On January 20, VACo testified in opposition to SB 1033 (Pekarsky), which permits any school board to enter into a written agreement to submit any existing controversy to binding arbitration and to execute a contract, including a collective bargaining agreement, that contains a provision to submit to binding arbitration any controversy arising thereunder. This bill introduces potentially significant challenges that would undermine the financial harmony and statutory balance between school boards and county boards of supervisors, as outlined in Virginia Code § 22.1-91 and § 2.2-4366. The Code explicitly prohibits school boards from incurring expenses that exceed the appropriations made by the local governing body (the county board of supervisors). Binding arbitration decisions could result in school boards being obligated to fund settlements or contract terms that exceed their approved budgets. This would place county boards of supervisors in an untenable position, either having to make unplanned appropriations or risk the school board violating the law.
Furthermore, the legislation could lead to erosion of fiscal oversight. County boards of supervisors serve as the fiscal stewards of taxpayer dollars. SB 1033 would effectively diminish their oversight role, as binding arbitration could commit school boards to financial decisions without the input or approval of the funding authority. This undermines the cooperative relationship between the two boards, which is essential for effective governance and fiscal discipline. Arbitrators involved in binding arbitration are not elected officials and are not accountable to taxpayers. This undermines the democratic process and could result in decisions that reflect external preferences rather than local priorities.
VACo was joined in opposition by the Virginia School Boards Association (VSBA), which argued that the legislation violates the Virginia Constitution. The Senate Education and Health Public Education Subcommittee recommended reporting the bill, 3-2. VACo urges members to oppose the legislation.
VACo Contact: Jeremy R. Bennett