Pre-Observation Contact

)>

Formal Observations

)>

Post-Observation (feedback) Conference

)>

Other data/input may include:

)>

Informal Classroom Observations

)>

Work Samples

)>

Other Job Specific Data

)>

Self-Evaluation

)>

Summative Evaluation Report/Conference

• 2000 Evaluation System Documents

)>

Timeline for Evaluating Permanent and Probationary

)>

Certificated Evaluation Definitions

)>

Certificated Staff Self-Evaluation Form (SEFOOI)

)>

Certificated Staff Evaluation Form (SERFOOl)

)>

Pre-Observation Data Sheet/Post-Observation Report (FOFOOI)

)>

Certificated Staff Information Observation/Communication Form

(IOFOOl)

9.3 Probationary employee evaluations shall be made on a continuing basis at least once each school year per Form attached in Appendix Dl, 04.

9.3.1 During the process leading to the formal written evaluation, a probationary employee shall have at least two formal observations. In addition, informal observations may be made.

9.3.2

Each formal observation by the evaluator shall last a minimum of30 minutes and will be scheduled with the employee prior to the observation. Ifthe evaluator is unable to observe the pre-scheduled lesson in its entirety, alternative arrangements may be made.

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9.3.3 Each formal observation shall be followed by a conference within two workdays. At or before the conference, the employee shall receive a copy of the completed Classroom Observation Form (Appendix D6).

9.3 .4

Each item marked as "needing improvement" or "unacceptable" shall be noted on the form, discussed with the employee, and a Certificated Performance Improvement Plan Form (Appendix D8) shall be written and implemented within 10 teaching days of the observation conference. A written list of specific recommendations for improvement shall be made.

9.4 Permanent employee evaluations shall be made on a continuing basis at least once every other school year and shall be concluded by the date set forth in the Stull Bill. Permanent employee evaluations that include "needs improvement" or "unacceptable" will be done yearly per form in Appendix D8.

9.4.1 During the evaluation process leading to the formal written evaluation, a permanent employee shall have at least one formal observation. In addition, informal observations may be made.

9.4.2

Each formal observation by the evaluator shall last a minimum of30 minutes and will be scheduled with the employee prior to the observation. If the evaluator is unable to observe the pre-scheduled lesson in its entirety, alternative arrangements may be made.

9.4.3 Each formal observation shall be followed by a conference within two workdays. At or before the conference, the employee shall receive a copy ofthe completed Report of Classroom Observation Form.

9 .4.4

Each item marked as "needing improvement" or "unacceptable" shall be noted on the form, discussed with the employee, and a Performance Improvement Plan Form (Appendix DF) shall be written and implemented within 10 teaching days of the observation conference. A written list ofspecific recommendations for improvement shall be made.

9.5 Eligible certificated employees will be evaluated at least every five years for personnel with permanent status who have been employed at least ten years with the San Luis Obispo County Office of Education, are highly qualified as defined in 20 U.S.C. Sec.7801, and whose previous evaluation rated the employee as meeting or exceeding standards, if the evaluator and certificated employee being evaluated agree. The certificated employee or the evaluator may withdraw consent at any time (Education Code 44664).

9.6 In the written evaluation for both probationary and permanent employees, the evaluator shall cite specific qualities, abilities, or deficiencies.

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9.6.1 Any statement concerning instructional competency by a third party shall be submitted in writing and shall be verified by the evaluator prior to inclusion in the written evaluation.

9.6.2 The evaluation conference shall be conducted during non-student contact time unless appropriate supervision is provided.

9.6.3 Following the evaluation conference, the employee shall sign the evaluation to indicate that it has been reviewed and that the employee has received a copy. The employee's signature does not necessarily signify agreement with the evaluation.

9.6.4 The employee may prepare and submit a written response to the written evaluation within 10 workdays ofthe review.

9.6.5 Following the 10-day response period, the evaluation and response, if any, shall be placed in the employee's personnel file.

9.6.6

If deficiencies are noted, the evaluator may provide, or the employee may request, further continued periodic observations and conferences. An "Instructional Assistance Team" comprised ofpeers and/or other administrative personnel may be requested as a part ofthe remediation process.

• Participation in the Instructional Assistance Team is optional.

• All members of the Instructional Assistance Team will be informed if they are included on the employee's improvement plan.

9.6.7 If subsequent remedial actions on the part of the employee sufficiently modify the employee's performance and identified deficiencies to the satisfaction ofthe evaluator, a notification to that effect shall be attached to the evaluation.

9.7 No grievance arising under this Article shall challenge the substantive objectives, standards, or criteria determined by the evaluator or Employer, nor shall it contest the judgment ofthe evaluator; any grievance shall be limited to a claim that the procedures of this Article have been violated.

9.8 Provided that the requirements of the law pertaining to dismissal have been met, a violation of the procedural steps of this Article shall not prevent the Employer from taking action on the dismissal of an employee. Any procedural violation may be raised by the employee in the dismissal hearing requested by the employee, ifone is required by law to be held.

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ARTICLE X
PEER ASSISTANCE AND REVIEW PROGRAM
Purpose 10.1 The SLOCEA and SLOCOE strive to provide the highest possible quality ofeducation. We
believe that all teachers should focus on continuous improvement in professional practice and that teachers having difficulties can benefit from the assistance and review of colleagues. Therefore, the parties have cooperated in the design and implementation of this Peer Assistance and Review Program (PAR or Program) to improve the quality of instruction through opportunities for professional development and peer assistance. Teachers referred to, or who volunteer for, this Program are viewed as valuable professionals.
10.1.1 The program allows exemplary teachers to assist certain petmanent and beginning teachers in the areas of teaching strategies, teaching methods, and subject matter knowledge.
10.1.2 The extent of the Program's assistance and review depends on whether the participating teacher (2) is a voluntary participating teacher or (3) is a participating teacher with an unsatisfactory evaluation in one or more ofthe areas ofsubject matter knowledge, instructional strategies, or classroom management.
10.1.3 The Program's assistance shall be provided through Consulting Teachers. The assistance shall not involve the participation in, nor the conducting of, the annual evaluation ofunit members as set forth in Article IX ofthis Agreement and Education code Section 44660 et seq.
10.1.4 Program resources shall be utilized in the following order:
• Tenured Teachers with an "Unsatisfactory" designation in one or more ofthe following areas on their final evaluation: planning, instruction, and/or management
• Voluntary Participating Teachers
• Professional Development
10.2 Definitions: 10.2.1"Teacher": All certificated teachers, preschool teachers, nurses, speech/language pathologists, vision, orientation and mobility specialists, orthopedic impaired specialists, occupational therapists, and adapted physical education teachers.
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10.2.2 "Participating Teacher'': Any unit member who is a "teacher" and who either volunteers for, or is required by this Article to participate in, the Program.
10.2.3 "Consulting Teacher": An exemplary teacher meeting the requirements ofSection E who is to provide Program assistance to a Participating Teacher.
10.2.4 "Mandatory Participating Teacher" : A unit member with permanent status whose most recent performance evaluation contained an unsatisfactory designation in one or more of the following areas of their final evaluation: planning, instruction and management.
I 0.2.5 "Consensus": Five or more affirmative votes.
10.2.6 "Voluntary Participating Teacher": A permanent unit member who seeks to improve his/her teaching performance.
10.2.7 "Principal or Evaluating Administrator": The certificated administrator appointed by SLOCOE to evaluate a "Teacher."
PAR Committee 10.3 The PAR Committee shall consist of seven (7) members. Four (4) shall be "Teachers" who
are chosen to serve by SLOCEA. SLOCOE shall choose three (3) administrators to serve on the PAR Committee. The SLOCOE and SLOCEA shall individually determine the method for selection and the qualifications to serve.
10.3.1 To promote continuity, appointees shall serve staggered three-year terms.
10.3 .2 The PAR Committee shall establish its own meeting schedule. To meet, at least twothirds ofthe PAR Committee must be present. Such meetings shall take place during the regular teacher workday with a grant of release time to teachers, or during nonschool time. Generally, the PAR Committee will meet within the panel's workday, however, work outside of the regular workday shall be compensated at the current curriculum rate.
10.3 .3 The PAR Committee's primary responsibilities involve establislunent of the annual budget for the Program and selection and oversight of the Consulting Teachers. In addition, the Committee is responsible for the following:
• Coordinate with the SLOCOE to provide training for the PAR Committee members and Consulting Teachers. New PAR panel members will receive an orientation as to the Program' s purposes and functions.
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• Establish procedures and regulations necessary to carry out the requirements of this Article, including a procedure for the selection ofa Chairperson.
• Assign the Consulting Teachers.
• In conjunction with the Human Resources Director, send written notification of participation in the Program to the Mandatory Participating Teacher, the consulting Teacher, and the Evaluating Administrator.
• Assess the availability ofresources and/or personnel to accommodate the needs of the self-referred teachers.
• Use a consensus model for decision-making.
• Establish a procedure for application as a Consulting Teacher.
• Determine the number of Consulting teacher(s) or a percentage of a 1.0 fulltime employee (FTE) in any school year, based upon participation in the PAR Program, the budget available, and other relevant considerations.
• Review and approve the initial plan prepared by the Consulting Teacher.
• Review the final report prepared by the ConsultingTeacher regarding the progress in the PAR Program of the Mandatory Participating Teacher.
• Submit to the Superintendent and SLOCEA an annual evaluation ofthe Program's impact, including recommendations regarding Mandatory Participating Teachers. Ifnecessary, the ConsultingTeacher shall forward names ofindividuals who, after sustained assistance, are unable to demonstrate satisfactory improvement.
The annual PAR Program evaluation may include interviews of Program participants, administrators, and others as deemed appropriate. This evaluation shall be in writing and shall be submitted at the same time that the proposed budget is submitted.
10.4 Not later than May 30 of each year, for the coming school year, the PAR Committee shall submit a proposed budget to the Superintendent.
10.4.1 The proposed budget shall be designed to carry out the provisions of this Article and shall take into consideration (1) the number of Consulting Teachers which will be required in the coming year in light of the projected level of participation in the Program, (3) the recommendations for improvement ofthe Program which were made in the annual report to the Board, and (4) other relevant factors. 33/48
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10.4.2 The proposed budget shall not exceed the state funding allocation for the coming year as estimated by the SLOCOE's chief financial officer. This proposal shall be submitted in the form requested by the SLOCOE.
10.4.3 The PAR Committee shall recommend that the Superintendent authorize the necessary number of Consulting Teacher positions or any increase or decrease thereof. The Superintendent will be provided the rationale for the request.
Program Participation 10.5 By Mandatory Participating Teachers:
10.5.1 Any tenured teacher with an unsatisfactory designation in planning, instruction, and/or management must participate in the Program.
10.5.2 The Mandatory Participating Teacher will be assigned a Consulting Teacher. If available, a different Consulting Teacher may be assigned to work with the Mandatory Participating Teacher either upon request ofthe Mandatory Participating Teacher or upon request ofthe Consulting Teacher. In either case, however, approval ofthe PAR Committee is required.
I0.5.3 The Consulting Teacher's assistance and review shall focus on the area(s) designated unsatisfactory in the final evaluation.
• The Administrator and the Consulting Teacher assigned to the Mandatory Participating Teacher shall meet and discuss the recommended areas of improvement outlined by the Administrator and the types ofassistance that should be provided by the Consulting Teacher.
• The Administrator's recommendations shall be in writing consistent with certificated staff performance standards, clearly stated, and consistent with Education Code Section 44662. These recommendations will be considered the performance goals required by Education Code Sections 44664(a) and 44500(b) (2). SLOCOE shall provide sufficient staff development activities to assist a teacher to improve his or her teaching skills and knowledge. [Education Code Section 44500 (b) (5).]
• The Consulting Teacher and the evaluating Administrator are expected to establish a cooperative relationship and shall coordinate and align the assistance provided to the Mandatory Participating Teacher.
• The Consulting Teacher and the Mandatory Participating Teacher shall meet to discuss the plan for assistance. After that meeting, the Consulting Teacher will
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provide the assistance which shall include conducting multiple observations ofthe Mandatory ParticipatingTeacher in the performance ofhis/herjob responsibilities.
10.5.4 The final report will be submitted to the PAR Committee at least 45 calendar days before the end ofthe Mandatory Participating Teacher's school year. The final report shall consist solely of: (1) a description of the assistance provided to the Mandatory Participating Teacher; and (2) a description of the results of the assistance in the targeted areas. This report shall be submitted to the PAR Committee, with a copy also submitted to the Mandatory Participating Teacher and the Administrator.
10.5.5 The results of the teacher' s participation in the Program shall be available for use as part ofthe Mandatory Participating Teacher's annual evaluation.
• The evaluating Administrator shall have the discretion as to whether, and how, to use the results set forth in the report in the annual evaluation.
• The Consulting Teacher's report on participation in the Program, as defined above, shall be made available to the SLOCOE for placement in the Mandatory Participating Teacher's personnel file, ifthe report is referenced by the Administrator in the evaluation.
10.5.6 After receiving the report, the PAR Committee shall determine whether the Mandatory Participating Teacher will benefit from continued involvement in the Program. The Mandatory Participating Teacher will continue participating in the Program until the PAR Committee determines the teacher no longer benefits from participation in the Program, or the teacher receives a satisfactory evaluation, or the teacher is separated from the SLOCOE. The Superintendent has the sole authority to determine whether the Mandatory ParticipatingTeacherhas been able to demonstrate satisfactory improvement.
10.6 By Voluntary Participating Teachers
10.6.1 Permanent teachers who seek to improve their teaching performance may self-refer to the PAR Committee for intervention under this program. Voluntary Participating Teachers may be individuals who wish to grow and learn with assistance from a peer, or who seek assistance due to a change in assignment or the institution of new curriculum. The Program for Voluntary ParticipatingTeachers will focus on practical application ofeither certain teaching skills or the acquisition ofa new subject matter.
10.6.2 The Voluntary Participating Teacher must submit a request for professional growth in a specific, targeted area to the PAR Committee for approval and assignment of a Consulting Teacher. Upon approval by the PAR Committee, the Voluntary
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Participating Teachers shall notify his/her immediate supervisor. Disclosure of the specific focus area is not required.
10.6.3 A Voluntary Participating Teacher who has received a "Needs Improvement" in one or more areas of his/her final evaluations may be given greater consideration for assistance.
10.6.4 The purpose ofparticipation in the Program for the Voluntary ParticipatingTeacheris for peer assistance only and the Consulting Teacher shall not participate in a performance review of the Voluntary Participating Teacher. The Voluntary Participating Teacher may terminate his or her participation in the Program at any time.
10.6.5 Neither the Consulting Teacher nor the PAR Committee will forward to the Superintendent the names of Voluntary Participating Teachers.
10.6.6 All communications between the Consulting Teacher and a Voluntary Participating Teacher shall be confidential. Without the written consent of the Voluntary Participating Teacher, such communication shall not be shared with others (this includes, but is not limited to, the site Administrator, the evaluator, or the PAR Committee).
Consulting Teachers (CT) 10.7 The qualifications for the Consulting Teacher shall, at a minimum, include:
10.7.1 A "Teacher" with permanent status.
10.7.2 Substantial (at least 5 years) recent experience in relevant instruction.
10.7.3 Demonstrated exemplary teaching ability, as indicated by, among other things, effective communication skills, subject matter knowledge, knowledge and commitment to SLOCOE curricular goals and standards, the California Standards for the teaching profession, and mastery of a range of teaching strategies necessary to meet the needs of the pupils in different contexts.
10.7.4 Ability to work cooperatively and effectively with other teachers and administrators, demonstrated effective leadership skills, and experience in working on school or SLOCOE committees.
10.7.5 Ability to communicate effectively orally and in writing.
10.8 Each applicant interested in serving as a Consulting Teacher must provide a letter ofinterest, resume, and two letters ofrecommendation from individuals with specific knowledge ofhis or her qualifications, as follows: 36/48
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10.8.1 One reference from a SLOCOE Administrator or immediate supervisor.
10.8.2 One from another "Teacher" or another member of the educational community. All applications and references shall be treated with confidentiality. References shall be submitted directly to the Human Resources Department by the author of the reference.
10.9 ConsultingTeachers shall be selected by a consensus vote ofthe PAR Panel after a minimum of two (2) representative(s) ofthe PAR Panel have conducted a classroom observation and interview with each of the candidates. At least one teacher and one administrator shall participate in the classroom observation.
10.1 0 The term ofthe Consulting Teacher shall be one (1) year The current ConsultingTeacher may reapply for the position.
10.11 Release time and/or additional compensation will be awarded to the ConsultingTeacher(s) by the PAR Panel based upon the number of the program participants. This position(s) may be designated by the PAR Panel as full or part-time.
10.12 Consulting Teacher(s) essential functions shall include, but are not limited to:
10.12.1 Assist Voluntary and Mandatory Participating Teachers by demonstrating, observing, coaching, conferencing, referring, or by other activities which, in their professional judgment, will assist the Participating Teacher in remedying the specific areas recommended for improvement by the evaluating Administrator.
'
10.12.2 Assist the Mandatory Participating Teacher in remedying the specific areas recommended for improvement by the evaluating Administrator by meeting with the Mandatory Participating Teacher to develop a plan to assist the teacher in complying with the Performance Improvement Plan and to develop a process for assessing the teacher's participation in the Program.
10.12.3 Conduct multiple informal observations of the Mandatory Participating Teacher during the performance ofhis/her job responsibilities, and a minimum of two formal observations with both Pre-Observation and Post-Observation Conferences.
I 0.12.4 Monitor the progress ofthe Participating Teacher with an unsatisfactory designation in one or more areas on his/her final evaluation and shall provide periodic written reports to the teacher for discussion and review.
A "draft" copy ofthe Consulting Teacher' s report shall be submitted to and discussed with the Mandatory ParticipatingTeacher. The Mandatory Participating Teacher shall have ten (1 0) days to submit written comments to the Consulting Teacher before the repmt is finalized and presented to the teacher for signature. The Mandatory
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Participating Teacher's signing ofthe report does not necessarily mean agreement, but rather than he or she has received a copy ofthe report. The Consulting Teacher shall submit a final report to the PAR Committee. The Mandatory Participating Teacher with an unsatisfactory evaluation shall have the right to submit a written response, within ten (10) working days, and have it attached to the final report.
Other Provisions 10.13 Functions performed by unit members as Consulting Teachers or members of the PAR
Committee pursuant to this Article shall not constitute either management or supervisory functions as defined by Government Code Section 3540.l(g) and (m). Such unit members shall continue to enjoy all rights afforded to other bargaining unit members.
10.14 Unit members who perform functions as Consulting Teachers or PAR Committee members under this document shall have the same protection from liability and access to appropriate defense as other public school employees pursuant to Division 3.6 (commencing with Section 810) ofTitle 1 ofthe California Government Code.
10.15 All documents and information relating to a specific employee's participation in this Program is regarded as a personnel matter. Such records are, therefore, exempt from disclosure under the California Public Records Act (Government Code Section 6250, et seq.) as a personnel record.
10.15.1 The arumaI evaluation of the Program' s impact, excluding any information on identifiable individuals, shall be subject to disclosure under the Public Records Act.
10.15.2 The selection process for Consulting Teachers, to the extent it contains records related to identifiable individuals, will be treated as confidential and will not be disclosed except as required by law.
10.15.3 All documents related to the Program will be filed by the Human Resources Department separately from an individual's personnel file.
10.16 This Article shall not be grievable. Any claims that the Article has not been properly implemented shall be presented in writing to the PAR Committee with copies to the SLOCOE and SLOCEA. Any such claim shall be addressed in the annual report.
10.17 Expenditures for this Program shall not exceed the revenue received under AB-XXI .
10.18 Nothing in this Article shall, in any way, modify or affect the rights of the SLOCOE under provisions of the Education Code relating to the employment, classification, retention, nonreelection, or release of certificated employees.
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ARTICLE XI SAFETY CONDITIONS OF EMPLOYMENT 11.1 Employees of the San Luis Obispo County Office of Education shall be safety conscious in their own conduct and actions and shall cooperate with the Employer in the implementation of its safety program. 11.2 Employees shall report any unsafe or unhealthy conditions directly to their supervisors without reprisal. 11.3 There shall be a safety committee composed of 12 members. Four members shall be selected by the Employer, and four members shall be selected by the Exclusive Representative ofthe certificated employees and four members from the classified service. The committee shall: 11.3.1 Meet on a monthly basis on release time to review any accident reports and make recommendations for new programs of inservice safety training. 11.3 .2 Receive and review reports of possible dangerous situations and make recommendations to the proper person for corrective action. 11.3.3 Determine which safety equipment is reasonably necessary or required to be furnished by the Employer. 11.4 The Employer shall not discipline an employee for the proper exercise of physical control over a student unless an investigation shows that the employee exceeded his or her authority under the provisions ofEducation Code Section 44807 or violated the provisions ofEducation Code Section 49001. The Employer will make training in the area of student control available.
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ARTICLE XII
EMPLOYEE/MANAGEMENT RIGHTS TO INFORMATION AND COMMUNICATIONS
12. 1 The Association's Interest Based Bargaining Team shall be granted reasonable release time for negotiating without loss of compensation.
12.2 The Association shall have the right to:
12.2. 1 Access at reasonable times employee work areas.
12.2.2 Use the County Office of Education' s mailboxes.
12.2.3 Use other reasonable means of communication with employees.
12.2.4 Release time for the Association President or designee to attend County Board of Education meetings. Substitute costs will be borne by the Employer.
12.2.5 Ten days leave for Association business per school year. Written notification shall be provided to the Superintendent as soon as the need is known. The Association shall reimburse SLOCOE for the cost ofsubstitutes secured while the employee is on leave at the substitute rate of pay.
12.3 The Employer will provide the Association with a complete Board agenda and minutes prior to the Board meetings, public information (class size, statistical reports, budgetary information, etc.), and relevant fiscal information provided to the State Department of Education. The costs of duplication of documents shall be borne by the Association.
12.4 There will be payroll deduction of Association dues upon receipt of a signed authorization from a certificated employee. This authorization may be canceled by giving a 30-day written notice to the Employer and the Association. An employee may modify the authorization once each school year. Should an employee modify the authorization a second, or subsequent time, there shall be a $5.00 processing fee, to be paid by the Exclusive Representative.
12.4.1 "Any bargaining unit member who is not a member ofthe Association shall pay to the Association a fee in an amount equal to membership dues, payable to the Association in the same manner as required for payment ofmembership dues. In the event that a bargaining unit member does not pay such fee directly to the Association, the Association shall so inform the Employer, and the Employer shall immediately begin automatic payroll deduction as provided in Education Code Section 4506 1 and in the same manner as set forth in this Article. There shall be no charge to the Association for such mandatory agency fee deductions." 4 0/ 48
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12.4.2 Any bargaining unit member who is a member of a religious body whose traditional tenets or teachings include objections to joining or financially supporting employees organizations shall not be required to join or financially support the Association as a condition ofemployment; except that such bargaining unit member shall pay, in lieu of a service fee, sums equal to such service fee to one of the following non-religious, non-labor organization, charitable funds exempt from taxation under Section 501 (c) (3) ofTitle 26 of the Internal Revenue Code: a. Camp Hapitok b. Ronald McDonald House c. Susan G. Komen for the Cure To receive a religious exemption, the bargaining unit member must submit a detailed written statement establishing the basis for religious exemption. The Association executive board shall communicate in writing to the bargaining unit member its acceptance or rejection of the exemption. If accepted, the bargaining unit member shall make the payment to one of the charities named above. Such payment shall be made on or before the due date for cash dues/fees for each school year. Proof of payment shall be made on annual basis to the Association and the Employer as a condition of continued exemption from the payment of agency fee. Proofofpayment shall be in the form of receipts and/or cancelled checks indicating the amount paid, date of payment, and to whom payment in lieu ofservice fee has been made. No inkind services may be received for payments, nor may the payment be in a form other than money such as the donation of used items. Such proofshall be presented on or before the due date for cash dues/fees for each school year."
12.4.3 "With respect to all sums deducted by the Employer pursuant to this Article, whether for membership dues or agency fee, the Employer agrees to remit such moneys promptly to the Association accompanied by an alphabetical list of bargaining unit members for whom deductions have been made, categorizing them as to membership or non-membership in the Association, and indicating any changes in personnel from the list previously furnished. This list shall be provided a minimum ofonce annually, as soon as possible after the start ofthe school year but no later than September 1Oth. The Association and the Employer agree to furnish to each other any information needed to fulfill the provisions of this Article."
12.5 An Interest Based Alliance will be established for the purpose ofresolving issues of concern to the Employer and/or the Association. The Interest Based Alliance will meet by October 15 ofeach school year to establish a meeting schedule.
12.5.1 Any issue that presents an immediate or ongoing concern can be addressed by the Interest Based Alliance. This includes, but is not limited to contract issues, budget issues, issues between employees, and other work conditions. The Director ofHuman Resources and the Association designee will provide an agenda for the Interest Based
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Alliance meetings. It is also recognized that issues may arise that may not be on a planned agenda.
12.5.2 The Interest Based Alliance may refer an issue to another County Office ofEducation group/committee for discussion/action, such as Expanded Cabinet or Leadership Team.
12.5.3 The Interest Based Alliance will make minutes of the meetings available to all employees.
12.6 The Association and the County Supetintendent of Schools recognizes and supports the San Luis Obispo County Office of Education's Vision, statement, Mission statement, Organizational Philosophy, and Standards and Expectations for staff.
12.6.1 All employees have a shared responsibility to create and maintain a positive climate within the workplace. To this end, the following standards and expectations shall apply to all staff in the performance of their duties:
• Treat each individual with dignity and worth. • Assist each individual to realize her/his greatest potential in the use of talent
and skills. • Support teamwork and initiative. • Interact with others in a professional, responsible, and respectful manner. • Promote high expectations for performance and accountability to achieve
established goals. • Value quality, excellence, and continuous improvement. • Support innovation and creativity. • Model and promote clear, frequent, and honest communication within the
organization. • Recognize and reward excellence in performance. • Utilize participatory decision-making and problem solving.
12.6.2 It is of mutual interest that the San Luis Obispo County Office of Education be competitive in attracting and hiring qualified teachers through salary, benefits, and work environment. It is also ofmutual interest that the County Office ofEducation be equally competitive in retaining qualified teachers by adherence to the Standards and Expectations for staff.
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ARTICLE XIII
GRIEVANCE PROCEDURE
13.1 Definitions
13 .1.1 "Grievance" shall mean an allegation by an employee that there has been a violation of one or more express provisions of this Agreement. No issues outside this contract may be subject to the grievance procedure.
13.1.2 "Grievant" shall mean an employee who is a member of the bargaining unit. The Association may grieve, with written authorization, on behalf of a unit member.
13.1.3 "Day" shall mean a day when the County Office of Education is normally open for business.
13. 1.4 "Immediate supervisor" is the administrator having immediate jurisdiction over the grievant.
13.2. The grievant may elect to be represented by the Exclusive Representative at all formal levels of the grievance procedure and must inform the Employer in writing ofsuch election prior to the first meeting.
13.2.1 The grievant, a designated bargaining unit representative, and witnesses, if any, participating in the processing of the grievance, shall suffer no loss in pay ifmeetings or appointments are mutually scheduled by the Employer and the Exclusive Representative.
13.2.2 An employee may present a grievance to the Employer and have such grievance adjusted without the intervention of the Exclusive Representative.
• Any adjustment shall not be inconsistent with the terms of this Agreement.
• The Employer shall not agree to a resolution of the grievance until the Exclusive Representative has received a copy of the g:tievance and the proposed resolution and has been given an opportunity to file a response.
13.2.3 At all levels of the grievance procedure, the grievant shall provide the Exclusive Representative with all details and copies ofcorrespondence relative to the grievance.
13.3 Once a grievance has been initiated, all matters ofdispute relating to it which occur during the processing of the grievance shall become a part of and be resolved in the grievance proceeding.
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Once a grievance has been resolved, or a final decision rendered, a grievant shall not been titled to initiate a new grievance on any matter or occurrence which properly could have been included in the first grievance.
13.4 The grievant may request an extension of the timeline if the time limit is extended beyond her/his work year. Failure ofthe grievant or the grievant's representative to adhere to the time limits ofthis Article shall constitute waiver ofthe grievance and acceptance ofthe Employer's action or decision at the appropriate level.
13.5 No reprisal will be taken by the Employer against any grievant or participant in the grievance procedure by virtue ofsuch participation. All written materials pertinent to a grievance, except decisions which affect the employee's employment status, shall be filed separately from the personnel file of the grievant or any participant.
13.6 Until final disposition ofthe grievance takes place, the grievant shall conform to the original direction of the Employer.
Formal Level One 13.7 An employee may discuss any grievance with the immediate supervisor by requesting a
meeting in writing within 10 days of the alleged violation. The immediate supervisor shall attempt to adjust the grievance and shall respond verbally within two days of the meeting.
Formal Level Two 13.8 Within 10 days of the occurrence or of first knowledge of the occurrence of the alleged
violation of the Agreement, or within 10 days of the Level One meeting, the grievant shall present the grievance in writing to the immediate supervisor.
13 .8.1 The written grievance shall contain the following minimum information:
• The grievant's name.
• The date of filing.
• The date ofthe alleged violation.
• The specific Article(s) or section(s) violated.
• A brief description of the alleged violation.
• A briefsynopsis ofthe informal conference.
• The specific relief requested.
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13.8.2 Grievances not containing the required information shall be rejected as being improperly filed.
13.8.3 The grievant may request a conference with the immediate supervisor. The conference shall be held within 10 days of the request.
13.8.4 Within 10 days ofreceipt ofthe grievance by the supervisor or within 10 days ofthe conference, if one is requested, a written decision shall be issued to the grievant. If the supervisor does not respond within the time limit, the grievance is denied and the grievant may appeal to the next level.
Formal Level Three 13.9 In the event that the grievance is denied at Level Two, a written appeal to the Superintendent
or designated representative shall be filed within 10 days of the issuance of the Level One denial decision. 13.9.1 The appeal shall contain all materials utilized in the prior level, including the decision
rendered, ifany, and a specific and concise statement of the reason for the appeal. 13.9.2 No new information, statements, or charges, if known at an earlier level, may be
introduced by the grievant in any appeal. The issue shall be determined on the basis of one, and only one, set of facts and allegations. 13.9.3 The Superintendent or designated representative shall meet with the grievant within 10 days of the receipt ofthe appeal. • The Superintendent or designee shall, within 10 days of the meeting, issue a
written decision which shall be final and binding on the parties. • Nothing contained herein shall deny an employee the right to seek judicial
review.
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ARTICLE XIV
CONCLUSION
Completion of Negotiations 14.1 This Agreement represents complete collective bargaining and full agreement by the parties in
respect to wages, hours ofemployment, and other terms and conditions ofemployment which shall prevail during the term or terms hereof. Any matter or subject not herein covered has been satisfactorily adjusted, compromised, or waived by the parties for the life of this Agreement. The parties agree to meet and to negotiate further on any items of interest to either party during the term of this agreement.
Past Practices 14.2 The specific provisions of this Agreement shall prevail over any past practice or procedure of
the Employer.
14.2.1 Since prior to the ratification of this Agreement, any past practice or procedure of the Employer was discretionary on the part ofthe Employer subject to Board policy, in the absence of a specific provision in this Agreement, any past practice or procedure is agreed to continue to be discretionary on the part of the Employer.
14.2.2 When references are made to statutes (e.g., Education Code), such references are informational only and do not subject the provisions ofsuch statutes to the grievance processes of this Agreement.
14.3 It is agreed and understood that the Employer retains all rights, powers, prerogatives, privileges, duties, and authorities vested in it by any source to manage, control, and direct the operation and affairs of the Employer except to the extent that such rights, powers, prerogatives, privileges, duties, and authorities are limited by express terms of this Agreement. The exercise of the rights, powers, prerogatives, privileges, duties, and authorities by the Employer, the adoption ofpolicies, rules, regulations, and practices in furtherance thereof, and the use ofjudgment and discretion therewith shall be limited on)y by the express terms of the Agreement.
Severability 14.4 In the event that any portion of this Agreement is found to be unlawful by a court of
competent jurisdiction, the rest of the Agreement shall remain in full force and effect. Should a federal or state agency with jurisdiction invalidate any portion ofthis Agreement, the parties shall meet to negotiate over the affected provision(s).
Continuation of Economic Benefits 14.5 Upon expiration ofthis Agreement, or ofany interim salary or fiinge benefit payment Article,
employees who are reemployed for the following year shall be paid the same salary as for the final (or interim) year ofthe Agreement, and Employer contributions for fringe benefits shall
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remain the same, until such time as a new Agreement is ratified by the parties or the duty to bargain has been completed. Duration of Agreement 14.6 This Agreement shall be in full force and effect from the date ofratification by the parties to June 30, 2015, at which time this Agreement shall expire and become null and void. 14.6.1 The parties recognize the possibility that the Superintendent's ability to meet certain
obligations set forth in this Agreement may be impaired, restricted, or limited by statutory or constitutional changes of which effects would reduce state and/or local income. a. Should the Superintendent determine that such a situation has occurred and take
action to implement modification of any provisions of this Agreement, the Superintendent shall notify the Exclusive Representative. b. The Exclusive Representative shall have the right to negotiate the effect ofsuch a modification only if it serves written notice to the Superintendent within five days of notice to the Exclusive Representative. 14.6.2 The parties agree that the salary schedules are attached as Appendix Al-A4.
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ACCEPTED AND RATIFIED

By their signatures below, the signatories certify that they are authorized representatives of either the Employer or the Exclusive Representative as the contracting parties; that all actions necessary for the Employer or the Exclusive Representative to ratify and accept this Agreement as a binding and bilateral agreement have been completed in the manner required by that party and the law; and that this Agreement is hereby entered into without the need for further ratification and acceptance.

SAN LUIS OBISPO COUNTY SUPERINTENDENT OF SCHOOLS
D. CROCKER, r· tcndent of Schools
DATE: o/t'T!Zoi"Z-/

SAN LUIS OBISPO COUNTY EDUCATION ASSOCIATION, CTAINEA
ML
JliljfscHUYLER President
DATE: & (fJ/tl /

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Appe ndi x A- 1

San Luis Obispo

County Office of Education

Teacher/Therapist Salary Schedule

Effective

2007

Pre-Credential

B.A. < 45

B.A.+ 45

Semester units Semester units

(Emergency/

Fully

or M.A. Fully

Provisional) Credendaled Credentialed

Annual

Annual

Annual

Column B.A. + 60
Semester units
orMA + 15
Seme ster units
Annual

Based on 186 duty days including 3 staff development days. $600 annually will be awarded for a Doctorate from a university or college accredited by the Western Association of Schools & COlleges. Approved by the County Superintendent of Schools
SLOCEA/CTA - SLOCOE AGREEMENT - 2012 - 2015

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 83 of 211 Page ID #:102

Appen d ix A2

San Luis Obispo County Office Of Education

Educational Occupational Therapist Salary Schedule Effective retroactive to July 1, 2007

COLUMN I

COLlJMN II

COLlJMNDI

STEP

8,4. + 4 4 Semester
ualts Fully Lleen$ed
Annual

BA. + 4 5 Semester
••.lt."' or M.A.
Fully LlceJaBed
Annual

B .A.+ GO S em-ter llDlu
C)l' MA + IS Seme~~ter
w.nlts Fully l.i~
Annual

$600 annually will be awarded for a Doctorate from a university or college accredited by the Western Association of Schools & Colleges.
SLOCEA/CTA - SLOCOE AGREEMENT - 2012-2015

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 84 of 211 Page ID #:103

SAN LUIS OBISPO COUNTY OFFICE OF EDUCATION

FIRST FIVE PRESCHOOL PROGRAM SALARY SCHEDULE

EFFECTIVE July 1, 2007

u;

rl

0

N

FIRST FIVE PRESCHOOL PROGRAM SUPERVISOR

I

N

rl

STEP 1

STEP 1

STEP2

STEP2

STEP3

STEP3

0

Annual

Hourly

Annual

Hourly

Annual

Hourly

N

$25,744

$28.44

$27,026

$29.86

$28,368

$31 .34

Annual salary based upon 181 duty days, 5 hours per day.

Ezw-<

M

::E:

< I

w
w

FIRST FIVE PRESCHOOL TEACHER
><
H

o:; t:J
~

~

STEP1

STEP1

STEP2

STEP2

STEP3

STEP3

r:rJ

re

Annual

Hourly

Annual

Hourly

~

$18,535

$22.75

$19A52

23.88

Annual salary based upon 181 duty days, 4.5 hours per day.

Annual $20,422

Hourly $25.07

0 0 0
~ C/)

I

Approved by the County Superintendent of Schools:

,:1:!

E-<

0

Da~

.........
.w.:e
0

0

~

C/)

Revis~d 4130107: 6.5% = 3% CTA unit longevity incorporated into the cells. All retroactive to 711/06 (excluding extended schooi'06)
Revised 12/3/07 4.53% retroactive to July 1, 2007

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 85 of 211 Page ID #:104

Appendix A4
2007-2008

SAN LUIS OBISPO COUNTY OFFICE OF EDUCATION
3350 EDUCATION DRIVE, SAN LUIS OBISPO, CA 93405
STATE PRESCHOOL TEACHER SALARY SCHEDULE Including Programs Within the Paso Robles School District Boundaries
Effective July 1, 2007

I•

II *

Ill*

tv·

v•

Years
w/SLOCOE

4()Sem. Unit&"

80Sem,Unb

BAIB.S. or 120 Scm. Unlts

B.NB.S. • 15 Sell\. Un1ts or 135 Som. Un1ts

1

$ 20, 6 4 4

$21 ,078

$21,513

$21 ,948

2

$21 ,663

$22,099

$22,535

$22,967

3

$22,7 58

$23,192

$23,630

$24,065

4

$23,893

$24,329

$24,762

$25,198

5

$23,893

$ 2 4 ,3 2 9

$24,762

$25, 198

6

$23,893

$24,329

$24,762

$25,198

7

$24,341

$24,785

$25,226

$25,670

8

$24,341

$24,785

$25,226

$25,670

9

$ 2 4 ,341

$24,785

$25,226

$25,670

10

$24,789

$25,241

$25,690

$26,144

11

$25,499

$25,964

$26,426

$26,892

12

$25,499

$25,964

$26,426

$26,892

13

$25,499

$25,964

$26,426

$26,892

14

$26,010

$26,484

$26,956

$27,430

Schedule based on 178 duty days, 5 hours per day.

ll AJO.S. + 30 Sem Units or 150 Som. Unlls
$22,384 $23,403 $24,499 $25,636 $25,636 $25,636 $26,117 $26,117 $26,117 $26,598 $27,360 $27,360 $27,360 $27,906

• Range 1 (40 Sem. Units) Required for Regular Permit (24ECE + 16 General Ed.)

NOTE:

Semester units must be approved by the Program Supervisor in order to advance to Range IV and Range V.

Substitute teacher rate:

$57.00 per day/plus mileage, effective 07/01/2001

•• Long Term Substitute rate:

$64.00 per day/plus mileage, effective 07/01/2001

.. A teacher who works 20 consecutive days in one assignment; upon the 21st day, will be paid retroactively

to the first day at the long-term rate.

Approved by the,County Superintendent of Schools

Rovl

IZ3/07: All previous longevity now Incorporated Into cells. Salary Schedule completely restructured..

Steps 1·10 increased 4.7%. Steps 11·14 Increased 7.7% Retroactive to July 1, 2006

11/16/07 4.53% cola retroactive to July 1, 2007

SLOCEA/CTA - SLOCOE AGREEMENT - 2012-2015

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 86 of 211 Page ID #:105

Appendix B

San Luis Obi&po County Offi~ of Education
Stlpends/Ho11r~
Eft~e Dectmber 1, 2010

CTA Agreement AppendlxB

Title

'STSA Induction

I

:Wdinaklr

BTSA lfldocfun Mentor

Support Faetors
NA NA

~aachsr inlecrn~ rol&
PAR Cormtfng Te~cher

NA
~pp.nnga~
Partitipatirg Teacha-
~119 8 Voh.v1lary
Parti~tiM Te~er ~upp:lrtng aVokmtary
P~rtiQips~~ Tesd!EI

Support He~

-lrifount

NA

$29:klper~

NA

$1300pet1~

CuYicukln [Fiest ~• on ~prlail

NA

ssla!y scMduP.)

- NA
1.0 hour$01

Oely role of oav
$1,105 ll$fyear{~uals IIO~ef

'upporlper mcdh BTSA Menlor)

B-1D I'IOuts of

$1.~00 pet year (~uiiiS 100% of

I :.1JP11orl permoolh BTSAMentor}

.Mnualstipel'fle Vii&t:e Jlllfa~ for partial ysalli. 'Not available~nnl hlndin~ ~ms

n rt AIJj:t~vtx:JIYy

U1e

Count(

Superintendent

at

C\ ~
Set®: '-l!.l}Jj.,...

Y,

J~ \....\•

(1 !.•11

\ JJa'l 0. Ccet'~r

--

\)

SLOCEA/CTA - SLOCOE AGREEMENT - 2012-2015

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 87 of 211 Page ID #:106

APPENDIX C

_(:L
.. . . . "','.'..... ,.,,,. u .... ·~'-0 "4-
...., . tw.. •• "W- , .. ~ ,~., .,.. :..(_,.._..,

Su Luis Obispo C0011ty Officl' ofEdw:atioa HUMAN RESOURCES DEPARTMENT
CATASTROPHIC IL4.PE CERIJFICAIED REQUESTFORM

Name (print):_ _ _ _ _ _ _ _ _ _ _ _--'Position: - - - - - - - - - -

Hawmany days arebeing requested?

