Administrator Contracts and Contract Renewal

In January of 2023, Kirk Strang presented at the WASDA New Superintendents Academy on the topic of administrator contracts and contract renewal.

Since this is an ongoing hot topic for most school districts, Kirk thought it was an excellent way to kick off the new year by going deep into the subject.

For those who weren’t able to attend the event, we’d like to share the following recap of Kirk’s presentation.

In Part 1, we cover:

• The import of administrator contracts
• The Case for distinct superintendent contracts
• Contract Terms
• Who is covered, and who is NOT covered
• Additional prohibitions
• Issues to address

And in Part 2, we’ll cover:

• Contract deadlines
• Preliminary and final notice
• Types of renewal
• Renewal v. extension
• Navigating nonrenewal/renewal problems

Administrator Contracts

The Import of Administrator Contracts

Administrator contracts:

1. Serve as the primary and, in some cases, the only document that truly defines the employment relationship between an administrator and the school board;
2. Are mandated by state statutes (Wis. Stat. 118.24);
3. Have relatively high compensation and overall costs (at least in a given school district) and, as a result, can be a subject of public discourse or have any number of other side effects; and
4. Are well worth the funds expended to employ a capable administrator. Nevertheless, they can be a disaster if timelines are blown or other procedures are mismanaged, because they are provided to more highly compensated school employees and the price is high when mistakes are made (e.g., an accidental contract renewal for two years).

The Case for Distinct Superintendent Contracts

1. The chief executive officer is different. A distinct superintendent contract:
2. Captures that difference with greater precision;
3. Eliminates (or at least reduces) the appearance that the superintendent’s interests are too closely aligned with the administrators that they supervise; and
4. Provides for more unencumbered negotiations between school boards and superintendents on over issues or contract terms unique to the chief executive. These issues or terms can include:
   1. Compensation
   2. Termination (cause v. no cause)
   3. Extensions of the contract term
   4. Incentive clauses

Administrator contracts provide a forum for defining terms of the school board/executive relationship. Contracts remain somewhat static in this area; where we might expect to see more “executive” footprints (as with superintendent contracts), administrator contracts generally continue to have relatively standard or similar provisions on termination, nonrenewal, or other actions. While there are some instances where, e.g., higher pay is negotiated with less objective job security, these remain exceptional cases in Wisconsin. Nevertheless, there are incentives for school boards and superintendents alike to explore these areas.

Contract Terms

1. Administrator contracts are limited to a term of two years (Wis. Stat. 118.24(1)). The two-year limit cannot be overcome by, e.g., entering into multiple contracts at the same time to create a longer period of contractual obligation. Having multiple, but consecutive two-year contracts executed at the same time to create a longer aggregate contract period is not permitted.
2. A one-year contract is permitted. One-year contracts are increasingly a means of internal corrective action, as it is increasingly difficult for school boards to persuade administrators to move for a one-year contract, especially at the superintendent level.

Who is Covered

1. “A school board may employ a school district administrator, a business manager and school principals and assistants to such persons.” Wis. Stat. 118.24(1).
2. “Personnel administrators and supervisors, curriculum administrators and assistants to such administrative personnel, when employed by the school board of any school district to perform administrative duties …” Wis. Stat. 118.24(8).
3. On a practical level, an employee who has a contract, policy, or handbook that says that their employment is governed by Wis. Stat. 118.24 probably must be treated as though it is. The benefits of statutory standards and procedures can be conferred by contract, policy, or potentially by handbooks. Thus, it is possible for a school district to extend the protections of Wis. Stat. §118.24 to employees that are not — strictly speaking — covered by the statute.
4. In general, the following positions will be covered:
   1. District administrator
   2. Business manager
   3. Principal
   4. Assistant principal (or “associate” principal)
   5. Human resource directors
   6. Directors (e.g., curriculum, pupil services, and other district office administrators charged with district-wide management responsibilities in specific areas)

Who is NOT Covered

1. Not all local public office holders are administrators.
   See, Wis. Stat. 19.42(7w)(concerning elective offices, positions held by persons appointed for a specified term, or an appointive office whose occupant serves at the pleasure of the appointing authority).
2. Note the proper meaning of the phrases “assistants to such persons” and “assistants to such administrative personnel.” This refers to, e.g., assistant superintendents, business managers, and principals. It does not refer to office personnel that provide support services to such persons (e.g., secretaries).
3. The requirement that certain administrators “perform administrative duties only.” Wis. Stat. 118.24(8).