Site:._ _ _ _ _ _ _ _ _ _ __

Stna (chsclum•) Full-time:

Put-time:_ _ __

S~:

~~-----------------

1hereby :request Catastrophic Leave for the following reuons: {attached additional page il
_ ~~1 _________________________

I have read the San Luis Obispo County Office ofEducation's Catastrophic Leave Policy as provided in the CTA Cootna (lll•foU ttatfrom tltt~ CTA. Contract is attachedfor your~c•) and believe I meet all the eligibility:requiremeuts RgBidingmyselfand my immediate family (~JRily JIWZI.-Itf/fltM tH: 11111tlvr. /1111Hir. pG711brtor1Nr. J:1fllfllJtttfllr. 11r patt4chil4 oftbllllllfPIDJw qr lfw.IJliOIII4! qftM -.~ lllfil 1M :;ptRlS'.rm. um-ilr-la'lr. dl:ntgJJJr. ~in-IGw. lnfllr. ~ 'IIJND"- ~ .rilw• .sisW-iJt.litlw, . . llrtJtJw,r. fR'~ qftlv ~ormzy IWlllmw oftiN ntp16)¥111' lili1ft" ilt lfw ~ ltt1tl.ulbolll qfiH ~ I Ulldentand. that it is necessuy to provide the appropriate writ1en verification from the attending
physician stating the catastrophic illnr:ss or injmy. t}pe of leave needed. and projected length of leave needed (plMs# attach to this fortrt). Return this form with adachmeut(s) to the attention of Beth
Stunuws at the Sm Luis Obispo County Oftice ofEducation HUDWl R.rsoun:es Department
H this application is approved (ch~~ek on-J:
( ) I will solicit donations for leave onmy own and wa:ot this applicationkept confidential.
( ) I authorize HUIIWl R.esoun:es to releue ouly my name to otbec SLOCOE emplo}'leS in a request for: donation to unit uwnbers..
~reMci~~--------------------
Request approved ( ) Request-denied ( ) Reason:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ____
~~~eemmm~~~Si~ :_ _ _ _ _ _ _ _ _ ___
Date:_ _ _ _ _ __

SLOCEA/CTA - SLOCOE AGREEMENT - 2012-2015

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 88 of 211 Page ID #:107
APPENDIX C
Caf!strgphir Wxt 8.16 Section 1 - FJigJ.lrility: A probationary 01 pennant"'f (temporary employees~ not eligible)
employee who su.ffm :fimn a catastrophic injury or iiiDess that is expected to incapacitate tbe unit membel- for an extendedperiod oftime(~ thanten days), or who is requiRd to taketime off from worlc to provide care for an immediate family member who suffen from a catastrophic injury or illness, sball be eligible to receive Cat.astropbic Leave donations from other unit membeJS subject to 1be resfrictians md conditions outlined below:
8.16.1 Before using d011ated sick leave, tbe ~ mwt have exhausted all accrued side leave.
8.16.2 The Catastrophic Leave Committee detenniDes that the employee isUD&ble to wmk. due to the employee's or his/her family membeis catastrophic illDess or injury.
8.163 The ""'Ximmn amount ofdonated leave shall not exceed~ school months.
8.17 Section 2 - Requests for Sicl: Leave Donation: An empl<ryee who meets the eligibility requiremem:s for Catutrophic ~ve may request dmlation of siclc leave from other unit members by submitting a "~tastrophic Leave Request foe Donation FODil• to tbe Human Resources Department The request shall clearly specify the circumstances of the catastrophe aDd the IDlDUilt of sick leave equested. Appropriate written verification of the catastrophic illness 01 injury must be included wi1h the request The unit member should be prqmed to provide additional do<::umeot!.tion on dJe nature and~ ofthe illness orinjmy, ifrequested. Catastrophic Leave will COJD!11Hice on 1he same day that the differmtial sick leave pay calendar
begins. The emplo}oee will reOO\'e full pay, and tbe employee's diftelential pay rights will nm
cxmcu.nentty with the Catastrophic l..ea\'e.
8.17.1 A CODIIIIiflee CODSisting of two Employw Ieptesematives IUld two representatives appointed by the Association shall be establOOed each fHcaJ. year. One member shall serve as rec.order. Minutes shall be kept The ()()Jillniftee shall cousider all requests for
sick leave donations. The committee may grot. partially grmt. or rqert a request. All
deliber:ations are con.fideutial md the decisions to grant or deny requests shall require DJlltual agreement. The decision ofthe committee is final and not grievable. A written copy of the committee's decision shall be provided to the requesting employee, to the Association, and to the HUDWl Resources Department so &it the siclc leave can be transferred from the unitmember donors to the member's aa:ouuf:, ifneceswy.
8.17.2 Requesting employees should apply for doaated sick leave prior to~ regular
sick leave. At no time shall donated sick leave be applied to a pay period that has been closed md for which a pay wmant wa$ issued.
8.17J Donated sick leave shall be established in m individnal account for1be recipient and will be ut:iliz.ed iD a sequeooe that will use one day from t!¥h dooor before utilizing lhe second d!}• from each donor. Unused sick leave will beRtumtd to 1be doii.OI(s).
&.17.4 An employee who uses a donatedsiclc .leave day s.hall be paid athislberreglll.ar daily rate. No distinction sbali be made as to the differi.ng pay Diles of1he donors 01 recipients.
&.17.5 Anemplo}~may not recei\'e theoeaefits oftiW leavewhile receivingmonies or
leave from Woibrs' Compeasation.
SLOCEA/CTA - SLOCOE AGREEMENT - 2012-20 1 5

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 89 of 211 Page ID #:108
APPENDIX C 1.11 Sedioa3 - Daaatiaal b cmstmphi.c Leave:
1.18.1Daaated ld Jsvemay DDfbe used for io&btrial i.lloesa « illjmy.wx:idmt 1.182 DaaatiollJ tD the1DiitJDI!IDia will betude in aae-dayioc::mumts. 8.183 Unitmemberunay an1y dmmbdi\'e (5)clays perachool JMI· 8.18.4 A lick leavedonormaynat dooabl sick leawthat would cm1e1ri11'J'.1er
pel10Dal.:c:rued lidt leaveto fill below (10) clays. 1.18~ The cb:lar list at.ll &ecmfidmtial
SLOCEA/CTA - SLOCOE AGREEMENT - 2012-2015

Case 8:13-cv-00676-JSTS-ACNWLUIDSoOcBuISmPeOnCt O1UNFTilYedOF0F4I/C3E0O/1F3EDPUaCgAeTI9O0Nof 211 Page ID #:109
Julian D. Crocker, Superintendent

CERTIFICATED STAFF

Appendix - Dl

r1merme fior Eva uafmg permanent and Probar1onary

PROBATIONARY EMPLOYEES CYCLE (2 Years)

Activities

Timeline

I. Group Orientation

Within I0 days of hire or the beginning of school, whichever is sooner.

2. Orientation Conference

Prior to October I

3. Pre-Observation Conference (minimum of two)

One prior to December 20 One prior to March I

4. Formal Observation (Form: FOFOOJ)

One prior to January 15 One prior to March I

5. Post Observation (Form: FOFOOJ)

Within five working days ofFormal Observation

6. Informal Observation Notation (Form: IOFOOJ) (Minimum oftwo in pr(Jhutio11aryp eri(Jt/)

rt is expected that there will be informal contacts throughout the school year including professional observations such as parent conferences, TEPs, student meetings, agency meetings, or other opportunities outside the instructional setting.

7. Summativc Rcpmt (Form: SERFOOJ)

Due prior to Summative Conference (30 calendar days before the end of the school year)

8. Self-Evaluation Verification (Form: SEFOOI) 9. Summative Conference

Due on or before April I

10. Upon successful completion ofprobation, the first year as a permanent employee, the teacher shall not be formally evaluated.

None.

PERMANENT EMPLOYEES FORMAL EVALUATION

Activities

Timeline

Individual Orientation Conference
* Formal Observation Cycle (Form: FOFOOJ)

November 15 Pri or to March I

Informal Observation (Form: IOFOOJ)

Ongoing (sec Definitions)

Self -Evaluation Verification (Form: SEFOOJ) Summative Evaluation -

Due 30 days before the end ofthe school year

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 91 of 211 Page ID #:110

(Alphabetically)

SAN LUIS OBISPO COUNTY OFFICE OF EDUCATION Julian D. Crocker, Superintendent
CERTIFICATED EVALUATION DEFINITIONS

AppendixD2

EVALUATION TERM

DEFINITION/REQUIREMENTS

FORM (IF APPLICABLE)

Data Collection File (Evaluator document)

Data collected by evaluator (e.g., client satisfaction surveys, bulletins, correspondence, observations, etc.) All contents must be signed by both evaluatee and evaluator at the time item is placed in file Signature indicates knowledge only and does not indicate agreement Contents retained through the current 2-year cycle only. New Data Collection File shall be established at the beginning ofa new cycle. For a period oftwo (2) years the evaluator shall keep the data collection file with the exception ofthe work sample file, which will be kept by the evaluatee. Do not send to Human Resources Department.

Evaluation Year
(Permanent staff only)

School Year/Fiscal Year

Formal Observation/Contacts

Time ofobservation/contact to be mutually established Length: Minimum of30 minutes Post-Observation Conference must be held within five 5 working days following formal observation/contact.

Pre-Observation Data Sheet/ Post-Observation Report
Form: FOFOOZ

Informal Observation(2 in probationary period)

It is expected that there will be informal contacts throughout the school year including professional observations such as parent conferences, IEP, student meetings, agency meetings, or other opportunities outside the instructional setting.

Informal Observation/
Communication Form: IOFOO I

Orientation Conference (individual or group)

Purpose: Explain and clarify evaluation system and
timelines
Ifhired at start ofschool, at first staffmeeting
(Probationary)
Ifhired after the beginning ofschool, make
appointment with Human Resources Director
(Probationary)
First staffmeeting (Permanent)

Pre-Observation Conference
"i:IEVALS\cel't.eval-form2000/bohl. wpdJJ, JJ/2000

Purpose to review the lesson plan and mutually establish the focus of the observation based on criteria. Contact may be facilitated by phone conference, email, fax, or U.S. Mail. Precedes all formal observations

Form: FOFOOJ

Pal!e I

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 92 of 211 Page ID #:111

SAN LUIS OBISPO COUNTY OFFICE OF EDUCATION Jul ian D. Crocker, Superintendent

EVALUATION TERM

DEFINITION/REQUIREMENTS

Probationary Period
Rete ntion/Replacement on Evaluation Year Cycle

Two complete consecutive years (Ed. Code 44929.21) (Complete school year for probationary employee, defined in Ed. Code 44908)
An employee who is deemed unable or unwilling to meet the SLOCOE's standards will be placed (or retained) on the Evaluation Year Cycle.

FORM
(IF APPLICABLE)

Self Evaluation :
Summative Evaluation Components

Pre-Observation Contact Formal Observations Post-Observation (feedback) Conference Other data/input may include:
:> Informal Classroom Observations :> Work Samples
)> Other Job Specific Data Required: Verification form certifying self-evaluation must be turned in on or before the Permanent Summative Evaluation Conference. The actual selfevaluation document may be shared with evaluator at the discretion of evaluatee but is not retained in the Data Collection File.
1. Written Report )> Due at conclusion of formal evaluation )> Placed in Personnel File
2. Conference )> Scheduled at mutually agreed upon time, but not later than 30 days before end of school

Form: SEFOOJ

Page2

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 93 of 211 Page ID #:112

SAN LUIS OBISPO COUNTY OFFICE OF EDUCATION Julian D. Crocker, Superintendent
CERTIFICATED STAFF
SELF-EVALUATION FORM

Appendix-D3

By my signature below, I certify that 1 have completed a self-evaluation using the criteria listed on Form SERFOO1. I understand that the actual self-evaluation may be shared with my evaluator at my discretion (optional), but will not be retained in the Data Collection File.

Employee's Name (Please type or Print) Employee's Signature Date

Social Security No.

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 94 of 211 Page ID #:113
SAN LUIS OBISPO COUNTY OFFICE OF EDUCATION Julian D. Crocker, Superintendent

Evaluatee:

CERTIFICATED STAFF EVALUATION FORM
Classification:

Appendix- D4

Department:

Rating Period:

Check one:

OVERALL EVALUATION RATING
(Complete a ll three pages)

D Formal Evaluation

D Temporary

The employee is to be given a general rating which is felt to best describe his/her overall performance. Comments in support of the rating should be included.

PROBATIONARY:
0 1. At this time the employee's overall performance meets or exceeds the standards and requirements of the San Luis Obispo
County Office of Education. The employee will be recommended for employmenUreemployment.
0 2. The employee is not meeting the standards and requirements of the San Luis Obispo County Office of Education. The employee
will not be recommended for employmenUreemployment.

PERMANENT:
0 1. At this time the employee's overall performance meets or exceeds the standards and requirements of the San Luis Obispo
County Office of Education. The employee will be recommended for employment/reemployment.
0 2. At this time the permanent employee's overall performance is deficient in meeting the standards and requirements of the San
Luis Obispo County Office of Education. The employee exhibits potential for improvement and will be placed/or continue on formal evaluation.
0 3. At this time, the permanent employee has an unsatisfactory evaluation in one or more areas of subject matter knowledge,
instructional strategies, or classroom management, and is referred to the Peer Assistance and Review Program. The employee will be placed/or continue on formal evaluation.
0 4. The employee is not meeting the standards and requirements of the San Luis Obispo County Office of Education. The employee
will not be recommended for employment/reemployment.
NOTE: Prior to completing the final probationary evaluation, the supervisor must review the evaluation with the Human Resources Director. To Schedule an appointment with the Human R esources Director, call the Human Resources Division Secretary at 782-7233.
Narrative Summary Evaluation:

Response: (Employee has th e right to initiate a written rebuttal to the performance a ppraisal with in five (5) working days. Such response shall
become a permanent attachment to the employee's person nel file.)

Evaluatec's Signature:

Date:

(Note: A signature on this performance appraisal does not mean that the employee agrees with the opinio-ns-ex-p-re_s_s_e-:d,-:b-u-:-tm-e,-e-:-ly-:i:-nd-::ic:-a-:-tes that the

employee has read the performance appraisal and has been given the opportunity for discussion, comments, and written response.)

Evaluator's Signatur e: ____________________________________ Date: ___________________

BR Director Signature: ------------ -- - - - - - - - -- - Date: _ _______ __
Origiu(l/: Persouuel Dep(lrtm eut C()py: Employee Copy: Persouuel File

Case 8:13-cv-00676-JSTS-ACNWLUIDSoOcBuISmPeOnCt O1UNFTilYedOF0F4I/C3E0O/1F3EDPUaCgAeTI9O5Nof 211 Page ID #:114
Julian D. Crocker, Superintendent

CERTIFICATED
SUMMATIVE EVALUATION REPORT FORM

Appendix- D5

DIRECTIONS: Place a check mark on the appropriate line for the rating of each critedon. A comment space has been provided. Use of this space is
encouraged. When a Distinguished or Unsatisfactory rating is given, comments must be written. Each criterion is to be rated.

DEFJNITIONS: Distinguished : There is evidence that this effective behavior and/or professional responsibilities exceeds expectations.
Accomplished: There is evidence that this effective behavior and/or professional responsibilities is consistently exhibited. Growth Area: There is evidence that many ofthe components ofeffective behavior and/or professional responsibilities have not been met yet, growth is needed. Unsatisfactory: There is evidence that this effective behavior and/or professional responsibilities is not exhibited with any degree of
quality.

CRITERIA

LEVELS OF PERFORMANCE (MARK ONE)

PERFORMANCE AREA 1: PLANNING
1. Demonstrates effective plannin skills.

DISTINGUlSHED
Demonstrates flexibility and creativity within an overall plan.

X ACCOMPLISHED
...
0 Plans the use of
teaching resources including time, materials, and equipment efrcctivcly.

X GROWTII AREA
0 Plans the use of
teaching resources ineffectively.

X UNSATlSFAcroRv X
0 Does not plan the 0
use of teaching resources.

Comments:

2. Displays a thorough knowledge

of prescribed curriculum.

Shows initiative and

leadership in the

0 Learning content
relates to approved

0 Learning content is 0 Learning content

marginally related to

does not reflect

0

review and

curriculum

approved curriculum.

approved

development of

curriculum.

curriculum.

Comments:

3. Provides opportunities for individual differences.

Diagnoses individual 0 Provides for

0 Shows little concern 0 Does not provide 0

student leaming

individual rates of

for individual

for individual

styles and provides

learning and student

differences.

differences.

instruction

capabilities.

accordingly.

Comments:

4. Sets high expectations for student achievement.

Uses stu dent

0 Effectively sets high 0 Uses data about

0 Does not set high 0

achievement data

expectations for

student achievement

expectations for

daily for setting high

student achievement.

which is marginal

student

expectations for

when setting

achievement

student achievement.

expectations.

Comments:

PERFORMANCE AREA II INSTRUCriON

DISTINGUISIIED X ACCOMPLISHED X GROWTH AREA X UNSATISFACrOnY X

5. Implements the lesson plan.

Implements the lesson plan in a manner that could serve as an exemplary model.

0 Implements the
lesson plan effectively.

0 Marginally
implements the lesson plan.

0 Inappropriately

0

implements the

lesson plan.

Comments: 6. Motivates students.

I I I Motivates students to 0 Clearly motivates

0 Inconsistently

I0 1 Unrealistic

0

achieve beyond

students to perform

requires students to

expectations

Case 8:13-cv-00676-JSTS-ACNWLUIDSoOcBuISmPeOnCt 1OUNFTilYedOF0F4I/C3E0/O1F3EDPUaCgAeT9IO6Nof 211 Page ID #:115
Julian D. Crocker, Superintendent

previous performance levels.

assigned tasks according to their abilities.

perform according to their abilities.

dissuade students from performing to thei r abilities.

Comments:

7. Communicates effectively with thf Uses a variety of

0 Communications are 0 Communications are 0 Communications

0

·tudents.

verbal and nonverbal

clear and relevant

clear but student

are unclear;

techniques

dialogue is

input is not

students appear

effectively

encouraged.

encouraged.

confused.

Comments:

P ERFORMANCE AREA Ill
MANAG EMENT
8. Organizes the classroom for effective use of instructional time and resources.

DISTINGUISHED

X

ACCOMPLISUF.O

X

GROWTMARU

X UNSATISFACTORY X

Demonstrates

0 Utilizes carefully

D Organization is evident 0 Organization is

0

exemplary individual

structured instructional

onJy occasionally.

ineffective.

and collaborative use of practices to organize the

lime, materials, and

classroom environment.

resources

Comments:

9. Sets high standards for student behavior.

Promotes student self- 0 Establishes rules which 0 Inconsistently sets high 0 Docs not set high

0

management.

are fair.

standards for student

~tandards for student

behavior.

behavior.

Comments:

I0. Meets established standards for Concentrates on high 0 Chal lenges_ruj students 0 Occasionall y meets 0 Does not attempt to 0

student perfatmance.

standards for all

to meet performance

established standards

meet established

students to meet.

standards.

for student

standards.

performance.

Comments:

PERFORMANCE AREA IV POSIT IVE

DTSTING UISllED

X

A CCOMPLISHED

INTERPERSONAL RELATIONS

I I. Demonstrates effective interpersonal relationships

[nvolves students in activities to create an understanding and acceptance of all individuals.

0 Maintains effective
interpersonal relationships with
others.

Comments:

X

GROWTH AREA

X UNSATISFACTORY X

0 Intermittently

0 Docs not demonstrate 0

~cmonstratcs effective

effective interpersonal

interpersonal

relationships.

relationships.

12. Promotes positive self-concept, Encourages all students 0

responsibility, and self-discipline in to demonstrate

students.

responsible behaviors in

a wide variety of

settings.

Provides opportunities 0
for students to demonstrate positive self-concept, responsibility, and selfdiscipline.

[nconsistcntly provides 0
!opportunities for ~tudents to demonstrate
positive self-concept,
responsibility, and self~ iscipline.

Discourages students 0
from being self~isciplined through
constant exposure to
activities requiring
~upcrvision.

Comments:

PERFORMANCE AREA V PROFESSIONAL R ESPONSIBILITIES

DISTINGUISHED

13. Demonstrates collegial teamwork and collaboration.

Promotes collegial teamwork and collaboration with others

X

ACCOMI'LISHI!:D

X

GROWTH AREA

X UNSATISFACTORY X

D Regularly participates 0 Habitually needs to be 0 Does not participate in 0

as a team member.

reminded about

teamwork activities.

collegial teamwork and

ollaboration.

Case 8:13-cv-00676-JSTS-ACNWLUIDSoOcBuISmPeOnCt O1UNFTilYedOF0F4I/C3E0/O1F3EDPUaCgAeTI9O7Nof 211 Page ID #:116
Julian D. Crocker, Superintendent

Comments: 14. Supports organizational regulations and policies.
Comments:

lnforms, participates, 0 ~upports aU regulations 0 Intermittently supports 0 Openly refuses to

0

and assists in the

and policies.

regulations and policies. comply with

development and review

regulations and

of regulatio ns and

policies.

policies.

15. Effectively utilizes professional Initiates and encourages 0

growth opportunities.

other staff members to

utilize professional

growth opportunities.

Seeks out and

0

voluntarily participates

in relevant professional

~rowth opportunities.

Is involved in professional growth
opportunities when directed .

Comments:

0 Shows no interest in 0
professional growth
opportunities.

Evaluatee's Signature:

Date : -:-:--:----:--:------:--:----:-~-:--~

(Note: A s ignature on this performance appraisal does not mean that the employee agrees with the opinions expressed, but merely indicates that the employee has

read the performance appraisal and has been given the opportunity for discussion and written comment. The employee has the right to initiate a written rebuttal

to all or part ofthe performance appraisal within five (5) working days. Such response shall become a permanent attachment to the employee's personnel file.)

Evaluator's Signature: _ _ _ _ _ _ __ _ __ _ _ _ _ _ _ ___ Date: - - - - - -- -- - - - - - - - Reviewer's Signature: - - - - - - -- - - -- - - - - - -- - Date: - - - - - - -- - -- - - - - - -

Case 8:13-cv-00676-JSTS-CANWLUIDSoOcBuISmPeOnCt 1OUNFTilYedOF0F4I/C3E0/O1F3EDPUaCgAeT9IO8Nof 211 Page ID #:117
Julian D. Crocker, Superintendent

CERTIFICATED STAFF
CLASSROOM OBSERVATION FORM
(FILLABLE)

Appendix-D6

Evaluatee:

Location:

Date:

Time:

PRE-OBSERVATION DATA (briefly list three (3) work behaviors from tlte criteria.):

1.

2.

3.

POST-OBSERVATION/FEEDBACK

ISTRENGTHS:
Evaluatee Evaluator

OVERALL PERFORMANCE
ICONCERNS:
Date Date

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 99 of 211 Page ID #:118
SAN LUIS OBISPO COUNTY OFFICE OF EDUCATION Julian D. Crocker, Superintendent

SAN LUIS OBISPO COUNTY OFFICE OF EDUCATION
Julian D. Crocker, Superintendent

Appendix-D7

CERTIFICATED STAFF

School:

INFORMAL OBSERVATION/COMMUNICATION FORM

Teacher:

P eriod /Time:

Date:

Supervisor 's Signature

Original-Teacher

Copy-Supervisor

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 100 of 211 Page ID #:119
SAN LUIS OBISPO COUNTY OFFICE OF EDUCATION Julian D. Crocker, Superintendent

CRITERIA
Performance Area I, Planning: Demonstrates effective planning
Displays a thorough knowledge of prescribed curriculum
Provides opportunities for individual differences
Sets high expectations for student achievement
Performance Area IT, Instruction: Implements the lesson plan
Motivates students
Communicates effectively with the students
Performance Area ill, Management: Organizes the classroom for effective use of instructional time and resources
Sets high standards for student behavior
Meets established standards for student performance

CRITERIA
Performance Area IV, Positive Interpersonal Relations:
Demonstrates effective interpersonal relationships
Promotes positive self-concept, responsibility, and self-discipline in students
I>erformance Area V, Professional Responsibilities: Demonstrates collegial teamwork and collaboration
Supports organizational regulations and policies
Effectively utilizes professional growth opportunities

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 101 of 211 Page ID #:120
SAN LUIS OB ISPO COUNTY OFFICE OF EDUCATION Julian D. Crocker, Superintendent

SAN LUIS OBISPO COUNTY OFFICE OF EDUCATION
Julian D. Crocker, Superintendent
CERTIFICATED STAFF
PERFORMANCE IMPROVEMENT PLAN

Appendix-D8

Evaluatee

Assignment

Date

Performance area needing improvement: (Check one)
D Planning D Instruction D Management D Positive Interpersonal Relations D Professional Responsibilities

Criterion from Summative Evaluation Report on Performance Improvement Plan is based:

I. GOAL (General Intent) (Focus statement is necessary for "Needs Improvement.")

II. ACTIVITIES (Specific & Measurable) TIMELINE (Sequence activities, and indicate when it will be addressed or completed.)

Timeline

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 102 of 211 Page ID #:121
SAN LUIS OBISPO COUNTY OFFICE OF EDUCATION Julian D. Crocker, Superintendent
This PIP was:
D Fully Accomplished D Partially Accomplished D Not Accomplished
EVALUATOR'S COMMENTS:
(Include reference to and comments regarding evidence that the PIP was met in the comments above.)

Signature EVALUATEE'S COMMENTS:

Date

Si nature

Date

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 103 of 211 Page ID #:122
Exhibit B

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 104 of 211 Page ID #:123

KERN HIGH TEACHERS ASSOCIATION _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _M_IT_ CH_O_ LS_ ON_ , P_ RE_ SID_E_NT

3409 CALLOWAY DR. SUITE#202 BAKERSFIELD, CALIFORNIA 93312

VICKIE SHOEN HAIR, VICE PRESIDENT MINDY MONTANIO, SECRETARY U SA LAYSHOT, TREASURER

Dear KHSTA Non-Member:
I'd like you to know that I respect your decision to not join our Association, but I also feel compelled to share with you an opportunity that you may not be aware exists. Some of the most heart wrenching situations that I've dealt with since becoming the Association President occur when members are critically ill, and they use up all oftheir sick time. The double whammy of dealing with a health problem and a financial problem at the same time can be an emotional roller coaster that can bring the afflicted to the brink.
When you exhaust your sick leave, you go on what is known as "differential pay" for up to I00 days where the district deducts from your check the cost of a substitute teacher. Most people that find themselves in this situation require a long term sub that gets paid the same as a new teacher. If you are extremely ill, you may exceed the I00 day max losing your job and all income.
If you join CTA, you are eligible for income protection through the insurance provider The Standard. The product they have offered is far superior to anything else I've come across. I've included information on the rates and a description of the benefits provided in this packet. Feel free to investigate and compare.
For the next month, all members of the Association will be able to get this insurance without having to state a pre-existing condition. Normally, ifyou do not sign up when you are first hired with the district, the insurance company can require that you fill out a medical questionnaire and will deny your coverage if you're sick or have a history of disease. We have gotten the company to agree to waive this requirement and you will be given a guarantee issue as long as we can get 80 people across the district to participate.
On the back of this letter is a letter written by one ofour colleagues talking about how this income protection saved he and his family. It is both sad and inspiring. I encourage you to read it. It is a powerful testimonial. Additionally, we have provided you with aCTA membership form if you decide to reconsider your decision so that you can avail yourselfto this great product.
If you would like to know more details, please talk to the site representative on your campus.
Regards,
Mitch Olson, President Kern High School Teachers Association

CALIFORNIA TEACHERS ASSOCIATION NATIONAL EDUCATION ASSOClATION

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 105 of 211 Page ID #:124
Exhibit C

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 106 of 211 Page ID #:125
California Teachers Association
Combined Financial Statements for the Year Ended August 31, 2011, and Supplemental Summary and Detail Schedules of Nonchargeable and Chargeable Expenditures of Agency Fees for the Year Ended August 31 , 2011 , and Independent Auditors' Report
~·

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 107 of 211 Page ID #:126

CALIFORNIA TEACHERS ASSOCIATION
TABLE OF CONTENTS
INDEPENDENT AUDITORS' REPORT COMBINED FINANCIAL STATEMENTS FOR THE
YEAR ENDED AUGUST 31,2011 : Statement ofFinancial Position Statement of Activities and Changes in Net Assets Statement of Cash Flows Notes to Combined Financial Statements SUPPLEMENTAL SCHEDULES: Summary of Nonchargeable and Chargeable Expenditures ofAgency Fees for 201(}--201 1 Supplemental Detail ofNonchargeable and Chargeable Expenditures of Agency Fees
for 201(}--2011 Notes to the Summary and Supplemental Detail Schedules ofNonchargeable and
Chargeable Expenditures ofAgency Fees for 201(}--2011 by Major Budget Category

Page
2 3 4 5-12 13 14 15- 26 27-35

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 108 of 211 Page ID #:127

DeloitteG
INDEPENDENT AUDITORS' REPORT

Oeloltte &Touche lLP 555 Mission Street Suite 1400 san Frand$co, CA 94105
USA
Te1:+1415 7834000 www.deloltte.com

To the Board of Directors of California Teachers Association:
We have audited the accompanying combined statement of financial position ofthe California Teachers Association (the "Association," a California not-for-profit corporation) as of August 31, 2011, and the related combined statements of activities and changes in net assets and cash flows for the year then ended. These combined financial statements are the responsibility of the Association's management. Our responsibility is to express an opinion on these combined financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the combined financial statements are free ofmaterial misstatement. An audit includes consideration ofinternal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Association's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the combined financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall combined financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, such combined financial statements present fairly, in all material respects, the combined financial position of the Association as of August 31, 2011, and the combined changes in its net assets and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States ofAmerica.
Our audit was conducted for the purpose offorming an opinion on the basic combined financial statements taken as a whole. The accompanying summary and detail schedules of nonchargeable and chargeable expenditures of agency fees for the year ended August 31,2011, on pages 13 through 35 are presented for the purpose ofadditional analysis and are not a required part of the basic combined financial statements. This supplementary information is the responsibility ofthe Association's management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in our audit ofthe basic combined financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the fmancial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United Statements. 1n our opinion, such infonnation is fairly stated in all material respects when considered in relation to the basic combined financial statements taken as a whole.

December 22, 2011, except as to the summary and detail schedules of nonchargeable and chargeable expenditures of agency fees, Note 13, and subsequent event in Note 1 for which the date is October 5, 2012.
M~ol
Ddolne Toudle Totwnauu Umlttd

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 109 of 211 Page ID #:128

CALIFORNIA TEACHERS ASSOCIATION
COMBINED STATEMENT OF FINANCIAL POSITION AS OF AUGUST 31 2011
ASSETS
CURRENT ASSETS: Cash and cash equivalents Short-tenn investments Membership dues and accounts receivable - net Supplies, deposits, and prepaid expenses
Total current assets PROPERTY AND EQUIPMENT- Net LONG-TERM INVESTMENTS
TOTAL
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES: Accounts payable and accrued expenses Accrued payroll and related liabilities Dues payable to affiliated organizations Deferred membership dues income CUrrent portion of long-term obligations
Total current liabilities
LONG-TERM OBLIGATIONS- Less current portion: Capital lease obligations Accrued vacation, sick leave, and other related costs
Total long-term obligations
NET ASSETS: Unrestricted: Undesignated Designated
Total unrestricted Temporarily restricted
Total net assets
TOTAL
See notes to combined financial statements.

$ 37,237,365 68,329,421 4,181 ,951 2,666,010 112,414,747 55,563,221 17,180,500
$185,158,468
$ 9,701 ,582 4,508,134 15,625,836 551,907 6,737,285 37,124,744
17,738 27,508,197 27,525,935
99,280,052 18,795,188 118,075,240 2,432,549 120,507.789 $185,158,468

- 2-

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 110 of 211 Page ID #:129

CALIFORNIA TEACHERS ASSOCIATION
COMBINED STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS FOR THE YEAR ENDED AUGUST 31 I 2011
UNRESTRICTED NET ASSETS: Revenues: Membership dues and fees Investment gain (loss) Other
Total revenues
Expenses: Statewide programs Local service delivery Support services Other
Total expenses
Net assets released from restriction
Increase (decrease) in unrestricted net assets
TEMPORARlLY RESTRICTED NET ASSETS: Contributions Interest and investment income Net assets released from restriction
Increase (decrease) in temporarily restricted net assets
INCREASE (DECREASE) IN NET ASSETS
NET ASSETS- Beginning ofyear
NET ASSETS -End ofyear
See notes to combined financial statements.

$177,911,205 7,882,593 5,474,284
191.268,082
73,807,589 78,119,653 25,611,975 10,070,902
187,610,119
108,207
3,766,170
119,697 117,838 (108,207)
129,328
3,895,498 I 16,612,291
$120,507,789

-3 -

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 111 of 211 Page ID #:130

CALIFORNIA TEACHERS ASSOCIATION
COMBINED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED AUGUST 31,2011
CASH FLOWS FROM OPERATING ACTNITIES: Increase (decrease) in net assets Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation and amortization Net realized and unrealized (gain) loss on investments Loss on disposal ofproperty and equipment Changes in operating assets and liabilities: Membership dues and accounts receivable Supplies and prepaid expenses Accounts payable and accrued expenses Accrued payroJI and related liabilities Dues payable to affiliated organizations Deferred membership dues income Accrued vacation, sick leave, and other related costs
Net cash provided by operating activities
CASH FLOWS FROM INVESTING ACTNITIES: Purchases of investments Sales of investments Purchase and construction of property and equipment Proceeds from sale ofproperty and equipment
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTNlTJES -Payments on capital lease obligations
NET INCREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS- Beginning of year
CASH AND CASH EQUIVALENTS- End ofyear
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION - Cash paid for interest

$ 3,895,498
2,677,336 (5,587,121)
5,495 597,344 (630,130) ( 1,008,532) (2, 152,542) 3,755,307 (387, 106) 1,63 1,586
2,797, 135
(45,438,800) 43,066,935 (5,101,468)
(7,473,333)
(51,058)
{4,727,256) 41 ,964,621
$37,237,365
$ 2,099

- 4-

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 112 of 211 Page ID #:131
CALIFORNIA TEACHERS ASSOCIATION
NOTES TO COMBINED FINANCIAL STATEMENTS AS OF AND FOR THE YEAR ENDED AUGUST 31, 2011
1. ORGANIZATION
The California Teachers Association (the "Association" or CTA) is a California not-for-profit corporation organized to advance the interests of the teaching profession and to promote and improve public education in the state. The Association bas controlling interest ofthe California Teachers Association Institute for Teaching (the "Institute"), an affiliate that was created in 1968 and that provides educational programs. The Association also has controlling interest of the California Teachers Association Disaster Relief Fund (the ''Fund"), which was created to provide disaster reliefassistance for members impacted by natural and other disasters and California Teachers Association Foundation for Teaching and Learning (the "Foundation'~ which was created in 2008 to support high-quality teaching and high-quality public schools in the state of California, to make grants ofscholarships to qualified students, to provide disaster relief, and to perform all things incidental to or appropriate for the achievement ofsaid specific purposes.
The accompanying combined financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America C'generally accepted accounting principles"). Management has evaluated subsequent events during the period from August 31,201 I to December 22,2011, and has updated this assessment through October 5, 2012, the date the combined financial statements were available to be issued.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles of Combination -The accompanying combined financial statements include the accounts of the Association and its affiliates, the Institute, the Fund, and the Foundation. All significant intercompany balances and transactions have been eliminated.
Use of Estimates- The preparation of financial statements in conformity with generally accepted accounting principles in the United States ofAmerica (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date ofthe combined financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Revenues and Expenses - Membership dues are recognized as earned on the accrual basis of accounting. Dues received prior to being earned are reported as deferred income until such time as they are earned. Other income consists principally of interest and dividends and both realized and unrealized gains and losses on investments and payments from affiliates. Other ancillary revenues, such as rent, fees, advertising, and reimbursements are not considered to be central to the Association's operation and are offset against related expenses.
Expenses are recognized when incurred on the accrual basis of accounting.
Cash and Cash Equivalents - The Association considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Financial instruments that potentially subject the Association to concentrations ofcredit risk are primarily cash equivalents, short-term investments, membership dues, and accounts receivable.
-5-

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 113 of 211 Page ID #:132

Investments -Investments consist of marketable equity securities, certificates of deposit with original maturities greater than 90 days, treasury bills, corporate bonds, and liquid asset funds. Investments are stated at fair market value or at amounts approximating fair market value. Fair market value of marketable equity securities is based upon the last quoted market price on the last business day ofthe fiscal year. Realized gains and losses from investment transactions are calculated using the weightedaverage method.

Investments in fixed-income securities that mature over one year from the date ofthe combined statements of financial position are classified as long-term investments.

Membership Dues - Membership dues and accounts receivable expose the Association to certain credit risks. The Association manages its risk by regularly reviewing its accounts and contracts and by providing allowances for uncollectible accounts.

The Association collects membership dues and fees on behalf of the National Education Association and others and periodically remits these dues and fees to these organizations. Such dues and fees are not recognized as membership revenue but instead reported as dues payable to affiliated organizations.

Property and Equipment - Property and equipment are carried at cost. Provisions for depreciation and amortization ofproperty and equipment are computed using the straight-line method over estimated useful lives as follows:

Buildings Furniture and equipment Leasehold improvements

15-40 years 3-10 years Life of lease or estimated useful life, whichever is shorter

Accrued Vacation, Sick Leave, and Other Related Costs- Accrued vacation, sick leave, and other related costs are accrued as earned. Such costs are allocated between current and long-term liabilities based on estimates ofsettlement dates. Upon termination, employees are entitled to compensation for accrued vacation. All employees are allowed to carry over balances ofunused sick leave to the following years. Upon termination, unused sick leave is generally forfeited. Ifan employee retires, accrued sick leave is credited to years ofservice for purposes of determining retirement benefits. Eligible employees accrue postemployment benefits paid upon termination. Such accrual is estimated based on employment agreement terms, years ofservice, estimated forfeitures, and estimated salary increases. The Association participates in a rnultiemployer pension plan (the "Plan"). The Association is contractually obligated to make lump-sum payments to the Plan for additional service credit for employees who retire with unused earned sick days. The additional service credit is based on formulas in the respective employment contracts.

Income Taxes - The Association, the Institute, the Fund, and the Foundation are entities described in the Internal Revenue Code (IRC) Section 50I(c). Consequently, these entities are generally exempt from federal and state income taxes under IRC Section 501 (a) and the corresponding California statute whereby only unrelated business income, as defined by Section 512(a)(I) of the IR.C, is subject to federal income tax.

Net Assets -The Association classifies its net assets as unrestricted and temporarily restricted.

Temporarily Restricted- Net assets subject to externally imposed restrictions that can be fulfilled by the actions of the Association or by the passage of time.

-6-

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 114 of 211 Page ID #:133
Unrestricted- Net assets are not subject to externally imposed restrictions. Unrestricted net assets may be designated for use by the Board of Directors of the Association. Such designations limit the area of Association's operations for which expenditures ofdesignated net assets may be made. Recent Accounting Pronouncements -In January 2010, the FASB issued ASU 201 0-06, Improving Disclosures about Fair Value Measurements, which, among other things, amends ASC 820 to require entities to separately present purchases, sales, issuances and settlements in their reconciliation of Level 3 fair value measurements (i.e. to present such items on a gross basis rather than on a net basis), and which clarifies existing disclosure requirements provided by ASC 820 regarding the level of disaggregation and the inputs and valuation techniques used to measure fair value for measurements that fall within either Level2 or Level3 of the fair value hierarchy. ASU 2010-06 is effective for fiscal years beginning af:ter December 15, 2009, except for the disclosures about purchases, sales, issuances and settlements in the roll forward of activity in Level 3 fair value measurements (which are effective for fiscal years beginning after December 15, 20l 0). Effective September 1, 2010, the Association has adopted ASU 2010-06, which did not have a material impact on the combined financial statements. 3. INVESTMENTS Financial Accounting Standards Board (FASB) ASC 820, Fair Value Measurement and Disclosures, a framework for measuring fair value, establishes a fair value hierarchy based on the quality of inputs used to measure fair value, and enhances disclosure requirements for fair value measurements. The tbre~ level fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1), securities not traded on an active market but for which observable market inputs are readily available (Level 2), and the lowest priority to unobservable inputs (Level 3).
-7-

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 115 of 211 Page ID #:134

The following table summarizes the Association's investments as ofAugust 31, 2011 under the ASC 820 fair value hierarchy levels:

Fair Value Measurements at August 31, 2011

Level1

Level2

Level3

Total

Certificates of deposit

$

$ 413,004 $

Mutual funds Blend funds Equity funds Fixed income fu.nds Commodity funds Other
Common stocks Basic materials Capital goods Consumer goods Consumer services Energy Financial services Health care Industrial materials Technology Telecommunications Utilities Other
Preferred securities
U.S.govenunentbonds

2,853,797 22,410,339 10,763,971
2,073,229 319,449
2,760,705 297,316
3,682,273 310,219
3,148,391 2,5 8 9, 5 67 1,923,855 1,894,416 2,121,144 1,133,048
459,613 995,486
5,974,884
258,845

1,037,520 1,140

Corporate bonds Domestic corporate obligations International corporate obligations

15,991,466 544,488

Government securities

369,662

Municipal bonds

111821094

Tot.al

$ 66,340,209 $ 19,169,712 $

$ 41 3,004
2,853,797 22,410,339 10, 763.971
2,073,229 31 9,449
2,760,705 297,316
3,682,273 310,219
3 , 148, 391 2 ,589,567 ] ,923,855 1,894,416 2,121,144 1,133,048
4 59,613 995,486 7,012,404 259,985
15,991 ,466 544,488
369,662
111821094
$ 85,509,921

The investment gain (loss) in the accompanying combined statement ofactivities and changes in unrestricted net assets for the year ended August 31, 2011, is summarized as follows:

Interest and dividends Net unrealized gain Net realized gain (Joss)

$2,392,272 2,730,755 2,759,566

Investment income (Joss)

$7,8821593

-8-

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 116 of 211 Page ID #:135

4. MEMBERSHIP DUES AND ACCOUNTS RECEIVABLE

Membership dues and accounts receivable at August 31, 2011, consisted oftbe following:

Membership dues and fees Accounts receivable

$3,383,757 1,401,731

Less allowance for doubtful accounts Membership dues and accounts receivable- net

4,785,488 (603,537) $4,181,951

5. PROPERTY AND EQUIPMENT

Property and equipment at August 31, 2011 , consisted of the following:

Property and equipment:

Land

Buildings and leasehold improvements

Furniture and equipment

·

Work in progress

$ 9,598,386 58,973,329 12,595,605 1,517,247

Less accumulated depreciation and amortization Total

82,684,567 (27,121,346) $ 55,563,221

Net book value of assets under capital leases

$ 30,761

6. EMPLOYEE BENEFIT PLANS

The Association provides retirement benefits to substantially all employees through participation in a multiernployer defined benefit retirement plan. In addition, under a health and welfare plan, the Association provides health insurance benefits to substantially all employees on a defmed contribution
basis and to certain retired employees on a defined benefit basis. Each plan is administered by a Joint Board ofTrustees. Contributions to these plans are determined by provisions of negotiated labor contracts.

The Association maintains a 401(k) Retirement Plan (the "40l(k) Plan") covering substantially all fulltime employees. The Association contributes annually to the 401(k:) Plan based on the 401(k) Plan's provisions in accordance with employment agreements.

Contributions at August 31,2011, to the plans by the Association were as follows:

Defmed benefit retirement plan Health and welfare plan 401(k) plan

$18,265,045 15,934,246 2,314,883

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Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 117 of 211 Page ID #:136

7. RELATED-PARTY TRANSACTION

The Association is the Plan sponsor for the Economic Benefits Trust (EBT), which provides certain welfare benefits to members ofthe Association. The senior management ofthe Association serves as the trustees ofEBT. The Association and EBT have entered into an expense reimbursement agreement in which the Association provides certain administrative services and EBT reimburses the Association for its direct expenses, which amounted to $1,231,513 during 20 II.

8. DEBT FACIUTIES

The Association had two revolving loan agreements, one in the amount of$10,000,000 and the other for $20,000,000. Interest is payable monthly at the prime rate or the London InterBank Offered Rate (LIBOR), plus 1.15%, whichever is lower, and the agreements provide for a standby letter of credit in the amount of$750,000. At August 31, 2011, there were no balances outstanding on the revolving loans. The agreements expire on September 30,2012 and 2017, respectively.

The Association is in compliance with the financial covenants of its revolving loan agreements.

9. LEASES

Capital Leases - The Association leases certain equipment under capital lease arrangements. The capitalized lease obligations reflect the present value of the future minimum commitments, discounted at the interest rates implicit in the leases.

Future minimum payments under capital leases at August 31, 2011, consist ofthe following:

2012

$14,952

2013

12,462

2014

5,685

Total minimum lease payments Less amounts representing interest

33,099 (1,159)

Present value of minimum lease payments (including $14,202 classified as current)

$31,940

Rental Agreements -The Association occupies certain premises throughout California under rental agreements expiring at various dates through fiscal year 2017 . Substantially, all leases provide for minimum annual rentals with escalation clauses for specified cost increases.

- 10-

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 118 of 211 Page ID #:137

For the year ended August 31, 2011 , gross rent expense amounted to approximately $1,677,707, and rental income, principally from affiliated organizations, totaled approximately $231 ,057. The future minimum rental conunitments for all noncancelable operating leases having initial terms in excess of one year as of August 31, 20 II, are as follows:

Rental

Sublease Net Rental

Commitments Income Commitments

2012 2013 2014 2015 2016 2017

$1,570,787 1,235,723 1,187,143 707,490 218,354 8,795

$13,369

$1,557,418 1,235,723 1,187,143 707,490 218,354 8,795

Total

$4,928,292 $13,369 $4,914,923

10. DESIGNATED NET ASSETS

The following funds have been designated by the Association's Board of Directors for specific pwposes:

Debt Service Fund- This fund was established for the purpose of debt servicing and reduction.

Political Allocation Fund- This fund serves as a funding structure through which the Association's members may give support for certain state and local issues and candidates for office.

Public Information Program Fund ("Media Fund") - The purpose ofthis fund is to provide for advertisements to educate the public about the achievements, the problems, and the needs ofpublic education from preschool through graduate school.

Initiative Fund- This fund was established for the purpose ofparticipating in the support of or opposition to certain ballot measures.

Advocacy Fund - The purpose of the fund is to promote policies to improve and fight back attacks on public education.

Designated unrestricted net assets at August 31, 2011, are summarized below:

Balance at August31,
2010

Increase (Decrease) In Designated
Net Assets During the Year

Balance at August 31,
2011

Debt Service Fund Political Allocation Fund Media Fund Initiative Fund Advocacy Fund

$ 4,902,592 331,975
3,604,291 10,786,356 2,846,498

$ 137,815 (87,169)
(1 ,994,057) (2,425, I67)
692,054

$ 5,040,407 244,806
1,610,234 8,361,189 3,538,552

Total

$22,471,712

$ ~3,676,524) $18,795,188

- 11 -

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 119 of 211 Page ID #:138

11. TEMPORARILY RESTRICTED NET ASSETS

Temporarily Restricted Net Assets- Temporarily restricted net assets are restricted for the following pwposes:

Disaster ReliefFund- The Fund is endowed to provide financial assistance to the Association members who have experienced losses due to disasters in California.

Institute for Teaching - Includes an intensive, long-term process to strengthen school communities and improve student achievement.

Temporarily restricted net assets at August 31,2011, are summarized as follows:

Disaster ReliefFund Institute for Teaching

$2,381,593 50,956

Total

$2,432,549

12. COMMITMENTS AND CONTINGENCIES
In the ordinary course ofbusiness, the Association is a party to claims and legal actions by members,
vendors, and others. The Association's policy is to accrue for amounts related to these claims and legal actions if it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated. The combined financial statements reflect any liabilities that meet the policy described above. After consulting with legal counsel, the Association management is of the opinion that any liability that may ultimately result of claims or legal actions will not have a material effect on the combined financial position or results of operations of the Association.

13. CORRECTION OF INVESTMENT ACTIVITY PRESENTATION ON STATEMENT OF CASH FWWS

Subsequent to the issuance of the 2011 combined financial statements, management determined that, under generally accepted accounting principles, purchases and sales of investments should be presented on a gross, rather than net, basis in the combined statement of cash flows. Accordingly, the presentation of investing activity in the accompanying 2011 statement ofcash flows has been corrected from Net purchase and sales of investments of($2,371,865) to separate line items ofPurchases of investments ($45,438,800) and Sales of investments ($43,066,935). This correction had no effect on net cash used in investing activities.
• •••••

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Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 120 of 211 Page ID #:139
SUPPLEMENTAL SCHEDULES
- 13-

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 121 of 211 Page ID #:140

CALIFORNIA TEACHERS ASSOCIATION
SUMMARY OF NONCHARGEABLE AND CHARGEABLE EXPENDITURES OF AGENCY FEES FOR 2010·2011 (NOTE 1)

Budget Category (Note 2)
Governance Governmental Relations Association for Better Citizenship Legal Services Regional Services Negotiations and Organizational Development Training, lnfonnation & Development Communications Human RighWCommunity Outreach Instruction and Professional Development Accounting Business Ser\'ices Central Services Confeta~ce Coordination Center Governance Support Human Resources Management Integrated Systems and Strategies Management Occupancy/Properties Capital Expenditures/Depreciation Debt Reduction and Service Crisis Assistuncc Fund Advocacy/Foundation Media Advertising Fund Initiative Fund
Subtotal

Expenditures
$ 10,445,126 7,607,773 7,924,156 9,205,221 71,537,655 7,077,841 1,863,950 6,180,021 4,929,365 2,902,994 5,957,304 929,318 2,858,484 2,263,586 2,236,167 1,85 1,127 4,223,508 4,97 1,145 5,332,913 3,71 1,851 182,571 140,649 1,338,704 6,101,241 15,370,766

Nonehorgllllble (Note 3)
s 483.400
7,607,773 7,924,156 5,380,060 4,911,941
243,076 1,081,964 2,824,426 2,269,445
160,611
470,407 102,863
11,524 349,255 406,334 370,832
1,338,704 6,101,241 15,370,766

187,143,436 57,408,778

o/o

Chargeable

(Note 4)

4.6% s 8,483,343

100.0%

100.0%

58.4% 3,825,161

6.9% 66,625,714

3.4% 6,834,765

58.0%

781,986

45.7% 3,355,595

46.00/o 2,659,920

5.5% 2,742,383

5,957,304

929,318

2,858,484

20.8% 1,793,179

4.6% 1,815,767

1,85 1,127

0.3% 4.211,984

7.00/o 1,124,684

7.6% 4,926,579

10.00/o 3,341,019

182,571

140,649

100.0%

100.0%

100.0%

31.6% 124,441,532

Allocable Expenditures Total Nonchargeable and Chargeable Expenditures

s 187,143,436

1,672,628 $59.081,406

3,620,498
s 128,062,030

Final Nonchargeable and Chargeable Percentages

_ill%

See notes to the summary and supplemental detail schedule ofnonchargeable and chargeable expenditures ofagency fees.

%

Allocablo

81.2% s1,478,383

41.6%
93 . 1% 96.6% 42.0%
54.3% 54.0% 94.5% 100.0% 100.0% 100.0% 79.2% 81.2% 100.0% 99.7% 22.6% 92.4% 90.0% 100.0% 100.0%

317,537 3,497,206

68.4% 5,293,126 $5,293.126
~%

% 14.2%
14.2% 70.4%

- 14-

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 122 of 211 Page ID #:141

CALIFORNIA TEACHERS ASSOCIATION
SUPPLEMENTAL DETAIL OF NONCHARGEABLE AND CHARGEABLE EXPENDITURES OF AGENCY FEES FOR 2010-2011

Governance
Departmental Programs: I.0 State Council ofEducation 2.0 NEA Convention 3.0 Advisory Groups 4.0 Board of Directors 5.0 Executive Officers
Governance

Total Expenses

Nonchargeable

$ 2,944, 108 925,485 826,841
4,270,309 1,478,383
$ 10,445, 126

$ 147,205 336,195
$483,400

%

Chargeable

%

Allocable

S.O% $2,796,903 925,485
40.7% 490,646 4,270,309
$8,483,343

- 95.0% $
100.0% 59.3% 100.0%
1,478,383
$ 1,478,383

%
-%
100.0%

Departmental Nonchargeable, Chargeable and Allocable Percentages

-4.6%

See notes to the summary and supplemental detail schedule of nonchargeable and chargeable expenditures ofagency fees.

-81.2%

-14.2%
(Continued)

- 15-

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 123 of 211 Page ID #:142

CALIFORNIA TEACHERS ASSOCIATION
SUPPLEMENTAL DETAIL OF NONCHARGEABLE AND CHARGEABLE EXPENDITURES OF AGENCY FEES FOR 2010-2011

LegaiServfees
Payroll (Note 5) Staff Travel and Expenses (Note 6) Office Expenses (Note 6) Law Library
Departmental Programs: I.1 Legal Services Public Employment Relations Board Arbitration Other Legal Ser•ices 1.3 Group Legal Services Attorneys Meeting I.4 Commission on Professional Competency Panel 2.1 Kate Frank/DuShane Unified Legal Services Program (Note 8)
Legal Services
Departmental Nonchargeable and Chargeable Percentages

Total Expanses
$ 4,817,489 255,209 50,169 85,856

Nonchargeable
$ 645,544 34,198 6,723

% Chargeable
13.4% $4,17 1,945 13.4% 221,011 13.4% 43,446
85,856

%
86.6% 86.6% 86.6% 100.0%

10,973 77,026 7,627,8 10
28,572 18,540 (3 ,766,423)

3,285 5,928 7,627,810 28,572 18,540 (2,990,540)

29.9%
77.00~
100.0% 100.0% 100.0% 79.4%

7,688 71,098
(775,883)

$ 9,205,221 $ 5,380,060

$3,825,161

58.4%

=41=.-6%

70.1% 92.3%
20.6%

See notes to the summary and supplemental detail schedule ofnonchargeable and chargeable expenditures ofagency fees.

(Continued)

- 16-

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 124 of 211 Page ID #:143

CALIFORNIA TEACHERS ASSOCIATION
SUPPLEMENTAL DETAIL OF NONCHARGEABLE AND CHARGEABLE EXPENDITURES OF AGENCY FEES FOR 2010-2011

Regional Services
Payroll (Note 5) StaffTravel and Expenses (Note 6) Office Expenses (Note 6)
Departmental Programs: 1.1 Service Center Councils 2.1 UniServ (Note 9) 3.1 Chapter Liability Insurance 4.1 Regional Conferences 4.2 Regional Training 4.3 Regional Organizing/Community Outreach and Regional Political Academies 5.1 UTLA Consulting (Note 10) 5.2 CFA Consulting (Note 10) 6.1 Internal Organizing 6.2 Ethnic Minority Early Identification Development Program 7.1 Charter Schools, ESEA and Public School Choice Programs and Support
Regional Services
Departmental Nonchargeable and Chargeable Percentages

Total Expenses
$34,837,784 2,598,158 477,908

Nonchargeable
$1 ,707,051 127,310 23,417

%

Chargeable

4.9% $33,130,733

4.9% 2,470,848

4.9%

454,491

%
95.1% 95.1% 95.1%

1,357,809 18,735 ,411
163,869 143,327 121 ,632 84,351
12,241,911 365,000 282,635 27,860 100,000
$71,537,655

152,075 1,030,448
15,766 84,351 1,554,723 116,800
100,000
$4,911,941 6.9%

11.2% SS.O%
11 .0%
100.0%

1,205,734 17,704,963
163,869 127,561 121,632

12.7% 32.0%
100.0%

10,687,188 248,200 282,635 27,860

$66,625,714 93.1%

88.8% 94.5%
89.0% 100.00/o
87.3% 68.00/o 100.00/o I 00 .00/o

See notes to the summary and supplemental detail schedule of nonchargeable and chargeable expenditures ofagency fees.

(Continued)

- 17-

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 125 of 211 Page ID #:144

CALIFORNIA TEACHERS ASSOCIATION
SUPPLEMENTAL DETAIL OF NONCHARGEABLE AND CHARGEABLE EXPENDITURES OF AGENCY FEES FOR 2010-2011

NegotlaUons and OrganlzaUonal Development
Payroll (Note 5) StaffTravel and Expenses (Note 6) Office Expenses (Note 6)
Departmental Programs: 1.1 Subscriptions 1.2 Negotiations Database and Contract Reference Manual 1.3 Bargaining Strategy and Implementation 1.4 Publications 1.5 Salary and Benefits Data 2.1 StaffTraining 2.2 Multimedia Resou.rces and Materials
Negotiations and Organizational Development
Department Nonchargeable and Chargeable Percentage

Total Expenses
$6,233,530 524,989 69,837

Nonchargeable
$205,706 17,325 2,305

%

Chargeabl e

3.3% 3.3% 3.3%

$6,027,824 507,664 67,532

'Yo
96.7% 96.7% 96.7%

3,257 96,000 46,083 52,586 27,500 22,959
1,100
$7,077,841

12,000 5,740 $243,076
~%

26.00A. 25.0%

3,257 96,000 34,083 52,586 27,500 17,219
1,100

$6,834,765

~%

100.0% IOO.OOA. 74.0% 100.0% 100.0% 75.0%
100.0%

See notes to the summary and supplemental detail schedule ofnonchargeable and chargeable expenditures ofagency fees.

(Continued)

- 18 -

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 126 of 211 Page ID #:145

CALIFORNIA TEACHERS ASSOCIATION
SUPPLEMENTAL DETAIL OF NONCHARGEABLE AND CHARGEABLE EXPENDITURES OF AGENCY FEES FOR 2010·2011

Tralnlng, lnfonnaUon & Development
Payroll (Note 5) StafTTravel and Expenses (Note 6) Office Expenses (Note 6)
Departmental Progmns: 1.1 Multimedia Development 2.1 Organizing Projects Assistance 3.1 Polling
Training. lnfonnation & Development
Departmental Nonchargeable and Chargeable Percentages

Total Expenses
s 1,425,962
110,938 28,225

Nonchargeable
$ 770,019 59,907 15,242

% Chargeable
54.0% $655,943 54.0% 51,031 54.0% 12,983

%
46.0% 46.0% 46.0%

1,829 14,500 282,496
$1,863,950

14,500 222,296

1,829 100.0% 78.7% _§_0.200

$1,081,964

$781,986

58.0%

42.0%

100.0% 21.3%

See notes to the summary and supplemental detail schedule ofnonchargeable and chargeable expenditures ofagency fees.

(Continued)

- 19-

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 127 of 211 Page ID #:146

CALIFORNIA TEACHERS ASSOCIATION
SUPPLEMENTAL DETAIL OF NONCHARGEABLE AND CHARGEABLE EXPENDITURES OF AGENCY FEES FOR 2010-2011

Communications
Payroll (Note 5) Staff Travel and Expenses (Note 6) Office Expenses (Note 6)
Departmental Programs: J.l Jnfonnation Services/Media Contact 1.2 John Swett Awards 2.1 California Educator (Note 7) 2.2 California Community College Advocate (Note 7) 2.3 Pocket Calendar 2.4 Organizational Handbook 2.5 Internal Communications 2.6 Special Publications 2.7 Communications Awards 2.8 Video Services 2.9Web Page 2.10 Internet Site 3.1 Membership Promotion 3.2 lnfonnation Promotion
Communications
Departmental Nonchargeable and Chargeable Percentages

Total
Expenses
s 3,850,73 1
270,328 68,343

Nonchargeable
s 1,913,813
134,353 33,966

%

Chargeable

49.7% $ 1,936,918

49.7% 135,975

49.7%

34,377

%
50.3% 50.3% 50.3%

64,019 26,423 1, 191,816 53,368 89,927 32,973 75,328 18,079
1,850 2 17
183,800 107,810 93,313 51,696
$6,180,021

31 ,991 26,423 257,432 19,052 89,927
75,328
1,850 217
59,919 35,1 46 93,313 _l1,696
$2,824,426
45.7 %

50.0% 100.0% 21.6% 35.7% 100.0%
100.0%
100.0% 100.0% 32.6% 32.6% 100.0% 100.0%

32,028 934,384
34,3 16 32,973 18,079
123,88 1 72,664

$3,355,595

~%

50.0% 78.4% 64.3% 100.0% 100.00/o
67.4% 67.4%

See notes to the summary and supplemental detail schedule of nonchargeable and chargeable expenditures ofagency fees.

(Continued)

-20 -

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 128 of 211 Page ID #:147

CALIFORNIA TEACHERS ASSOCIATION
SUPPLEMENTAL DETAIL OF NONCHARGEABLE AND CHARGEABLE EXPENDITURES OF AGENCY FEES FOR 2010·2011

Human Rights/Community Outreach
Payroll (Note 5) StaffTravel & Expenses (Note 6) Office Expenses (Note 6)
Human Rights Programs: 1.1 Human Rights Awards 2.1 Leadership Development Program 2.2 Women's Leadership Training 2.3 Specialty Workshops 2.4 Gay/Lesbian Program 2.5 Running for Office 3.1 Teacher/Student High-Risk Program 4.2 Human Rights Contact Program/Women's Affairs Contact Program 4.3 Minority Teacher Recruitment Program 4.4 Unconscious Bias Training 4.5 Ethnic Minority Representation Program 5.1 Student CfA
Community Outreach Programs: 5.2 Meetings 6.1 Community Organizing and Events 6.2 Promotional Materials 6.3 Community Based Organizing Community Outreach- Summer Institute Income/Grants Teachers for Healthy Kids
HUMAN RIGHTS/COMMUNITY OUTREACH
Departmental Nonchargeable and Chargeable Percentages

Total Expenses
$3,842,3 10 462,107 57,166

Nonchargeable
$1,586,874 190,850 23,610

%

Chargeable

41.3% $2,255,436

4\.3% 271,257

41.3%

33,556

%
58.7% 58.7% 58.7%

9,466 2,260 7,612 3,772 5,125 1,254 32,311 20,318 26,020 22,192 6,081 198,362

9,466
1,254 26,020 198,362

100.0%
100.0% 100.0% 100.0%

2,260 7,612 3,772 5,125
32,311 20,318
22,192 6,081

100.0% 100.0% 100.0% \00.0%
100.0% 100.0%
100.00/o 100.00/o

8,367 113,669 26,144 53,018
2,246 7,042 22,523
$4,929,365

8,367 113,669 26,144 53,018
2,246 7,042 __lb.S23
$2,269,445
46.0%

100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
$2,659,920
~%

See notes to the summary and supplemental detail schedule ofnonchargeable and chargeable expenditures ofagency fees .

(Continued)

-21 -

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 129 of 211 Page ID #:148

CALIFORNIA TEACHERS ASSOCIATION
SUPPLEMENTAL DETAIL OF NONCHARGEABLE AND CHARGEABLE EXPENDITURES OF AGENCY FEES FOR 2010·2011

Instruction and Professional Devel opment
Payroll (Note 5) StaffTravel and Expenses (Note 6) Office Expenses (Note 6)
Departmental Programs: 1.1 Special Interest Projects 2.1 Intervention Support 2.3 English Language Learners 3.1 Accountability Support 3.2 QEIA Evaluation Contract
Instruction and Professional Development
Departmental Nonchargeable and Chargeable Percentages

Total Expenses
$2,182,799 243,878 36,858

Nonchargeable
$ 141,882 15,852 2,396

%

Chargeable

6.5% $2,040,917 6.5% 228,026 6.5% 34,462

%
93.5% 93.5% 93.5%

29,539 35,594
ISO 232,892 141 ,284
$2,902,994

481
$[60,61 1
~%

29,539 1.4% 35,11 3
150 232,892 141,284

100.0% 98.6% 100.0%
100.0% 100.0%

$2,742,383

2i1 %

See notes to the summary and supplemental detail schedule ofnonchargeable and chargeable expenditures ofagency fees.

(Continued)

-22-

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 130 of 211 Page ID #:149

CALIFORNIA TEACHERS ASSOCIATION
SUPPLEMENTAL DETAIL OF NONCHARGEABLE AND CHARGEABLE EXPENDITURES OF AGENCY FEES FOR 2010·2011

Conference Coordination Center
Payroll (Nolc 5) StaffTravel and Expenses (Note 6) Office Expenses (Note 6)
Departmental Programs: 1.3 Good Teaching Conference 1.4 Equity/Human Rights Conference 1.5 Presidents Conferenc.e 1.6 Summer Institute 1.8 GLBT Conference I .9 Rural Issues/Urban Jssues!ESP Conference 2. I Incentive Grants 3.1 Conferenc.e and Hotel Management System Caucus Conference
Conference Coordination Center
Departmental Nonchargeable and Chargeable Percentages

Total Expenses
$ 1,1 18,603 25,139 56,532

Nonchargeable
$232,669 5,229 11,759

%

Chargeable

20.8% s 885,934

20.8%

19,910

20.8%

44,773

%
79.2% 79.2% 79.2%

128,906 74,999 260,557 324,177 26,476 122,442 70,515 38,915 16,325
$2,263,586

1,805 9,900 60,006 54,138 7,599 8,693 70,5 15 8,094
$470,407
20.8%

1.4% 13.2% 23.0% 16.7% 28.7% 7.1% 100.0% 20.8% 20.8%

127,101 65,099 200,55 1 270,039 18,877 113,749
30,821 16,325

$ 1,793,179

79.2%

98.6% 86.8% 77.0% 83.3% 71.3% 92.9%
79.2% 79.2%

See notes to the summary and supplemental detail schedule ofnonchargeable and chargeable expenditures ofagency fees.

(Continued)

- 23-

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 131 of 211 Page ID #:150

CALIFORNIA TEACHERS ASSOCIATION
SUPPLEMENTAL DETAIL OF NONCHARGEABLE AND CHARGEABLE EXPENDITURES OF AGENCY FEES FOR 201 0·2011

Integrated Systems & Strategies
Payroll (Note 5) Staff Travel and Expenses (Note 6) Office Expenses (Note 6)
Departmental Programs: 1.1 Association Technical Support 1.3 Telecommunications 2.1 Document Management System Deployment 2.2 Software Application Training 2.3 IP Telephony · 3.2 Cyber Cafe

Total Expenses
$3,609,758 214,386 17.415

Nonchargeable
$10,829 643 52

%

Chargeable

0.3% $ 3,598,929

0.3% 213,743

0.3%

17,363

142,743 181,898
2,074 1,750 51,078 2,406

142 ,743
181,898 2,074 1,750 51,078 2,406

%
99.7% 99.7% 99.7%
100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Integrated Systems & Strategies

$4,223,508

$ 11,524

Department Nonchargeable and Chargeable Percentages

!!1%

See notes to the summary and supplemental detail schedule ofnonchargeable and chargeable expenditures ofagency fees.

$4,211,984
222, %
(Continued)

-24 -

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 132 of 211 Page ID #:151

CALIFORNIA TEACHERS ASSOCIATION
SUPPLEMENTAL DETAIL OF NONCHARGEABLE AND CHARGEABLE EXPENDITURES OF AGENCY FEES FOR 2010-2011

Management
Payroll (Note 5) StaffTravel and Expenses (Note 6) Office Expenses (Note 6)
Departmental Programs: 1.1 Corporate Counsel 1.2 Audit Fees and Expenses 1.3 Consultants 1.4 Association Membership Fees 1.5 Professional Liability Insurance
Management
Depanmental Nonchargeable, Chargeable and Allocable Percentages

Total Exp enses
$3,074,040 340,130 83,036

Nonchargeable $

668,565 196,831 445,587
10,239 152,717
$4,971,145

15,494 333,761
$349,255

-7.0%

%

Chargeable

% $

2.3% 74.9%

653,071 196,831 I l l ,826 10,239 152,717

$ 1,124,684

-2=2=.6- %

See notes to the summary and supplemental detail schedule ofnonchargeable and chargeable expenditures ofagency fees.

%

Allocable

% $ 3,074,040 340,130 83,036

97.7% 25. 1%

%
100.0% 100.00/o 100.0%

$3.497,206
-70.4%
(Continued)

-25-

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 133 of 211 Page ID #:152

CALIFORNIA TEACHERS ASSOCIATION
SUPPLEMENTAL DETAIL OF NONCHARGEABLE AND CHARGEABLE EXPENDITURES OF AGENCY FEES FOR 2010-2011

Departmental Programs:
Negotiations
Arbitration Fund Crisis Panel

Crisis Assistance Fund

Total Expenses

Nonchargeable

$ 103,546

$ -

29,989

7,114

Crisis Assistance Fund Departmental Nonchargeable and Chargeable Percentages

$140,649

L:..
-- %

See notes to the summary and supplemental detail schedule ofnonchargeable and chargeable expenditures ofagency fees.

%

Chargeable

%

% $ 103,546 29,989 7, 114
$ 140~9
l22:Q.%

100.0% 100.0% 100.0%

(Concluded)

- 26 -

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 134 of 211 Page ID #:153
CALIFORNIA TEACHERS ASSOCIATION
NOTES TO THE SUMMARY AND SUPPLEMENTAL DETAIL SCHEDULES OF NONCHARGEABLE AND CHARGEABLE EXPENDITURES OF AGENCY FEES FOR 2010 • 2011 BY MAJOR BUDGET CATEGORY
1. AGENCY FEE NONCHARGEABLE AND CHARGEABLE EXPENDITURES CALCULATION
The California Teachers Association ("Association" or "CTA") is required by law to have procedures in effect to detennine the amount ofits expenditures which can be charged to objecting agency fee payers for "representational" or "chargeable" purposes, i.e., generally those related to collective bargaining, consultation, contract administration, and employee representation related to terms and conditions of ·employment.
Based on relevant federal and state judicial and administrative decisions, the Association analyzed its expenditures and determined which of those expenditures were nonchargeable to objecting agency fee payers and which were chargeable to objecting agency fee payers.
The Association's annual expenses are divided into major departmental budget categories. For agency fee purposes, these budget categories are designated as either "non-allocable" or "allocable." The Association's non-allocable budget categories are: Governance (non-allocable portions only); Governmental Relations; Association for Better Citizenship; Legal Services; Regjonal Services; Negotiations and Organizational Development; Training, Information & Development; Communications; Human Rights/Community Outreach; Instruction and Professional Development; Accounting; Business Services; Central Services; Conference Coordination Center; Governance Support (non-allocable portions only); Human Resources Management; Integrated Systems and Strategies; Management (non-allocable portions only); Occupancy/Properties; Capital Expenditmes/Depreciation; Crisis Assistance Fund; Advocacy/Foundation; Media Advertising Fund; Initiative Fund. The Association's allocable budget categories are: Governance (allocable portions only); Governance Support (allocable portions only); Management (allocable portions only).
Expenditures in non-allocable budget categories are analyzed according to the type of activity involved
and are categorized as " nonchargeable" or "chargeable." See Notes 3 and 4, below, for defmitions of nonchargeable and chargeable activities. Once all non-allocable budget categories have been analyzed for nonchargeable and chargeable expenditures, such expenditures are totaled and the overall nonchargeable and chargeable percentages for all non-allocable budget categories are determined. Expenditures in budget categories designated allocable are allocated as nonchargeable or chargeable in proportion to these percentages.
All nonchargeable and chargeable expenditures are totaled. These totals provide the Final Nonchargeable and Chargeable Percentages.
The Summary ofNonchargeable and Chargeable Expenditures of Agency Fees for 2010-201 1 by Major Budget Category represents, to the best of the Association•s knowledge and belief, the Association's actual nonchargeable and chargeable expenditures for the 2010-201I year. The calculations have been prepared using historical costs incurred by the Association during the year ended August 31, 2011, which have been included in the Association's audited financial statements, and the application of various assumptions in the allocation of these costs as nonchargeable and chargeable as discussed in the accompanying notes.
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2. DESCRIPTION OF MAJOR BUDGET CATEGORIES OF EXPENDITURES
Governance - Provides for all of the direct membership involvement in the control, operation and direction of the Association. The Governance budget also provides for the direct cost ofmembership policymak.i.ng and guidance of the program activities ofthe Association. The Governance structure with its various internal processes serves membership needs as perceived and directed by the Association's elected leadership.
Governmental Relations - Represents the Association in all aspects of governmental and political relations. It designs, coordinates and implements advocacy programs to achieve the Association's political goals and objectives. It provides political information and assistance to members. It serves as liaison to government and private agencies.
Association for Better Citizenship -Provides bi-partisan funding to crA recommended candidates
for local and state offices. It coordinates and directs the Association's involvement in issues and initiatives. It provides membership political action training; membership database and maintenance; member and general public surveying and polling to support CTA's political agenda. It supports CTA's member oversight and involvement in funding decisions.
Legal Services - Provides three main services to CTA, its chapters and members - legal representation, legal guidance and legal training. The Legal Services represents, and oversees the representation ot: CTA, its chapters and members in both afflllll3tive and defensive court litigation as well as administrative proceedings. Most, but not all ofthis representation is provided through legal services programs that the Legal Department administers- the Group Legal Services Program (GLS), the NEA Kate Frank/DuShane Unified Legal Services Program, and the Educators Employment Liability Insurance Program. Legal Services also advises CTA, its officers and staffregarding labor, employment, and education laws and decisions as wen as other matters. Finally, the Legal Services provides training for chapters, staff and members and produces an array ofpublications for staff, chapters and members regarding various legal issues. The training the Legal Services provides includes
two separate legal tracks at the crA Summer Institute, periodic conferences on arbitration, labor and
education law issues for staff, an annual conference for the GLS attorneys who provide legal services to CTA chapters and members and an annual conference to train those teachers who serve as panel members on Commissions on Professional Competence.
Regional Services - Regions are responsible for the provision and/or coordination ofmost CTA programs and services to chapters and members through a system ofoffices and staff located throughout each region. The 2010-2011 program placed emphasis on: Organizing in support ofquality health care and health benefits; Expanding the field emphasis on building stronger local chapters; Expanding the
crA membership base with K-12 teachers, higher education faculty and education support
professionals; Support implementation ofthe Ethnic Minority Early Identification Development Program (EMEID); Organizing in support ofschool improvement and restructuring activities with attention to erA-based charter schools, Immediate Intervention!Underperforming Schools Program (11/USP) and Schools of Greatest Need, Elementary and Secondary Education Act (ESEA) requirements, standards and accountability, and peer assistance and review; Assistance with chapter organization, with development of leadership, liaison with chapters, development of communication systems among members, leaders and the community, and identification and development of local issues; Provide collective bargaining assistance to chapters with particular emphasis on negotiations, contract monitoring, grievance representation procedures, identification and processing of unfair practice charges, and chapter recognition status; Organizing and training for political action and community outreach; Support the implementation ofan all member survey; Providing support for the implementation of permissive bargaining issues within the framework of California collective bargaining laws, including professional development and program consultation; Assistance with servicing the Group Legal Services Program for chapters and members; Consultation to Service Center
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Councils; Staffing and funding of local service delivery program; Maintaining ofmandated peer review assistance and review including consulting teacher training.
Negotiations and Organizational Development - The Negotiations and Organizational Development Department (NODD) is a field based, client driven department in the Regional Services Division. The Department provides resources and expertise in the areas of bargaining, training, budget analysis, mediation, fact-fmding support, organizational development and health benefits strategies to assist Primary Contact Staff(PCS) and leaders to achieve the best possible contracts for our members. The department supports local bargaining teams when faced with mediation, fact-finding, and organizing around bargaining issues. In addition to School District Budget Analysis, Bargaining Advisories are sent to staff as necessary on topics that may arise during negotiations; A major department function is the coordination and implementation of training for the Presidents Conference, Sununer Institute, and Rural Issues/Urban Issues/ESP Conference; NODD developed, maintains, and provides training on two CTA software programs that are designed to assist the PCS and bargaining teams. Budget Essentials for Negotiations (BEN) analyzes school district budgets and Salary Schedule Analysis (SSA) allows staff and leadership to accurately cost out salary, benefits, step and column, and other aspects of the salary schedule; NODD works with several coalitions to address health care issues, serves as consultant to various CTA committees and provides training to members on health care related topics; NODD maintains CTA Search, an additional resource available to chapter presidents, bargaining chairs and CTA staff. The CTA website has been expanded to allow staff and leaders to download contract language from negotiated agreements and the CTA Contract Reference Manual. The site now includes Arbitrations Decisions, Bargaining Advisories, Legal Advisories, Fact Finding Reports, Chapter Presidents Handbooks, and other guides; The department analyzes the State Budget for staffand members and explains implications and uses for this infonnation for chapter activities; NODD develops, coordinates and delivers multi·day training sessions for staff to remain current on relevant issues; NODD provides assistance as consultants to a variety of CTA workgroups and State Council
committees. In addition, the department works with the Governmental Relations Department on issues
such as the State Budget, liaison activities, and negotiations/school finance related legislation; NODD responds to requests from leaders, members, staffand the general public for research about California public schools, public education and other topics of interest; NODD develops and coordinates the CTA StaffIntern Program.
Training, Information & Development - This division is responsible for the coordination of several CTA departments and programs: Conununications, Human Rights/Community Outreach, Instruction and Professional Development, multi·media, video and website projects and the CTA Media Fund. The Training, Information and Development Division provides services to elected leadership, members, staff, community organizations and other departments like Governmental Relations and Regional Services. The division is also in charge ofCTA's message, brand and overall image.
Communications - The Communications Department is responsible for interpreting and promoting the Association's total program including the specific programs of other departments both to educators and the public. The Department is specifically charged with representing the Association's goals, policies, programs, services and achievements in the best possible light and with working to raise the image of educators, ofpublic education and of the Association itself. Those responsibilities dovetail with the Department's further mission to produce materials for and to coordinate the Association's overall effort to recruit and retain members. In discharging its responsibilities, the Department issues news releases and otherwise maintains contact with people in the media; participates in the administration ofthe Association's advertising program; publishes two periodicals and many other publications and printed materials for educators. The Department operates and coordinates all content for the CTA websites and produces an electronic newsletter and other communications for members and other departments. In addition, the Department conducts training sessions in media relations, community action, internal communication, and membership promotion; and assists other Association units to prepare, produce and distribute materials.
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H.uman Rights/Community Outreach- The Human Rights/Community Outreach Department serves as a support base for local affiliates, Service Center Councils, member leaders, staff, community based organizations, advocacy groups, students and parents. Human Rights supports the goals and objectives of the California Teachers Association by advocating equity in all aspects ofCTA activities. The Department provides training programs, acts as a consultant to various Association committees, and administers several Association sponsored scholarships and award programs. The Club Ed and Student CTA programs work to recruit minorities into the teaching profession as well as prepare teacher candidates for active participation in CTA. The High Risk Training Program, Women's Leadership Program, Ethnic Minority Leadership Program, the Gay, Lesbian, Bisexual, Transgender Leadership Program, and the Unconscious Bias Training are highlighted trainings that assist our members with current social issues.
The focus of Community Outreach is to delve deeper into the relationship established with organizations outside of CTA over the previous years. The objective is to continue to strengthen the ties with organizations interested in meeting the diverse needs of members, students and neighborhood schools. Through a program of grants to local associations, community partnerships, trainings and statewide organizational efforts, Community Outreach now works more closely and directly with associations and
service center councils in all four crA regions. Grants have been utilized for a wide range of activities
including: community fairs, education forums, parental involvement workshops and school clean-ups. The department highlight is the Community Outreach Strand of the Summer Institute.
Instruction and Professional Development - The mission ofthe Instruction and Professional Development (IPD) Department is to advance the interest of teachers as organized professionals and to assist in the maintenance of the integrity ofpublic education. The issues related to standards-based education, assessment, accountability and school change guide the Department efforts to meet the needs ofeducators and students. The IPD Department:
Works to maintain an active Association influence with state agencies and other related organizations in the development of educational policy; Provides leadership and support for commitment to, maintenance of, and improvement of public education; Provides assistance in support of efforts to improve student learning, especially in Schools of Greatest Need; Reinforces CTA efforts to renew public confidence in California public schools by providing materials and assistance to local chapters for building their capacity to meet member needs, especially in areas ofimproving schools and student learning; Promotes standards for quality professional development to be used by local chapters in bargaining and consultation with districts; Assists local chapters to identify and select reso\.U'ces to support the profession; Works to assist educators to assert their professional rights and responsibilities; Provides support when professional and school improvement issues are bargajned and/or advocated; Proposes, promotes and implements practices, policies and legislation, which advance the professional interest of educators and education support professionals; Facilitates the development oftraining and other professional growth experiences for educators; Synthesizes and disseminates research and information on educational issues that promote student learning and the profession of teaching.
Accounting- Accounting provides for the recording, maintenance and analysis offinancial and membership data. Major functions provided are: Processing, verification, recording and monitoring of all receipts and disbursements in compliance with CTA policies and procedures and generally accepted accounting principles; Preparation offinancial statements and reports for Association members, staff, external auditors, and other entities as required; Coordination with other departments and affiliates in the collection of data and infonnation pertinent to the operation and program development ofthe Association; Reports and filings required by regulatory agencies; Budget monitoring in accordance with Association guidelines and procedures; Record keeping, reporting and coordinating in compliance with legal requirements for agency fee; Service and assistance to affiliates, members and staffon membership processing and dues accounting, and other fiscal matters; Training sessions for affiliate fmancial representatives and staff in the areas ofmembership processing, general accounting, and other financial
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areas; Development, maintenance and analysis of the CTA membership database and connected systems that support the programs and services of the Association; Identify opportunities and implement processes to provide member information via the web; Implement systems and processes that provide efficiencies and make better use ofthe Association's assets.
Business Services -The Business Services Department objectives are: (1) provide a centralized organizational pw-chasing function. The Department works closely with other departments to determine capital needs as well as working to secw-e favorable pricing and terms on a variety of goods and services acquired by the Association. (2) Provide direct support to business application and system initiatives. Business SeiVices works with other departments in the Business Division regarding application software selection, implementation as well as enhancements and upgrades to current business systems and processes. (3) Identify and develop key strategic vendor relationships. Business Services works with CTA's suppliers in an effort to deliver a high level ofvalue and seiVice for the Association at the right price. Additionally, Business SeiVices works closely with the Accounting Department and the Controller's Office to ensure proper controls and procedw-es are in place for certain business and financial transactions.
Central Services - Produces materials, maintains facilities and provides general office support for CTA departments:
In Office Services, graphics staff design, develop, and assist others in the creation of eye-catching document covers, posters, printed media ads, flyers, pamphlets and other items for use at CTA leadership meetings, conferences, training programs, in the print media, and elsewhere. Using state-ofthe-art digital presses to generate quality color work, high speed copiers to make millions ofblack and white impressions and off-set presses to produce letterhead stationary and envelopes, staff in the copy centers and print shop provide printed materials for CTA departments, Service Center Councils, UniServ Units and Chapters. Bindery staffuse equipment to finish, fold, sort, bind, staple and tum printed material into completed products which are then processed to be mailed, shipped or delivered wherever needed.
Record Center staffmaintain and catalogue the Association's historical records and manage the off-site storage facility.
The Property Management department, on a statewide basis, oversees the maintenance of CTA owned property and buildings, handles tenant relations, coordinates construction projects, searches for new properties, makes recommendations for the sales ofproperty when appropriate and manages the off-site storage facility.
Building Services handles maintenance and repair projects at the Headquarters and Santa Fe Springs facilities and the skilled stafffrom this department are deployed to other CTA offices as well. They also store CTA branded forms, envelopes, and stationary, and coordinate receipt ofoffice suppJies from the Association's primary vendor, and handle internal distribution of these items.
Conference Coordination Center- Working with other CTA departments, the Conference Coordination Center is responsible for coordination and delivery of CTA statewide conferences. The Department provides increased services and value to conference attendees with the support and coordinated efforts ofall respective participating departments and member conference planning committees. Conference and events under the purview ofthe Conference Coordination Center include the President's Conference, Summer Institute, Good Teaching Conference-North, Good Teaching Conference-South, Equity and Human Rights Conference, Rurallssues!Urban lssues/ESP Conference, Regional Leadership Conferences, GLBT Conference and the quarterly State Council ofEducation Meetings. The Conference Coordination Center also coordinates statewide meetings for CTA staff training. Conference Coordination Center administers and funds minority and new leader grants to CTA
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members so they can benefit from the many professional development opportunities at the CTA conferences. Grants are also available to members from small chapters. The Conference Coordination Center provides support to various other meetings of CTA affiliates and service centers, including site selection, hotel contract negotiations, on-line registration and other logistics planning.
Governance Support - Governance Support coordinates all governance functions for the State Council, the Executive Officers, and the Board ofDirectors including scheduling, logistics record keeping and secretarial services. Governance Support provides:
Preparation, development and support for State Council meetings, including preparation ofState Council minutes; Preparation and support for Board of Directors meetings including the preparation and distribution of minutes; Staff support for the Executive Officers and the Board of Directors; Coordination of California's participation in the NEA Representative Assembly; Development and maintenance ofState Council Representation records; Staff support to the Representation Committee; Staff support to the Elections and Credentials Committee; Staff support to the Local Governance Documents Review Committee; Preparation and maintenance of the Board Advisory Group listing; Facilitation of membership involvement on CTA task forces and attendance at non-CfA conferences; Reconciliation ofleader/member expenses; Development ofthe Orientation Handbook for State Council Members; Development of the Handbook for State Council Committee Chairpersons; Preparation ofthe State Council Representation Report; Preparation of election publications, including the CfA Elections Manual and Guidelines for Chapter Election Procedures; Preparation ofGuidelines for Development of Bylaws and Standing Rules for Charter Chapters of CTA.
Human Resources Management- Human Resources Management is responsible for the conduct of all phases of the employer-employee relationship between CTA as an employer and its staff. Specifically, the department performs the following functions:
Coordinates implementation ofstaff collective bargaining agreements; Coordinates implementation of policies governing non-bargaining unit staff; Coordinates implementation ofstaff grievance procedures; Conducts staff recruitment, screening and hiring; Conducts new employee orientations; Coordinates staff training programs and the CTA Diversity Program; Coordinates workshops for members who want to become UniServ staff; Coordinates implementation of the NEA UniServ Pre-Employment Development Program; Implements staff recognition program; Implements staffcompensation program; Implements CTA's Safety Programs which include: Injury and lllness Prevention Program, CTA Ergonomic Program, Workplace Violence Prevention Program, Hazard Communication Program and CTA's Emergency Action Plan; Liaison with the Health & Welfare Benefits Trust regarding administration ofstaffbenefits; Liaison to the CTA Employees' Retirement Benefits Trust; Provides Human Resources services to affiliates that employ staff; Provides communications and data collection and dissemination relative to personnel, labor relations and staffing matters; Represents CTA to governmental agencies concerned with Employer-Employee Relations; Responsible for Code of Ethics.
Integrated Systems & Strategies -Integrated Systems and Strategies Department provides for the development and coordination ofthe Association's electronic data collection, processing, retrieval and reporting system. The Integrated Systems and Strategies Department provides:
Statistical information of monitoring performance, measuring variances from CTA's goals, and projecting alternative methods of action or possible results based on trend analysis, economic conditions, demographics, and other information for all Association activities; Coordinates the operation and monitors the reliability ofNEA computer systems; Coordination of a variety of technology-related projects including, but not limited to, new computer applications; Evaluation, deployment. and coordination ofnew computer hardware and software as it relates to CTA organizational use; Coordination of the acquisition and implementation ofcomputer equipment for CTA offices and affiliates; Support ofstaffon the proper use of equipment and related software; On-going support and
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assistance to computer users in CTA offices statewide; Coordination of CTA staffaccess to the Internet and maintain CTA presence as a World Wide Web site; Deployment and support of the Association's Wide Area Network.
Management -Management is responsible for the overall supervision of operations and execution of programs. Management also provides: Assistance to CTA Executive Officers, Board of Directors, and other Governance groups in the formulation of goals and policies in accordance with the needs and desires of the membership; Planning and execution of Governance directed programs designed to fulfill the goals and objectives ofthe Association; Coordination and direction of all staffactivities to ensure efficient use ofstafftime; Legal assistance to the Association; Coordination of independent financial reporting for the Association; Maintenance and preservation of the Association's properties and other assets; Establishment and maintenance of contacts with other education associations including state agencies and related organizations; Administration ofthe Association's corporate insurances; Budget preparation in accordance with Association's guidelines and procedures.
Occupancy/Properties- Provides for: Payments ofrents, taxes, utilities, insurance and other miscellaneous expenses ofCTA properties and offices.
Capital Expenditures/Depreciation -Provides for: Purchase of equipment, furniture and fixtures deemed necessary to improve, expand or create services essential to members and employee performance; replacement ofequipment; conversion of obsolete equipment; capitalized improvements to buildings and properties for maintenance of property value, safety standards or improvements ofspace utilization.
Crisis Assistance Fund - Provides for: Financial support to chapters undergoing elections, negotiations, crisis, and arbitration as administered by the Crisis Assistance Panel.
Advocacy/Foundation -The contribution is in the form of a voluntary $20.00 reverse dues check-off
to support crA advocacy efforts for public education and a CTA foundation to support member
scholarship and grant programs, and teacher driven solutions for public schools. The default allocation option for fiscal year 2010-2011 is $15.00 Advocacy $5.00 CTA Foundation.
Media Advertising Fund - The Media Advertising Fund consists ofrevenues designated for paid advertisement to educate the public about the achievements, the problems, and the needs ofpublic education from preschool through graduate school.
Initiative Fund- The Initiative Fund supports initiatives that advance the cause of free, universal, and
quality public education, or to combat initiatives that are hostile to the crA mission to advance the
cause of free, universal and quality education. The annual amount is $36.00 per applicable FDE and is to be kept in reserve for the aforementioned purposes.
3. DEFINITION OF NONCHARGEABLE EXPENSES
Nonchargeable expenses are those which do not relate to performing the duties of the exclusive representative in dealing with the employer on labor-management issues. Nonchargeable expenses generally include those related to:
• Political candidate donations or support, including endorsement process and donations to political parties;
• Campaign donations or support on behalfofstate or local ballot initiatives;
• Support for political action committees;
• Voter registration, get-out-the-vote, and political action training;
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• Lobbying and political efforts before state legislatures and state administrative agencies;
• Public relations designed to enhance the image of the teaching profession generally and/or the image ofthe association;