Additional Prohibitions

Prohibition Against Contracting With an Administrator That Is Under Contract With Another School Board: “No school board may enter into a contract of employment with any such person for a period of time as to which such person is then under a contract of employment with another school board.” Wis. Stat. 118.24(6).

Tenure and Permanent Employment Prohibited: “No principal or assistant principal may be granted tenure or permanent employment.” Wis. Stat. 118.24(10). 

Issues to Address

1. Review and revise administrator contracts to address issues that must be addressed contractually, just as you would review teacher contracts. Superintendents will want to make sure that administrator contracts address:
   1. Job security
   2. Contract renewal and nonrenewal
   3. Layoff
   4. Loss of license
   5. Payroll over a 12-month period
   6. General duties and expectations (which covers express duties, duties generally expected for the position, duties assigned that are fairly within the scope of the job)
   7. Evaluation
   8. Term (for contract and duty purposes)
      Extension of contract provisions

2. Evaluation - Responsiveness to the superintendent.
   An administrator can reasonably be expected to be responsive to the superintendent’s leadership and direction, including:

   1. Supporting the superintendent’s agenda
   2. Carrying out expected duties
   3. Refraining from backbiting or undermining

   A superintendent can reasonably be expected to evaluate and place administrators on notice about this expectation. Evaluations should account for and, in some instances, even include provisions for assessment that are based on contributions to the superintendent’s goals and objectives.

3. Contract extensions.

   1. Extension by operation of contract: 
      The contract itself has language that governs the extension process and which, if followed, extends the term of an existing contract.

      There are generally two types of these clauses:

      1. Notice of extension is required to extend (where a contract requires notice of any extension to be given for an extension to actually occur).
      2. Negative option (where, e.g., a board of education’s failure to act will result in a one-year extension based on the prior contractual agreement of the parties).

      NOTE: Procedural language used in this area is generally poor; most contracts do not state deadlines with precision, how notice is provided, what constitutes timely notice, etc.

   2. Extension by mutual agreement: 
      The statute provides that an administrator contract can be extended (or, more exactly, renewed) if the employing board gives notice of renewal no less than 4 months prior to expiration and the contract is accepted on or before a date 3 months prior to expiration. 
      
      An administrator contract can also be extended by another type of agreement of the parties, within the term limits that appear in the statute.
      
      NOTE: Contract extensions, if any, should take place in the first year of a 2-year contract. 
4. Administrator contracts can be modified or terminated by mutual agreement.
   1. The statute provides that “[n]othing in this section prevents the modification or termination of an employment contract by mutual agreement of the parties.”
   2. Prevailing authority indicates that parties can freely enter into agreements that limit or waive certain rights or processes in exchange for other values.
   3. By the same token, there can be reasonable debate over issues such as whether choices to relinquish other rights are voluntary or whether public policy prevents parties from reaching certain private agreements.
5. Recruiting. Assembling a winning administrative team is everything. Do your best to impart a corresponding understanding of value to your board of education.

That brings us to the conclusion of Part 1 of this series. In Part 2, we’ll dig into the following topics: contract deadlines, preliminary and final notice, types of renewal, renewal v. extension, and navigating nonrenewal/renewal problems.

If you found the information in this article helpful, you might also enjoy the following series …

Challenges for the 2022-2023 School Year:
Part 1: Unruly Fans & Parents at School Board Meetings
Part 2: Public Access to School Grounds
Part 3: Gender Identity Issues
Part 4: Controversies Over Books & Curriculum Decisions