• Litigation unless specifically related to the collective bargaining law, contract administration or organizational maintenance;
• Charitable contributions;
• Membership recruitment;
• Establishing new or expanded bargaining units, or defending against challenges to exclusive bargaining representative status or severance petitions;
• Members-only benefits (e.g. educators employment liability insurance, and advisory groups on members-only benefits); and
• CTA retired and CTA student program activities.
4. DEFINITION OF CHARGEABLE EXPENSES
Chargeable expenses are expenses incurred by the Association in "perfonning the duties ofan exclusive representative ofthe employees in dealing with the employer on labor-management issues." These expenses include ''not only the direct costs of negotiating and administering a collective--bargaining contract and ofsettling grievances and disputes, but also the expenses ofactivities or undertakings normally or reasonably employed to implement or effectuate the duties of the union as exclusive representative of the employees in the bargaining unit." Cumero v. Public Employment Relations Board ( 1989) 49 Cal. 3d 575, 588. Chargeable expenses generally include those related to:
• Negotiating collective bargaining agreements, including preparation for negotiations;
• Organizing activities undertaken to support the union's efforts in bargaining, including lawful strikes;
• Consultation with the employer pursuant to the EERA on educational objectives, curriculum and textbooks (Gov. Code section 3543.2 (a));
• Contract administration, including investigating and processing grievances;
• Arbitrations; • Advising bargaining unit members on workplace problems; • Professional development, curriculum development and implementation, teaching methods, and
other instructional skills; • Site-based decision-making that impacts on other chargeable subject areas; • Strategic planning and polling on priorities for association activities;
• CTA State Council and Board of Directors; and
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• Litigation related to the collective bargaining law, contract administration and organizational maintenance.
5. PAYROLL
Staff payroll includes salaries and fringe benefits ofprofessional & associate staff and is allocated according to time sheets which indicate the percentage of time spent by professional staff on chargeable and nonchargeable activities.
6. STAFF TRAVEL AND EXPENSES, AND OFFICE EXPENSES
Staff travel and expenses, and office expenses, are allocated according to the percentages reflected in staff payrolL
7. CALIFORNIA EDUCATOR AND CALIFORNIA COMMUNITY COLLEGE ADVOCATE
California Educator and California Community College Advocate are allocated according to a colunminch measurement of the chargeable and nonchargeable content of those publications. Advertising income has been subtracted from the publication cost to yield a net cost.
8. KATE FRANK/DUSHANE UNIFIED LEGAL SERVICES PROGRAM
The Kate Frank/DuShane Unified Legal Services Program includes money received from National Education Association ("NEA") to offset the costs of legal services provided by the Association and is allocated according to the percentage of chargeable and nonchargeable expenditures for which reimbursement is received.
9. UNISERV
UniServ expenditures are for salaries and fringe benefits of field staff assigned to UniServ Units. Like staff payroll, the expenditures are allocated according to time sheets which indicate the percentage of time spent by these field staff on chargeable and nonchargeable activities. Salaries and fringe benefits of field staff assigned to Regional Resource Centers ("RRCs") are found under staff payroll. All field staff are assigned to either an RRC or a UniServ unit.
10. UNITED TEACHERS LOS ANGELES ("UTLA") AND CALIFORNIA FACULTY ASSOCIATION ("CFA")
These block grants support the programs of UTLA and CFA The costs are allocated between chargeable and nonchargeable categories based on percentages provided by UTLA and CFA from their own agency fee calculations.
******

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Exhibit D

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National Education Association Of the United States and Subsidiaries
Consolidated Financial Statements and Supplemental Schedules For the years ended August 31, 2011 and 2010 And Report of Independent Auditors Thereon

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NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES AND SUBSIDIARIES
TABLE OF CONTENTS

INDEPENDENT AUDITORS' REPORT CONSOLIDATED FINANCIAL STATEMENTS FOR THE
YEARS ENDED AUGUST 31,2011 AND 2010: Statements ofFinancial Position Statements of Activities and Changes in Net Assets Statements ofCash Flows Notes to Financial Statements

Page 1
2 3 4
5-27

SUPPLEMENTAL SCHEDULES:
Supplemental Summary Schedules ofAgency Fee Chargeable and
Nonchargeable Expenditures for the Year Ended August 31, 201 J
Notes to Supplemental Summary Schedule ofAgency Fee Chargeable and Nonchargeable Expenditures for the Year Ended August 31, 2011

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pwc
REPORT OF INDEPENDENT AUDITORS
To the Executive Committee and Members of National Education Association ofthe United States Washington, D.C.
In our opinion, the accompanying consolidated statements offinancial position and the related statements ofactivities, and cash flows present fairly, in all material respects, the financial position of the National Education Association ofthe United States (a nonprofit corporation incorporated by an Act ofthe United States Congress) and its subsidiaries ("NEA11) at August 31, 2011, and August 31, 2010, and the changes in their net assets and their cash flows for the year then ended in conformity with accounting principles generally accepted in the United States ofAmerica. These consolidated financial statements are the responsibility of NEA's management Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits of these statements in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the fmancial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
Our audits were conducted for the purpose of forming an opinion on the basic consolidated financial statements taken as a whole. The supplemental schedules listed in the Table of Contents are presented for the purpose of additional analysis and are not a required part of the basic consolidated fmancial statements. This additional information is the responsibility ofNEA's management. Such information has been subjected to the auditing procedures applied in our audits ofthe basic consolidated financial statements and, in our opinion, is fairly stated in all material respects when considered in relation to the basic consolidated financial statements taken as a whole.
November 28, 2011
r·····················--·································································-···········--··········..·····..········"''" ' uoooooo...... ............................... ................. ........................................... PricewaterhouseCoopers LLP, 1800 1),tsons Boulevard,McLean, VA 22102-4261 T: (703) 918-3000, F: (703) 918 3100, www.pwc.comjus

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 147 of 211 Page ID #:166 NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AUGUST 31,2011 AND 2010

ASSETS
CURRENT ASSETS: Cash and cash equivalents Investments Membership dues and notes receivable - net Amotmt due from affiliates and other organizations Accounts receivable Prepaid expenses Deferred income taxes Other current assets
Total current assets
LONG-TERM ASSETS: Notes receivable - net Investments Pension asset Property and equipment - net
Total long-term assets TOTAL ASSETS
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES: Accounts payable Accrued liabilities Accrued annual leave and fringe benefits Amotmt held for affiliates and other organizations
Total current liabilities
LONG-TERM LIABILITIES: Accrued severance payable Deferred retirement benefit Deferred income Deferred income taxes
Total long-term liabilities
Total liabilities
UNRESTRICTED NET ASSETS: Undesignated net assets Net assets designated for Education Assistance Ftmd Net assets designated for postretirement benefits
Total unrestricted net assets TOTAL LIABJLITJES AND NET ASSETS

2011

2010

$ 71,145,580 11,771,200 32,705,662 676,191 7,609,468 1,811,3)1 281,117 1,173,037
127,173,566
7,335,213 17,947,944 8,306,922 67,427,904
101,017,983
$ 228,191,549

$ 72,716,616 9,669,193 46,351,266 469,002 5,663,502 2,245,879 271,028 1,096,694
138,483,180
3,692,769 10,338,548 4,322,487 66,357,574
84,711,378
$ 223,194,558

$ 12,299,231 18,171,403 10,742,017 724,982
41,937,633

$ 18,079,241 14,161,999 8,129,083 789,571
41,159,894

6,888,669
14,566,811 2,329,732 23,785,212
65,722,845

6,836,866 92,023
14,631,789 802,234
22,362,912
63,522,806

143,457,925 3,475,869 15,534,910
162,468,704 $ 228,191,549

129,660,296 3,717,713 26,293,743
159,671,752 $ 223,194,558

The accompanying notes are an integral part ofthese consolidated financial statements. -2-

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 148 of 211 Page ID #:167 NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS YEARS ENDED AUGUST 31, 2011 AND 2010

OPERATING ACTIVITIES UNRES1RlCTED REVENUES:
NEA Programs: Dues Other
Total NEA Programs Member Benefits Programs:
Program Revenues - Suppliers Other
Total Member Benefits Programs
NEA Properties: Rental Income Total NEA Properties
TOTAL UNRES1RICTED REVENUES
EXPENSES: Program Services:
NEA Programs Member Benefits Programs NEA Properties
Total Program Services
Support Services: NEA Programs Member Benefits Programs NEA Properties Total Support Services
TOTAL EXPENSES
CHANGE IN NET ASSETS FROM OPERATIONS NON-oPERATING ACTMTIES
Change in Actuarial Gain(Loss) from Defined Beneftt Plan and Other Charge
CHANGES IN NET ASSETS
NET ASSETS, BEGINNING OF YEAR
NET ASSETS, END OF YEAR

2011

2010

$ 352,667,265 2,288,454
354,955,719
56,699,186 162,897
56,862,083
1,663,502 1,663,502 413,481,304

$ 354,357,992 1,986,346
356,344,338
56,562,040 7,276
56,569,316
1,759,528 1,759,528 414,673,182

288,866,198 45,335,346
939,572 335,141,116
67,908,526 8,243,532
572,934 76,724,992
411,866,108
1,615,196

275,394,837 47,707,404
906,843 324,009,084
67,059,034 6,894,914
428,710 74,382,658
398,391,742
16,281,440

1,181,756 2,796,952 159,671,752 $ 162,468,704

(173,037) 16,108,403 143,563,349 $ 159,671,752

The accompanying notes are an integral part ofthese consolidated fmancial statements. -3-

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 149 of 211 Page ID #:168
NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED AUGUST 31,2011 AND 2010

CASH FLOWS FROM OPERATING .ACTMTIES: Changes in net assets Adjustments to reconcile changes in net assets to net cash provided by (used in) operating activities: Depreciation Bad debt expense Net realized gain on investments Net unn:alized loss on investments Loss on sale of fW"'liture and equipment Deferred income taxes Deferred income Change in acwarial (gain)loss from Defmed Benefrt Pension Plan Changes in assets and liabilities: Decrease in membership dues and notes receivable (lncrease)decrease in amount due from affiliates and other organizations (IDcrease}decrease in accounts receivable Decrease(increase) in prepaid expenses (lncrease)decrease in other current assets Increase in n01es receivable (Increase)decrease in prepaid pension costs (Decrease)increase in accounts payable Increase(decrease) in accrued liabilities Increase in accrued annuallcave!fringe benefltS Decrease in amount held for affiliates and other organization.~ Increase in accrued severance payable Increase in deferred income Decrease in deferred retirement benefrt
Net cash provided by operating activities
CASH FLOWS FROM INVESTING .ACTMTIES: Issuances ofnotes receivable Repayments ofn01es receivable PW'Chases of investments Proceeds on sales of investments Proceeds from sale of fixed assets PW'Chases of furniture and equipment Purchases ofcommercial real propeny
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on mortgage loan payable
Net cash used in flllllncing activities
NET CHANGES IN CASH AND CASH EQUJVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS, END OF YEAR
SUPPLEMENTAL DrSCLOSURES OF CASH FLOW JNFORMATJON-Cash paid during the year for:
Interest
Income taxes (Member Benefns Corporation)

2011 $ 2,796,952

2010 $ 16,108,403

7,444,285 4,589,626 (J ,558,1 85)
505,156 39,102 1,517,409 (618,050) (1,196,801)
13,301,428 (207,189)
( 1,973,308) 434,568 (76,343) (139,043)
(2,787,634) (5,780,010) 4,009,404 2,612,934
(64,589) 51,803 553,072 {92,023)
23,362,564
(7,768,653) 47,144
(34,718,653) 26,060).79
56,671 (8,610,388)
(24,933,600)

8.251,813 1,034,834 (841,311)
25,517 1,017 (171,760) (413,558) 173,037
10,416,960 227,820 984,282
(1,313,71 I) 47,732
(5,861,676) 314,430
11,340,622 (3,159,442)
32{),257 (42,202) 472,835 98,564
~53,277~
37,967,186
(5,786,031) 6,634,159 {36,719,818) 34,572,119
275 (5,676,751) { 14,000,0002
(20,976,047)

(1,571,036)
72,716,616
s 71,145,580

(5,077.2722
~5,077,272}
JJ,913,867 60,802,749
s 72,716,616

$

8,842

$ 1,463.250

$

7.993

$ 1,175,000

The accompanying notes are an integral part ofthese consolidated financial statements.
-4-

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 150 of 211 Page ID #:169
NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED AUGUST 31, 2011 AND 2010
l. ORGANIZATION
The National Education Association of the United States ("NEA") is a not-for-profit organization incorporated under an Act ofthe United States Congress. Its mission statement read.s: ••to advocate for education professionals and to unite our members and the nation to fulfill the promise ofpublic education to prepare every student to succeed in a diverse and interdependent world."
To help realize this mission, the NEA adopted a vision of"a great public school for every student." This vision guided NEA's strategic plan and budget, which is organized around three Strategic Goals and five Core Services Areas.
The Strategic Goals address three key challenges:
• School Funding-In partnership with state affiliates, establish public policy in at least six states by mobilizing members and the public to build tax and economic infrastructures for achieving adequate and equitable funding for public education.
• Salary- Improve starting salaries for teachers, achieve at least a living wage for education support professionals and assist higher education locals to engage in effective salary campaigns.
• Priority Schools-In partnership with state affiliates and targeted local affiliates, provide support and advocacy to struggling schools, as identified by states, to become a great public school as measured by NEA's criteria and indicators.
The Core Service areas ofthe General Operating Fund address regular, ongoing programs and services:
• Student Learning & Workforce Quality-Promote policies and programs that create teaching and learning conditions that close the achievement gaps and recruit and retain a quality workforce by improving compensation, retirement benefits, and other working conditions of education employees.
• Membership-Partner with state affiliates to provide programs and services that focus on membership growth, retention and engagement.
• Advocacy-Support pro-public education candidates, influence elected policy makers, advocate public policy and social justice through collective action, and utilize the best communication strategies to engage members and the public.
• Partnership-Develop partnerships that engage the ethnic minority, labor, faith-based, environmental, philanthropic, educational, civil and human rights, and business communities to enhance our ability to achieve great public schools for every student.
• Business Operations-Administer the business operations in a manner that supports the changing needs and priorities of the organization and ensures efficient and effective governance and shared services.
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Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 151 of 211 Page ID #:170
NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED AUGUST 31, 2011 AND 2010
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles ofConsolidation-The consolidated financial statements include the accounts of NEA and its wholly owned subsidiaries: NEA Properties, Inc. ("NEAPI"), NEA's Member Benefits Corporation ("MBC"), and MBC's wholly-owned subsidiary, the NEA Professional Services Corporation, and an affiliated entity, National Education Employees Assistance Fund, Inc., ("NEEAF'). MBC serves as a contractor for NEA's member benefits functions. NEEAF is combined with the accounts of NEA due to common control and an economic interest (Note J0). All intercompany accounts and transactions have been eliminated in consolidation.
Measure ofOperations-NEA includes in its measure of operations all revenue and expenses that are
integral to its continuing core program services with the key objective being predictability of indicated results. Non-operating income and expenses include unrealized appreciation (depreciation) and defmed benefit pension charges included in Other Comprehensive Income ofMBC.
Basis ofAccounting-The accompanying statements are prepared on the accrual basis ofaccounting. To ensure observance ofits bylaws, the resources ofNEA are classified internally for accounting and reporting purposes into funds established according to their nature and purpose. The assets, liabilities, net assets, and changes in net assets are reported in the following two fund groups:
General Fund
• General Operating Fund-The bylaws ofNEA provide that the General Operating Fund shall comprise all income received in the form of dues, interest, dividends, fees, earnings from advertising, sales ofNEA publications, payments for services, and funds received by gift, bequest, devise, or transfer to NEA, which are not specifically designated for deposit in the Capital Improvement Fund.
• Special Purpose Funds-NEA has various Special Purpose Funds that consist of funds designated for specific projects and purposes. Special Purpose Funds include activities such as the UniServ Fund, National Education Employees Assistance Fund (Note 10), Special Dues Ballot Fund, Special Dues Media Fund, Advocacy Fund, Cash Stabilization Fund, and NEA-Retired Program Fund. These Special Purpose Funds also include the activities ofMBC, which provides support to the Member Benefits Programs, primarily in the areas ofadministrative, membership services, affiliate support, research and development, and marketing. Additionally, on July 22,2009, NEA established a wholly owned subsidiary, NEA Properties, Inc. NEAPI is a real estate holding company exempt under section 50l(c)(2) ofthe Internal Revenue Code. Currently, NEAPI's primary purpose is to hold title to and manage certain commercial real property in Indiana, collect income from that property and periodically surrender the net proceeds derived to NEA.
Capital Improvement Fund
• The bylaws ofNEA provide that the Capital Improvement Fund shall comprise the properties and permanent investments ofNEA and other funds or properties received by gift, devise, bequest, or transfer for deposit in the Fund. Disbursements from the Capital Improvement Fund to acquire new properties or to provide for major long-term improvements in existing properties shall be authorized
-6-

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 152 of 211 Page ID #:171
NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED AUGUST 31,2011 AND 2010
by a two-thirds vote of the Board of Directors. Expenditures from this Fund for any other purpose shall be authorized by a two-thirds vote of the Representative Assembly.
Use ofEstimates-The preparation of fmancial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts ofassets and liabilities and disclosure ofcontingent assets and liabilities at the date of the financial statements and the reported amounts ofrevenues and expenses during the reporting period. Significant items subject to such estimates and assumptions include the deferred revenue, useful life offlxed assets, pension liability, reserve for uncollectible, reserve for contingent liabilities, and deferred tax. Actual results could differ materially, in the near term, from the amounts reported.
Concentration ofRisks-Financial instruments that potentially subject NEA to significant concentrations ofcredit risk principally consist of cash, accounts receivable, and investments. NEA places its cash in a financial institution that is federally insured under the Federal Depository Insurance Corporation Act (..FDICA"). At August 31,2011 and 2010, the cash aggregate balances were in excess of the FDIC insurance limits by $5,559,795 and $57,037,173, respectively, and therefore, bear some risk, since they were not collateralized. NEA has not experienced any losses on its cash to date related to FDICA insurance limits.
MBC had material revenues from two suppliers representing approximately 42 percent and 42 percent of revenues, respectively, for the year ended August 3J, 2011, and approximately 44 percent and 43 percent ofrevenues, respectively, for the year ended August 31,2010. As ofAugust 31,2011, two suppliers accounted for approximately 34 percent and 44 percent ofMBC's accounts receivable. As of August 31, 2010, two suppliers accounted for approximately 50 percent and 32 percent ofMBC's total accounts receivable.
Cash and Cash Equivalents-Cash equivalents consist of interest-bearing deposits and securities with original maturity ofless than three months when purchased and are recorded at cost, which approximates fair value.
Investments-Investments consist of mutual funds, exchange traded funds, and common stocks and are recorded at fair value, with any gains or losses reflected in the consolidated statements ofactivities and changes in net assets. Net realized gains from operating activities were $1,558,185 and $841,311 for the years ended August 31,2011 and August 31,2010, respectively. The net unrealized loss included in operating activities was $490,111 and the unrealized loss included in non-operating activities was $15,045, for a total net unrealized loss of$505,156 for the year ended August 31,2011. The net unrealized loss included in operating activities were $25,517 for the year ended August 31, 2010.
Property and Equipment-Property and equipment are recorded at cost. Depreciation is provided using the straight-line method over the estimated useful lives of the respective assets. The estimated useful lives range from 2 to 15 years for furniture, fixtures, and equipment and 25 to 40 years for buildings and leasehold improvements.
NEA capitalizes direct costs incurred during the application development and implementation stages for developing software for internal use. These software costs are depreciated using the straight-line
-7-

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 153 of 211 Page ID #:172
NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED AUGUST 31,2011 AND 2010
method over the estimated useful life ofthe software, generally three to five years. AU costs incurred during the preliminary project stage are expensed as incurred.
Depreciation expense were $7,444,285 and $8,251,813 for the years ended August 31,2011 and 2010, respectively and is reflected in NEA's support services expenses in the consolidated statements of activities and changes in net assets.
AccruedSeverance Payahle-NEA has a policy entitling employees with over 10 years ofservice to severance pay equal to 10 weeks of salary. NEA's accrued severance pay has been calculated to approximate in accordance with Accounting Standards for Compensation-Nonretirement Postemployment Benefits.
NEA-Retired Program (11NEA-Retired")-NEA offers life membership through a Special Purpose Fund known as the NEA-Retired Program. NEA-Retired dues qualify retired members for certain services provided to active members, as well as services designed specifically for retired persons. NEARetired dues income is recorded as deferred income when received and amortized using the straight-line method over the estimated life expectancy of its members.
Membership Dues- Membership dues are recognized as income over the membership year, which is September 1 through August 31 . Dues are assessed to members as provided in the bylaws. An estimated provision for uncollectibles, write-offs, and cancellations is charged against membership dues revenues.
ln accordance with the bylaws, a percentage of the membership dues is a1Jocated to UniServ grants, which are included in NEA's program services expenses, whereby NEA provides grants to state affiliates to assist in funding their staffrepresentatives, whose responsibilities are to implement, improve, and coordinate programs ofNEA and the state affiliates.
Program Revenue-MBC's program revenues from suppliers represent fees from contracts with various program suppliers. Fees are recognized as revenue in tbe period in which they are earned.
Rental Revenue--NEAPI rents office space to various tenants. Rental revenue from operating leases is recognized on a straight-line basis over the term of the lease.
Income Taxes- In June 2009, the FASB issued interpretation Accounting for Uncertainty in Income Tax. This interpretation prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The interpretation also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure) and transition. MBC has adopted the interpretation Accounting for Uncertainty in Income Tax effective September 1, 2009. MBC has no uncertain tax positions at August 31, 2011.
Reclassifications-Certain amounts from the prior year have been reclassified to conform with the current year presentation.
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Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 154 of 211 Page ID #:173
NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED AUGUST 31,2011 AND 2010

3. INVESTMENTS

Investments, at fair value, consist of the following at August 31 :

20ll

Equity securities Common stocks
Mutual funds - common stocks Total equity securities

$ 11,771,200 11,771,200

Debt securities Mutual funds - fixed income Exchange traded funds
Total debt securities
Total investments

17,947,944 17,947,944 $ 29,719,144

2010
$ 5,487,045 4,182,148 9, 669, 193
8,829,362 1,509,186 10,338,548 $ 20,007,741

Equity securities are purchased and held for sale in the near future.
4. NOTES RECEIVABLE
MBC has a notes receivable from the National Education Technology Funding Corporation, a not-forprofit corporation chartered to assist schools in financing technology, infrastructure, and other purposes to improve the quality ofpublic education. In lieu of interest, borrower will pay risk premium of .0004 percent of certain certificates issued during the term ofthe loan. The note wiJl mature on December 31, 2011 . As of August 31, 2011 MBC has recognized an allowance for doubtful debt against this note in its entire amount.
On March 31,2010, NEA loaned the Indiana State Teachers Association ("ISTA") $3,060,745. ln August 2010, NEA increased the aforementioned note balance to $5,386,031 . The note is unsecured and bears interest at a rate of .5% above the LIBOR rate.
During the fiscal year 2011, NEA provided $7,768,653 in additional support and monies to ISTA which increased the outstanding note balance to $13,154,684. As of August 31,2011 NEA has recognized a $6,000,000 aJlowance for doubtful debt against this note.
As ofAugust 31, 2011 and August 31, 2010, NEA bas accrued interest related to this promissory note of $102,776 and $77,753, respectively.

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Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 155 of 211 Page ID #:174
NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED AUGUST 31,2011 AND 2010

5. PROPERTY AND EQUIPMENT
Property and equipment consists ofthe following at August 31:

Land: NEA headquarters MBC headquarters NEA Properties headquarters
Building and improvements: NEA headquarters MBC headquarters NEA Properties headquarters
Furniture, fixtures, and equipment Software development costs
Less accumulated depreciation and amortization
TotaJ property and equipment

2011

2010

$ 1,753,777 $ 1,753,777

837,002

837,002

1,943,982

1,952,889

79,533,573 6,238,237 13,824,620
24,230,384 43,702,887 172,064,462
( 104,636,558)
$ 67,427,904

79,316,319 5,566,612 12,402,498
22,078,554 39,760,735 163,668,386
(97,3 10,812)
$ 66,357,574

6. MORTGAGE PAYABLE
Capital Improvement Fund-A mortgage Joan with a 20-year maturity in the amount of $52,000,000
was entered into with an insurance company in October 1991. The loan is evidenced by five notes, with varying maturity dates and interest rates. The interest rates of the mortgage notes range from 10.00% to 10.40%, which are collateralized by NEA's headquarters office building and personal property. The
mortgage loan was paid off in full on July 15,2010. Interest expense was $267,855 for the year ended
August 31,2010 and is reflected in NEA' s program services expenses in the consolidated statements of activities and changes in net assets.

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Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 156 of 211 Page ID #:175
NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED AUGUST 31,2011 AND 2010

7. COMMITMENTS AND CONTINGENCIES

NEA and MBC lease office space and personal property at a number of locations under noncancelable
operating leases expiring through 2014. Future minimum lease payments under these leases are as follows:

Year Ending August 31

2012 2013 2014
Total future minimum lease payments

$

160,091

70,336

14,338

$

244,765

Rental expense for all operating leases was approximately $196,000 and $200,000 during 2011 and 2010, respectively.
NEA has been named as a party in several legal matters, the outcome ofwhich cannot presently be determined. In the opinion of management an appropriate provision has been made to account for probably losses and the ultimate resolution ofthese matters will not have an impact on NEA's consolidated financial position or changes in net assets and cash flows.
The Internal Revenue Service ("IRS") examined NEA's income tax returns for the years 2000 through 2010 and proposed adjustments for those years. NEA appealed the proposed adjustments and while it believes the related tax returns are in accordance with prevailing tax rulings it has established a provision of$4,000,000 to cover any obligations that might arise from the unresolved issues.
8. BANK LINE OF CREDIT
NEA had a line ofcredit from a commercial bank at an interest rate ofLIBOR (London Interbank: Offered Rate) plus 1.50%. At August 31, 2009, the prevailing rate was 1.76%. On October 8, 2009, NEA increased its operating line of credit from $10,000,000 to $20,000,000. This line of credit expired on February 28, 2010. On September 15, 2010 NEA initiated a new line of credit for $30,000,000. This line ofcredit expired on February 28, 20J1.
9. RETIREMENT BENEFITS
NEA -Defined Benefit Plan-NEA participates in a multiemployer, defined benefit retirement plan which was noncontributory for NEA employees and covers substantially all pennanent employees. On June 1, 2009, the plan was amended to require employee contributions at a rate of3.5% for employees employed by NEA on or after June 9, 2009. NEA employs approximately 45.3% of the employees covered under the plan; the remaining 54.7% are employees ofparticipating state and local affiliates of NEA. NEA's policy is to fund retirement costs as accrued.

-11.

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 157 of 211 Page ID #:176
NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED AUGUST 31,2011 AND 2010

NEA's retirement contribution expenses for the years ended August 31, 201I and 2010, respectively, were $25,109,643 and $25,648,677. The accumulated plan benefits and plan net assets available for benefits as of the date of the latest actuarial valuation are presented below:

Actuarial present value ofaccumulated plan benefits: Total vested benefits Total nom·ested benefits

January 1,

2011

2010

$ 613,649,407 31,096,215

$ 567,208,175 32,453,856

Total accumulated plan benefits

$ 644,745,622

$ 599,662,031

Net assets available for benefits

$ 556,340,336

$ 486,957,182

The increase in the actuarial present vaJue ofaccumulated plan benefits reflects interest earned on benefits.
The actuarial present value of accumulated plan benefits ignores the effects of future compensation increases on the benefits that participants will receive for their past service. If this value were adjusted
for projected salary increases, consistent with the assumed rate of return, the projected benefits
obligation would be $697,844,057 and $651 ,397,413 as ofJanuary I, 2011 and 2010, respectively. The assumed rate of return used in determining the actuarial present value ofaccumulated plan benefits was 7.40% and 7.60% forJanuary 1, 2011 and 2010, respectively. As ofAugust 31,2011 and 2010, the net assets available for benefits were $554,520,664 and $492,664,525, respectively.
NEA -401(/c) Retirement Savings Plan-NEA's employees are also eligible to participate in the 40 I(k) Retirement Savings Plan of the National Education Association (the "Plan") in which the employee can make voluntary, tax-deferred contributions within specified limits. The Plan was established under the provisions of Internal Revenue Code Subsection 40 I(k) and has received a favorable determination as to its tax status. NEA's contributions to the Plan, based on a set percentage of employee contributions, amounted to $2,425,300 and $2,523,356 for the years ended August 31,201 I and 2010, respectively.
NEA - Postretirement Benefit Plan-In addition to providing pension benefits, NEA provides certain healthcare and life insurance benefits to retirees. Prior to March 1, 2000, NEA provided these benefits under a single employer defmed postretirement plan.
Effective March J, 2000, NEA established and adopted the National Education Association and Affiliate Retiree Health Plan (the "Plan") and Trust (the "Trust") for the purpose of providing certain healthcare and life insurance benefits to eligible and retired employees ofNEA and to participating affiliates. The plan is a multiemployer postretirement benefits plan. The Internal Revenue Service has approved the Plan and the Trust.

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Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 158 of 211 Page ID #:177
NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED AUGUST 31,2011 AND 2010
As a result of the adoption of the multiemployer plan, the Trust assumed the responsibility for the payment of benefits and all future obligations under the Plan. NEA's liability under the single employer plan as ofMarch 1, 2000, which amounted to $29,427,901 was recognized as a nonoperating charge in NEA's consolidated statement ofactivities and changes in net assets. As ofAugust 31,2011 and 2010, NEA net assets of $15,534,910 and $26,293,743, respectively were designated for postretirement benefit obligation. Postretirement benefit expense under the multiemployer plan was $10,457,000 and $6,944,507 for the years ended August 31,2011 and 2010, respectively. A discount rate of 7.75% was used to determine the postretirement benefit expense for the years ended August 31,2011 and 2010. MBC- 401(k) Saltzry DeferralPlan-NEA's Member Benefits Corporation ("MBC") maintains a Section 401(k) cash or deferred plan in which the employees can make voluntary, tax--deferred contributions within specific limits. The Plan was established under the provision ofthe Internal Revenue Code Subsection 401(k), and has received a favorable detennination as to its tax status. MBC's contributions to the Plan, based upon a set percentage ofemployee contributions, amounted to $270,298 and $267,928, for the years ended August 31,2011 and 2010, respectively. MBC- Defined Contribution Plan-MBC maintains a Defined Contribution Plan and Trust, which is noncontributory for MBC's employees, and covers substantially all members ofthe NEA Staff Organization (''NEASO") Collective Bargaining Unit. MBC contributes to the Plan a percentage of compensation as set forth in a collective bargaining agreement with NEASO. MBC's contributions to tbe Plan during the years ended August 31,201 J and 2010 were $667,648 and $469,688, respectively. MBC- Defined Benefit Plan-MBC maintains a noncontributory defined benefit pension plan covering substantially all employees not covered by a collective bargaining agreement. MBC has an August 31 measurement date for its pension plan.
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Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 159 of 211 Page ID #:178
NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED AUGUST 31, 2011 AND 2010

Benefit obligations, plan assets, and the funded status oftbe Plan at August 31 were as follows:

2011

2010

Benefit obligations

$ 12,524,639

$ 11,707,369

Fair value ofplan assets

$ 20,831,561

$ 16,029,856

Funded status of the plan

$ 8,306,922

$ 4,322,487

Contributions to the Plan and Benefits paid for the year ended August 31 were:
Employer Contributions Benefits paid

$ 3,157,000

$

143,612

$

889,413

$

69,643

Amounts recognized in the Statement of Financial Position consist of: Noncurrent assets Current liabilities Noncurrent liabilities
Amounts recognized in Other Non-Operating Expense consist of: Net actuarial Joss Prior service cost Unrecognized net initial obligation Total (before tax effects)

$ 8,306,922 $ 8,306,922
$ 4,414,002 637,630
$ 5,051,632

$ 4,322,487 $ 4,322,487
$ 6,085,143 870,825
$ 6,955,968

The accumulated benefit obligation is $10,824,210 and $9,747,643 at August 31,2011 and 2010, respectively.
Net periodic benefit cost is $1,076,901 and $1,098,494 for the years ended August 31, 2011 and 2010, respectively.

. 14 -

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 160 of 211 Page ID #:179
NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED AUGUST 31,2011 AND 2010

2011

2010

Other changes in Plan Assets and Benefit Obligations recognized in Other Non-Operating Expense Net (gain)/Ioss Prior service cost Amortization of net gain Amortization ofprior service cost Total recognized in other comprehensive income
Total recognized in net periodic benefit cost and other comprehensive income

$ (1,063,803)
(607,338) (233,195) $ (1,904,336)

$ 1,069,686

(558,105)

(233,195)

$

278,386

$ (827,435) $ 1,376,880

Amounts expected to be recognized in Net Periodic Cost in the coming year Gain/Loss recognition Prior service cost recognition ·

lOll
$ 335,857 $ 233,195

Weighted-average assumptions used to detennine benefit obligations at August 31 were as follows:

2011

2010

Discmmt rate Rate ofsalary increases

5.25% 4.00%

5.00% 4.00%

Weighted-average assumptions used to determine net periodic benefit cost for the years ended August 31 were as follows:

2011

2010

Discount rate Rate ofsalary increases Expected long-term rate ofreturn on assets

5 .0 0 % 4.00% 8 .0 0 %

6.00% 4.50% 8 .0 0 %

MBC determines the long-term expected rate of return on plan assets by examining historic capital market retwns, correlations between asset classes and the Plan's normal asset allocation. Current and near-term market factors such as inflation and interest rates are then evaluated to arrive at the expected return on Plan assets. Peer group, or benchmarking data are also reviewed to ensure a reasonable and appropriate return assumption.

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Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 161 of 211 Page ID #:180
NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED AUGUST 31,2011 AND 2010

MBC utilizes a total return investment approach based on modem portfolio theory. Multiple asset classes are implemented in order to obtain the benefits ofdiversification and maximize long-term total return for a given level of risk. Risk tolerance is developed by reviewing the funded status ofthe plan, duration ofthe plan liabilities, the income and liquidity requirements, legal constraints, and the financial condition ofMBC. The investment portfolio is comprised of a diversified combination ofequities, fixed income securities, and cash equivalents. MBC's investment policy states that the target allocations for plan assets are 70 percent equity securities, 28 percent fixed income securities, and 2 percent cash equivalents. The allocation among equities and fixed income securities is determined by prevailing market conditions and relative valuations between asset classes. The Plan's financial condition is monitored on an ongoing basis by means of quarterly investment portfolio reviews, an annual independent actuarial valuation, and periodic asset/liability studies.

Pension plan aUocations at August 31 were as follows:

2011

2010

Equities Fixed Income Securities Cash Equivalents Total

73% 25% 2% 100%

70% 28% 2% 100%

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Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 162 of 211 Page ID #:181
NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED AUGUST 31,2011 AND 2010

The fair value ofMBC's pension plan assets at August 31, 2011 by asset class are as follows: Fair Value Measurements at Reporting Date Using

Asset Class

Quoted Prices in Active Markets for
Identical Assets (Levell)

Significant Other
Observable Inputs
(Level2)

Significant Unobservable
Inputs (Level3)

Total

Cash and cash equivalents

$

411,996 $

$

Equity securities:

U.S. large-cap

5,733,826

U.S. mid-cap

1,728,291

U.S. small-cap

1,626,260

REIT

923,770

Global equity

478,229

International

1,830,870

Emerging markets

592,524

Other investment funds:

Equity long/short (a)

543,938

Equity market neutral (b)

582,940

Multi-strategy mutual fund (c)

956,108

Managed futures (d)

293,028

Fixed income securities:

U.S fixed income

2,917,540

International fixed income

2,212,241

$

20,831,561 $

$

$ 411,996
5,733,826 1,728,291 1,626,260
923,770 478,229 1,830,870 592,524
543,938 582,940 956,108 293,028
2,917,540 2,212,241
$ 20,831,561

(a) This separately managed account class includes funds that by prospectus, has the ability to take both long and short positions within the portfolio. The primary investment vehicle is Exchange Traded Funds (ETFs). The manager of this fund has the ability to rotate investments between various equity styles: Value, growth and blended; as well as multiple market capitalizations: Large Cap, Mid Cap & Small Cap.
(b) This mutual fund class includes funds that invest in strategies that match long and short positions in different US Common Stocks. The managers also employ other strategies, such as merger arbitrage.
(c) This mutual fund class invests in multiple strategies, across multiple asset classes, including but not limited to: global equities, global fixed income, RElTS, and commodities, in an effort to diversity risks and reduce volatility.
(d) This mutual fund class includes funds that invest in energy, agriculture, and currency markets (among others) using futures contracts.

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Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 163 of 211 Page ID #:182
NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED AUGUST 31, 2011 AND 2010

The fair value ofMBC's pension plan assets at August 31,2010 by asset class are as follows: Fair Value Measurements at Reporting Date Using

Asset Class

Significant

Quoted Prices in

Other

Significant

Active Markets for Observable Unobservable

Identical Assets

Inputs

Inputs

(Level J)

(Level2)

(Level3)

Total

Cash and cash equivalents

$

291,194 $

$

Equity securities:

U.S. large-cap

3,398,495

U.S. mid-cap

847,650

U.S. small-cap

1,248,681

REIT

546,596

Global equity

394,414

International

2,090,638

Emerging markets

556,100

Other investment funds:

Equity long/short (a)

489,488

Equity market neutral (b)

553,367

Multi-strategy mutual fund (c )

787,632

Managed futures (d)

278,592

Fixed income securities:

U.S fixed income

2,971,009

International fixed income

1,576,000

$

16,029,856 $

$

$ 291,194
3,398,495 847,650
1,248,681 546,596 394,414
2,090,638 556,100
489,488 553,367 787,632 278,592
2,971,009 1,576,000
$ 16,029,856

(a) This separately managed account class includes funds that by prospectus, has the ability to take both long and short positions within the portfolio. The primary investment \'ehicle is Exchange Traded Funds (ETFs). The manager of this fund has the ability to rotate invesrments between various equity styles: Value, growth and blended; as well as multiple market capitalizations: Large Cap, Mid Cap & Small Cap.
(b) This mutual fund class includes funds that invest in strategies that match long and short positions in different US Common Stocks. The managers also employ other strategies, such as merger arbitrage.
(c) This mutual fund class invests in multiple strategies, across multiple asset classes, including but not limited to: global equities, global fiXed income, REJTS, and commodities, in an effort to diversify risks and reduce volatility.
(d) This mutual fund class includes funds that invest in energy, agriculture, and currency markets (among others) using futures contracts.
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Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 164 of 211 Page ID #:183
NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED AUGUST 31,2011 AND 2010

The following estimates and assumptions were used to determine the fair value ofeach class of fmancial instruments listed above.
• Cash Equivalents- Cash equivalents include cash deposits in investment funds, money market funds, and short-term U.S. Treasury securities, which are actively traded. Cash equivalents are priced using independent market prices in the primary trading market, and are classified as Levell based on the availability ofquotes for identical assets.
• Equity Securities - Equity investments include stocks, separately held accounts, and mutual funds. These assets, which are grouped by investment objective, consist of publicly traded securities, diversified g)obally, and are classified as Level 1.
• Fixed Income Securities - These assets include mutual funds with fixed income portfolios. These assets are valued using market prices, such as broker quotes, for the same instruments; as these securities typically trade in active markets, they are categorized as Level J.
For fiscal year 2012, MBC expects to contribute the maximum deductible amount to its pension plan as detennined by the January 1, 2012, actuarial valuation.
Benefit payments expected to be paid over the next five years and accumulated over the five years thereafter are as follows as of August 31:

2012 2013 2014 2015 2016 2017-2021

$ 221,199 $ 318,108 $ 402,187 $ 491,592 $ 580,549 $ 4,225,822

MBC- Deferred Redrement Benefit- MBC has recognized a noncurrent liability representing a deferred retirement benefit for a former officer that was due in 2007 and will be paid over a five-year period ending April 2012.
10. NATIONAL EDUCATION EMPLOYEES ASSISTANCE FUND, INC.
The National Education Employees Assistance Fund, Inc. ("NEEAF") is a nonprofit corporation established for the purpose ofproviding financial and other assistance to member organizations and their individual members involved in disputes over terms and conditions ofemployment. In this capacity, NEEAF, from time to time, has guaranteed loans made by lending institutions to members who were involved in such disputes. These loans are collateralized by letters of credit from those state affiliates that are members ofNEEAF. NEA commits the unrestricted resources of the General Operating Fund to fulfill its obligation. NEA's commitment and the state affiliate's line of credit is approximately $6,951,738. In the event ofdefault on a loan, the bylaws ofNEEAF provide that the bank shall first

- 19 -

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 165 of 211 Page ID #:184
NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED AUGUST 31,2011 AND 2010
draw upon the letter ofcredit of the state affiliate from which the funds were transmitted and, thereafter, proportionately from all other letters of credit and/or Jines of credit.
As ofAugust 31, 201 1 and 2010, NEA was contingently liable in the event ofdefault for $6,457 and $6,613, respectively.
11. THE NEA FOUNDATION FOR THE IMPROVEMENT OF EDUCATION
The NEA Foundation for the Improvement of Education (''NFIE") was created in 1969 by NEA as a taxexempt public charity to improve the quality of public education in the United States. The NF1E has a separate Board of Directors and operates independently ofNEA. Accordingly, the accompanying financial statements do not include the activities ofNFIE.
The NFIE empowers public education employees to innovate, take risks, and become agents for change to improve teaching and learning in our society.
During the years ended August 31,2011 and 2010, payments totaling $2,052,120 and $2,118,202, respectively, were made to NFIE for an endowment that will help fund programs to meet critical needs of students and education employees in years to come. Such amounts are reflected as reductions in ''NEA Programs- Dues" (see page 3) in the Consolidated Statements of Activities and Changes in Net Assets for the years ended August 3 I, 2011 and 2010.
12. NEA HEALTH INFORMATION NETWORK
The NEA Health Information Network (''NEA-HIN''), a legally separate 501 (c)(3) not-for-profit organization, was created in 1987 to provide a link between the education and health professions to assure that public school employees and their students have the lmowledge and skills necessary to make decisions that enhance the quality oftheir Jives, improve the environment in which they work and learn, and build relationships within the communities they serve.
NEA-HIN manages and implements programs that provide training, technical assistance, information, and referrals for NEA members and staff on a variety of health and safety issues affecting school employees and students. NEA-HIN secures funds from public and private sources to implement these programs.
NEA-HIN establishes collaborative partnerships with other public and private entities to enhance the content and scope of its activities and to bring the education employee/student perspective into the planning and development process of relevant health initiatives at the national, state, and local levels.
NEA's appropriations for NEA-HIN for each of the years ended August 31,2011 and 2010 were $600,000 and $650,000, respectively.
• 20.

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 166 of 211 Page ID #:185
NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED AUGUST 31,2011 AND 2010

13. NEA MEMBERS INSURANCE TRUST
The National Education Association Members Insurance Trust ("NEA-MIT") was organized to provide certain employee welfare benefits to NEA members and their dependents, pursuant to the NEA Members Insurance Plan.
NEA is the sponsor and administrator of the welfare plans that NEA-MIT provides. NEA may appoint and remove the trustees ofNEA-MIT. NEA-MIT maintains an agreement with MBC to provide administrative and promotional services for the programs.

NEA and NEA-MIT have an agreement whereby NEA provides systems administration, maintenance, software development and facilities management in the amount of$871,113 and $890,556 for the years ended August 31,2011 and 2010, respectively.

14. INCOME TAXES
Under provisions ofSection 501(c) ofthe Internal Revenue Code and the applicable income tax regulations of the District ofColumbia, NEA is exempt from taxes on income, other than taxes on unrelated business income.
MBC follows the liability method of accounting for income taxes as required by the FASB Accounting Standards Income Taxes. Income tax expense is recognized based on the amount of income taxes currently payable or refundable plus the net change during the year in the deferred tax liability or asset. The current or deferred tax consequences of all events that have been recognized in the fwancial statements are measured based on provisions of enacted tax law.
The provision for Federal and State income taxes is included in MBC's support service expenses on the consolidated statements ofactivities and changes in net assets and consists ofthe following:

2011

2010

Current Provision Federal State

$ 1,129,791 142,845
1,272,636

$ 1,192,777 137,523
1,330,300

Deferred Provision Federal State

698,537 11 ),338 809,875

(59,426)
~6,986~
(66,412)

Total

$ 2,082,511

$ 1,263,888

- 21 -

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 167 of 211 Page ID #:186
NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED AUGUST 31,2011 AND 2010

A reconciliation of income taxes at the statutory rate to the provision for income taxes in the financial statements is as follows:

2011

2010

Federal income tax provision at the statutory rate State income tax expense, net offederal benefit
Total

$

1,828,328

254,183

$ 2,082,511

$

1,133,351

130,537

$

1,263,888

At August 31, 2011 and 2010, the deferred tax assets and liabilities represent the tax effects of the following temporary differences:

Assets: Deferred income Accrued vacation Bad debt State taxes Other
Gross deferred tax assets

2011

$

521,597

287,925

162,828

150,983

33,450

1,156,783

2010

$

659,124

292,468

113,128 78,527
1,143,247

Liabilities: Pension costs Other
Gross deferred tax liabilities
Total

(3,165,140) (40,258)
(3,205,398)
$ (2,048,615)

(1,635,748) (38,705)
(1,674,453)

$

(531,206)

Amounts recognized in the consolidated statements offmancial positions at August 31 :

2011

2010

Current deferred tax asset Current deferred tax liability

$

321,375

$

309,733

~40,2582

{38,7052

281,117

271,028

Noncurrent deferred tax asset Noncurrent deferred tax liability

835,408 (3,165,1402 {2,329,732)

833,514
~1,635,748~
(802,234)

Total

$ (2,048,615)

$

(531,206)

-22-

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 168 of 211 Page ID #:187
NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED AUGUST 31,2011 AND 2010

During the fiscal year ended August 31, 2010, MBC adopted new recognition and measurement provisions for uncertain tax positions. For tax benefits to be recognized under this model, the tax position related to the benefit must be more likely than not to be sustained upon examination by the taxing authorities. MBC evaluated its tax positions and bas determined that it does not have any uncertain tax positions. Accordingly, it does not recognize a liability for income taxes associated with unrecognized tax benefits in its financial statements for the year ended August 31, 20 11. At August 31, 201 1, tax years 2007 through 20 I0 remain open to examination under the statute of limitations.

15. OTHER NON-OP ERATING EXPENSE

The tax effects allocated to each component of Other Non-Operating Expense for the year ended August 31, 2011 are:

Before~Tax Amount

Tax (Expense) or Benefit

Net-of-tax Amount

Defined Benefit Pension Plan: Net gain arising during period Less: amortization ofnet gain included in net periodic pension cost Less: amortization ofprior service cost included in net periodic pension cost Gain(loss) from Defined Benefit Pension Plan Less: unrealized loss from investments Other Non-Operating Expense

$ 1,063,803
607,338
233,195 1,904,336
!J5,045~
$ 1,889,291

s (395,244)
(225,650)
(86,6412 (707,535)
$ (707,535}

$ 668,559
38 1,688
146,554 1,196,801
(15,045~
$ 1,181,756

16. FAIRVALUEMEASUREMENTS
Accounting standards for fair value measurements defines fair value, establishes a framework for measuring fair value and enhances disclosures about fair value measurements. Accounting standards for fair value measurements defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. That framework provides a fair value hierarchy that prioritizes the inputs to the valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level l measurements) and the Jowest priority to measurements involving significant unobservable inputs (Leve13 measurements). The three levels ofthe hierarchy are as follows:
• Level I - Observable inputs such as quoted prices for identical assets or liabilities in active markets;
• Level 2 • Inputs other than the quoted prices in active markets that are observable, either directly or indirectly such as quoted prices for similar assets or liabilities in active markets,
-23-

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 169 of 211 Page ID #:188
NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED AUGUST 31,2011 AND 2010
quoted prices for identical or similar assets or liabilities in inactive markets, inputs other than quoted prices that are observable or inputs that are derived principally from or corroborated by observable market data by correlation or other means; and • Level 3 - Unobservable inputs in which there is little or no market data, which requires management to develop its own assumptions. The asset's or liability's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to their fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The foJlowing is a description of the valuation techniques used for assets measured at fair value: • Money marketfunds- Valued at cost, which approximates fair value. Valuation is from an unadjusted quoted price; • Repurchase agreements- Valued at cost, which approximates fair value. Valuation is not obtained from a quoted price in an active market; • Corporate stocks/exchange tradedfunds - Valued at the closing price reported in an active market in which the securities are traded; and • Mutualfunds-equity andfixed income securities - Valued at the net asset value (''NAV") of shares held and is calculated at the end of each business day; The methods described above may produce a fair value calculation that may not be indicative ofnet realizable value or reflective of future fair values. Furthermore, while NEA believes its valuation methods are appropriate and consistent with other market participants, the use ofdifferent methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.
-24-

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 170 of 211 Page ID #:189
NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED AUGUST 31,2011 AND 2010

The fo1lowing table presents NEA's fair value hierarchy for financial assets measured on a recurring basis at August 31, 2011:

Fair Value Measurements at Reporting Date Using

Money Market Funds Repurchase Agreements Exchange Traded Funds Mutual Funds- Equity securities
Growth funds Value funds
Blend fund
Mutual Funds - Fixed income securities U.S fixed income fund International fDted income fund

Quoted Prices in Active
Markets for Identical Assets
(Levell)
$ 5,559,795

Significant Other
Observable Inputs
(Level2)
$ 12,367,168

SigoifJCant Unobservable
Inputs (Level 3)
$

Total · .· ·._. · :·:. ;~: .
$ 5,559,795 12,367,168

4,469,089 4,472,521 2,829,590

16,416,809 1,531,135

$ 35,278.939

$ 12,367,168

$

4,469,089 4,472,521 2,829,590
16,416,809 1,531,135
$ 47,646,107

-25-

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 171 of 211 Page ID #:190
NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED AUGUST 31,2011 AND 2010
The following table presents NEA's fair value hierarchy for financial assets measured on a recurring basis at August 31,2010:
Fair Value Measurements at Reporting Date Using

Quoted Prices in Active
Markets for Identical Assets
(Level I)

SignifiCant Other
Observable Inputs
(Level2)

Significant Unobservable
Inputs (Level3)

Total

Money Market Funds Repurchase Agreements Corporate Stocks
Energy Industrial Consumer Health care Financials lnfonnation technology Other Exchange Traded Funds Mutual Funds - Equity securit;es Growth funds Value funds B1end fimd Mutual Funds - Fixed income securities U.S fiXed income fund

$ 10,157,896 $

$

17,279,738

553,030 633,901 1, 102,515 731,891 798,956 824,046 842,706 1,509,186

2,526,338 763,220 892,590

8,829,362

$ 30,165,637

$ 17,279,738

$

$ 10,157,896 17,279,738
553,030 633,901 I ,102,515 731,891 798,956 824,046 842,706 1,509,186
2,526,338 763,220 892,590
8,829,362 $ 47,445,375

17. SUBSEQUENT EVENTS
Management has performed a subsequent event review from September I, 2011 to November 28, 20 II , being the date that the consolidated financial statements were available to be issued.
On September 28, 201J, the United States Tax Court issued its ruling in tbe matter of the National Education Association ofthe United States v. Commissioner oflntemal Revenue. At issue in the case is whether membership in the NEA conveyed the " legal right to receive" the published magazine as held by the Commissioner. The Tax Court in its departure from the Commissioner's reasoning held that NEA's members have the "legal right to receive" the published magazine. The Tax Court's ruling affirmed the Commissioner's assessments for the tax years at issue. The Tax Court's ruling takes effect ninety days after filed. In the interim, NEA increased its recorded tax reserve at August 31, 20 I J to an amount sufficient to cover the total assessment as it considers its appeal options.

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Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 172 of 211 Page ID #:191
NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED AUGUST 31,2011 AND 2010
On October 5, 2011, NEA initiated a new line of credit for $30,000,000 with Bank ofAmerica for normal operating purposes with an interest rate ofLIBOR (London Interbank Offered Rate) plus 1.50%. This new line ofcredit will expire January 31, 2012.
******
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Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 173 of 211 Page ID #:192
NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES
SUPPLEMENTAL SUMMARY SCHEDULE OF AGENCY FEE CHARGEABLE AND NONCHARGEABLE EXPENDITURES YEAR ENDED AUGUST 31,2011

Cbargeable Expenditure

Nonchargeable Expenditure

Total Expenditures

EXPFNSES BYSTRAnx:iiCGOALS ANDCORESERVJCEARFAS
Tas and economic polldes and sthool funding ("TEF") "1 . Provide research and tedmical assistance to all state affiliates on TEF issues "'2. Provide research and technical assistance to state affiliates to build tax and economic infrastructures for adequate and equitable funding "3. Provide assistance to affili.ales for implementing TEF-conscious advocacy , mcssasr: development, and dissemination ofTEF info!lll8tion
Total tax and economic policies and school funding ("TEF")
Improved education members' salaries "I. Provide technical and fmancial support to affiliates engaged in or preparing to en~ in comprehensive salary campaigns "2. Position NEA to be tbc national voice for the improvement of cduCa!ion employees• salaries "3. Collect, store, analyze, and report infonnation that supports NEA national and state afftliaresalary campaigns "4. Provide training to support the work ofNEA and its affiliates to effectively advocate for professional pay for all mcmbas
Total improved education members' salaries
Maldng priority schools great public schools for all studtnt5 " I. Provide tccbnical assistance, training and resources to state and local affiliates to help them identify and support tar~c:d priority schools
"2. En&i181C affiliates and members to support local efforts to transfonn priority
schools while raising the awareness ofthe Priority Schools Campaign "3. Communicate with membas, partners, and the public to call attention to the
urpcy of, common issues and best practices for, transforming priority schools Total makingpriority schools great public schools for all students
Student learning and workforce quality "I. Support Association effort to advocate for enhanced student learningand workforce quality and the advanoement ofNEA supportc:d pro-public education and socialjusticepolicies "2. Provide resources to assist affiliates build capacity to support their initiatives designed to advance pro-public education policies for student learning and workforce quality "3. Partner with affiliates and others to support workforce quality designed to improved student achievement and incn:asc:d waduation rates "4. Provide support, rcsean:b, and infonnat ion to staff, members, and affili.ales tbal improve workforce quality throudl improved woricing conditions and benefits, advocacy ri~ts, and professional development products
Total student learning and woricforcc quality
Affiliate programs and services that increase membership " I. Build affiliate capacity for membership growth through projoct funding and constituency group assistance "2. Develop and administer state affiliates' cooperative agreements and provide funding for the implementation ofstate and regional financial assistance "3. Create and ali!JI all NEA infrastructures to support membership ~wth, with special attention to UniScrv, research, and t echnology "4. Collaborate witb affiliates to increase membership in existing and new markets
Total affiliate proiJ8lliS and services that incn:ase membership

1,272,396 1,500
743,599 48,661
2,066,156

2,226,918 310,650 403,226
2,940,794
' 401,355
48,007 30.350 358,822 838,534

2,646,377
425,283
14,481 3,086,141

645,118
579,947
1,335,944 2,561,009

213,475

763,389

2,318,744 268,565

212.920 110,186

35,152,943 37,953,727

13,750,442 14,836,937

65,582,853
1,296,052
399,220 20,467
67,298,592

15,259,344
432,017
368,585 8,349,245 24,409,191

See notes to supplemental summary schedule ofagency fee chargeable and nonchargeable expenditures.
-28 -

2,226.918 310,650 403,226
2,940,794
1,673,751 49,507
773,949 407,483 2,904,690
3,291,495 1,005,230 1,350,425 5,647,150
976,864
2,531,664 378,751
48,903,385 52,790,664
80,842,197 1,728,069 767,805 8,369,712
91,707,783 (continued)

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 174 of 211 Page ID #:193
NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES
SUPPLEMENTAL SUMMARY SCHEDULE OF AGENCY FEE CHARGEABLE AND NONCHARGEABLE EXPENDITURES
YEAR ENDED AUGUST 31, 2011

Achoc:ate and eommunlc:ate for public education " I. Increase member support ofpro-education candidates and increase public eooununications and advocacy for assodation political and legislative pro!JIUIIS "2. Increase pro-public education advocacy and develop relationships with the feden~l government to advance NEA's pro-public education ~da "3. Communicate tbc NEA beliefs, qualities, and services to en~ members and improve tar~ audiences' rec:C>W~ition ofNEA throu!1J! print and electronic media "4. Increase the a~pacity ofNEA governance, members, and stafTto advocate for all members through a wcater use ofcampaii!Jl tools and resources and partner with affiliates to increase PAC participation
Total advocate and conununicale for public education
Dnelop and su1taln strategic partuel"5blps " I. Advance NEA's mission, vision, goals. and core values with Education International and other international or~izations and partners "2. En~ national, state, and local partners to support effective transfonnation of priority schools and provide assistance to locals for partnen~hip development "3. Assist state affiliales in identifyingpanners and provide resources to strcngjhcn coalitions and mobilize public and policy support for TEF "4. Partner with business and nonprofit leaders to support the Salary Campai31 "5. Partner with org;mizations to inform and advance NEA's workforce quality agatda and promote healthy teaching and learning environments "6. Develop partnership:~ that advance and achieve NEA's federal and regulatory policy priorities including funding to implement these prioritie$ "7. Partner with ethnic minority, civll rights, and other org;mizations to advonce NEA's commitment to social justice "8. Partner with the business community and other org;mizations to ensure that public ~chools receive the =ources required to prepare students for success in the21st century 9. Develop national partnerships that support state affiliates in building and maintaining their capadty to acltieve NEA priority policy goals at the state level I 0. Develop national partnerships that result in increased support for union membership, the recruitment and mention ofNEA members, and minimized inter-union competition 1 I. Develop, sustain, and lev~ strategic alliances to advance NEA's core values and strategic priorities around partnerships
Total develop and sustain strategic partnerships
Business and governance optradons I. Provide business systems, legal, and financial Cllpertise to NEA and affiliates 2. M BJ\8@11: cmployee benefits and services, labor relations, and workforce costs 3. Provide departmental infrastruaure and business intelli~ systems that alii!Jl with NEA's strategic goals and core services 4. Sustain NEA as a higll-perfurmance lemning or31flization and archive its records for current and future generations 5. Provide technologies for strategic, tactical, and daily open~tions 6. Provide facility management, open~tional support, and meeting logistics 7. Provide administrative and financial support to the national councils and constituency I!J'OupS 8. Provide support to g:>vemanceand the NEA policy making process 9. Provide members professional development and leadership training
Total business and governance operations
TOTAL EXPENDITURES

Cbafi!eable Nonebargeable

Total

Expenditure Expendlture Eilptndltures

2,606,768

26,110,033 12.,347,623 16,891,501

26,110,033 12,347,623 19,498,269

130,849 2,737,617

2,724,409 58,073,566

2,855,258 60,811,183

17,382 888,868 93,536

5,083,348 134,427 176,802 66,991 253,591 133,318 160,882

5,083,348 151,809 176,802 66,991
1,142,459 133,318 254,418

98,527 184,450

98,527 184,450

999,786

76,624
3,869,146 10,238,106

76,624
3,869,146 11,237,892

10,505,848 5,106,893
16,471,914
1,513,370 9,916,817 16,366,082
8,063,363 5,154,709 73,098,996
187,241.015

9,855,496
17,404,243 7,945,410 10,530,228
597,901 1,656,933 3,190,906 51,181,1 17 165,079,254

20,361,344 5,106,893
33,876,157
9,458,780 20,447,045 16,366,082
597,901 9,720,296 g,345,615 124,280,113
352.320,269 (concluded)

See notes to supplemental summary schedule ofagency fee chargeable and nonchargeable expenditures.
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Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 175 of 211 Page ID #:194
NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES
SUPPLEMENTAL SUMMARY SCHEDULE OF AGENCY FEE CHARGEABLE AND NONCHARGEABLE EXPENDITURES
YEAR ENDED AUGUST 31 , 2011

EXPENSIS BY STRATIGIC OOALS AND CORESERYICEARFAS Tax and economic polld es and school funding ("TI!F')
I . Provide research and technical assistance to all state affiliates on TEF issues 1.1 Provide research on tax and economic policies and education funding 1.2 Provide technical support on tax, economic policies, and school funding
Total provide research and technical assistance to all state: affiliates on TEF issues
2. Pro\oide research and technical assistance to state affiliales to build tax and economic infrastructures for adequate and equitable funding 2.1 Provide TEF research and technical assistance for achieving adeqwue.. equitable and stable funding for public education
Total provide research and technical assistance to state affiliates to build tax and economic inftastructun:s for adequate and equitable funding
3. Provide assistance to affiliates for implcmcntingTEF-consci.ous advocacy, messa~ development, and dissemination ofTEF infonnation 3. 1 Provide researdl and technical assistance for implcmcntingTEF-conscious advocacy 3.2 Provide research and technical assistance to state affiliates to promote TEF 3..3 Create cross-platform media tlult mobilizes tarseted audiences around funding campaigns
Total provide assistance to afliliates for implemcntingTEF-conscious advocacy, messa~ development, and dissemination ofTEF information

Chargeable Nonchargeable

Total

Expenditure Expenditure Expendituru

1,241,872 985,046
2,226,918

1,241,872 985,046
2,226,918

310,650 310,650

310,650 310,650

8,800 394,083
343
403,226

8,800 394,083
343
4031226 (continued)

See notes to supplemental summary schedule ofagency fee chargeable and nonchargeable expenclitures.
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Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 176 of 211 Page ID #:195
NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES
SUPPLEMENTAL SUMMARY SCHEDULE OF AGENCY FEE CHARGEABLE AND NONCHARGEABLE EXPENDITURES YEAR ENDED AUGUST 31, 2011

bnprowd education memben' salaries I. Provide tcdmical end fmancial support to affiliates en~ in or preparing to engaSJ! in comprdleusive salaty campaigns I .I Provide teclmical assistance and financial support to affiliates enga&l!d in comprehensive salmy campai~ 1.2 Provide technical and financial assistance to state affiliates working toward a comprehensive salary campaigns Total p rovide technical and fmancial support to affiliates engaged in or preparing to engage in comprehensive salaty campaif'JS
2. Position NEA to be the national voice for the improvemcot ofeducation employees' salaries 2. 1 Position NEA to be the national voice for the improvement ofeducation employees' salaries
Total position NEA to be the national voice for the improvement ofeducation employees' salaries
3. Collect, store, analyze, and report information that supports NEA national and state affiliate salmy campai~ 3.I Collect, store, analyze, and report data that Sllpports NEA national and state affiliate salary campaigns
Total collect, store, analyze, and report information that supports NEA national and state affiliate salary campaigns
4. Provide t.raining to support the work ofNEA and its affiliates to effective.ly advocate for professional pay for all members 4.1 Provide the training necessary to support the wor.k ofNEA md its affiliates in moving the salaty campaii!Jl
Total prov ide training to support the work ofNEA and its affiliates to effectively advocate for professional pay for all members

C hargeable Nonchargeable

Total

Elpendlture Expenditure Expenditures

959,321 313,075 1,272,396

299,543 101,812 401.355

1,258,864 414,887
1,673,75 1

1,500 1,500

48007 48007

49,507 49,507

743,599 743,599

30J50 30JSO

773 949 773 949

48,661 48,661

358.822 358,822

407,483
407 483 (continued)

See notes to supplemental summary schedule ofagency fee chargeable and nonchargeable expenditures.
- 31-

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 177 of 211 Page ID #:196
NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES
SUPPLEMENTAL SUMMARY SCHEDULE OF AGENCY FEE CHARGEABLE AND NONCHARGEABLE EXPENDITURES YEAR ENDED AUGUST 31,2011

Making priority sdlools great public schools for all students I. Provide technical assistance, training. and resources to state and local affiliates to help them identify and support targeted priority schools 1.1 Assess need and broker resources to support transformation oftargeted priority schools by state and local affiliates 1.2 Bwld capacity in t.alll=ted affiliates through professional development for state leaders and staffand provide resources and techn ical assistance 1.3 SUpport school changJ: in targJ:ted priority schools by p roviding policy sup port and technical assistance utilizing Great Public Schools criteria 1.4 Utilize the whole education workforce to support and advocate for improved learning and workingconditions in tar~ted priority schools Total provide technical assistance, training. and resources to state and local affiliates to help them identify and support tar~ted priority schools
2. En!JII~ affiliates and members to support local efforts to transform priority schools while raising the awareness of the Priority Schools Campaign 2.1 Establish public en~ent and family school partnerships in support of targeted priority schools 2.2 Ident ify. inform, and eng;tge leaders and partners within the ethnic minority conununities in support ofefforts to transform targeted priority schools
Total engl~F affiliates and members to support local efforts to transform priority schools while raising the awareness of the Priority Schools Campaign
3. Communicate with members, partners, and the public to call attention to the urgency of, common issues and best practices for, transforming p riority schoo16 3.1 Provide earned media, paid media, outreach, and other public relations initiatives in support of targeted priority schools 3.2 Create a media program that establishes and advances the central messaging components to targeted audiences 3.3 Raise awareness ofNEA's Priority Schools Campai~ with elected and appointed officials to build support for t he Priority Schools Campai~ 3.4 Provide targeted affiliates technical support to win contract lan~llJ: necessary to support the Priority Schools Campaign
T otal conununicatc with members, partners, and the public to call attention to the urgency of, common issues and best practices for, transfonningpriority schools

Chargeable Expenditure

Nonch argeable Expenditure

Total E x p e n d it u r e •

586,789 1,801,474
247,440 10674
21646;377

214,733 427,970
2,415
645:118

801,522 2,229,444
249,855 10,674
3~91:495

153,926 271;357 425:283

361 579:586 579,947

154,287 8501943 1,005,230

3,150
11;331 14,481

1,122.91 1 21 1,068 1,965
),335,944

1,122,91 1 214,218 1,965 11,331
1,3501425 (continued)

See notes to supplemental summary schedule ofagency fee chargeable and nonchargeable expenditures.
-32 -

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 178 of 211 Page ID #:197
NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES
SUPPLEMENTAL SUMMARY SCHEDULE OF AGENCY FEE CHARGEABLE AND NONCHARGEABLE EXPENDITURES YEAR ENDED AUGUST 31,2011

Student learning and workforce quality I. Suppon Association effort to advocate for enhanced student learning and workforce quality and the advancement ofNEA supponod pro-public education and social justice policies 1.1 Provide research-based infonnation that supports Association efforts to advocate for a quality education workforce that serves the whole student I.2 Advance federal legislation and regulations that promote policies and practices to enhance student learning and workforce quality 1.3 Advance non-federal, NEA supponed, pro-public education and social justice p olic:ics to enhance student learning and workforce quality Total support Association effort to advocate for enhanced student learning and workforce quality and the ad~'11Dccment ofNEA supported pro-public education and social justice policies
2. Pro,ide resources to assist affiliates build capacity to suppon their initiatives designed to advance pro-public education policies for student learning and workforce quality 2. I Grants and technical resources to develop ethnic minority leaders and improve staffskills repdiogethnic minority issues 2.2 Mobilize Great Public Schools resources to build capacity in affiliates through trainingand professional development 2.3 Protect and promote the profession ofteaching by developingand implementing strategies to stren~hen and enhance standards and/or policies for teacher preparation, licensure, or other standards for entry into teaching 2 .4 lnaease the capacity ofstate affiliates to mobilize mcmlxn and the public to create teaching/learning conditions that lead to the closingofachievement gaps, increased g,aduation rates, and quality education for all
Total provide resources to assist affiliates build capacity to support theiJ initiatives designed to advance pro-public education policies for student learning and workforce quality
3. Partner with affiliates and others to support workforce quality designed to improved studcot achievement and increased ~uotion rates 3.1 Help state affiliates deliver hi&b quality services to members and prospective members through existing NEA programs for teacher certifiC8tion, licensure. recn~itment, and other teacher quality resources 3.2 Inform and eng:~~ ethnic minority orpizations to promote and/or advocate for initiatives in support ofculturally competent educators, improved student achievement, and increased graduation rates
Total partner with affiliates and others to suppon workforce quality designed to improved student achievement and inaeased waduation rates

Chargeable Nonchargeable

Total

Expenditure Expenditure Expendltures

213,475 213.475

373,783 389.606
763,389

213,475 373,783 389.606
976,864

133,563 1,249,085
936,096 2,318,744

22,890 177,592 12,438 212,920

133,563 1,271,975
177,592
948,534 2.531,664

248,981
19,584 268,565

24,553
85,633 110,186

273,534
105,217 378,751 (continued)

See notes to supplemental summary schedule ofagency fee chargeable and nonchargeable expenditures.
-33-

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 179 of 211 Page ID #:198
NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES
SUPPLEMENTAL SUMMARY SCHEDULE OF AGENCY FEE CHARGEABLE AND NONCHARGEABLE EXPENDITURES
YEAR ENDED AUGUST 31, 2011

Chargeable Nonchargeable Expendlrure Expenditure

4. Provide support, n:search, and infonnation to staff, memb<::rs, and affiliates that improve workforce quality through improved working conditions and bene(rts, advocacy riftits, and professional development produds 4.1 Provide grants and tec:hnieal assistanc:c: to aU stare affiliates related to policy and prac:tic:e 4.2 Provide policy support and analysis to NEA departments for the passase of pro-public education fedc:rallegislation, including ESEA 4.3 Provide state affiliates with policy frameworks and concepts to support school transfonnation 4.4 IdentifY quality workforce standards to support professional development and compensation improvc:metlt 4.5 Provide state affiliates with information, roodels, and strategies n:sulting from NEA's wolf,; in the Priority Schools Campaign 4.6 Provide high quality professional development produd.s that meet the demands of the profession by improving and enhancing the knowledge, skills, and effectiveness ofthe educational workforce 4.7 Sustain, flOW, and institutionalize comprc:hensn·e online tools devoted to education policy, n:search, and practice focused on the criteria and indiCBiors for Great Public Schools 4 .8 Advance the professional practice of teachers by working with state and/or local affiliates to develop, implement, and sustain comprehensive teacher assessment and evaluation systems 4.9 Educate, mobilize, and engase members, affiliate staff, and governance in teacher quality policy and practice issues by providing technical assistance
'4. 10 Provide research and information to transform our public education system to meet the needs ofall students
4.11 Provide school assessment and improvcmc:nt tools, processes, and related technical assistance to state and loc:al affiliates and their partners to build capaciry and their efforts to advocate for and secure improved school learning and working conditions and provide quality edUCB!ion for all students
4 . 12 Build relationship s with caemal education service and program providers to review, n:commend, and/or jointly create English-lan~agc Ieamer propms/produds and make those programs/products available to affiliates and school districts
4.13 Administer the Educators Employment Liability , Associll1ion Professional Liability, and Fidelity Bond Insurance Programs
4 .14 Administer the Unified Legal Services Prowam by providing rmanc:ialassistance to state atrtl~es for employmc:nt-relatc:d legal matters
4.15 Research, plan, implement, fund, and c:vaJuate earned media, paid media, and other public relations initiat ives that support student learning and workforoc quality
4.16 Provide technical assistance to NEA gpvemance, staff, and state affiliates in their efforts to address public pensions, retirement sec:urity, health care benefits, bargaining and advocacy rights, and/or policies issues for members
4.17 Develop and deliver training and assistance, including legislative analyses, rc!!J!Iatory information, and b8Jl!!li.oingand advocacy strategies to state affiliates on federal health reform legis1at ion
Total provide support, n:scarch, and information to staff. members, and affiliates that improve workforce quality through improved working conditions and benefits, advocacy rights, and professional dcveklpmc:nt produds

988,896
179,385 38,253 241,734
113,895 105,780 809,872 1,443,321 589,351 77,808 I 1,810,567 17,796,610
951,465
35,152,943

776,303 1,478,908
445 12,413
721,018 116,968 105,779 849,316 944,652
16,351 3.544 68,935 7,284,749 218.229 747,767 405.065 13.750,442

Total Expenditures
1,765,199 1,478,908
179,830 50,666 241,734 721,0 18 230,863 211,559 1,659,188 2,387,973
605,108 81,352
I 1,879,502 25,081.359
218,229
1,705,232
405:065 48,903.;!85 (continued)

See notes to supplemental summary schedule ofagency fee chargeable and nonchargeable expenditures.
-34-

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 180 of 211 Page ID #:199
NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES
SUPPLEMENTAL SUMMARY SCHEDULE OF AGENCY FEE CHARGEABLE AND NONCHARGEABLE EXPENDITURES
YEAR ENDED AUGUST 31, 2011

Chargeable Nonchargeable

Total

Elpendlture Expenditure

Expenditures

Affiliate programs ond sentces tbot increase membership 1. Build affiliate capacity for membership wowth throu&fl project funding and constitumcy group assistance I. I Increase capacity and commitment ofconstituency woups to flOW membership 1.2 Strengthen affiliates' conunitment, structures, and systems to facilitate a culture of organizingand membership growth Total build affiliate capacity for membership wowtb through project funding and constituency woup assistance

883,414 64,699,439 65,582,853

2,633,703 12,625,641 15,259,344

3,517,117 11,325,080 80,842,197

2. Develop and administer slate affiliates' cooperative aweements and provide funding for the implementation ofstate and regional financial assistance 2.I Administer the afftliate cooperative agm:ment process
Total develop and administ er state affiliates' cooperat ive aweerneuts and provide funding for the implementation ofstate and regional fmaocial assistance

1,296,052 1,296,052

432,017 432,0 17

1,728,069 1,728,069

3. Create and align all NEA infrastructures to support membership wowth, with special attention to UniSav, research, and tecllnology 3.1 Create and ali~ all NEA infrastructures to support membership !JOWih with special attention to UniServ, research, and teclmology
Total create and align all NEA infrastructures to support membership wowth, with special
attention to UniSav, research, and technology

399,220 399,220

368,585 368,585

767,805 767,805

4. Collaborate with affiliates t o increase membership in existing and new markets 4. 1 Grow membership in ell eategories by eolleborati:og with stele affi liates 4.2 Grow membership in aU cate~ries by collaborating with targded state affiliates with potent ial for g,owth to conduct oJt1illlizationally integrated campei~ 4.3 Grow membership throullJI strategic investments in rnergers, affiliation of indepmdents, and new markets that bave the potential for a return on investment
Total collaborate witb affiliates to inereasc manbersbip in existingand new markets

20,467 20,467

2,552,813
5,688,228
108,204 8,349,245

2,552,813
5,708,695
108,204 8,369,712 (continued)

See notes to supplemental summary schedule ofagency fee chargeable and nonchargeable expenditures.
-35-

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 181 of 211 Page ID #:200
NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES
SUPPLEMENTAL SUMMARY SCHEDULE OF AGENCY FEE CHARGEABLE AND NONCHARGEABLE EXPENDITURES YEAR ENDED AUGUST 31 , 2011

Chargeable Nonchargeable

Total

Expenditure Expenditure Expenditures

Achoalte and communicate for public educ:ndon I. Ina-ease member support of pro-education candidates and increase public communications and advocacy for ossocialioo political1111d legislative programs 1. 1 Increase the level ofsupport within NEA membership for NEA recommended candidates and increase memba-ship engags:ment within campaigns 1.2 lnaeasc public communications to and advocacy by the public to support NEA positions, including issue advocacy efforts, ballot mcasun: campaigns, and independent expenditures Total increase member support of pro-education candidates and increase public communications and advocacy for association political and legislative prowams

4,651,529
2 1,458,504 26,1 10,033

4,651,529 21,458,504 26. 110,033

2. Ina-ease pro-public education advocacy and develop relationships with the federal !J>Vernmertt to advance NEA's pro-public education apda 2.1 Advocate and pass pro-public education and social justice legislation and policies, and increase the frequency of advocacy with targeted public and elected officials 2.2 Develop, coordinate, and maintain a partnership with the White House and the executive branch to best advance NEA's pro-public education agenda
Total increase pro-public education advocacy and develop relationships with the federal 1'>\"emmcnt to advance NEA's pro-public education ag,:nda

11,699,077 648,546
12.347,623

I 1,699,077 648,546
12.347,623

3. Communicate the NEA beliefs, qualities, and services to engage members and improve taJI!Jlt audiences' recognition ofNEA throudJ print and electronic media 3.1 Strengthen the understanding and affinity of NEA members, as well as other tar~ audiences, for the beliefs, qualities, and services associated with NEA 3.2 Design communications to maximize effectiveness in supporting Core Services and Strategic Goals throu~ the usc of opinion research, planning strategic implementation, and C\'&luation 3.3 Implement reliable and well-crafted communications for educators that hi~light the Association's activities, important developments, and information useful to educators' professional and personal lives
Total communicate the NEA beliefs, qualities, and scrvi<:cs to en~ members and improve tarl):t audiences' recognition ofNEA t hrough print and electronic media

830,155
1,776,613 2,606,768

1,976,748 4,933,329 9 , 9 8 1.424 16.891,501

1,976,748 5,763,484 11.758,037 19,498,269

4. Increase the capacity ofNEA tpvcmancc, members, and staff to advocate for all members t hrou~ a ~tcr usc of campaif11 tools and resources and partner with affiliates to increase PAC participation 4 .I Increase the capacity of IJ>Vcrnllllcc, members, and staffto better advocate for themselves and members 4.2 Increase participation in the NEA Fund for Children and Public Education 4.3 Increase efficient usc ofcampaign tools, technology , and resources in all NEA tarl1jlted campaigns
Total increase the capacity ofNEA tpvcm ance, members, and staffto advocate for all members through a gresteT usc of campaian tools and resources and partner with affiliates to to increase PAC participation

130.849 130,849

122,716 1,803,743
797.950
2,724,409

122,716 1,803,743
928.799
2,855,258 (continued)

See notes to supplemental summary schedule of agency fee chargeable and nonchargeable expendirures.
-36-

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 182 of 211 Page ID #:201
NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES
SUPPLEMENTAL SUMMARY SCHEDULE OF AGENCY FEE CHARGEABLE AND NONCHARGEABLE EXPENDITURES
YEAR ENDED AUGUST 31, 2011

Chergeable Noncllargeable

Total

Expenditure Expenditure

Expenditures

Develop and sustain strategic: partnershiP' I. Advance NEA's mission, vision, ~als, and core values with Education International and other international org~~~~izations and partners 1. 1 Reflect NEA's voice in Education International policy development, implementation,
and programmatic wortc, as weU as in advocacy among intemation~~l ori!IIJlizations
and with pertinent global partners
Total advence NEA's mission, vision, pis, and core \-alues with Education International and other international organizations and partners

5,083.348 5,083,348

5,083,348 5,083,348

2. EnSliBJl national, state, and local partners to support effective tran&fonnation of
priority schools and provide assistance to locals for p1111ncrship devclopmeot
2.1 Assist in efforts to transform NEA 's tar!J!tod priority schools throu~ partnership
eneageznent and development, end developing funding from a variety ofsources Total en~ national, state, and local partners to support effective transfonnation of priority schools and provide assistance to locals for partnership development

17.382 17.382

134,427 134,427

151,809 151,809

3. Assist state affiliates in identifying plll'lners and provide resources to strengJhen coalitions and mobilizepublic and policy support for TEF 3.1 Provide tcclmicalassistance to state affitiates in Identifyingpartners and provide resources to strengthen state-based coalitions to mobilize TEF support
Total assist state affiliates in identifying partners and provide resoun:es to strengthen coalitions and mobilize public and policy support for TEF

176,802 176,802

176,802 176.802

4. Partner with business end nonprofit leaders to support the Salary Campail!Jl 4.1 Identify and develop partnerships with business and nonprofit kaders to support a Salary Campail!Jl messB!J!
Total partner with business and nonprofit leaders to support the Salary Campail!Jl

66,991 66,991

66,991 66,991

5. Partner with or~i2.ations to infonn and advance NE.A's workforce quality agenda and promote healthy teaching and leomingenvironments 5.1 Develop and sustain active partnerships and collaborations with national partners to inform and advance NEA's educator and future wortd"orce quality agenda 5.2 Support partnerships promoting healthy environments for students, staff, Blld members
Total partner with organizations to inform and advance NEA's workforce quality &lPlda and promote healthy teadliDg and learning environments

90,873 797,995 888,868

171,283 82,308 253,591

262,156 880,303 1,142,459

6. Develop partnerships that advance and achieve NEA's federal and re~latory p olicy priorities including funding to implement these priorities 6. 1 Develop, sustain, and levers~ partnerships to advaJlce and achieve NEA 's federal and regulatory policy priorities
Total develop partnerships that advance and aehlcve NEA's federal and rcJ!IIIatory policy priorities including funding to implement these priorities

133,318 133,318

133,318 133,318

7. Partner with ethnic minority, civil rights, and other organizations to advance NEA's commitment to social justice 7.1 Develop, sustain, and lcverB!J! partnerships with ethnic minority, civil rights, Bnd other organizations to advmce NEA 's commitment to social justice
Total partner with ethnic minority, civil rights, and other organizations to advance NEA's commitmcnt to socialjustice

93,536 93,536

160,882 160,882

254,418
254,418 (continued)

See notes to supplemental summary schedule ofagency fee chargeable and nonchargeable expenditures.
-37-

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 183 of 211 Page ID #:202
NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES
SUPPLEMENTAL SUMMARY SCHEDULE OF AGENCY FEE CHARGEABLE AND NONCHARGEABLE EXPENDITURES YEAR ENDED AUGUST 31, 2011

Chargeable Noncllargeable

Total

ExpencBtu re EKpencBture ElpencBtures

8. Partner with the business community and other org;miz.ations to ensure that public schools n:ceh·e the resources required to prepare students for success in the 21st century 8.1 Develop, sustain, and levenJ81! partnerships with the business community and other oTf)lllizations that will ensure funding, resources, and training are provided to public schools to prepare students fur success in the 21st century
Total partner with the business community and other OT!1Pilizations to ensure that public schools rcccivc: the resources required to prepare students for success in the 21st c:cotury

98 527 98,527

98,527 98,527

9. Develop national partnerships that support state affiliates in building and maintaining their capacity to achieve NEA priority policy !!PaiS at the state level 9. 1 Develop, sustain, and leverag~: national partnerships, coalitions, and alliances to assist state affiliates achieve NEA priority policy goals, primarily at the state level
Total develop national partnerships that support state affiliates in building and maintaining their capacity to ach ieve NEA priority policy goals at the state level

184,450 184,450

184,450 184,450

10. Develop national partnerships that result in increased support for union membership, the recruitment and retent ion ofNEA members, and minimized inter-union competition 10. 1 Develop and sustain relationships and ~IS that result in inaeased support for union membership, the recruitment and retention ofNEA members, and minimized inter-union competition
Total develop national partnerships that result in increased support for union membership, the recruitment and retention ofNEA members, and minimized inter-union competition

76,624 76,624

76,624 76,624

I I . Develop, sustain, and leverage: st rategic alliances to advance NEA's core \'alucs and strategic priorities around partnership s 11 . 1 Develop, sustain, and leverage strategic alliances to advance NEA 'score values and strategic p riorities around partnerships
Total develop, sustain, and levcrags: st rategic alliances to advance NEA 's core values and
stratq9c p riorities around partnerships

3,869.146 3,869,146

3,869,146
3,869.146 (coot inucd)

See notes to supplemental summary schedule ofagency fee chargeable and nonchargeable expenditures.
-38 -

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 184 of 211 Page ID #:203
NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES
SUPPLEMENTAl SUMMARY SCHEDULE OF AGENCY FEE CHARGEABLE AND NONCHARGEABLE EXPENDITURES YEAR ENDED AUGUST 31 , 2011

Chargeable Nonchargeable

Total

Elcpeodlture Expenditure

ExpendJturea

Busln~ss and gowroanc:e operati ons I. Provide business systems, ~ and financial expcnise to NEA and affiliates 1. 1 Unify NEA properties, programs, and product sales undc:s- a consolidated business development plan to levc:s-aF brand assets, increase revenue, and ensu~ the Association image 1.2 Maintain financial and membership JDS.D.Bgi:DlCDt systems to meet the evolving business ofNEA and its affiliates 1.3 Ensure and track NEA and affiliate fiscal health with ~levant training and advisory services provided to fulfill their fiduciSJy duties to staffend ~J~vemanc:e, to enhance their ability to conduct association business, and to meet all regulatory requin:ments 1.4 Provide comprehensive transaction processing and reporting to ensure compliance with NEA policies, aa:ounting standards, and federal, state, and local ~lations 1..5 Mana~ and project the fmanoes oftbe Association through the monitoring and analysis of revenues and expenditures and all relevant factors 1.6 Execute a comprehensive risk management pro!JIIIll, including audits. compliance, and infonnation security, to reduce loss and increase efficiency 1.1 I...cppl ad\·ice, counseling 118CDcy fcc: support and support for the NEA Fund for Children and Public Education and Federal Election Commission maHers Total provide business systcms,legll~ and financial expertise to NEA and affiliates
2. M~ employee benefits and services, labor re.lations, and workforce costs 2.1 Workforce planning including position contro~ recruitment, internships, and Human Resource psrtnc:s- consulting 2.2 Human Capital including labor relations, payroll, benefrts, performance manegs:ment, and collective ~ning ageemcnts
Total mana~ employee bcnc6ts and services, labor relations, and workforce costs

956,023
2,843,495 4,704,981
425,247 338,444 1.237,65g I 0,5()5184g
1,763,138 3J431755 5,106,893

336,359 1,015,159
3,019,3g2 3,571,176
442,.284 209,805 1,2601731 9,g551496

336,359 1,97 1. 182
5,862,877 8.276,757
867,531 548,249 2149gl389 20,361 1344

1,763,13g
3.343,755 5.106,893

3. Provide departmental infrastructure and business intc:llipce systems that al~ with NEA's strategic ~J~als and core services 3.1 Alig,~ and levcnge Association strategies and resources for innovation, adaptability, and operational eff~eiencies and effectiveness 3.2 Lead, dircc:t, and align programs and services and manege resources to effectivcly realize the Association's core services and strategic 9)als 3.3 Improve business intelligence systc:s-ns through enterprise integration to enhance leadership's ability to malce business decisions ali8J!ed with NEA strategy
Total provide departmental infrastructure and business intdli~ systems thlll ali8J1 with NEA's strategic !J~als and core sc:s-vic:es

2.2,084 271,880 16,177,950 16,471,914

225,596
17,178,647 17,404.243

247,680 271,880 33,3561597 331876,157

4. Sustain NEA as a higb-perfonnencc leamingorpization and archive its records for current and future generations 4.1 Support the alil'lment, intcwetion, and sustainment ofstate affiliates 4.2 Faalitate the development and ali8J!mcnt ofNEA strategy and operations 4.3 Facilitate the establishment ofa workplace culture that fosters the development of a workforce that is inspired to adlievc NEA's vision and strategy 4.4 Archivingof NEA records, documents, and related materials to preserve the Association's history, 10 allow for current and future generations to learn and apprecillle NEA's role in the de\'elopmcnt of public education in America
Total sustain NEA as a high-performance learningorganization and archive its records for current and future generations

267,160 461,021 503,208
281,981 1.513,370

1,645,986 71945.410

7,913,146 461,021
503,208
5gJ 1405 9,45g,780 (continued)

See notes to supplemental summary schedule ofagency fee chargeable and nonchargeable expenditures.
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Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 185 of 211 Page ID #:204
NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES
SUPPLEMENTAL SUMMARY SCHEDULE OF AGENCY FEE CHARGEABLE AND NONCHARGEABLE EXPENDITURES YEAR ENDED AUGUST 31,2011

Chargeable Expenditure

Nonchargeable Expenditure

Total Expenditures

5. Provide tecbnolo!Pes for strategic, tactical, and daily opCTlltions S.l Ensure that Associa!ionwide technology applications, databases, and systems are ali~ed with the Assoeation's goals snd objectives 5..2 Enhance the alignment and overall management of informalion technology and customer sc:rvic:c delivery to match the current and future needs ofthe Associa!ion 5.3 Build and provide onfPing operut ions ofa reliable and robust technology infrastructure to support the ~;QWiogcommunication and information technology occds of the Association
Total provide technologies for strategic. tactical, and daily opCTlltions

6,260,873 1,668,370
1,987,574 9,916,817

6,648,143 1,771,568
21110,517 10,530,228

12,909,016 3,439,938
4,098,091 201447,045

6. Provide facility manag!!nlmt, operational support , and meeting logistics 6.1 Initiate and complete building projects thlll will improve the infrastructure 6.2 Fncilities man~t . operutional support, meeting logistics, nnd print media production
Total provide facility management, operlllional support, end mc:cting logistics

251,490
16,1l4J92 16,366,082

251,490
16,114,592 16!366,082

7. Provide administrative and fmancial support to the national councils and constituency
~ups
7 .1 Provide administrative and ftnancial assistance to the oational COIUicils and constituency g-oups (NCHE, NCUEA, NCESP, NEA Retired, and Student Prowam) - - - - -
Total provide administrative and financial support to the nntional coiUicils and constituency g-oups

597,901 597901

597,901 597,901

8. Provide support to governance and the NEA policy making process 8.1 Executive officers and exteulive committee 8.2 Board ofDirectors and its committees 8.3 Standingcommittees 8.4 NEA Representative Assembly and its standing committees 8.5 Provide coordinated support and services to NEA l')vemance in a manna that advances NEA's mission, vision, and strategic priorities
Total provide support to governance and the NEA policy making process

2,081,538 3,702,619
189,932 988,790
1,100,484 8!063,363

717,533 64,043
329,273
546!084 11656,233

2,799,071 3,766,662
519,205 988,790
116461568 91720d96

9. Provide members professional development and leadership training 9. 1 Provide useful, releYllDt, and effective minority and women's leadership training and continuing development throul#l theM inority Leadership Training Program (M LTP) and the Women's l.ea.dership Training Pro~ (WLTP) 9.2 Provideconstituency group leadership development throul#l the Nlllional Student Lc:ndership Conference, NEA-Retired Conference, Higjler Education Emerging Leaders Academy, and the ESP Leaders for Tomorrow training 9.3 Provide member professional development opportunities 9.4 Provide support to state affiliales tbroul#l the coordination ofNational CoiUicil of State Education Associations (NCSEA), implementation ofCJa:eutive leadership trainin& advocacy ofstate affiliate priorities within NEA and creation of opportunities for stete affiliate leaders to share issues, concerns, and elq)eriences 9.5 Provide state aod local staff professional development opportunities that enhance their ability to work with aU constituent !!TOups 9.6 Develop and implement a governance leadership learning system through the establishment of leader-to-leader pro1J111l15 9.7 Provide learning opportunities throul#l the l...eadership Institute that enlumce professional slolls and contribute to higjl performance 9.8 Conduct the Human and Civil Ri{flt& pre-RA events to address current trends and recosnize accomplishments ofwomen, Gl8T, and ethnic minorities
Total provide members professional development and leadership training

1,761,849
728,719 897,921
363,185 250,970
550,881 601,184 S,IS4,709

Total Expendltures

187~411015

482,639
I ,221.355 214,316

2,244,488
1,950,074 1, 112.237

139,754 1.695
493,209
637,938 3,190!906
165!079~4

502,939
252,665
493,209
550,881
ld391122 8,3451615
352,220~69
(concluded)

See notes to supplemental summary schedule ofagency fee chargeable and nonchargeable expenditures.
- 40 -

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 186 of 211 Page ID #:205
NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES
NOTES TO SUPPLEMENTAL SUMMARY SCHEDULES OF AGENCY FEE CHARGEABLE AND NONCHARGEABLE EXPENDITURES YEAR ENDED AUGUST 31, 2011
l. AGENCY FEE CHARGEABLE AND NONCHARGEABLE EXPENDITURES
The National Education Association (NEA) collects agency or service fees from non-members of NEA. These non-members are referred to as "agency feepayers." NEA is required by law to have procedures in effect to determine the amount of its expenditures that can be charged to objecting agency feepayers. The procedures that NEA applies have received the approval of arbitrators, public sector labor boards, and courts. The legal interpretations and standards that NEA currently utilizes to make its determinations of chargeability have been developed by the NEA"s Office of General Counsel based on relevant case law.
NEA has analyzed its expenditures and detennined which of those expenditures were "chargeable" to objecting agency feepayers and which of them were "nonchargeable" to those agency feepayers. Based on relevant federal and state judicial and administrative decisions, it was determined that chargeable activities and expenditures were related to the following matters:
1. collective bargaining;
2. preparations for strikes, and activities undertaken in connection with lawful strikes;
3. contract administration;
4. grievance processing, including arbitration;
5. specific terms and conditions ofemployment that may be negotiable, such as wages, hours, benefits, working conditions, employment discrimination, promotions, discipline, discharge, retirement benefits, perfonnance evaluation, overtime compensation, environmental issues in the workplace, etc.;
6. communications with bargaining unit members regarding services they receive;
7. professional development (including teacher education, continuing education, and certification), curriculum development and implementation, teaching methods and other instructional skills, information and materials intended for instructional purposes, site-based decision making, and education generally, except to the extent that such activities and expenditures involve lobbying and other political activities, membership organizing or recruitment activities, and/or external public relations;
8. uses of technology in education;
9. publications, portions ofpublications, or any other communications which involve chargeable issues, such as those related to activities or expenditures listed herein as chargeable, if the publications are provided to agency feepayers;
10. unemployment and job opportunities in education;
11 . insurance programs and other benefits for which both members and agency feepayers are eligible;
-41-

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 187 of 211 Page ID #:206
NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES
NOTES TO SUPPLEMENTAL SUMMARY SCHEDULES OF AGENCY FEE CHARGEABLE AND NONCHARGEABLE EXPENDITURES
YEAR ENDED AUGUST 31, 2011
12. NEA award programs;
13. Association leadership and management skills training and techniques, strategic planning;
14. NEA Representative Assembly, Executive Committee and Board ofDirectors; and
15. employee relations and NEA staff grievances.
It was further determined that nonchargeable activities and expenditures were related to the following matters:
J. lobbying and political efforts before state legislatures, state administrative agencies, Congress, federal agencies or other executive branch officials, and ballot initiatives, as well as any grassroots lobbying activities related to the Great Public Schools Program, unless any of the preceding are specifically related to ratification or implementation of a collective bargaining agreement;
2. external public relations (unless specifically related to collective bargaining or contract administration), American Education Week, National Teacher Day, and any public relations related to the Great Public Schools Program;
3. litigation, unless specifically related to collective bargaining, contract administration or organizational maintenance;
4. voter registration and get-out-the-vote activities for members, and campaign techniques (i.e., training programs designed to prepare leaders, staffand/or members to work with members in support of candidates for any public office);
5. supporting or contributing to charitable, religious or ideological causes (e.g., direct or inkind contributions to such causes, expenditures designed primarily to assist such causes, and payments to fundraisers for groups which promote such causes);
6. supporting political organizations or candidates for public office (e.g., activities in connection with the endorsement of political candidates, activities in connection with the NEA Fund for Children and Public Education, including its administration, consulting with/or providing training for statenocal political action committees);
7. publications, portions ofpublications or any other communications which involve nonchargeable issues, such as those related to activities or expenditures listed herein as nonchargeable;
8. organizing or recruiting new members, establishing new or expanded bargaining units, organizing and recruitment activities related to the Great Public Schools Program, defending against challenges to exclusive bargaining representative status;
9. various ideological issues unrelated to collective bargaining or organizational maintenance, such as reproductive freedom (including abortion and birth control), anti-flag burning laws, -42-

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 188 of 211 Page ID #:207
NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES
NOTES TO SUPPLEMENTAL SUMMARY SCHEDULES OF AGENCY FEE CHARGEABLE AND NONCHARGEABLE EXPENDITURES YEAR ENDED AUGUST 31, 2011
balanced budget amendment, prayer in school, school vouchers, .race relations in Africa and Asia, energy conservation, human rights, nuclear arms freeze, child support enforcement, judicial or executive appointments, student scholarships, etc.; I0. illegal job actions and administration of the National Education Employees Assistance Fund; 11. monitoring and opposing activities of groups and individuals whose purpose is t.o undermine public education; 12. members-only benefits, (e.g., OUES-TAB Insurance); 13. NEA-Retired and NEA Student Program activities; and 14. international relations, the Education International.
Expenditures in the foJlowing categories were analyzed by examining staff's daily activity reports, vouchers and fmancial reports, written or audiovisual publications, service or funding agreements, meeting or conference agendas/materials, research surveys, etc., in the context of the criteria listed above: Tax and economic policies and school funding; Improved education members' salaries; Making priority schools great public schools for all students; Student learning and workforce quality; Affiliate programs and services that increase membership; categories 1, 2, 4 and portions of category 3 ofAdvocate and communicate for public education; Develop and sustain strategic partnerships; and portions of categories I - 4, 6, and 8 - 9, of Business and governance operations. Based upon these analyses, NEA detennined which of its expenditures were chargeable and which were nonchargeable.
-43-

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 189 of 211 Page ID #:208
NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES
NOTES TO SUPPLEMENTAL SUMMARY SCHEDULES OF AGENCY FEE CHARGEABLE AND NONCHARGEABLE EXPENDITURES YEAR ENDED AUGUST 31, 2011
2. STATE AFFILIATE DETERMINATION OF CHARGEABLE EXPENDITURES
The total chargeable and nonchargeable expenditures included in the Affiliate Financial Assistance Program (category 2 of Affiliate programs and services that increase membership), Small States Foundation Program, Unified State Executive Director Program, Local Presidents Release Time Program, and UniServ Grants Program (all in category 1 of Affiliate programs and services that increase membership), and in the Unified Legal Services Program (category 4 of Student learning and workforce quality), have been allocated based on a conservative estimate of the average chargeable percentages reported by the state affiliates for the year ended August 31, 201 0. That is because, at the time of this audit, state affiliates have not yet completed their own audits for the year ended August 31, 2011 . State affiliates will subsequently report their respective chargeable and nonchargeable percentages for the year ended August 31, 2011 , when complete, audited infonnation is available for them to make such determinations. Therefore, the chargeable and nonchargeable expenditures of those programs listed in this document are estimates for purposes of these schedules and will subsequently be adjusted to actual upon receipt of the chargeable and nonchargeable percentages from state affiliates.
The expenditures in category 4 of Student learning and workforce quality include amounts for Educators Employment Liability (EEL) insurance and the Attorney Referral Program (ARP), which are not provided to agency feepayers in some states. For purposes of this presentation, the EEL-related expenditures have been treated as chargeable and the ARPrelated expenditures have been treated as nonchargeable; however, in the states where either the EEL insurance or ARP is not provided to agency feepayers, the expenditures will be considered nonchargeable.
3. OVERHEAD FUNCTIONS
The expenditures in the following Core Service Areas and Strategic Goals are considered programmatic in nature: Tax and economic policies and school funding; Improved education members' salaries; Making priority schools great public schools for all students; Student learning and workforce quality; Affiliate programs and services that increase membership; categories 1, 2, 4 and portions of category 3 of Advocate and communicate for public education; Develop and sustain strategic partnerships; and portions of categories I, 4, 7, and 9, of Business and governance operations.
The expenditures in the following Core Service Areas are considered support or overhead: portions of category 3 of Advocate and communicate for public education; category 2, 3, 5, 6, and 8 and portions of categories 1, 4, 7, and 9 of Business and governance operations. In view of this relationship, management believes it is fair and reasonable to allocate the expenditures in the support or overhead areas by the percentage determined as chargeable for the programmatic activities, but only after specific clearly chargeable or clearly nonchargeable expenditures have been separated and treated as fully chargeable or nonchargeable, respectively.
-44-

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 190 of 211 Page ID #:209
NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES
NOTES TO SUPPLEMENTAL SUMMARY SCHEDULES OF AGENCY FEE CHARGEABLE AND NONCHARGEABLE EXPENDITURES YEAR ENDED AUGUST 31, 2011

The support or overhead expenditures, which are considered clearly chargeable, are as follows:

Core Service Area 3 - Advocate and communicate for public education

3. Communicate the NEA beliefs, qualities, and services to engage

members and improve target audiences' recognition ofNEA through print

and electronic media

Tactic 3.3

RA Today

$413,778

Core Service Area 5 - Business and governance operations

1. Provide business systems, legal, and financial expertise to NEA and

affiliates

Tactic 2.3

Headquarters property tax payments

Tactic 2.5

Internal auditing

Tactic 2.6

Agency fee support

2. Manage employee benefits and services, labor relations, and workforce

costs

Tactic 3.1

Workforce planning, position control

Tactic 3.2

Human capital, labor relations, payroll

3. Provide departmental infrastructure and business intelligence systems

that align with NEA's strategic goals and core services

Tactic 4.1

Annual meeting innovations

Tactic 4.1

Align association strategies

Tactic 4 .3

Strategic management system

4. Sustain NEA as a high-perfonnance learning organization and archive

its records for current and future generations

Tactic 5.1

Strategic intent

Tactic 5.1

G-27

Tactic 5.2

Strategic planning/operational review

Tactic 5.3

Cultural tactics

6. Provide facility management, operational support, and meeting logistics

Tactic 7.1

Building projects

Tactic 7.2

Facilities management, operational support

8. Provide support to governance and the NEA policy making process

Tactic 9.2

Executive committee

Tactic 9.3

Board ofdirectors

Tactic 9.5

Standing committees ofthe RA

Tactic 9.6

Handbook, proceedings, and minutes

Tactic 9.6

Support organizational priorities

1,601,661 140,860 109,332
1,763,138 3,343,755
19,624 2,460 271,880
25 1,350 15 ,810
461,021 503,208
251,490 16,1 14,592
1,405,805 3,702,619
988,790 41,566
544,645

-45 -

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 191 of 211 Page ID #:210
NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES
NOTES TO SUPPLEMENTAL SUMMARY SCHEDULES OF AGENCY FEE CHARGEABLE AND NONCHARGEABLE EXPENDITURES
YEAR ENDED AUGUST 31, 2011

9. Provide members professional development and leadership training

Tactic 10.7

Learning management system

550,881 32,084,487

The support or overhead expenditures that are considered clearly nonchargeable are as follows:

Core Service Area 5 - Business and governance operations

1. Provide business systems, legal, and financial expertise to NEA and

affiliates

Tactic 2.3

PAC compliance systems

Tactic 2.6

FCPE policy support services

276,498 62,61]

3. Governance capacity building, engagement and leadership development

Tactic 4.1

Online training

Tactic 4 .1

Fulfillment services

141,265 84,331

8. Support and sustain NEA as a high-performance learning organization

Tactic 9.2

International travel

Tactic 9.3

Committee on membership eligibility

Tactic 9.4

Standing committee -legislation

Tactic 9.4

Standing committee- student

Tactic 9.4

Standing committee- membership

45,164 18,879 33,491 24,250 69,852
756,341

For purposes of this schedule, the chargeable and nonchargeable expenditures of the remaining support or overhead areas are based upon a chargeable percentage figure that has been derived from the chargeable programmatic activity expenditures as they appear elsewhere in the schedule. Because, as explained in Note 2, the chargeable percentages for some programmatic activities will vary from state to state in accordance with certain specific expenditures of those state affiliates, the chargeable and nonchargeable expenditures of those remaining support or overhead areas are not final. Once NEA receives the appropriate information from the state affiliates, it will calculate a final chargeable programmatic activity percentage for each state affiliate and then use that percentage to allocate the expenditures in the remaining support or overhead areas. Consequently, new NEA total chargeable and nonchargeable expenditures will result for each state affiliate.
*****

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 192 of 211 Page ID #:211
Exhibit E

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 193 of 211 Page ID #:212
nea

NATIONAL F.OUCATIO ASSOCIATION
nt•:J.nrg
Grrcr Public Schools far Every Srudcnr

1201 16th St., N.W. I Washington, DC 20036 I Phone: (202) 833-4000

Dennis \'an Rockel President
Lily Eskelsen Vice President
Rebecca S. Pringle SecretOI)'- Treasurer

John Stocks Executive Director

August 9, 2012

California

NATIONAL EDUCATION ASSOCIATION CHARGEABLE AND NONCHARGEABLE AUDITED EXPENDITURES FOR THE 2010-2011 FISCAL YEAR

CHARGEABLE & NONCHARGEABLE AUDITED EXPENDITURES BY CORE SERVICE AREA AND STRA TEGJC GOAL CATEGORY

I. PROGRAMMATIC ACTIVITIES

NEA's programmatic activities are organized into 37 Strategic Goal and Core Service Categories.

TAX AND ECONOMIC POLICIES AND SCHOOL FUNDING (TEF)

Category 1 - Provide research and technical assistance to all state affiliates on TEF issues: Provided research and technical ass istance to state affiliate staff regarding how quality schools are related to educational funding, economic development, and taxation. Provided technical support and training on tax, economic policies and school funding.

Chargeable audited expenditures.................. $ Nonchargeable audited expenditures ..........$ Tota l audited expenditures ..............................$

- 02,226,918 2,226,918

Category 2- Provide research and technical assistance to state affiliates to build tax and economic infrastructures for adequate and equitable funding. Provided TEF research and technical assistance to state affi liates for achieving adequ ate, equitable and stable funding for public education.

Chargeable audited expe nditures ..................$ Nonchargeable audited expenditures ..........$ Total audited expenditures ..............................$

-0310,650 310,650

Category 3- Provide assistance to affiliates for implementing TEF-conscious advocacy, message development, and dissemination ofTEF information: Provided res earch and

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 194 of 211 Page ID #:213

technical assistance to states for implementingTEF-conscious strategies. Provided research and technical assistance to state affiliates to promote TEF policies. Created crossplatform media to mobilize around funding campaigns.

Chargeable audited expenditures..................$ Nonchargeable audited expenditures..........$ Total audited expenditures ..............................$

- 0403,226 403,226

IMPROVED EDUCATION MEMBERS' SALARIES

Category 1 - Provide technical andfinancial support to affiliates engaged in or preparing to engage in comprehensive salary campaigns: Created and presented training
focusing on bargaining for higher compensation through living wage and salary campaigns. Conducted an Annual Salary Roundtable meeting. Provided assistance to affiliates with regard to building and mobilizing community support for better compensation. Provided financial assistance, materials, and training to affiliates in connection with bargaining strategies for increasing compensation. Provided information and technical assistance to state affiliates on such matters as career ladders, block scheduling, the impact ofteacher experience on student achievement, teacher quality, and professional development resources.

Chargeable audited expenditures..................$ Nonchargeable audited expenditures..........$ Total audited expenditures ..............................$

1,272,396 401,355
1,673,751

Category 2 - Position NEA to be the national voicefor the improvement ofeducation employees' salaries: Marketed salary campaign-branded goods to affiliates for use in
creating momentum for salary campaigns. Developed media to drive interest of members and the public around NEA salary campaign. Created a cross-platform media program that develops a sense ofcommunity among members for salary campaigns. Increased online coverage ofsalary campaign.

Chargeable audited expenditures..................$ Nonchargeable audited expenditures ..........$ Total audited expenditures ..............................$

1,500 48,007 49,507

Category 3 - Collec~ store, analyze, and report information that supports NEA national state affiliate salary campaigns: Populated a salary database with data on Education
Support Professionals (ESPs) and higher education faculty. Produced a report on annual average starting salary and progress toward campaign goals. Provided Association Compensation Analysis Program and National Compensation Analysis Program database user support and training used in collective bargaining efforts. Held the NEA Summit on Alternative Compensation. Produced an internal report on alternative compensation models.

-2-

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 195 of 211 Page ID #:214

Chargeable audited expenditures..................$ Nonchargeable audited expenditure............$ Total audited expenditures ..............................$

743,599 30,350 773,949

Category 4 ~ Provide training to support the work ofNEA and its affiliates to effectively advocatefor professional payfor all members: Provided training to UniServ, Regional field staff, and national office staff on salary campaigns. Updated training modules on salary campaigns. Provided message research, development, training, and delivery for salary campaigns.

Chargeable audited expenditures..................$ Nonchargeable audited expenditures..........$ Total audited expenditures ..............................$

48,661 358,822 407,483

MAKING PRIORITY SCHOOLS GREAT PUBLIC SCHOOLS FOR ALL STUDENTS

Category 1 -Provide technical assistance, training, and resources to state and local affiliates to help them identify and support targeted priority schools. Mobilized Priority Schools Campaign (PSC) resources to support state comprehensive plans in the areas of policy, practice, capacity building, and demonstration projects. Built capacity in targeted affiliates through professional development for state leaders and staffand provided resources and technical assistance. Provided resources and technical assistance to affiliates and schools on the Keys to Excellence for Your School (KEYS) continuous school improvement program to improve student achievement in PSC targeted schools. Reviewed and produced education research studies about school improvement and information to support the KEYS indicators. Awarded grants to state affiliates to provide teachers with English Language Learner (ELL) training. Gathered and analyzed data to identify and meet the most critical information needs oftargeted priority schools, induding but not limited to information about closing achievement gaps, preventing dropouts, and teaching ELL students. Launched mentoring program that connects teachers in targeted high~needs schools with National Board Certified Teachers.

Chargeable audited expenditures..................$ Nonchargeable audited expenditures..........$ Total audited expenditures ..............................$

2,646,377 645,118
3,291,495

Category 2- Engage affiliates and members to support local efforts to transform priority schools while raising the awareness ofthe Priority Schools Campaign. Established public engagement and family~school partnerships in support oftargeted priority schools. Conducted presentations, trainings and briefings on ELLs. Identified, informed, and engaged leaders and partners within the ethnic minority communities in support of efforts to transform targeted priority schools.

Chargeable audited expenditures..................$ Nonchargeable audited expenditures..........$

425,283 579,947

-3~

Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 196 of 211 Page ID #:215

Total audited expenditures..............................$ 1,005,230

Category 3- Communicate with members, partners, and the public to call attention to the urgency of, common issues and best practicesfor, transforming priority schools. Provided earned media, paid media, outreach, and other public relations initiatives in support of targeted priority schools. Created a media program that established and advanced the central messaging components to targeted audiences. Raised awareness ofNEA's Priority Schools Campaign with elected and appointed officials to build support for the Priority Schools Campaign. Provided targeted affiliates technical support to win contract language necessary to support the Priority Schools Campaign.

Chargeable audited expenditures..................$ Nonchargeable audited expenditures..........$ Total audited expenditures..............................$

14,481 1,335,944 1,350,425

STUDENT LEARNING AND WORKFORCE QUALITY

Category 1 -SupportAssociation effort to advocate for enhanced student learning and workforce quality and the advancement ofNEA supported pro-public education and social justice policies: Provided research-based information to advocate for a quality education workforce. Conducted research-based projects that identify ESP job standards and certification requirements and demonstrate positive ESP influence on quality learning. Monitored, reviewed and analyzed federal legislation and regulations on a wide variety of education-related issues. Advanced federal legislation and regulations that promote policies and practices to enhance student learning workforce quality. Advanced nonfederal, NEA supported, pro-public education and social justice policies to enhance student learning and workforce quality.

Chargeable audited expenditures..................$ Nonchargeable audited expenditures ..........$ Total audited expenditures ..............................$

213,475 763,389 976,864

Category 2 -Provide resources to assist affiliates build capacity to support their initiatives designed to advance pro-public education policiesfor studentlearning and workforce quality: Distributed grants and technical resources to develop ethnic minority leaders and improve staffskills regarding ethnic minority issues. Provided grants, information, resources, materials, and consultation regarding diversity, social justice, gay, lesbian, bisexual, transgender (GLBT), gender equity, and safe schools issues. Developed and provided specialized training for issues of concern to ESP members. Delivered training and resources on diversity, social justice, GLBT issues, safe schools, bullying and sexual harassment Developed and implemented strategies to strengthen and enhance standards and policies for teacher preparation, licensure, and other standards for entry into teaching. Provided support for the work ofthe Individuals with Disabilities Education Act (IDEA) Cadre related to professional development on special education topics. Administered the Public Engagement Project (PEP) Program to assist in creating teaching and learning

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conditions that lead to closing student achievement gaps and increase graduation rates. Created a professional development model to align curriculum with out-of-school experiences.

Chargeable audited expenditures..................$ Nonchargeable audited expenditures ..........$ Total audited expenditures ..............................$

2,318,744 212,920
2,531,664

Category 3 -Partner with affiliates and others to support workforce quality designed to improve student achievement and increasedgraduation rates: Helped state affiliates to deliver services to members and prospective members through existing NEA programs for teacher certification, licensure, recruitment, and other teacher quality resources. Developed and implemented national dissemination and outreach strategies for the NEA's National Board Candidate-Centered Support Guide. Engaged with ethnic minority organizations to promote and advocate for initiatives in support of culturally competent educations, improved student achievement, and increased graduation rates.

Chargeable audited expenditures..................$ Nonchargeable audited expenditures ..........$ Total audited expenditures ..............................$

268,565 110,186 378,751

Category 4 -Provide support, research, and information to staff, members, and affiliates that improve workforce quality through improved working conditions and benefits, advocacy rights, and professional development policies: Provided grants and technical assistance to all state affiliates related to policy and practice. Developed indicators for the Great Public Schools (GPS) criteria and established data repositories and reporting systems for state education policies and practices used for gauging the indicators. Provided technical assistance, analysis, and information to NEA governance and departments in support of their advocacy efforts for pro-public education federal policy. Awarded grants and provided technical assistance to staff in state affiliates to improve accountability frameworks. Convened a meeting of NEA state affiliate executive directors to develop an action plan for the Race to the Top (RTTT). Tracked and analyzed state and federal policy affecting the ESP workforce. Awarded grants to state affiliates to provide teachers with ELL training. Provided grants to state affiliates to help teachers improve their skills, support National Board Certification (NBC), and address various teacher quality issues. Assisted state affiliates in implementing the Teacher Working Conditions (TWC) survey initiative. Provided funding to organizations aligned with NEA's policies on testing, class size, and teaching students with learning disabilities. Promoted policy recommendations and provided policy support for the reauthorization of federal legislation, including the Elementary and Secondary Education Act (ESEA), the Individuals with Disabilities Education Act (IDEA), Head Start, Perkins Career and Technical Education Act, and the Child Nutrition Act. Supported NEA's involvement in the Partnership for 21st Century Skills (P21). CoJlaborated with NEA Academy and institutions of higher education to provide leadership and professional development programs that offer academic credits. Provided policy support and analysis to NEA departments for the passage of pro-public education federal legislation, including ESEA. Provided state affiliates with policy

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frameworks and concepts to support school transformation. Identified quality workforce standards to support professional development and compensation improvement Provided state affiliates information, models, and strategies resulting from NEA's work in the Priority Schools Campaign. Conducted an annual consortium on National Board Certification for state affiliates. Conducted the NEA/National StaffAssociation for the Improvement of Instruction (NSAII) Teaching and Learning Conference. Participated in, and provided technical support for, the National Council for the Accreditation ofTeacher Education (NCATE). Sponsored the Commission of Effective Teachers and Teaching. Provided research on the relationship between teacher working conditions and student achievement, value-added evaluation methodologies, education policy debates, and chronically underperforming schools. Completed surveys on school culture, school safety and student discipline, staffsatisfaction, conference evaluations, and school restructuring. Implemented enhancements to the KEYS program, including research on school improvement, technical assistance to NEA state affiliates, and conducting meeting of the KEYS Advisory Group. Paid the premium for the Educators Employment Liability Program, which provides insurance to members, and feepayers in some states, protecting them from personal financial liability when they are sued as a result ofemployment-related activities. Paid the premiums for and administered the Association Professional Liability Program and the Fidelity Bond Program, which provide legal and financial protection to the Association, its leaders, and its staff. Through the Unified Legal Services Program (ULSP), provided reimbursements to state affiliates for the costs oflegal representation of educators in connection with challenges to their employment rights. Conducted the ULSP Coordinators' Meeting. Provided technical assistance and training on retirement benefits, bargaining, legislative, and policy issues. Developed approaches to protecting and defending public pensions and public educator retirement security. Conducted the Collective Bargaining/Research Conference. Provided technical assistance and training on health care reform implementation issues and policy.
Chargeable audited expenditures..................$ 11,860,9611 Nonchargeable audited expenditures..........$ 37,042,424 Total audited expenditures .............................$ 48,903,385
AFFILIATE PROGRAMS AND SERVICES THAT INCREASE MEMBERSHIP
Category 1 -Build affiliate capacityfor membership growth through projectfunding and constituency group assistance: Increased capacity and commitment ofconstituency groups to grow membership. Conducted NEA-Retired and NEA-Student National Programs. Provided assistance, financial and technological support to the Higher Education National Program. Published the 2011 Higher Education Almanac. Managed the Higher Education Contract Analysis System (HECAS) project. Delivered national skills training sessions to experienced UniServ staff. Conducted UniServ Academy Skill Development training for newly hired UniServ staff. Provided training to state and local affiliates on such matters as arbitration skills, crisis intervention, interest-based bargaining, bargaining behavior, team-building, and dispute resolution systems. Provided affiliates with financial assistance for local president release time, and provided training to local presidents on
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such matters as working as a team, conflict resolution, mobiUzing members for collective action, developing an emerging leaders program, and creative ways to engage members in Association activities. Administered National Education Employees Assistance Fund (NEEAF) to provide interest-free loans to education employees and other financial assistance to affiliates in crises that emerge from disputes between education employees and boards ofeducation. Provided grants to state affiliates to help pay salaries of UniServ directors, whose primary functions consist ofcontract negotiation and implementation, grievance processing and representation in arbitration, administration oflocal affiliates, and training local leaders and other educators in bargaining and school improvement activities. Provided financial assistance to state affiliates, including through the Unified State Executive Director and Small States Foundation Programs, for the maintenance of effective business operations and organizational and program development Provided coordination of, and assistance for, state affiliate leadership and management services. Conducted regional leadership conferences. Implemented the Affirmative Action UniServ Intern Training Program. Conducted state-based training sessions on bargaining and advocacy skills.
Chargeable audited expenditures..................$ 69,697,07411 Nonchargeable audited expenditures..........$ 11,145,123 Total audited expenditures .............................$ 80,842,197
Category 2 - Develop and administer state affiliates' cooperative agreements and provide funding for the implementation ofstate and regionalfinancial assistance: Administered the affiliate cooperative agreement process. Provided affiliate financial assistance grants for maintenance of effective business operations and programs.
Chargeable audited expenditures..................$ 1,181,99911J Nonchargeable audited expenditures..........$ 546,070 Total audited expenditures .............................$ 1,728,069
Category 3 - Create and align all NEA infrastructures to support membership growth, with special attention to UniServ, research, and technology: Updated the NEA bullying and prevention program and help education employees create safer working conditions by reducing the instances of bullying in classrooms and schools. Conducted research on ESP earnings and demographics and the findings of the ESP survey. Developed the Data Book of K-12 and Higher Education ESP workforce with data on the composition, demographics, benefits, and earnings of the ESP workforce. Collected data to assess the impact of the current recession on employment conditions in education. Published book examining teacher working conditions, professional development, and compensation over the past 50 years and project for the future. Conduct the pilot phase of5-year ESP member survey. Data used for organizing and collective bargaining efforts. Explore and design the methodology and survey questionnaire in preparation for the National Membership Survey of 2012. Upgraded and maintained the research database used to identify potential organizing targets and to provide salary information for collective bargaining.
Chargeable audited expenditures..................$ 399,220
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Nonchargeable audited expenditures..........$ Total audited expenditures .............................$

368,585 767,805

Category 4 - Collaborate with affiliates to increase membership in existing and new markets: Worked to grow membership in all categories by collaborating with state affiliates. Provided campaign management and technical assistance to affiliates for membership growth. Provided research, training, materials, and assistance to affiliates facing privatization of ESP members' jobs. Provide campaign management and technical assistance to affiliates that require crisis assistance, and explored organizing possibilities. Provided training and materials to assist with organizing political action committee (PAC) contributions as part of membership growth campaigns. Developed resources and materials to support integrated issue campaigns and monitor activities and messaging of anti-union competitor organizations. Increase membership of ethnic minorities and women, including members in public schools on Indian reservations, and Higher Education members in minority·serving institutions by utilizing Minority Leadership Training (MLT) and Women's Leadership Training (WLT) trainees as recruiters in targeted state affiliate campaigns.

Chargeable audited expenditures..................$ Nonchargeable audited expenditures..........$ Total audited expenditures .............................$

20,467 8,349,245 8,369,712

ADVOCATE AND COMMUNICATE FOR PUBLIC EDUCATION
Category 1 - Increase membersupport ofpro-education candidates and increase public communications and advocacyfor association political and legislative programs: Developed a political program to build support among NEA members for pro-public education candidates from both major parties. Assisted state affiliates in efforts to assess the positions of their members on candidates and education issues. Collaborated with state associations on plans to educate, organize, mobilize, and turn out members and their households in state and federal elections. Built and strengthened coalitions, donor collaborations, and independent communication tables to increase capacity for public communications through independent expenditures and issue advocacy. Provided state affiliates with financial assistance to advance public support for pro-education ballot measures, defeat anti-pub1ic education ballot measures, and urge passage or defeat ofstate education legislation. Coordinated the operation of the NEA Fund for Children and Public Education, NEA's PAC, which is funded exclusively from voluntary member contributions, and engaged members to increase PAC contributions.
Chargeable audited expenditures..................$ -0 Nonchargeable audited expenditures ..........$ 26,110,033 Total audited expenditures ..............................$ 26,110,033
Category 2 - Increase pro-public education advocacy and develop relationships with thefederal government to advance NEA's pro-public education agenda: Advocated and
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passed pro-public education and social justice legislation and policies, and increased the frequency ofadvocacy with targeted public and elected officials. Developed, coordinated and maintained a partnership with the White House and the executive branch to best advance NEA's pro-public education agenda. Promoted NEA's federal legislative agenda through a bipartisan lobbying program and grassroots mobilization. Partnered with other national organizations to lobby Congress and the executive branch in support of public education and NEA's priorities. Maintained and expanded communications with NEA members and affiliate staffand leaders with regard to legislative and political issues.

Chargeable audited expenditures..................$ -0Nonchargeable audited expenditures ..........$ 12,347,623 Total audited expenditures ..............................$ 12,347,623

Category 3- Communicate the NEA beliefs, qualities, and services to engage members and improve target audiences'recognition ofNEA through print and electronic media: Informed NEA's affiliates, leaders, members, and agency feepayers about Association policies, programs, and accomplishments through an internal network of printed publications, including NEA TODAYand specialized constituency periodicals. Created multi-platform to publicize and advance NEA's high-profile work. Created multimedia programs that advance the membership goals in targeted campaigns. Implement public relations activities that support NEA efforts to advocate for public education. Administered the NEA State Affiliate Advertising Assistance Grant program.

Chargeable audited expenditures..................$ 478,391 Nonchargeable audited expenditures..........$ 15,070,844 Total audited expenditures ..............................$ 15,549,235

Category4 -Increase the capacityofNEAgovernance, members, and staffto advocate for all members through a greater use ofcampaign tools and resources and partner with affiliates to increase PAC participation: Conducted staff, governance, and member political organizing trainings. Increased support for NEA's legislative agenda among our members running for, or elected to, local, state, or national political offices. Provide training to leaders and members in venues for constituency groups, UniServ Managers Association, Higher Education faculty, and staff. Tracked state legislation. Increased affiliates' ability to meet PAC fundraising goals through training, capacity-building programs, and online fundraising. Supported the PAC Council and administered contributions to recommended candidates. Created and maintained a system for all state affiliates that would support regular reporting and tracking of activities. Engaged members and the public in social media to promote advocacy of NEA supported issues and/or candidates.

Chargeable audited expenditures..................$ Nonchargeable audited expenditures ..........$ Total audited expenditures ..............................$

130,849 2,724,409 2,855,258

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DEVELOP AND SUSTAJN STRATEGIC PARTNERSHIPS
Category 1- Advance NEA smission, vision, goals, and core values with Education
International and other international organizations and partners Managed international outreach to NEA leaders and members, international advocacy, and policy input with international bodies.

Chargeable audited expenditures..................$ Nonchargeable audited expenditures..........$ Total audited expenditures ..............................$

-05,083,348 5,083,348

Category 2 - Engage national, state and local partners to support effective transformation ofpriorityschools and provide assistance to localsfor partnership development: Assisted efforts to transform NEA's targeted priority schools through partnership engagement and development Collaborated with parental involvement organizations to promote NEA's Priority Schools parental involvement efforts. Assisted affiliates requesting assistance in building state and local partnerships with the ethnic minority community that support NEA's PSC.

Chargeable audited expenditures..................$ Nonchargeable audited expenditures..........$ Total audited expenditures ..............................$

17,382 134,427 151,809

Category 3 -Assist state affiliates in identifying partners and provide resources to strengthen coalitions and mobilize public policy and supportfor TEF: Provided technical assistance to state affiliates in identifying partners and provided resources to strengthen state-based coalitions to mobilize TEF support

Chargeable audited expenditures..................$ Nonchargeable audited expenditures..........$ Total audited expenditures ..............................$

-0176,802 176,802

Category 4- Partner with business and nonprofit leaders to support the Salary Campaign: Research, identify, and develop partnerships with leaders from corporations/business and nonprofit organizations who will support the state affiliates salary/living wage campaigns and monitor and report on their supportive involvement.

Chargeable audited expenditures..................$ Nonchargeable audited expenditures..........$ Total audited expenditures ..............................$

-066,991 66,991

Category 5 - Partner with organizations to inform and advance NEA's workforce quality agenda and promote healthy teachinn and learning environments: Partnered with other national organizations to enhance professional development opportunities and influence federal policy related to ESP quality. Supported and advance NEA's initiatives for green school working environments. Sustained partnerships with minority-serving

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institutions to increase the pool of ethnic minority educators. Developed and sustained active partnerships to advance NEA's workforce quality agenda related to teacher accreditation, preparation, licensure, professional development and other teacher quality interests. Provided financial support to NEA Health Information Network to promote the health ofstudents, staff, members, and a healthy environment.

Chargeable audited expenditures..................$ Nonchargeable audited expenditures ..........$ Total audited expenditures ..............................$

888,868 253,591 1,142,459

Category 6 -Develop partnerships that advance and achieve NEA 's federal and regulatory policy priorities including funding to implement these priorities: Developed and sustained partnerships with ethnic minority and civil rights organizations to engage with them on key federal education policy.

Chargeable audited expenditures..................$ Nonchargeable audited expenditures ..........$ Total audited expenditures ..............................$

-0133,318 133,318

Category 7- Partner with ethnic minority, civil rights, and other organizations to advance NEA 's commitment to socialjustice: Partnered with organizations to advance NEA's agenda related to English-language learner (ELL) students. Partnered with women, ethnic minority and GLBT organizations to advance NEA's policies on workplace equity.

Chargeable audited expenditures..................$ Nonchargeable audited expenditures..........$ Total audited expenditures ..............................$

93,536 160,882 254,418

Category 8- Partner with business community and other organizations to ensure that public schools receive the resources required to prepare studentsfor success in the 21st century: Identified potential opportunities to coordinate with businesses, ethnic minority leaders, and philanthropic partners to support of NEA goals.

Chargeable audited expenditures..................$ Nonchargeable audited expenditures ..........$ Total audited expenditures..............................$

- 098,527 98,527

Category 9 -Develop national partnerships that support state affiliates in building and maintaining their capacity to achieve NEA priority policy goals at the state level: Assisted state affiliates in developing partnerships with state-based education, civil rights, ethnic minority, business, and other advocacy groups to promote NEA's political program, public education priorities, and civic engagement goals.

Chargeable audited expenditures..................$ Nonchargeable audited expenditures ..........$ Total audited expenditures ..............................$

-0184,450 184,450

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Category 10- Develop national partnerships that result in increased supportfor union membership, the recruitment and retention ofNEA members, and minimized inter-union competition: Participated in the National Classified Education Support Employee Unions (NCESEU) to position NEA as the ESP industry leader servicing ESP members. Sustained partnerships, jurisdictional agreements, and joint organizing efforts with other labor organizations.

Chargeable audited expenditures..................$ Nonchargeable audited expenditures..........$ Total audited expenditures ..............................$

- 0-
76,624 76,624

Category 11- Develop, sustain, and leverage strategic alliances to advance NEA's core values and strategic priorities around partnerships: Monitor organizations whose priorities contradict those of NEA Built and sustained strategic alliances with businesses, education organizations, and child advocacy, progressive advocacy, and faith-based communities to advance NEA's strategic goals. Developed strategic engagement with selected education research think tanks and academic forums focused on public school reform and closing the achievement gaps.

Chargeable audited expenditures..................$ Nonchargeable audited expenditures..........$ Total audited expenditures..............................$

-0-
3,869,146 3,869,146

BUSINESS AND GOVERNANCE OPERATIONS

Category 1 -Provide business systems, legal and financial expertise to NEA and affiliates: Positioned NEA's school improvement program (KEYS) and its related products and services as a potential non-dues revenue generating resource. Collected and analyzed teacher salary data for use in NEA dues calculation. Developed earnings estimates, profiles, and membership distribution. Updated and maintained the school-rankings databases.

Chargeable audited expenditures..................$ Nonchargeable audited expenditures..........$ Total audited expenditures .............................$

116,561 450,864 567,425

Category 4- Sustain NEA as a high performing learning organization: Supported the alignment, integration, and sustainment ofstate affiliates.

Chargeable audited expenditures..................$ -0 Nonchargeable audited expenditures..........$ 7,645,986 Total audited expenditures .............................$ 7,645,986

Category 7- Provide administrative andfinancial assistance to the national councils and constituency groups: Provided assistance to National Council of Urban Education,

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National Council for Higher Education, National Council for Education Support Professionals, NEA-Retired, and Student Programs.
Chargeable audited expenditures..................$ -0Nonchargeable audited expenditures..........$ 597,901 Total audited expenditures .............................$ 597,901
Category 9- Provide members professional development and leadership training: Provided training to ESP participants that develops minority leaders, increases awareness ofdiversity issues, and increases capacity to lead in adverse environments. Conducted Minority Leadership Training and Women's Leadership Training conferences and seminars. Conducted Student Leadership Conference, NEA-Retired Conference, Higher Education Emerging Leaders Academy, and the ESP Leaders for Tomorrow training. Provides information and training for Students, Retired, UniServ Managers Association, and Higher Education faculty and staffon legislative efforts. Provided support to state affiliates through the coordination of National Council of State Education Associations (NCSEA) and implementation of executive leadership training. Held annual Human and Civil Rights Awards dinner that recognizes the accomplishments and issues ofwomen, minorities, and GLBT. Conducted annual NEA Joint Conference on Concerns of Minorities and Women and the Ethnic Leaders Meeting to address current trends and applications relating to women and minority issues.
Chargeable audited expenditures..................$ 4,603,828 Nonchargeable audited expenditures..........$ 3,190,906 Total audited expenditures .............................$ 7,794,734
PROGRAMMATIC ACTIVITY SUMMARY
Total Programmatic Activity Chargeable Audited Expenditures ........$ 97,442,217
Total Programmatic Activity Nonchargeable Audited Expenditures$ 143,254,951
Total Programmatic Activity Expenditures .................................................$ 240,697,168
Programmatic Activity Chargeable Percentage .........................................40.48%
Programmatic Activity Nonchargeable Percentage..................................59.52%
II. SUPPORT/OVERHEAD
NEA's Support and Overhead Activities are organized into 9 Core Service Areas.iv
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ADVOCATE AND COMMUNICATE FOR PUBLIC EDUCATION

Core Service Area# 3-3 {Tactics 3.1-3.3): Provided video and audio products for NEA departments, affiliates, and the general public. Maintained NEA Interactive, the Association's Web product for members, affiliates, and the general public. Produced media packages designed to increase public and member interaction with NEA via print and the Web. Through various converged media packages, generated greater visibility among the public and membership for NEA's work. Published RA Today for NEA Annual Meeting and Representative Assembly (RA).

Chargeable audited expenditures..................$ Nonchargeable audited expenditures..........$ Total audited expenditures ..............................$

1,844,850 2,104,184 3,949,034

BUSINESS AND GOVERNANCE OPERATIONS
Core Service Area #5-1 (Tactics 1.2-1.7): Provided payment of the headquarters building mortgage (incurred in connection with building renovation to address health and safety concerns) and property taxes. Coordinated NEA's agency fee procedures. Conducted internal auditing functions. Provided accounting functions for NEA, including compliance with federal and local regulations involving NEA's status as a not-for-profit labor organization and as an employer. Administered NEA's banking and investment activities and a computer-based accounting system for its affiliates. Coordinated business management, membership information, and financial systems support for state affiliates. Provided legal and accounting services to NEA's political action committee (PAC), as well as to the PACs ofsome of its affiliates. Provided membership information that enables the collection ofdues, and the verification of membership and analysis of membership trends. Conducted a management user group meeting that addressed topics such as accounting and income tax issues, business consolidations, and financial analysis tools. Provided legal assistance and representation to NEA's officers, staff, affiliates, and political action committee through the Office of General CounseL Planned and conducted the annual meeting ofattorneys representing NEA and its affiliates.
Chargeable audited expenditures ..................$ 8,977,529 Nonchargeable audited expenditures..........$ 10,816,390 Total audited expenditures ..............................$ 19,793,919
Core Service Area #5-2 (Tactics 2.1-2.2):Administered contracts with representatives of NEA staff unions. Developed and administered personnel policies, employee health, wellness and benefits programs, and problem identification and resolution procedures regarding relations with staff. Maintained a system for recruiting, selecting, and orienting new employees. Maintained a systematic staff professional development program. Coordinated implementation ofa program assessment process to measure and evaluate the effectiveness of NEA's program, staff, and financial allocations.

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Chargeable audited expenditures..................$ Nonchargeable audited expenditures ..........$ Total audited expenditures ..............................$

5,106,893 -05,106,893

Core Service Area #5-3 (Tactics 3.1-3.3): Administered the program assessment process to measure and evaluate the effectiveness ofNEA's program, staff, and financial allocations. Aligned department plans with NEA's mission and maintained the strategic management system. Provided employee wellness program. Provided for NEA's management and integration. Created and implemented staff professional development strategy. Established and implemented long-term organizational and business strategy. Implemented strategic learning system strategy.
Chargeable audited expenditures..................$ 13,796,714 Nonchargeable audited expenditures..........$ 20,079,443 Total audited expenditures .............................$ 33,876,157

Core Service Area #5-4 {Tactics 4.1-4.4): Advanced NEA's strategic intent. Facilitated the development of NEA strategy and operations. Implemented workplace culture initiative. Maintained NEA records archives.

Chargeable audited expenditures..................$ Nonchargeable audited expenditures ..........$ Total audited expenditures ..............................$

1,466,742 346,052
1,812,794

Core Service Area #5-5 (Tactics 5.1-5.3): Supported and maintained current Webenabled Association foundation computer applications, NEA's local area network and the wide-area networks that it shares with affiliates, NEA's Web site, computer technical support, disaster recovery and business continuity plans, and other internal data and technology operations. Provided policy development and support for strategic, tactical, and operational planning ofAssociation technology.

Chargeable audited expenditures..................$ Nonchargeable audited expenditures ..........$ Total audited expenditures ..............................$

8,276,964 12,170,081 20,447,045

Core Service Area #S-6 {Tactics 6.1-6.2): Provided for administration, management, and maintenance of the property of NEA's headquarters and regional offices, including casualty and liability insurance. Administered building projects to improve infrastructure. Administered NEA's printing, graphic design, and multimedia services, as well as its procurement services, telephone services, and the receipt and distribution of mail. Provided logistical support for NEA-sponsored meetings throughout the country, and for governance and stafftravel.

Chargeable audited expenditures..................$ 16,366,082 Nonchargeable audited expenditures ..........$ - 0Total audited expenditures ..............................$ 16,366,082

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Core Service Area #5·8 {Tactics 8.1 - 8.5): Provided for operation of NEA Annual Meeting, including Representative Assembly (RA). Provided support for RA Standing Committee meetings and their activities in connection with NEA policy documents. Provided for operation ofNEA Board of Directors, Executive Committee (and Executive Officers), and other governance bodies. Published organizational handbook, as well as minutes and proceedings ofgovernance meetings. Provided governance and policy coordination in support of policymaking, reports on governance actions, communications of Association policies, and staff support for policy planning, development, and implementation by NEA officers, Executive Director, Board of Directors, Executive Committee, RA, and governance committees.

Chargeable audited expenditures..................$ 7,835,176 Nonchargeable audited expenditures..........$ 1,885,120 Total audited expenditures ..............................$ 9,720,296

Core Service Area #S-9 {Tactic 9.7): Provided learning opportunities through the Leadership Institute that enhance NEA staffs professional skills and contribute to high performance.

Chargeable audited expenditures..................$ Nonchargeable audited expenditures..........$ Total audited expenditures..............................$

550,881 ·0·
550,881

SUPPORT/OVERHEAD SUMMARY Total Support/Overhead Chargeable Audited Expenditures................$ 64,221,831 Total Support/Overhead Nonchargeable Audited Expenditures........$ 47,401,270 Total Support/Overhead Audited Expenditures .......................................$ 111,623,101
III. OVERALL ANALYSIS OF NEA AUDITED EXPENDITURES
Total Chargeable Audited Expenditures.......................................................$ 161,664,048 Total Nonchargeable Audited Expenditures ...............................................$ 190,656,221 Total Audited Expenditures...............................................................................$ 352,320,269
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Final Chargeable Percentage ............................................................................. 45.89%
Final Nonchargeable Percentage ..................................................................... 54.11%
'In light of the U.S. Supreme Court's decisions in Lehnert v. Ferris Faculty Ass'n, 500 U.S. 507 (1991), and Locke v. Karass, 555 U.S. 207 (2009), which recognized that "part ofa local's affiliation fee which contributes to the pool of resources potentially available to the local is assessed for the bargaining unit's protection, even if it is not actually expended on that unit in any particular membership year," NEA has allocated its Unified Legal Services Program ("ULSP") reimbursements, Tactic 4.14, on the basis of the California Teachers Association's ("CTACTA's") determination of the chargeable percentage of the reimbursements it received in the 2010-2011 fiscal year (20.60%). Thus, the resulting ULSP chargeable amount is $5,153,282. This figure differs from the ULSP chargeable amount used for purposes of the chargeable/ nonchargeable schedule included in the NEA audit, $17,761,312, because the amount in the audit was based upon a conservative adjustment of the average chargeable percentage ofULSP reimbursements to agency fee state affiliates for the year ended August 31, 2010. That percentage was 71%. NEA used this method because, at the time its audit was conducted, most of those state affiliates had not yet determined their fiscal year 2010-2011 chargeable percentages. In addition, for purposes of the NEA audit, Educators Employment Liability (EEL) insurance expenditures Tactic 4.13, were treated as chargeable. However, CTA does not make EEL coverage available to agency feepayers, and therefore all such expenditures ($10,683,952) have been treated as nonchargeable with regard to CTA. Thus, the resulting chargeable total for Category 4 ofStudent Learning and Workforce Quality is $11,860,961, as compared with $35,152,943 in the NEA audit
ii In light of the decisions in Lehnert and Locke, see note i, NEA has allocated its UniServ grants program expenditures, part ofTactic 1.2, on the basis of the CTA's determination of the chargeable percentage of the grants it received in the 2010-2011 fiscal year (94.50%). Thus, the resulting UniServ chargeable amount is $63,168,639, rather than $58,823,706 that was used for purposes of the NEA audit. The reason for the difference between the new figure for this program and its counterpart in the NEA audit is that, at the time the audit was conducted, most of the agency fee state affiliates had not yet determined their fiscal year 2010-2011 chargeable percentages. Accordingly, for purposes of the audit, the expenditures in the UniServ grants program were aJlocated using a conservative adjustment ofthe average chargeable percentage ofUniServ grants to agency fee state affiliates for the year ended August 31, 2010 (88%).
In addition, NEA has al1ocated its expenditures in the SmaH States Foundation Program, part ofTactic 1.2, in accordance with CTA's determination of the overall chargeable percentage ofits total expenditures for the 2010-2011 fiscal year (68.40%), resulting in a chargeable amount of$1,991,192, rather than $2,183,325 that was used for purposes of the NEA audit The reason for the difference between the new figure for this
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Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 210 of 211 Page ID #:229
program and its counterpart in the NEA audit is that, at the time the audit was conducted, most of the agency fee state affiliates had not yet determined their fiscal year 2010-2011 chargeable percentages. Accordingly, for purposes ofthe audit, the expenditures in the Small States Foundation program were allocated using a conservative adjustment of the average chargeable percentage of agency fee state affiliates' total expenditures for the year ended August31, 2010 (75%).
Similarly, NEA allocated its expenditures in the Unified State Executive Director Program ("USEDP"), part ofTactic 1.2, in accordance with CTA's determination of the chargeable percentage ofits executive director's salary and benefits for the 2010-2011 fiscal year (68.40%), resulting in a chargeable amount of$646,122, as compared with $689,575 that was used for purposes of the NEA audit Again, the reason for the difference between the new figure and its counterpart in the NEA audit is that, at the time the audit was conducted, most of the agency fee state affiliates had not yet determined their fiscal year 2010-2011 percentages. Accordingly, for purposes of the audit, the expenditures in the USEDP were allocated using a conservative adjustment of the average chargeable percentage ofexpenditures for the salary and benefits of agency fee state affiliate executive directors for the year ended August 31, 2010 (73%).
Finally, since the agency fee locals affiliated with CTA have aJlocated their 2010-11 expenditures into chargeable and nonchargeable categories, NEA is allocating its expenditures in the Local Presidents Release Program, part ofTactic 1.2, by the average chargeable percentage (80.00%) reported by those locals, resulting in a chargeable amount of$389,892, as compared with $385,018 that was used for purposes of the NEA audit. The reason for the difference between the new figure for this program and its counterpart in the NEA audit is that, at the time the audit was conducted, most of the agency fee affiliates had not yet determined their fiscal year 2010-2011 chargeable percentages. Accordingly, for purposes of the audit, the expenditures in the Local Presidents Release Program were allocated using a conservative adjustment ofthe average chargeable percentage ofagency fee local affiliates' total expenditures for the fiscal year ended August 31, 2010 (79%).
As a result of these modifications to the allocation ofexpenditures in the UniServ grants, Small States Foundation, USEDP, and Local Presidents Release Programs, the total chargeable amount for Category 1 ofAffiliate Programs and Services that Increase Membership is $69,697,074, as compared with $65,582,853 in the NEA audit.
mIn light of the decisions in Lehnert and Locke, see note i, NEA has allocated its expenditures in the Affiliate Financial Assistance Program, Tactic 2.1, in accordance with CTA's determination of the overall chargeable percentage of its total expenditures for the 2010-11 fiscal year (68.40%), resulting in a chargeable amount of$1,181,999, rather than the amount of$1,296,052 that was used for purposes of the NEA audit. The reason for the difference between the new figure for this program and its counterpart in the NEA audit is that, at the time the audit was conducted, most of the agency fee state affiliates had not yet determined their fiscal year 2010-2011 chargeable percentages. Accordingly, for purposes
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Case 8:13-cv-00676-JST-CW Document 1 Filed 04/30/13 Page 211 of 211 Page ID #:230 of the audit, the expenditures in the Affiliate Financial Assistance Program were allocated using a conservative adjustment ofthe average chargeable percentage ofagency fee state affiliates' total expenditures for the year ended August 31, 2010 (75%). As a result of these modifications to the aJiocation of expenditures in the Affiliate Financial Assistance Program, the total chargeable amount for Category 2 of Affiliate Programs and Services that Increase Membership is $1,181,999, as compared with $1,296,052 in the NEA audit
lv As a result of the adjustments in the programmatic activities, see notes i through
iii, the Programmatic Activity Chargeable Percentage is 40.48% as compared with 48.5% that was in the NEA audit Therefore, for purposes ofthese calculations, the figure 40.48% was used to allocate certain expenditures in the Support/Overhead activities in accordance with the procedure discussed in footnote 3 on pages 44-46 of the NEA audit
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 Case 8:13-cv-00676-JLS-CW Document 106 Filed 12/05/13 Page 1 of 4 Page ID #:2737

JS-6
__________________________________________________________________
UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA

CIVIL MINUTES – GENERAL

Case No. SACV 13-676-JLS (CWx)

Date: December 5, 2013

Title: Rebecca Friedrichs, et al. v. California Teachers Ass’n, et al.

Present: Honorable JOSEPHINE L. STATON, UNITED STATES DISTRICT JUDGE

Terry Guerrero Deputy Clerk

N/A Court Reporter

ATTORNEYS PRESENT FOR PLAINTIFF: ATTORNEYS PRESENT FOR DEFENDANT:

Not Present

Not Present

PROCEEDINGS: (IN CHAMBERS) ORDER GRANTING MOTION FOR JUDGMENT ON THE PLEADINGS (DOC. 81) AND VACATING MOTION FOR PRELIMINARY INJUNCTION (DOC. 71)

Before the Court is Plaintiffs’ Motion for Judgment on the Pleadings, requesting that judgment be entered in favor of Defendants. (Mot., Doc. 81, “Motion”.) Defendants filed an opposition, and Plaintiffs replied. (Def. Opp’n, Doc. 90; Reply, Doc. 91.) Following an order of certification made pursuant to Federal Rule of Civil Procedure 5.1(b) and 28 U.S.C. § 2403(b), the Government intervened and, on November 25, 2013, filed a response to the Motion. (Docs. 94, 102; Gov’t Opp’n., Doc. 104.) Having reviewed the papers and taken the matter under submission, the Court GRANTS Plaintiffs’ Motion and enters judgment on the pleadings in favor of Defendants. Plaintiffs’ pending Motion for Preliminary Injunction is VACATED as moot. (Doc. 71.)1
I. Background
Under California law, a union is allowed to become the exclusive bargaining representative for public school employees in a bargaining unit such as a public school district by submitting proof that a majority of employees in the unit wish to be represented by the union. Cal. Gov’t. Code § 3544(a). Once a union becomes the

1 Plaintiffs and Defendants stipulated that the Motion for Preliminary Injunction “should be

vacated if the Court enters judgment on the pleadings.” (Doc. 88 at 1-2.)

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CIVIL MINUTES – GENERAL

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Case 8:13-cv-00676-JLS-CW Document 106 Filed 12/05/13 Page 2 of 4 Page ID #:2738

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__________________________________________________________________
UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA

CIVIL MINUTES – GENERAL

Case No. SACV 13-676-JLS (CWx)

Date: December 5, 2013

Title: Rebecca Friedrichs, et al. v. California Teachers Ass’n, et al.

exclusive bargaining representative within a district, it may establish an “agency-shop” arrangement with that district, whereby all employees “shall, as a condition of continued employment, be required either to join the recognized employee organization or pay the fair share service fee.” Id. § 3546(a). This “agency fee” is usually the same amount as the union dues. (Compl., Doc. 1 ¶ 52.)2
California law limits the use of agency fees to activities “germane” to collective bargaining. Id. § 3546(b). Each year, unions must estimate the portion of expenses that do not fall into this category for the coming year, based on the non-chargeable portion of a recent year’s fee. Regs. of Cal. Pub. Emp’t. Relations Bd. § 32992(b)(1). After the union has made this determination, it must send a notice to all non-members setting forth both the agency fee and the non-chargeable portions of the fee. Cal. Gov’t. Code § 3546(a); Regs. of Cal. Pub. Emp’t Relations Bd. § 32992(a). If non-members do not wish to pay the non-chargeable portions of the fee—i.e., the portions of the fee going to activities not “germane” to collective bargaining—they must notify the union after receipt of the notice. Regs. of Cal. Pub. Emp’t. Relations Bd. § 32993. Non-members who provide this notification receive a rebate or fee-reduction for that year. Cal. Gov’t Code § 3546(a).
Plaintiffs are (1) public school teachers who have resigned their union membership and object to paying the non-chargeable portion of their agency fee each year, and (2) the Christian Educators Association International, a non-profit religious organization “specifically serving Christians working in public schools.” (Compl. ¶¶ 1120.) Defendants are (1) local unions for the districts in which the individual plaintiffs are employed as teachers and the superintendents of those local unions, (2) the National Education Association, and (3) the California Teachers Association. (Id. ¶¶ 22-23, 3444.)
Plaintiffs claim that “[b]y requiring Plaintiffs to make any financial contributions in support of any union, California’s agency shop arrangement violates their rights to free speech and association under the First and Fourteenth Amendments to the United States Constitution,” and that “[b]y requiring Plaintiffs to undergo ‘opt out’ procedures to avoid

2 When ruling on a motion for judgment on the pleadings, the Court accepts as true the factual

allegations in the complaint. Fleming v. Pickard, 581 F.3d 922, 925 (9th Cir. 2009).

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CIVIL MINUTES – GENERAL

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__________________________________________________________________
UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA

CIVIL MINUTES – GENERAL

Case No. SACV 13-676-JLS (CWx)

Date: December 5, 2013

Title: Rebecca Friedrichs, et al. v. California Teachers Ass’n, et al.

making financial contributions in support of ‘non-chargeable’ union expenditures,

California’s agency-shop arrangement violates their rights to free speech and association

under the First and Fourteenth Amendments to the United States Constitution.”

(Id. ¶¶ 89, 92.)

Plaintiffs move for judgment on the pleadings, but in Defendants’ favor. Although Plaintiffs are not clear on whether they are asking the Court to grant or deny their

Motion, Plaintiffs are clear that they are asking the Court to enter judgment in favor of Defendants. (Compare Mot. at 1 (“Plaintiffs concede that this Court should deny their

Motion and, instead, grant judgment on the pleadings to Defendants” (emphasis

removed)) with Proposed Order, Doc. 81-1 at 1 (requesting that the Motion be “GRANTED in favor of Defendants.”).) Accordingly, the Court construes the Motion

such that granting the Motion would allow judgment to be entered in favor of Defendants.

II. Legal Standard

“After the pleadings are closed—but early enough not to delay trial—a party may move for judgment on the pleadings.” Fed. R. Civ. P. 12(c). Motions for judgment on the pleadings are governed by the same standards applicable to Rule 12(b)(6) motions to dismiss. Cafasso v. General Dynamics C4 Systems, 637 F.3d 1047, 1054, n. 4 (9th Cir. 2011). The Court “must accept all factual allegations in the complaint as true and construe them in the light most favorable to the non-moving party.” Fleming v. Pickard, 581 F.3d 922, 925 (9th Cir. 2009). “Judgment on the pleadings is proper when the moving party clearly establishes on the face of the pleadings that no material issue of fact remains to be resolved and that it is entitled to judgment as a matter of law.” Hal Roach Studios v. Richard Feiner & Co., 896 F.2d 1542, 1550 (9th Cir. 1989).

III. Discussion

Plaintiffs urge the Court to enter judgment on the pleadings in favor of Defendants, contending that Plaintiffs’ claims are “presently foreclosed by” Abood v. Detroit Board of Education, 431 U.S. 209 (1977) and Mitchell v. Los Angeles Unified

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CIVIL MINUTES – GENERAL

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__________________________________________________________________
UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA

CIVIL MINUTES – GENERAL

Case No. SACV 13-676-JLS (CWx)

Date: December 5, 2013

Title: Rebecca Friedrichs, et al. v. California Teachers Ass’n, et al.

School District, 963 F.2d 258 (9th Cir. 1992). (Mot. at 2.)3 In Abood, the Supreme Court

upheld the constitutional validity of compelling employees to support a particular

collective bargaining representative and rejected the notion that the only funds from

nonunion members that a union constitutionally could use for political or ideological

causes were those funds that the nonunion members affirmatively consented to pay. 431

U.S. at 222, 225,235-36. The Mitchell court, following Abood, held that the First

Amendment did not require an “opt in” procedure for nonunion members to pay fees

equal to the full amount of union dues under an agency shop arrangement. See 963 F.2d

at 260-62 (citing and discussing the “long line of Supreme Court cases” that support the

constitutional validity of an opt-out system based on a nonmember’s expressed

objection). The parties do not dispute that Abood and Mitchell foreclose Plaintiffs’

claims, and the Court agrees that these decisions are controlling. (See Mot. at 2; Def.

Opp’n at 14; Gov’t Opp’n at 4-5, 9.)

Accordingly, the Court grants Plaintiffs’ Motion and enters judgment on the

pleadings in favor of Defendants.

IV. Conclusion

For the foregoing reasons, Plaintiffs’ Motion for Judgment on the Pleadings is GRANTED. Judgment is entered in favor of Defendants. Plaintiffs’ Motion for Preliminary Injunction is VACATED as moot.

Initials of Preparer: tg

3 Plaintiffs’ ultimate aim—and thus their request for judgment on the pleadings in favor of

Defendants—is to have these precedents overturned on appeal. (See Mot. at 9; see also Motion

for Preliminary Injunction, Doc. 71 at 1.)

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CIVIL MINUTES – GENERAL

4

 
 Case 8:13-cv-00676-JLS-CW Document 113 Filed 11/18/14 Page 1 of 2 Page ID #:2757
FILED

UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

NOV 18 2014
MOLLY C. DWYER, CLERK
U.S. COURT OF APPEALS

REBECCA FRIEDRICHS; et al.,

No. 13-57095

Plaintiffs - Appellants, v.

D.C. No. 8:13-cv-00676-JLS-CW Central District of California, Santa Ana

CALIFORNIA TEACHERS ASSOCIATION; et al.,
Defendants - Appellees,
KAMALA D. HARRIS, Attorney General,

ORDER

RECEIVED
CLERK, U.S. DISTRICT COURT
11/18/14
CENTRAL DISTRICT OF CALIFORNIA
MAT BY: ___________________ DEPUTY

Defendant - Intervenor.

Before: CANBY, CLIFTON, and OWENS, Circuit Judges. The court has reviewed appellants’ motion for summary affirmance and
appellees’ opposition thereto, the record, and the briefing filed in this appeal. Upon review, the court finds that the questions presented in this appeal are so insubstantial as not to require further argument, because they are governed by controlling Supreme Court and Ninth Circuit precedent. See United States v. Hooton, 693 F.2d 857, 858 (9th Cir. 1982) (per curiam) (stating standard for summary affirmance); Abood v. Detroit Bd. Of Ed., 431 U.S. 209, 232 (1977)

DA/MOATT

Case 8:13-cv-00676-JLS-CW Document 113 Filed 11/18/14 Page 2 of 2 Page ID #:2758
(allowing public-sector agency shop); Mitchell v. L.A. Unified Sch. Dist., 963 F.2d 258, 263 (9th Cir. 1992) (allowing opt-out regime).
Accordingly, we summarily affirm the district court’s judgment. AFFIRMED.

DA/MOATT

2

 
 Case: 8:13-cv-676 As of: 01/24/2016 09:20 AM PST 1 of 24
(CWx),CLOSED,DISCOVERY,MANADR
UNITED STATES DISTRICT COURT for the CENTRAL DISTRICT OF CALIFORNIA (Southern Division − Santa Ana)
CIVIL DOCKET FOR CASE #: 8:13−cv−00676−JLS−CW

Rebecca Friedrichs et al v. California Teachers Association et al Assigned to: Judge Josephine L. Staton Referred to: Magistrate Judge Carla Woehrle Case in other court: 9TH CCA, 13−57095 Cause: 42:1983 Civil Rights Act
Plaintiff

Date Filed: 04/30/2013 Date Terminated: 12/05/2013 Jury Demand: None Nature of Suit: 440 Civil Rights: Other Jurisdiction: Federal Question

Rebecca Friedrichs

represented by Edward San Chang Jones Day 3161 Michelson Drive Suite 800 Irvine, CA 92612 949−851−3939 Email: echang@jonesday.com LEAD ATTORNEY ATTORNEY TO BE NOTICED

John A Vogt Jones Day 3161 Michelson Drive Suite 800 Irvine, CA 92612−4408 949−851−3939 Fax: 949−553−7539 Email: javogt@jonesday.com LEAD ATTORNEY ATTORNEY TO BE NOTICED

James M Burnham Jones Day 51 Louisiana Avenue Washington, DC 20001−2113 202−879−3939 Fax: 202−626−1700 Email: jmburnham@jonesday.com PRO HAC VICE ATTORNEY TO BE NOTICED

Michael A Carvin Jones Day 51 Louisiana Avenue NW Washington, DC 20001−2113 202−879−3939 Fax: 202−626−1700 Email: macarvin@jonesday.com PRO HAC VICE ATTORNEY TO BE NOTICED

Michael E Rosman Center for Individual Rights 1233 − 20th Street NW Suite 300 Washington, DC 20036 202−833−8400 Fax: 202−833−8410 Email: rosman@cir−usa.org PRO HAC VICE ATTORNEY TO BE NOTICED

Case: 8:13-cv-676 As of: 01/24/2016 09:20 AM PST 2 of 24

Plaintiff Scott Wilford
Plaintiff Jelena Figueroa
Plaintiff George W White Jr

represented by Edward San Chang (See above for address) LEAD ATTORNEY ATTORNEY TO BE NOTICED
John A Vogt (See above for address) LEAD ATTORNEY ATTORNEY TO BE NOTICED
James M Burnham (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED
Michael A Carvin (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED
Michael E Rosman (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED
represented by Edward San Chang (See above for address) LEAD ATTORNEY ATTORNEY TO BE NOTICED
John A Vogt (See above for address) LEAD ATTORNEY ATTORNEY TO BE NOTICED
James M Burnham (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED
Michael A Carvin (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED
Michael E Rosman (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED
represented by Edward San Chang (See above for address) LEAD ATTORNEY ATTORNEY TO BE NOTICED
John A Vogt (See above for address) LEAD ATTORNEY ATTORNEY TO BE NOTICED

Case: 8:13-cv-676 As of: 01/24/2016 09:20 AM PST 3 of 24

Plaintiff Kevin Roughton
Plaintiff Peggy Searcy

James M Burnham (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED
Michael A Carvin (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED
Michael E Rosman (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED
represented by Edward San Chang (See above for address) LEAD ATTORNEY ATTORNEY TO BE NOTICED
John A Vogt (See above for address) LEAD ATTORNEY ATTORNEY TO BE NOTICED
James M Burnham (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED
Michael A Carvin (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED
Michael E Rosman (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED
represented by Edward San Chang (See above for address) LEAD ATTORNEY ATTORNEY TO BE NOTICED
John A Vogt (See above for address) LEAD ATTORNEY ATTORNEY TO BE NOTICED
Michael A Carvin (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED
Michael E Rosman (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED

Case: 8:13-cv-676 As of: 01/24/2016 09:20 AM PST 4 of 24

Plaintiff Jose Manso

represented by Edward San Chang (See above for address) LEAD ATTORNEY ATTORNEY TO BE NOTICED

John A Vogt (See above for address) LEAD ATTORNEY ATTORNEY TO BE NOTICED

James M Burnham (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED

Michael A Carvin (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED

Michael E Rosman (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED

Plaintiff Harlan Elrich

represented by Edward San Chang (See above for address) LEAD ATTORNEY ATTORNEY TO BE NOTICED

John A Vogt (See above for address) LEAD ATTORNEY ATTORNEY TO BE NOTICED

James M Burnham (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED

Michael A Carvin (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED

Michael E Rosman (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED

Plaintiff Karen Cuen

represented by Edward San Chang (See above for address) LEAD ATTORNEY ATTORNEY TO BE NOTICED

John A Vogt (See above for address) LEAD ATTORNEY ATTORNEY TO BE NOTICED

Case: 8:13-cv-676 As of: 01/24/2016 09:20 AM PST 5 of 24

James M Burnham (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED

Michael A Carvin (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED

Michael E Rosman (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED

Plaintiff Irene Zavala

represented by Edward San Chang (See above for address) LEAD ATTORNEY ATTORNEY TO BE NOTICED

John A Vogt (See above for address) LEAD ATTORNEY ATTORNEY TO BE NOTICED

James M Burnham (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED

Michael A Carvin (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED

Michael E Rosman (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED

Plaintiff
Christian Educators Association International

represented by Edward San Chang (See above for address) LEAD ATTORNEY ATTORNEY TO BE NOTICED

John A Vogt (See above for address) LEAD ATTORNEY ATTORNEY TO BE NOTICED

James M Burnham (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED

Michael A Carvin (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED

Michael E Rosman (See above for address)

Case: 8:13-cv-676 As of: 01/24/2016 09:20 AM PST 6 of 24
PRO HAC VICE ATTORNEY TO BE NOTICED

V. Defendant California Teachers Association
Defendant National Education Association

represented by Jacob F Rukeyser California Teachers Association 1705 Murchison Drive Burlingame, CA 94010 650−552−5414 Fax: 650−552−5019 Email: jrukeyser@cta.org ATTORNEY TO BE NOTICED
Jason Walta National Education Association Office of General Counsel 1201 Sixteenth Street NW Washington, DC 20036 202−822−7041 Fax: 202−822−7033 Email: jwalta@nea.org PRO HAC VICE ATTORNEY TO BE NOTICED
Jeremiah A Collins Bredhoff and Kaiser PLLC 805 Fifteenth Street NW 10th Floor Washington, DC 20005 202−842−2600 Fax: 202−842−1888 Email: jcollins@bredhoff.com PRO HAC VICE ATTORNEY TO BE NOTICED
Laura P Juran California Teachers Association Legal Department 1705 Murchison Drive Burlingame, CA 94010 6505525440 Fax: 6505525019 Email: ljuran@cta.org ATTORNEY TO BE NOTICED
Jeffrey B Demain Altshuler Berzon Nussbaum Rubin & Demain 177 Post St, Ste 300 San Francisco, CA 94108 415−421−7151 Email: jdemain@altshulerberzon.com ATTORNEY TO BE NOTICED
represented by Jacob F Rukeyser (See above for address) ATTORNEY TO BE NOTICED
Jason Walta (See above for address) PRO HAC VICE

Case: 8:13-cv-676 As of: 01/24/2016 09:20 AM PST 7 of 24

ATTORNEY TO BE NOTICED

Jeremiah A Collins (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED

Laura P Juran (See above for address) ATTORNEY TO BE NOTICED

Jeffrey B Demain (See above for address) ATTORNEY TO BE NOTICED

Defendant
Savanna District Teachers Association CTA NEA

represented by Jacob F Rukeyser (See above for address) ATTORNEY TO BE NOTICED

Jason Walta (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED

Jeremiah A Collins (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED

Laura P Juran (See above for address) ATTORNEY TO BE NOTICED

Jeffrey B Demain (See above for address) ATTORNEY TO BE NOTICED

Defendant
Saddleback Valley Educators Association

represented by Jacob F Rukeyser (See above for address) ATTORNEY TO BE NOTICED

Jason Walta (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED

Jeremiah A Collins (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED

Laura P Juran (See above for address) ATTORNEY TO BE NOTICED

Jeffrey B Demain (See above for address) ATTORNEY TO BE NOTICED

Defendant

represented by

Case: 8:13-cv-676 As of: 01/24/2016 09:20 AM PST 8 of 24

Orange Unified Education Association Inc

Jacob F Rukeyser (See above for address) ATTORNEY TO BE NOTICED

Jason Walta (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED

Jeremiah A Collins (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED

Laura P Juran (See above for address) ATTORNEY TO BE NOTICED

Jeffrey B Demain (See above for address) ATTORNEY TO BE NOTICED

Defendant
Kern High School Teachers Association

represented by Jacob F Rukeyser (See above for address) ATTORNEY TO BE NOTICED

Jason Walta (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED

Jeremiah A Collins (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED

Laura P Juran (See above for address) ATTORNEY TO BE NOTICED

Jeffrey B Demain (See above for address) ATTORNEY TO BE NOTICED

Defendant National Education Association Jurupa

represented by Jacob F Rukeyser (See above for address) ATTORNEY TO BE NOTICED

Jason Walta (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED

Jeremiah A Collins (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED

Laura P Juran (See above for address) ATTORNEY TO BE NOTICED

Case: 8:13-cv-676 As of: 01/24/2016 09:20 AM PST 9 of 24

Jeffrey B Demain (See above for address) ATTORNEY TO BE NOTICED

Defendant Santa Ana Educators Association Inc

represented by Jacob F Rukeyser (See above for address) ATTORNEY TO BE NOTICED

Jason Walta (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED

Jeremiah A Collins (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED

Laura P Juran (See above for address) ATTORNEY TO BE NOTICED

Jeffrey B Demain (See above for address) ATTORNEY TO BE NOTICED

Defendant
Teachers Association of Norwalk La Mirada Area

represented by Jacob F Rukeyser (See above for address) ATTORNEY TO BE NOTICED

Jason Walta (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED

Jeremiah A Collins (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED

Laura P Juran (See above for address) ATTORNEY TO BE NOTICED

Jeffrey B Demain (See above for address) ATTORNEY TO BE NOTICED

Defendant Sanger Unified Teachers Association

represented by Jacob F Rukeyser (See above for address) ATTORNEY TO BE NOTICED

Jason Walta (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED

Jeremiah A Collins (See above for address) PRO HAC VICE

Case: 8:13-cv-676 As of: 01/24/2016 09:20 AM PST 10 of 24

ATTORNEY TO BE NOTICED

Laura P Juran (See above for address) ATTORNEY TO BE NOTICED

Jeffrey B Demain (See above for address) ATTORNEY TO BE NOTICED

Defendant Associated Chino Teachers

represented by Jacob F Rukeyser (See above for address) ATTORNEY TO BE NOTICED

Jason Walta (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED

Jeremiah A Collins (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED

Laura P Juran (See above for address) ATTORNEY TO BE NOTICED

Jeffrey B Demain (See above for address) ATTORNEY TO BE NOTICED

Defendant
San Luis Obispo County Education Association

represented by Jacob F Rukeyser (See above for address) ATTORNEY TO BE NOTICED

Jason Walta (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED

Jeremiah A Collins (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED

Laura P Juran (See above for address) ATTORNEY TO BE NOTICED

Jeffrey B Demain (See above for address) ATTORNEY TO BE NOTICED

Defendant Sue Johnson

represented by Marlon C Wadlington Atkinson Andelson Loya Ruud and Romo 12800 Center Court Drive Suite 300 Cerritos, CA 90703 562−653−3200 Fax: 562−653−3333

Case: 8:13-cv-676 As of: 01/24/2016 09:20 AM PST 11 of 24

Email: mwadlington@aalrr.com ATTORNEY TO BE NOTICED

Defendant Clint Harwick

represented by Marlon C Wadlington (See above for address) ATTORNEY TO BE NOTICED

Defendant Michael L Christensen

represented by Jeffrey P Thompson Declues Burkett and Thompson 17011 Beach Boulevard, Suite 400 Huntington Beach, CA 92647−5995 714−843−9444 Fax: 714−843−9452 Email: jthompson@dbtlaw.com ATTORNEY TO BE NOTICED

Defendant Donald E Carter

represented by Christopher P Burger Schools Legal Service 1300 17th Street, 7th Floor P.O. Box 2445 Bakersfield, CA 93303 661−636−4830 Fax: 661−636−4843 Email: chburger@kern.org ATTORNEY TO BE NOTICED

Defendant Elliott Duchon

represented by Kerrie Ellen McNally Fagen Friedman and Fulfrost 6300 Wilshire Boulevard, Suite 1700 Los Angeles, CA 90048 323−330−6300 Fax: 323−330−6311 Email: ktaylor@fagenfriedman.com ATTORNEY TO BE NOTICED

Defendant Thelma Melendez De Santa Ana

represented by Marlon C Wadlington (See above for address) ATTORNEY TO BE NOTICED

Defendant Ruth Perez

represented by Henry C Wang Lee Tran Liang and Wang LLP 601 South Figueroa Street Suite 3900 Los Angeles, CA 90017 213−612−8900 Fax: 213−612−3773 Email: henry.wang@ltlw.com ATTORNEY TO BE NOTICED

Defendant Marcus P Johnson

represented by Jeffrey P Thompson (See above for address) ATTORNEY TO BE NOTICED

Defendant

Case: 8:13-cv-676 As of: 01/24/2016 09:20 AM PST 12 of 24

Wayne Joseph

represented by Marlon C Wadlington (See above for address) ATTORNEY TO BE NOTICED

Defendant Julian D Crocker

represented by Michael Eric Hersher Kronick Moskovitz Tiedemann and Girard 400 Capitol Mall 27th Floor Sacramento, CA 95814 916−321−4500 Fax: 916−321−4555 Email: mhersher@kmtg.com ATTORNEY TO BE NOTICED

Roman J Munoz Kronick Moskovitz Tiedmann and Girard 400 Capitol Mall 27th Floor Sacramento, CA 95814 916−321−4500 Fax: 916−321−4555 Email: rmunoz@kmtg.com ATTORNEY TO BE NOTICED

Intervenor Attorney General of California

represented by Alexandra Robert Gordon CAAG −California Attorney General 455 Golden Gate Avenue Suite 11000 San Francisco, CA 94102−7004 415−703−5509 Fax: 415−703−1234 Email: alexandra.robertgordon@doj.ca.gov LEAD ATTORNEY ATTORNEY TO BE NOTICED

Date Filed 04/30/2013
04/30/2013

# Docket Text
1 COMPLAINT against defendants Associated Chino Teachers, California Teachers Association, Donald E Carter, Michael L Christensen, Julian D Crocker, Thelma Melendez De Santa Ana, Elliott Duchon, Clint Harwick, Marcus P Johnson, Sue Johnson, Wayne Joseph, Kern High School Teachers Association, National Education Association, National Education Association Jurupa, Orange Unified Education Association Inc, Ruth Perez, Saddleback Valley Educators Association, San Luis Obispo County Education Association, Sanger Unified Teachers Association, Santa Ana Educators Association Inc, Savanna District Teachers Association CTA NEA, Teachers Association of Norwalk La Mirada Area.Case assigned to Judge Josephine Staton Tucker for all further proceedings. Discovery referred to Magistrate Judge Carla Woehrle. (Filing fee $ 350 Paid), filed by plaintiffs Jelena Figueroa, Irene Zavala, Jose Manso, Rebecca Friedrichs, Harlan Elrich, Peggy Searcy, George W White Jr, Kevin Roughton, Karen Cuen, Christian Educators Association International, Scott Wilford.(dg) (Additional attachment(s) added on 5/1/2013: # 1 Civil cover sheet, CV−18 and Summons) (dg). (Entered: 05/01/2013)
21 DAY Summons Issued re Complaint − (Discovery) 1 as to defendants Associated Chino Teachers, California Teachers Association, Donald E Carter, Michael L Christensen, Julian D Crocker, Thelma Melendez De Santa Ana, Elliott Duchon, Clint Harwick, Marcus P Johnson, Sue Johnson, Wayne Joseph, Kern High School Teachers Association, National Education Association, National Education Association Jurupa, Orange Unified Education Association Inc, Ruth Perez, Saddleback Valley Educators Association, San Luis Obispo County Education Association, Sanger Unified Teachers Association, Santa Ana Educators Association Inc, Savanna District Teachers Association CTA NEA, Teachers Association of Norwalk La Mirada Area. (dg) (Entered: 05/01/2013)

Case: 8:13-cv-676 As of: 01/24/2016 09:20 AM PST 13 of 24

04/30/2013 04/30/2013 04/30/2013 04/30/2013 04/30/2013 05/01/2013 05/01/2013 05/06/2013
05/07/2013 05/07/2013 05/07/2013 05/07/2013
05/07/2013

2 CERTIFICATE of Interested Parties filed by plaintiffs Christian Educators Association International, Karen Cuen, Harlan Elrich, Jelena Figueroa, Rebecca Friedrichs, Jose Manso, Kevin Roughton, Peggy Searcy, George W White Jr, Scott Wilford, Irene Zavala, (dg) (dg). (Entered: 05/01/2013)
3 NOTICE TO PARTIES OF COURT−DIRECTED ADR PROGRAM filed.(dg) (Entered: 05/01/2013)
4 APPLICATION for attorney James M. Burnham to Appear Pro Hac Vice. (PHV FEE PAID.) Filed by plaintiffs Christian Educators Association International, Karen Cuen, Jelena Figueroa, Rebecca Friedrichs, Jose Manso, Kevin Roughton, Peggy Searcy, George W White Jr, Scott Wilford, Irene Zavala. Lodged Proposed order. (dg) (Entered: 05/01/2013)
5 APPLICATION for attorney Michael A. Carvin to Appear Pro Hac Vice. (PHV FEE PAID.) Filed by plaintiffs Christian Educators Association International, Karen Cuen, Harlan Elrich, Jelena Figueroa, Rebecca Friedrichs, Jose Manso, Kevin Roughton, Peggy Searcy, George W White Jr, Scott Wilford, Irene Zavala. Lodged proposed order. (dg) (Entered: 05/01/2013)
6 NOTICE TO PARTIES OF COURT−DIRECTED ADR PROGRAM filed.(dg) (Entered: 05/01/2013)
7 NOTICE OF CONSTITUTIONAL QUESTION filed by Plaintiffs Christian Educators Association International, Karen Cuen, Harlan Elrich, Jelena Figueroa, Rebecca Friedrichs, Jose Manso, Kevin Roughton, Peggy Searcy, George W White Jr, Scott Wilford, Irene Zavala. (Vogt, John) (Entered: 05/01/2013)
8 Proof OF SERVICE filed by Plaintiffs Christian Educators Association International, Karen Cuen, Harlan Elrich, Jelena Figueroa, Rebecca Friedrichs, Jose Manso, Kevin Roughton, Peggy Searcy, George W White Jr, Scott Wilford, Irene Zavala, re Complaint − (Discovery),,,, 1 , Notice (Other), 7 of Constitutional Question served on May 1, 2013. (Vogt, John) (Entered: 05/01/2013)
9 Application Of Non−Resident Attorney To Appear In A Specific Case filed by Plaintiffs Christian Educators Association International, Karen Cuen, Harlan Elrich, Jelena Figueroa, Rebecca Friedrichs, Jose Manso, Kevin Roughton, Peggy Searcy, George W White Jr, Scott Wilford, Irene Zavala (Attachments: # 1 Proposed Order Re Application Of Non−Resident Attorney To Appear In A Specific Case)(Vogt, John) (Entered: 05/06/2013)
10 INITIAL STANDING ORDER FOR CASES ASSIGNED TO JUDGE JOSEPHINE STATON TUCKER upon filing of the complaint by Judge Josephine Staton Tucker. (dro) (Entered: 05/07/2013)
11 ORDER by Judge Josephine Staton Tucker: granting 4 Application to Appear Pro Hac Vice by Attorney James M. Burnham on behalf of Plaintiff, designating John a. Vogt as local counsel. (lt) (Entered: 05/07/2013)
12 ORDER by Judge Josephine Staton Tucker: granting 5 Application to Appear Pro Hac Vice by Attorney Michael A. Carvin on behalf of Plaintiffs, designating John A. Vogt as local counsel. (lt) (Entered: 05/07/2013)
13 NOTICE TO FILER OF DEFICIENCIES in Electronically Filed Documents RE: Miscellaneous Document, 9 . The following error(s) was found: Incorrect event selected.Other error(s) with document(s) are specified below. The correct event is: Application/Appear Pro Hac Vice. Other error(s) with document(s): No signature on Application. Applicant did not sign the application. See LR 11−1. In response to this notice the court may order (1) an amended or correct document to be filed (2) the document stricken or (3) take other action as the court deems appropriate. You need not take any action in response to this notice unless and until the court directs you to do so. (lt) (Entered: 05/07/2013)
14 ORDER by Judge Josephine Staton Tucker Granting by Michael E. Rosman to appear on behalf of Plaintiffs Christian Educators Association International, Karen Cuen, Harlan Elrich, Jelena Figueroa, Rebecca Friedrichs, Jose Manso, Kevin Roughton, Peggy Searcy, George W White Jr, Scott Wilford, Irene Zavala.John A. Vogt is designated as local counsel. Fee PAID. (lt) (Entered: 05/07/2013)

Case: 8:13-cv-676 As of: 01/24/2016 09:20 AM PST 14 of 24

05/09/2013 05/09/2013 05/09/2013 05/09/2013 05/09/2013 05/09/2013 05/09/2013 05/09/2013

15 PROOF OF SERVICE Executed by Plaintiff Jelena Figueroa, Irene Zavala, Jose Manso, Rebecca Friedrichs, Harlan Elrich, Peggy Searcy, George W White Jr, Kevin Roughton, Karen Cuen, Christian Educators Association International, Scott Wilford, upon Defendant Associated Chino Teachers served on 5/3/2013, answer due 5/24/2013. Service of the Summons and Complaint were executed upon Justine Cunningham, Registered Agent Authorized to Accept Service in compliance with Federal Rules of Civil Procedure by personal service. Original Summons returned. (Vogt, John) (Entered: 05/09/2013)
16 PROOF OF SERVICE Executed by Plaintiff Jelena Figueroa, Irene Zavala, Jose Manso, Rebecca Friedrichs, Harlan Elrich, Peggy Searcy, George W White Jr, Kevin Roughton, Karen Cuen, Christian Educators Association International, Scott Wilford, upon Defendant Clint Harwick served on 5/1/2013, answer due 5/22/2013. Service of the Summons and Complaint were executed upon Clint Harwick In His OfficialCapacity as Saddleback Valley Unified School District Superintendant in compliance with Federal Rules of Civil Procedure by personal service. Original Summons returned. (Vogt, John) (Entered: 05/09/2013)
17 PROOF OF SERVICE Executed by Plaintiff Jelena Figueroa, Irene Zavala, Jose Manso, Rebecca Friedrichs, Harlan Elrich, Peggy Searcy, George W White Jr, Kevin Roughton, Karen Cuen, Christian Educators Association International, Scott Wilford, upon Defendant California Teachers Association served on 5/1/2013, answer due 5/22/2013. Service of the Summons and Complaint were executed upon Stephanie Romero, Registered Agent Authorized to Accept Service in compliance with Federal Rules of Civil Procedure by personal service. Original Summons returned. (Vogt, John) (Entered: 05/09/2013)
18 PROOF OF SERVICE Executed by Plaintiff Jelena Figueroa, Irene Zavala, Jose Manso, Rebecca Friedrichs, Harlan Elrich, Peggy Searcy, George W White Jr, Kevin Roughton, Karen Cuen, Christian Educators Association International, Scott Wilford, upon Defendant Donald E Carter served on 5/1/2013, answer due 5/22/2013. Service of the Summons and Complaint were executed upon Donald E. Carter In His Official Capacity As Kern Union High School Superintendant in compliance with Federal Rules of Civil Procedure by personal service. Original Summons returned. (Vogt, John) (Entered: 05/09/2013)
19 PROOF OF SERVICE Executed by Plaintiff Jelena Figueroa, Irene Zavala, Jose Manso, Rebecca Friedrichs, Harlan Elrich, Peggy Searcy, George W White Jr, Kevin Roughton, Karen Cuen, Christian Educators Association International, Scott Wilford, upon Defendant Elliott Duchon served on 5/1/2013, answer due 5/22/2013. Service of the Summons and Complaint were executed upon Elliott Duchon In His Official Capacity As Jurupa Unified School District Superintendant in compliance with Federal Rules of Civil Procedure by personal service. Original Summons returned. (Vogt, John) (Entered: 05/09/2013)
20 PROOF OF SERVICE Executed by Plaintiff Jelena Figueroa, Irene Zavala, Jose Manso, Rebecca Friedrichs, Harlan Elrich, Peggy Searcy, George W White Jr, Kevin Roughton, Karen Cuen, Christian Educators Association International, Scott Wilford, upon Defendant Kern High School Teachers Association served on 5/1/2013, answer due 5/22/2013. Service of the Summons and Complaint were executed upon Laurie Davis, Authorized to Accept Service in compliance with Federal Rules of Civil Procedure by personal service. Original Summons returned. (Vogt, John) (Entered: 05/09/2013)
21 PROOF OF SERVICE Executed by Plaintiff Jelena Figueroa, Irene Zavala, Jose Manso, Rebecca Friedrichs, Harlan Elrich, Peggy Searcy, George W White Jr, Kevin Roughton, Karen Cuen, Christian Educators Association International, Scott Wilford, upon Defendant Julian D Crocker served on 5/1/2013, answer due 5/22/2013. Service of the Summons and Complaint were executed upon Julian D. Crocker In His Offical Capacity As San Luis Obispo County Office of Education Superintendant of Schools Valerie Kraskey, Assistant Authorized to Accept Service in compliance with Federal Rules of Civil Procedure by personal service. Original Summons returned. (Vogt, John) (Entered: 05/09/2013)
22 PROOF OF SERVICE Executed by Plaintiff Jelena Figueroa, Irene Zavala, Jose Manso, Rebecca Friedrichs, Harlan Elrich, Peggy Searcy, George W White Jr, Kevin Roughton, Karen Cuen, Christian Educators Association International, Scott Wilford,

Case: 8:13-cv-676 As of: 01/24/2016 09:20 AM PST 15 of 24

05/09/2013 05/09/2013 05/09/2013 05/09/2013 05/09/2013 05/09/2013 05/09/2013

upon Defendant Michael L Christensen served on 5/2/2013, answer due 5/23/2013. Service of the Summons and Complaint were executed upon Michael L. Christensen In His Official Capacity as Orange Unified School District Superintendant, Katherine Toper, Executive Assistant Authorized to Accept Service in compliance with Federal Rules of Civil Procedure by personal service. Original Summons returned. (Vogt, John) (Entered: 05/09/2013)
23 PROOF OF SERVICE Executed by Plaintiff Jelena Figueroa, Irene Zavala, Jose Manso, Rebecca Friedrichs, Harlan Elrich, Peggy Searcy, George W White Jr, Kevin Roughton, Karen Cuen, Christian Educators Association International, Scott Wilford, upon Defendant Marcus P Johnson served on 5/2/2013, answer due 5/23/2013. Service of the Summons and Complaint were executed upon Marcus P. Johnson In His Official Capacity As Sanger Unified School District Superintendant, Kristen Griffith, Clerk II Authorized to Accept Service in compliance with Federal Rules of Civil Procedure by personal service. Original Summons returned. (Vogt, John) (Entered: 05/09/2013)
24 PROOF OF SERVICE Executed by Plaintiff Jelena Figueroa, Irene Zavala, Jose Manso, Rebecca Friedrichs, Harlan Elrich, Peggy Searcy, George W White Jr, Kevin Roughton, Karen Cuen, Christian Educators Association International, Scott Wilford, upon Defendant National Education Association Jurupa served on 5/2/2013, answer due 5/23/2013. Service of the Summons and Complaint were executed upon National Education Association−Jurupa, John Vigrass, Agent Authorized to Accept Service in compliance with Federal Rules of Civil Procedure by personal service. Original Summons returned. (Vogt, John) (Entered: 05/09/2013)
25 PROOF OF SERVICE Executed by Plaintiff Jelena Figueroa, Irene Zavala, Jose Manso, Rebecca Friedrichs, Harlan Elrich, Peggy Searcy, George W White Jr, Kevin Roughton, Karen Cuen, Christian Educators Association International, Scott Wilford, upon Defendant National Education Association served on 5/1/2013, answer due 5/22/2013. Service of the Summons and Complaint were executed upon National Education Association, Kelli Brown, Confidential Associate, Office of General Counsel, Authorized ot Accept Service in compliance with Federal Rules of Civil Procedure by personal service. Original Summons returned. (Vogt, John) (Entered: 05/09/2013)
26 PROOF OF SERVICE Executed by Plaintiff Jelena Figueroa, Irene Zavala, Jose Manso, Rebecca Friedrichs, Harlan Elrich, Peggy Searcy, George W White Jr, Kevin Roughton, Karen Cuen, Christian Educators Association International, Scott Wilford, upon Defendant Orange Unified Education Association Inc served on 5/1/2013, answer due 5/22/2013. Service of the Summons and Complaint were executed upon Orange Unified Education Association, Inc., Ursula Esparaza, Front Desk Authorized To Accept Service in compliance with Federal Rules of Civil Procedure by personal service. Original Summons returned. (Vogt, John) (Entered: 05/09/2013)
27 PROOF OF SERVICE Executed by Plaintiff Jelena Figueroa, Irene Zavala, Jose Manso, Rebecca Friedrichs, Harlan Elrich, Peggy Searcy, George W White Jr, Kevin Roughton, Karen Cuen, Christian Educators Association International, Scott Wilford, upon Defendant Ruth Perez served on 5/2/2013, answer due 5/23/2013. Service of the Summons and Complaint were executed upon Ruth Perez In Her Official Capacity As Norwalk−La Mirada Unified School District Superintendant, Skye Roberts, Assistant Authorized ot Accept Service in compliance with Federal Rules of Civil Procedure by personal service. Original Summons returned. (Vogt, John) (Entered: 05/09/2013)
28 PROOF OF SERVICE Executed by Plaintiff Jelena Figueroa, Irene Zavala, Jose Manso, Rebecca Friedrichs, Harlan Elrich, Peggy Searcy, George W White Jr, Kevin Roughton, Karen Cuen, Christian Educators Association International, Scott Wilford, upon Defendant Saddleback Valley Educators Association served on 5/2/2013, answer due 5/23/2013. Service of the Summons and Complaint were executed upon Saddleback Valley Educators Association, Amanda Nolan, Person Authorized By The Corporation to Receive Service of Process in compliance with Federal Rules of Civil Procedure by personal service. Original Summons returned. (Vogt, John) (Entered: 05/09/2013)
29 PROOF OF SERVICE Executed by Plaintiff Jelena Figueroa, Irene Zavala, Jose Manso, Rebecca Friedrichs, Harlan Elrich, Peggy Searcy, George W White Jr, Kevin Roughton, Karen Cuen, Christian Educators Association International, Scott Wilford,

Case: 8:13-cv-676 As of: 01/24/2016 09:20 AM PST 16 of 24

05/09/2013 05/09/2013 05/09/2013 05/09/2013 05/09/2013 05/09/2013 05/09/2013

upon Defendant San Luis Obispo County Education Association served on 5/1/2013, answer due 5/22/2013. Service of the Summons and Complaint were executed upon San Luis Obispo County Education Association, Joyce Schuyler, Authorized to Accept Service in compliance with Federal Rules of Civil Procedure by personal service. Original Summons returned. (Vogt, John) (Entered: 05/09/2013)
30 PROOF OF SERVICE Executed by Plaintiff Jelena Figueroa, Irene Zavala, Jose Manso, Rebecca Friedrichs, Harlan Elrich, Peggy Searcy, George W White Jr, Kevin Roughton, Karen Cuen, Christian Educators Association International, Scott Wilford, upon Defendant Sanger Unified Teachers Association served on 5/1/2013, answer due 5/22/2013. Service of the Summons and Complaint were executed upon Sanger Unified Teacher Association, Tony Herron, President, Authorized to Accept Service in compliance with Federal Rules of Civil Procedure by personal service. Original Summons returned. (Vogt, John) (Entered: 05/09/2013)
31 PROOF OF SERVICE Executed by Plaintiff Jelena Figueroa, Irene Zavala, Jose Manso, Rebecca Friedrichs, Harlan Elrich, Peggy Searcy, George W White Jr, Kevin Roughton, Karen Cuen, Christian Educators Association International, Scott Wilford, upon Defendant Savanna District Teachers Association CTA NEA served on 5/2/2013, answer due 5/23/2013. Service of the Summons and Complaint were executed upon Savanna District Teachers Association CTA/NEA, Cindy Clemens, Executive Assistant Authorized to Accept Service in compliance with Federal Rules of Civil Procedure by personal service. Original Summons returned. (Vogt, John) (Entered: 05/09/2013)
32 PROOF OF SERVICE Executed by Plaintiff Jelena Figueroa, Irene Zavala, Jose Manso, Rebecca Friedrichs, Harlan Elrich, Peggy Searcy, George W White Jr, Kevin Roughton, Karen Cuen, Christian Educators Association International, Scott Wilford, upon Defendant Santa Ana Educators Association Inc served on 5/1/2013, answer due 5/22/2013. Service of the Summons and Complaint were executed upon Santa Ana Educators Association, Inc. Paul Hatton, Front Office Reception, Authorized to Accept Service in compliance with Federal Rules of Civil Procedure by personal service. Original Summons returned. (Vogt, John) (Entered: 05/09/2013)
33 PROOF OF SERVICE Executed by Plaintiff Jelena Figueroa, Irene Zavala, Jose Manso, Rebecca Friedrichs, Harlan Elrich, Peggy Searcy, George W White Jr, Kevin Roughton, Karen Cuen, Christian Educators Association International, Scott Wilford, upon Defendant Sue Johnson served on 5/2/2013, answer due 5/23/2013. Service of the Summons and Complaint were executed upon Sue Johnson In Her Offical Capacity As Savanna School District Superintendant, Cindy Clemens, Executive Assistant Authorized to Accept Service in compliance with Federal Rules of Civil Procedure by personal service. Original Summons returned. (Vogt, John) (Entered: 05/09/2013)
34 PROOF OF SERVICE Executed by Plaintiff Jelena Figueroa, Irene Zavala, Jose Manso, Rebecca Friedrichs, Harlan Elrich, Peggy Searcy, George W White Jr, Kevin Roughton, Karen Cuen, Christian Educators Association International, Scott Wilford, upon Defendant Thelma Melendez De Santa Ana served on 5/1/2013, answer due 5/22/2013. Service of the Summons and Complaint were executed upon Thelma Melendez De Santa Ana In Her Official Capacity As Santa Ana School Unified District Superintendant, Debrah Acosta, Legal Document Clerk Authorized to Accept Service in compliance with Federal Rules of Civil Procedure by personal service. Original Summons returned. (Vogt, John) (Entered: 05/09/2013)
35 PROOF OF SERVICE Executed by Plaintiff Jelena Figueroa, Irene Zavala, Jose Manso, Rebecca Friedrichs, Harlan Elrich, Peggy Searcy, George W White Jr, Kevin Roughton, Karen Cuen, Christian Educators Association International, Scott Wilford, upon Defendant Teachers Association of Norwalk La Mirada Area served on 5/2/2013, answer due 5/23/2013. Service of the Summons and Complaint were executed upon Teachers Association of Norwalk−La Mirada Area, Stephanie Romero, Receptionist Authorized To Accept Service in compliance with Federal Rules of Civil Procedure by personal service. Original Summons returned. (Vogt, John) (Entered: 05/09/2013)
36 PROOF OF SERVICE Executed by Plaintiff Jelena Figueroa, Irene Zavala, Jose Manso, Rebecca Friedrichs, Harlan Elrich, Peggy Searcy, George W White Jr, Kevin Roughton, Karen Cuen, Christian Educators Association International, Scott Wilford, upon Defendant Wayne Joseph served on 5/1/2013, answer due 5/22/2013. Service of

Case: 8:13-cv-676 As of: 01/24/2016 09:20 AM PST 17 of 24

05/17/2013 05/17/2013 05/20/2013 05/20/2013 05/20/2013 05/20/2013 05/20/2013 05/21/2013
05/21/2013
05/21/2013

the Summons and Complaint were executed upon Wayne Joseph In His Official Capacity As Chino Valley Unified School District Superintendant, Stephanie Gibson, Secretary Authorized to Accept Service in compliance with Federal Rules of Civil Procedure by personal service. Original Summons returned. (Vogt, John) (Entered: 05/09/2013)
37 STIPULATION Extending Time to Answer the complaint as to Michael L Christensen answer now due 6/21/2013, re Complaint − (Discovery),,,, 1 filed by defendant Michael L Christensen.(Thompson, Jeffrey) (Entered: 05/17/2013)
38 of Interested Parties filed by Defendant Michael L Christensen, (Thompson, Jeffrey) (Entered: 05/17/2013)
39 ANSWER to Complaint − (Discovery),,,, 1 filed by Defendant Wayne Joseph.(Wadlington, Marlon) (Entered: 05/20/2013)
40 ANSWER to Complaint − (Discovery),,,, 1 filed by Defendant Thelma Melendez De Santa Ana.(Wadlington, Marlon) (Entered: 05/20/2013)
41 ANSWER to Complaint − (Discovery),,,, 1 filed by Defendant Clint Harwick.(Wadlington, Marlon) (Entered: 05/20/2013)
42 ANSWER to Complaint − (Discovery),,,, 1 filed by Defendant Sue Johnson.(Wadlington, Marlon) (Entered: 05/20/2013)
43 Certificate of Interested Parties filed by Defendants Thelma Melendez De Santa Ana, Clint Harwick, Sue Johnson, Wayne Joseph, (Wadlington, Marlon) (Entered: 05/20/2013)
44 APPLICATION for attorney Jeremiah A. Collins to Appear Pro Hac Vice(PHV Fee of $325 receipt number 0973−12148016 paid.) filed by union defendants Associated Chino Teachers, California Teachers Association, Kern High School Teachers Association, National Education Association, National Education Association Jurupa, Orange Unified Education Association Inc, Saddleback Valley Educators Association, San Luis Obispo County Education Association, Sanger Unified Teachers Association, Santa Ana Educators Association Inc, Savanna District Teachers Association CTA NEA, Teachers Association of Norwalk La Mirada Area. (Attachments: # 1 Proposed Order)(Juran, Laura) (Entered: 05/21/2013)
45 APPLICATION for attorney Jason Walta to Appear Pro Hac Vice(PHV Fee of $325 receipt number 0973−12148156 paid.) filed by union defendants Associated Chino Teachers, California Teachers Association, Kern High School Teachers Association, National Education Association, National Education Association Jurupa, Orange Unified Education Association Inc, Saddleback Valley Educators Association, San Luis Obispo County Education Association, Sanger Unified Teachers Association, Santa Ana Educators Association Inc, Savanna District Teachers Association CTA NEA, Teachers Association of Norwalk La Mirada Area. (Attachments: # 1 Proposed Order)(Juran, Laura) (Entered: 05/21/2013)
46 STIPULATION Extending Time to Answer the complaint as to Saddleback Valley Educators Association answer now due 6/20/2013; National Education Association answer now due 6/20/2013; California Teachers Association answer now due 6/20/2013; Associated Chino Teachers answer now due 6/20/2013; Santa Ana Educators Association Inc answer now due 6/20/2013; Orange Unified Education Association Inc answer now due 6/20/2013; Teachers Association of Norwalk La Mirada Area answer now due 6/20/2013; Sanger Unified Teachers Association answer now due 6/20/2013; National Education Association Jurupa answer now due 6/20/2013; Savanna District Teachers Association CTA NEA answer now due 6/20/2013; Kern High School Teachers Association answer now due 6/20/2013; San Luis Obispo County Education Association answer now due 6/20/2013, re Complaint − (Discovery),,,, 1 filed by union defendants Saddleback Valley Educators Association; National Education Association; California Teachers Association; Associated Chino Teachers; Santa Ana Educators Association Inc; Orange Unified Education Association Inc; Teachers Association of Norwalk La Mirada Area; Sanger Unified Teachers Association; National Education Association Jurupa; Savanna District Teachers Association CTA NEA; Kern High School Teachers Association; San Luis Obispo County Education Association.(Demain, Jeffrey) (Entered:

Case: 8:13-cv-676 As of: 01/24/2016 09:20 AM PST 18 of 24

05/21/2013 05/21/2013 05/21/2013 05/22/2013 05/22/2013 05/22/2013 05/23/2013 05/29/2013
05/30/2013
05/31/2013 05/31/2013 06/03/2013
06/04/2013

05/21/2013)
47 STIPULATION Extending Time to Answer the complaint as to Marcus P Johnson answer now due 6/21/2013, re Complaint − (Discovery),,,, 1 filed by Defendant Marcus P Johnson.(Thompson, Jeffrey) (Entered: 05/21/2013)
48 of Interested Parties filed by Defendant Marcus P Johnson, (Thompson, Jeffrey) (Entered: 05/21/2013)
49 STIPULATION Extending Time to Answer the complaint as to Elliott Duchon answer now due 6/21/2013, re Complaint − (Discovery),,,, 1 filed by Defendant Elliott Duchon.(Taylor, Kerrie) (Entered: 05/21/2013)
50 STIPULATION Extending Time to Answer the complaint as to Donald E Carter answer now due 6/21/2013, re Complaint − (Discovery),,,, 1 filed by defendant Donald E Carter.(Burger, Christopher) (Entered: 05/22/2013)
51 ANSWER to Complaint − (Discovery),,,, 1 filed by Defendant Julian D Crocker.(Hersher, Michael) (Entered: 05/22/2013)
52 NOTICE of Change of Attorney Information for attorney Michael Eric Hersher counsel for Defendant Julian D Crocker. Filed by Defendant Julian D. Crocker (Hersher, Michael) (Entered: 05/22/2013)
53 ORDER SETTING SCHEDULING CONFERENCE by Judge Josephine Staton Tucker. Scheduling Conference set for 8/9/2013 01:30 PM before Judge Josephine Staton Tucker. (nbo) (Entered: 05/23/2013)
54 NOTICE TO FILER OF DEFICIENCIES in Electronically Filed Documents RE: APPLICATION for attorney Jeremiah A. Collins to Appear Pro Hac Vice(PHV Fee of $325 receipt number 0973−12148016 paid.) 44 , APPLICATION for attorney Jason Walta to Appear Pro Hac Vice(PHV Fee of $325 receipt number 0973−12148156 paid.) 45 . The following error(s) was found: Other error(s) with document(s) are specified below. Other error(s) with document(s): No signatures on Applications. Applicants did not sign the application. See LR 11−1. Good Standing Certificate for Jason Walta issued from DC does not have a date when the certificate was issued. Certificate is not valid. In response to this notice the court may order (1) an amended or correct document to be filed (2) the document stricken or (3) take other action as the court deems appropriate. You need not take any action in response to this notice unless and until the court directs you to do so. (lt) (Entered: 05/29/2013)
55 NOTICE TO FILER OF DEFICIENCIES in Electronically Filed Documents RE: Answer to Complaint (Discovery) 51 . The following error(s) was found: Local Rule 7.1−1 No Certification of Interested Parties and or no copies. In response to this notice the court may order (1) an amended or correct document to be filed (2) the document stricken or (3) take other action as the court deems appropriate. You need not take any action in response to this notice unless and until the court directs you to do so. (db) (Entered: 05/30/2013)
57 ORDER by Judge Josephine Staton Tucker: granting 44 Application to Appear Pro Hac Vice by Attorney Jeremiah A. Collins on behalf of Union Defendants, designating Laura P. Juran as local counsel. (lt) (Entered: 06/03/2013)
58 ORDER by Judge Josephine Staton Tucker: granting 45 Application to Appear Pro Hac Vice by Attorney Jason Walta on behalf of Union Defendants, designating Laura P. Juran as local counsel. (lt) (Entered: 06/03/2013)
56 Certificate of Interested Parties filed by Union defendants Associated Chino Teachers, California Teachers Association, Kern High School Teachers Association, National Education Association, National Education Association Jurupa, Orange Unified Education Association Inc, Saddleback Valley Educators Association, San Luis Obispo County Education Association, Sanger Unified Teachers Association, Santa Ana Educators Association Inc, Savanna District Teachers Association CTA NEA, Teachers Association of Norwalk La Mirada Area, (Demain, Jeffrey) (Entered: 06/03/2013)
59 Notice of Appearance or Withdrawal of Counsel: for attorney Jacob F Rukeyser counsel for Defendants Associated Chino Teachers, California Teachers Association,

Case: 8:13-cv-676 As of: 01/24/2016 09:20 AM PST 19 of 24

06/05/2013 06/14/2013
06/20/2013 06/20/2013 06/20/2013 06/20/2013 06/20/2013
06/21/2013 06/24/2013

Kern High School Teachers Association, National Education Association, National Education Association Jurupa, Orange Unified Education Association Inc, Saddleback Valley Educators Association, San Luis Obispo County Education Association, Sanger Unified Teachers Association, Santa Ana Educators Association Inc, Savanna District Teachers Association CTA NEA, Teachers Association of Norwalk La Mirada Area. Adding Jacob F. Rukeyser as attorney as counsel of record for California Teachers Association; National Education Association; Savanna District Teachers Association, CTA/NEA; Saddleback Valley Educators Association; Orange Unified Education Association, Inc.; Kern High School Teachers Association; National Education Association − Jurupa; Santa Ana Educators Association, Inc.; Teachers Association of Norwalk−La Mirada Area; Sanger Unified Teachers Association; Associated Chino Teachers; San Luis Obispo County Education Association for the reason indicated in the G−123 Notice. Filed by Defendants California Teachers Association; National Education Association; Savanna District Teachers Association, CTA/NEA; Saddleback Valley Educators Association; Orange Unified Education Association, Inc.; Kern High School Teachers Association; National Education Association − Jurupa; Santa Ana Educators Association, Inc.; Teachers Association of Norwalk−La Mirada Area; Sanger Unified Teachers Association; Associated Chino Teachers; San Luis Obispo County Education Association. (Rukeyser, Jacob) (Entered: 06/04/2013)
60 STIPULATION Extending Time to Answer the complaint as to Ruth Perez answer now due 6/21/2013, filed by Defendant Ruth Perez.(Wang, Henry) (Entered: 06/05/2013)
61 NOTICE TO FILER OF DEFICIENCIES in Electronically Filed Documents RE: Stipulation Extending Time to Answer (30 days or less) 60 . The following error(s) was found: Local Rule 7.1−1 No Certification of Interested Parties and or no copies. Other error(s) with document(s): Certificaton of Interested Parties needed for defendant Ruth Perez. In response to this notice the court may order (1) an amended or correct document to be filed (2) the document stricken or (3) take other action as the court deems appropriate. You need not take any action in response to this notice unless and until the court directs you to do so. (dro) (Entered: 06/14/2013)
62 STIPULATION for Order To Define Participation of Defendant Donald E. Carter filed by Defendant Donald E Carter. (Attachments: # 1 Proposed Order Re Participation of Defendant Donald E. Carter)(Burger, Christopher) (Entered: 06/20/2013)
63 STIPULATION for Order Regarding The Participation of Defendant Elliott Duchon filed by Plaintiffs Christian Educators Association International, Karen Cuen, Harlan Elrich, Jelena Figueroa, Rebecca Friedrichs, Jose Manso, Kevin Roughton, Peggy Searcy, George W White Jr, Scott Wilford, Irene Zavala. (Attachments: # 1 Proposed Order)(Vogt, John) (Entered: 06/20/2013)
64 STIPULATION for Order Regarding Participation of Defendant Michael L. Christensen filed by Defendant Michael L Christensen. (Attachments: # 1 Proposed Order)(Thompson, Jeffrey) (Entered: 06/20/2013)
65 STIPULATION for Order Regarding the Participation of Defendant Marcus P. Johnson filed by Defendant Marcus P Johnson. (Attachments: # 1 Proposed Order)(Thompson, Jeffrey) (Entered: 06/20/2013)
66 ANSWER to Complaint − (Discovery),,,, 1 filed by Union Defendants Associated Chino Teachers, California Teachers Association, Kern High School Teachers Association, National Education Association, National Education Association Jurupa, Orange Unified Education Association Inc, Saddleback Valley Educators Association, San Luis Obispo County Education Association, Sanger Unified Teachers Association, Santa Ana Educators Association Inc, Savanna District Teachers Association CTA NEA, Teachers Association of Norwalk La Mirada Area.(Demain, Jeffrey) (Entered: 06/20/2013)
67 STIPULATION for Order Regarding the Participation of Defendant Ruth Perez filed by Defendant Ruth Perez. (Attachments: # 1 Proposed Order)(Wang, Henry) (Entered: 06/21/2013)
68 Notice of Appearance or Withdrawal of Counsel: for attorney Roman J Munoz counsel for Defendant Julian D Crocker. Filed by defendant Julian D. Crocker. (Munoz, Roman) (Entered: 06/24/2013)

Case: 8:13-cv-676 As of: 01/24/2016 09:20 AM PST 20 of 24

06/24/2013 06/24/2013 06/24/2013 06/24/2013 06/24/2013 06/25/2013 06/25/2013
06/27/2013 06/28/2013 07/03/2013

69 STIPULATION for Order Regarding The Participation of Defendant Donald E. Carter filed by Plaintiff Christian Educators Association International, Karen Cuen, Harlan Elrich, Jelena Figueroa, Rebecca Friedrichs, Jose Manso, Kevin Roughton, Peggy Searcy, George W White Jr, Scott Wilford, Irene Zavala. (Attachments: # 1 Proposed Order)(Vogt, John) Modified on 6/27/2013 (dro). (Entered: 06/24/2013)
72 ORDER by Judge Josephine Staton Tucker Granting Stipulation Regarding the Participation of Defendant Michael L. Christensen 64 . (see document for details). (dro) (Entered: 06/26/2013)
73 ORDER by Judge Josephine Staton Tucker Granting Stipulation Regarding the Participation of Defendant Elliott Duchon 63 . (see document for details). (dro) (Entered: 06/26/2013)
74 ORDER by Judge Josephine Staton Tucker Granting Stipulation Regarding the Participation of Defendant Marcus P. Johnson 65 . (see document for details). (dro) (Entered: 06/26/2013)
75 ORDER by Judge Josephine Staton Tucker Granting the Stipulation Regarding the Participation of Defendant Ruth Perez 67 . (see document for details). (dro) (Entered: 06/26/2013)
70 AMENDED DOCUMENT filed by Plaintiffs Christian Educators Association International, Karen Cuen, Harlan Elrich, Jelena Figueroa, Rebecca Friedrichs, Jose Manso, Kevin Roughton, Peggy Searcy, George W White Jr, Scott Wilford, Irene Zavala. Amendment to Stipulation for Order, 69 Regarding Participation of Defendant Donald E. Carter (Attachments: # 1 Proposed Order)(Vogt, John) (Entered: 06/25/2013)
71 NOTICE OF MOTION AND MOTION for Preliminary Injunction re (1) maintaining agency−shop arrangements under which the Plaintiffs, as non−union−members, are required to pay fees to the Defendant Unions; and (2) requiring Plaintiffs to pay the non−chargeable portion of the Defendant Unions annual fees unless the Plaintiffs affirmatively opt out of doing so every year .. If this is filed during normal business hours, please contact the courtroom deputy assigned to the judge. If you are filing this document after 5:00 Monday through Friday, on a weekend or holiday, and need immediate judicial review, please call 213−894−2485 to advise that a Preliminary Injunction has been electronically filed. Failure to call the courtroom deputy, or the after hours filing contact number, may result in a delay of judicial review. Motion filed by Plaintiffs Karen Cuen, Harlan Elrich, Jelena Figueroa, Rebecca Friedrichs, Jose Manso, Kevin Roughton, Peggy Searcy, George W White Jr, Scott Wilford, Irene Zavala. Motion set for hearing on 7/26/2013 at 02:30 PM before Judge Josephine Staton Tucker. (Attachments: # 1 Declaration of John A. Vogt ISO Plaintiffs Motion for Preliminary Injunction, # 2 Exhibit 1−4 to Decl. of JAV, # 3 Exhibit 5 to Decl. of JAV, # 4 Exhibit 6 to Decl. of JAV, # 5 Exhibit 7(1) to Decl. of JAV, # 6 Exhibit 7(2) to Decl. of JAV, # 7 Exhibit 7(3) to Decl. of JAV, # 8 Exhibit 8(1) to Decl. of JAV, # 9 Exhibit 8(2) to Decl. of JAV, # 10 Exhibit 8(3) to Decl. of JAV, # 11 Exhibit 9−10(1) to Decl. of JAV, # 12 Exhibit 10(2) to Decl. of JAV, # 13 Exhibit 11−19 to Decl. of JAV, # 14 Exhibit 20−24 to Decl. of JAV, # 15 Exhibit 25(1) to Decl. of JAV, # 16 Exhibit 25(2)−30 to Decl. of JAV, # 17 Proposed Order)(Vogt, John) (Entered: 06/25/2013)
76 ORDER Granting Stipulation Regarding Participation of Defendant Donald E. Carter 69 , by Judge Josephine Staton Tucker. (see document for details). (dro) (Entered: 06/27/2013)
77 Notice of Change of Attorney Information filed by Defendant Donald E Carter (Burger, Christopher) (Entered: 06/28/2013)
78 EX PARTE APPLICATION to Continue hearing on motion for preliminary injunction from July 26, 2013 to August 30, 2013 Re: MOTION for Preliminary Injunction re (1) maintaining agency−shop arrangements under which the Plaintiffs, as non−union−members, are required to pay fees to the Defendant Unions; and (2) requiring Plaintiffs to pay the non−chargeable portion of the Defe 71 filed by Union Defendants Associated Chino Teachers, California Teachers Association, Kern High School Teachers Association, National Education Association, National Education Association Jurupa, Orange Unified Education Association Inc, Saddleback Valley

Case: 8:13-cv-676 As of: 01/24/2016 09:20 AM PST 21 of 24

07/05/2013 07/09/2013 07/09/2013 07/10/2013
07/10/2013 07/11/2013 07/17/2013
07/19/2013 07/22/2013

Educators Association, San Luis Obispo County Education Association, Sanger Unified Teachers Association, Santa Ana Educators Association Inc, Savanna District Teachers Association CTA NEA, Teachers Association of Norwalk La Mirada Area. (Attachments: # 1 Declaration of Jeremiah Collins, # 2 Proposed Order)(Demain, Jeffrey) (Entered: 07/03/2013)
79 MINUTES (IN CHAMBERS): ORDER by Judge Josephine Staton Tucker: granting 78 Ex Parte Application to Continue. The deadlines and hearings originally scheduled have been rescheduled. Motion hearing continued to 8/30/2013 at 02:30 PM before Judge Josephine Staton Tucker. (twdb) (Entered: 07/05/2013)
80 EX PARTE APPLICATION for Reconsideration re Order on Ex Parte Application to Continue, 79 filed by Plaintiffs Christian Educators Association International, Karen Cuen, Harlan Elrich, Jelena Figueroa, Rebecca Friedrichs, Jose Manso, Kevin Roughton, Peggy Searcy, George W White Jr, Scott Wilford, Irene Zavala. (Attachments: # 1 Declaration, # 2 Proposed Order)(Vogt, John) (Entered: 07/09/2013)
81 NOTICE OF MOTION AND MOTION for Judgment on the Pleadings as to Pleadings filed by Plaintiffs Christian Educators Association International, Karen Cuen, Harlan Elrich, Jelena Figueroa, Rebecca Friedrichs, Jose Manso, Kevin Roughton, Peggy Searcy, George W White Jr, Scott Wilford, Irene Zavala. Motion set for hearing on 8/9/2013 at 02:30 PM before Judge Josephine Staton Tucker. (Attachments: # 1 Proposed Order)(Vogt, John) (Entered: 07/09/2013)
82 OPPOSITION in opposition to re: EX PARTE APPLICATION for Reconsideration re Order on Ex Parte Application to Continue, 79 80 filed by Defendants Associated Chino Teachers, California Teachers Association, Kern High School Teachers Association, National Education Association, National Education Association Jurupa, Orange Unified Education Association Inc, Saddleback Valley Educators Association, San Luis Obispo County Education Association, Sanger Unified Teachers Association, Santa Ana Educators Association Inc, Savanna District Teachers Association CTA NEA, Teachers Association of Norwalk La Mirada Area. (Attachments: # 1 Proposed Order)(Demain, Jeffrey) (Entered: 07/10/2013)
83 SCHEDULING NOTICE: (IN CHAMBERS)ORDER CONTINUING HEARING by Judge Josephine Staton Tucker. The Court, on its own motion, continues Plaintiffs' Motion for Judgment on the Pleadings 81 to August 30, 2013 at 2:30 P.M. THERE IS NO PDF DOCUMENT ASSOCIATED WITH THIS ENTRY.(Guerrero, Terry) TEXT ONLY ENTRY (Entered: 07/10/2013)
84 MINUTES (IN CHAMBERS): ORDER by Judge Josephine Staton Tucker: denying 80 Ex Parte Application for Reconsideration. There are now two motions set for hearing on August 30, 2013. The parties should apprise the Court if either of the motions should be vacated or continued. (twdb) (Entered: 07/11/2013)
85 STIPULATION to Continue SCHEDULING CONFERENCE from August 9, 2013 to after resolution of all currently pending Motions filed by PLAINTIFFS Christian Educators Association International, Karen Cuen, Harlan Elrich, Jelena Figueroa, Rebecca Friedrichs, Jose Manso, Kevin Roughton, Peggy Searcy, George W White Jr, Scott Wilford, Irene Zavala. (Attachments: # 1 Proposed Order GRANTING THE STIPULATION REGARDING CONTINUATION OF THE SCHEDULING CONFERENCE)(Vogt, John) (Entered: 07/17/2013)
86 ORDER by Judge Josephine Staton Tucker, granting Stipulation to Continue, 85 . The scheduling conference currently set for August 9, 2013 at 1:30p.m., as well as all related obligations, are continued until afterresolution of all currently pending Motions. (twdb) (Entered: 07/19/2013)
87 STIPULATION for Order APPROVING STIPULATION REGARDING PENDING MOTIONS AND AMENDMENT OF ANSWER filed by PLAINTIFFS Christian Educators Association International, Karen Cuen, Harlan Elrich, Jelena Figueroa, Rebecca Friedrichs, Jose Manso, Kevin Roughton, Peggy Searcy, George W White Jr, Scott Wilford, Irene Zavala. (Attachments: # 1 Proposed Order APPROVING STIPULATION REGARDING PENDING MOTIONS AND AMENDMENT OF ANSWER)(Vogt, John) (Entered: 07/22/2013)

Case: 8:13-cv-676 As of: 01/24/2016 09:20 AM PST 22 of 24

07/24/2013 08/09/2013
08/09/2013
08/13/2013 08/20/2013 08/28/2013 08/28/2013 09/19/2013 09/19/2013 09/19/2013 09/19/2013 09/24/2013
09/24/2013

88 ORDER by Judge Josephine Staton Tucker, Approving Stipulation for Order Regarding Pending Motions and Amendment of Answer 87 . (twdb) (Entered: 07/26/2013)
89 AMENDED ANSWER to Complaint − (Discovery),,,, 1 filed by Union Defendants Saddleback Valley Educators Association, National Education Association, California Teachers Association, Associated Chino Teachers, Santa Ana Educators Association Inc, Orange Unified Education Association Inc, Teachers Association of Norwalk La Mirada Area, Sanger Unified Teachers Association, National Education Association Jurupa, Savanna District Teachers Association CTA NEA, Kern High School Teachers Association, San Luis Obispo County Education Association. (Attachments: # 1 Exhibit A)(Collins, Jeremiah) (Entered: 08/09/2013)
90 MEMORANDUM in Opposition to MOTION for Judgment on the Pleadings as to Pleadings 81 filed by Defendants Associated Chino Teachers, California Teachers Association, Kern High School Teachers Association, National Education Association, National Education Association Jurupa, Orange Unified Education Association Inc, Saddleback Valley Educators Association, San Luis Obispo County Education Association, Sanger Unified Teachers Association, Santa Ana Educators Association Inc, Savanna District Teachers Association CTA NEA, Teachers Association of Norwalk La Mirada Area. (Collins, Jeremiah) (Entered: 08/09/2013)
91 REPLY in Support of MOTION for Judgment on the Pleadings as to Pleadings 81 filed by Plaintiffs Christian Educators Association International, Karen Cuen, Harlan Elrich, Jelena Figueroa, Rebecca Friedrichs, Jose Manso, Kevin Roughton, Peggy Searcy, George W White Jr, Scott Wilford, Irene Zavala. (Vogt, John) (Entered: 08/13/2013)
92 NOTICE of Change of firm name and address by Henry C Wang attorney for Defendant Ruth Perez. Changing firm name to LEE TRAN LIANG & WANG LLP and address to 601 South Figueroa Street, Suite 3900, Los Angeles, CA 90017. Filed by Defendant Ruth Perez. (Wang, Henry) (Entered: 08/20/2013)
93 MINUTES (IN CHAMBERS): ORDER by Judge Josephine Staton Tucker: taking under advisement 81 Motion for Judgment on the Pleadings. Accordingly, the hearing set for August 30, 2013, at 2:30 p.m. is removed from the calendar. (twdb) (Entered: 08/28/2013)
94 MINUTE ORDER IN CHAMBERS by Judge Josephine Staton Tucker: ORDER OF CERTIFICATION. re: Notice (Other) 7 . (twdb) (Entered: 08/28/2013)
95 Attorney General's NOTICE OF MOTION AND MOTION to Intervene for the purpose of defending the constitutionality of State Statues filed by Kamala D. Harris. Motion set for hearing on 11/8/2013 at 02:30 PM before Judge Josephine Staton Tucker. Lodged proposed order and proposed order. (twdb) (Entered: 09/23/2013)
96 PROOF OF SERVICE, filed by Kamala D. Harris re: Attorney General's MOTION to Intervene 95 , served on September 19, 2013. (ago) (Entered: 09/23/2013)
97 PROOF OF SERVICE OF PROPOSED ORDER served on 9/19/13. (twdb) (Entered: 09/23/2013)
98 PROOF OF SERVICE OF PROPOSED ANSWER AND AFFIRMATIVE DEFENSES OF THE ATTORNEY GENERAL TO PLAINTIFF'S COMPLAINT served on 9/19/13. (twdb) (Entered: 09/23/2013)
99 STIPULATION to Allow Attorney General Kamala D. Harris to Intervene for the purpose of defending California statutes filed by Plaintiffs Christian Educators Association International, Karen Cuen, Harlan Elrich, Jelena Figueroa, Rebecca Friedrichs, Jose Manso, Kevin Roughton, Peggy Searcy, George W White Jr, Scott Wilford, Irene Zavala. (Attachments: # 1 Proposed Order)(Vogt, John) (Entered: 09/24/2013)
100 OPPOSITION to MOTION to Intervene 95 opposing request for 60−day extension filed by Plaintiffs Christian Educators Association International, Karen Cuen, Harlan Elrich, Jelena Figueroa, Rebecca Friedrichs, Jose Manso, Kevin Roughton, Peggy Searcy, George W White Jr, Scott Wilford, Irene Zavala. (Attachments: # 1 Affidavit, # 2 Proposed Order)(Vogt, John) (Entered: 09/24/2013)

Case: 8:13-cv-676 As of: 01/24/2016 09:20 AM PST 23 of 24

09/24/2013 09/25/2013 09/26/2013 11/25/2013 11/26/2013 12/05/2013 12/12/2013
12/12/2013 12/12/2013 12/13/2013 01/30/2014 10/23/2014
11/18/2014

101 REPLY Support AG's Request 60 Days to File Merits Brief filed by Miscellaneous Kamala D. Harris. (Attachments: # 1 Declaration of Alexand Robdert Gordon in Support of Attorney General's Request for 60 Days from Date of Order Granting Intervention to Submit a Merits Briefra)(Gordon, Alexandra) (Entered: 09/24/2013)
102 ORDER by Judge Josephine Staton Tucker: granting Stipulation 99 Regarding Intervention and Granting Attorney General of California's Request for Additional time to File Merits Brief; Granting 95 Motion to Intervene. (twdb) (Entered: 09/26/2013)
103 TEXT ONLY ENTRY: Judge Josephine Staton Tucker has restored her former name, which is Josephine L. Staton. On all documents filed in this case on or after October 1, 2013, substitute the initials JLS after the case number in place of JST. THERE IS NO PDF DOCUMENT ASSOCIATED WITH THIS ENTRY. (ehu) TEXT ONLY ENTRY (Entered: 09/26/2013)
104 OPPOSITION to MOTION for Judgment on the Pleadings as to Pleadings 81 filed by Miscellaneous Kamala D. Harris. (Gordon, Alexandra) (Entered: 11/25/2013)
105 REPLY TO ATTORNEY GENERAL'S RESPONSE TO PLAINTIFF'S MOTION FOR JUDGMENT ON THE PLEADINGS filed by Plaintiffs Christian Educators Association International, Karen Cuen, Harlan Elrich, Jelena Figueroa, Rebecca Friedrichs, Jose Manso, Kevin Roughton, Peggy Searcy, George W White Jr, Scott Wilford, Irene Zavala. (Vogt, John) (Entered: 11/26/2013)
106 MINUTES (IN CHAMBERS): ORDER by Judge Josephine L. Staton: granting 81 Motion for Judgment on the Pleadings and vacating 71 Motion for Preliminary Injunction; MD JS−6. Case Terminated. (twdb) (Entered: 12/06/2013)
107 NOTICE OF APPEAL to the 9th CCA filed by Plaintiffs Christian Educators Association International, Karen Cuen, Harlan Elrich, Jelena Figueroa, Rebecca Friedrichs, Jose Manso, Kevin Roughton, Peggy Searcy, George W White Jr, Scott Wilford, Irene Zavala. Appeal of Order on Motion for Preliminary Injunction, Order on Motion for Judgment on the Pleadings 106 (Appeal fee FEE NOT PAID.) (Vogt, John) (Entered: 12/12/2013)
108 REPRESENTATION STATEMENT re Notice of Appeal to 9th Circuit Court of Appeals, 107 . (Vogt, John) (Entered: 12/12/2013)
109 APPEAL FEE PAID: re Notice of Appeal to 9th Circuit Court of Appeals, 107 as to Plaintiffs; Receipt Number: SA009303 in the amount of $505.00 (car) (Entered: 12/13/2013)
110 NOTIFICATION by Circuit Court of Appellate Docket Number 13−57095, 9TH CCA regarding Notice of Appeal to 9th Circuit Court of Appeals, 107 as to Plaintiffs. (car) (Entered: 12/16/2013)
111 ORDER from 9th CCA filed re: Notice of Appeal to 9th Circuit Court of Appeals, 107 , CCA # 13−57095. Appellants' opposed motion for expedition is granted in part. The unopposed briefing schedule is adopted. The briefing schedule is set. [See document for further information]. Order received in this district on 1/30/14. (car) (Entered: 01/31/2014)
112 ORDER from 9th CCA filed re: Notice of Appeal to 9th Circuit Court of Appeals, 107 filed by Harlan Elrich, Jose Manso, Rebecca Friedrichs, George W White Jr, Christian Educators Association International, Jelena Figueroa, Irene Zavala, Scott Wilford, Karen Cuen, Peggy Searcy, Kevin Roughton, CCA # 13−57095. The motion to reconsider is granted with respect to appellants request that the motion for summary affirmance be referred to a motions panel for disposition rather than awaiting submission of the appeal to a merits panel. That portion of the October 3, 2014 order referring the motion for summary disposition to the merits panel is vacated. The request for expedited disposition of the motion for summary affirmance by a motions panel before October 31, 2014 is denied. Order received in this district on 10/23/14. [See document for more details] (mat) (Entered: 10/27/2014)
113 ORDER from 9th CCA filed re: Notice of Appeal to 9th Circuit Court of Appeals, 107 filed by Harlan Elrich, Jose Manso, Rebecca Friedrichs, George W White Jr, Christian Educators Association International, Jelena Figueroa, Irene Zavala, Scott Wilford,

Case: 8:13-cv-676 As of: 01/24/2016 09:20 AM PST 24 of 24

12/11/2014 10/07/2015

Karen Cuen, Peggy Searcy, Kevin Roughton, CCA # 13−57095. The court has reviewed appellants' motion for summary affirmance and appellees' opposition thereto, the record, and the briefing filed in this appeal. Accordingly, we summarily affirm the district court's judgment. Order received in this district on 11/18/14. (car) (Entered: 11/20/2014)
114 MANDATE of 9th CCA filed re: Notice of Appeal to 9th Circuit Court of Appeals, 107 , CCA # 13−57095. The decision of the District Court is affirmed. Mandate received in this district on 12/11/14. (mat) (Entered: 12/17/2014)
115 ORDER from Ninth Circuit Court of Appeals filed re: Notice of Appeal to 9th Circuit Court of Appeals, 107 filed by Harlan Elrich, Jose Manso, Rebecca Friedrichs, George W White Jr, Christian Educators Association International, Jelena Figueroa, Irene Zavala, Scott Wilford, Karen Cuen, Peggy Searcy, Kevin Roughton. CCA # 13−57095. The motion for an exemption under Rule 46−5 for Associate Deputy Solicitor General Samuel Siegel is granted to the extent the motion concerns the practice of law before this court. See 9th Cir. R. 46−5. This order expresses no opinion with respect to Mr. Siegels representation of intervenor in the matter currently pending before the Supreme Court of the United States. This case remains closed. (mat) (Entered: 10/08/2015)