Board of Regents v. Farrell

443 S.W.3d 12, 2014 WL 2794977
CourtCourt of Appeals of Kentucky
DecidedMay 30, 2014
DocketNos. 2012-CA-001367-MR, 2012-CA-001480-MR
StatusPublished
Cited by2 cases

This text of 443 S.W.3d 12 (Board of Regents v. Farrell) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Board of Regents v. Farrell, 443 S.W.3d 12, 2014 WL 2794977 (Ky. Ct. App. 2014).

Opinion

OPINION

MOORE, Judge:

The above-captioned appellants appeal a declaratory judgment entered in favor of the above-captioned appellees by the Franklin Circuit Court. For the reasons specified below, we affirm in part and reverse in part.

RELEVANT FACTUAL AND PROCEDURAL HISTORY

The general background of this case was summarized by the circuit court as follows:

House Bill 1 (“HB 1”), the Executive Branch Budget Bill for the 2010-2012 biennium, was enacted June 11, 2010. The bill contained the “process and procedure” to be followed “in the event that the fiscal situation of the Commonwealth requires that the Executive Branch place employees on furlough.” The authority to implement a furlough was given by the General Assembly to the Executive Branch, “[i]n response to requests by the Executive Branch for maximum flexibility in regard to personnel matters.” 2010 Extra. Sess. Ky. Acts ch. 1, Part IV, 11. As discussed further below with regard to the “Certification of Fiscal Necessity,” the Governor was required in HB 1 to impose multi-million dollar cuts to the Executive Branch budget as a device to allow the General Assembly to pass a balanced budget without either increasing revenue or enacting cuts to specific programs.
The term “furlough,” as defined by HB 1, is “the temporary reduction of hours an employee is scheduled to work by the Appointing Authority within a pay period.” 2010 Extr. Sess. Ky. Acts ch. 1, Part IV, 11(a)(3). HB 1 required Kentucky’s Personnel Cabinet Secretary to develop and implement the furlough plan for Executive Branch employees and required the following in the furlough plan: all employees be placed on furlough for the same number of hours during a calendar month; that any contract employees compensated on an hourly basis would be prohibited from performing similar services while a state employee in the work unit is placed on furlough; and that employees be noti[17]*17fied at least seven days prior to the date of the furlough. Id. at 11(c)(1), (6), (9). As provided for by HB 1, a furlough plan was developed and implemented by former Personnel Cabinet Secretary Nikki Jackson on or about July 9, 2010, in the form of emergency regulation 101 KAR 5:015. This regulation was approved by the Governor and was subsequently promulgated as a regular, non-emergency regulation at 101 KAR 5:015. The furlough regulation required each Executive Branch Cabinet to develop a furlough plan to be implemented by that Cabinet and the appointing authority. It also required that all state Executive Branch employees be furloughed for a total of six (6) working days over the course of the 2010-11 fiscal year. The Executive Branch Cabinets relevant to this case, the Education and Workforce Development Cabinet and the Justice and Public Safety Cabinet, each submitted furlough plans, which were approved by the Personnel Secretary.
A finding of “lack of funds” was the required condition precedent to imposing furloughs under HB 1. “Lack of funds” was defined in the furlough provision of HB 1 as “current or projected deficiency of funding to maintain current or projected levels of staffing and operations of state government in a fiscal year.” 2010 Extra. Sess. Ky. Acts ch. 1, Part IV 11(a) (Ip). A “lack of funds” was certified by State Budget Director Mary E. Lassiter on August 24, 2010 in a Certification of Fiscal Necessity.

The appellees in this matter are four groups of state employees who filed a declaratory action in Franklin Circuit Court to challenge the 2010-2011 furloughs described above, as implemented by the Education and Workforce Development Cabinet and the Justice and Public Safety Cabinet. The first group consists of seventeen teachers employed at the Kentucky School for the Blind (“KSB”).1 The second consists of eighteen teachers employed at the Kentucky School for the Deaf (“KSD”).2 The third consists of five teachers employed at Area Technology Centers (“ATC”).3 And, the fourth consists of six teachers assigned to the Department of Corrections from the Kentucky Community and Technical College System (“KCTCS”).4

The first three groups of these teachers (respectively the “KSB,” “KSD,” and “ATC” appellees) are employed in institutions attached to and part of the Education and Workforce Development Cabinet, and they are all Executive Branch employees. These appellees also argued — for the same reasons — that they should not have been furloughed for any of the six days contemplated in HB 1, or, alternatively, that they [18]*18should not have been furloughed on September 6, 2010.

The fourth group (the “KCTCS” appel-lees) are not employed by the Executive Branch, but were considered by the Executive Branch to be subject to the furloughs described in HB 1 for reasons discussed more fully within the context of our analysis, below. They also argued, albeit for different reasons, that they should not have been furloughed for any of the six days contemplated in HB 1.

We will discuss the specifics of the arguments offered by the appellees within the context of our analysis, below; suffice it to say that the circuit court ultimately granted summary judgment in favor of the ap-pellees, finding as a matter of law that none of these four groups were properly subject to any of the six furlough days contemplated in HB 1. The circuit court also enjoined the appellants from imposing any additional furloughs upon these appel-lees. These appeals followed.

STANDARD OF REVIEW

Summary judgment serves to terminate litigation where “the pleadings, depositions, answers to interrogatories, stipulations, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” Kentucky Rules of Civil Procedure (CR) 56.03. Summary judgment should be granted only if it appears impossible that the non-moving party will be able to produce evidence at trial warranting a judgment in his favor. Steelvest, Inc. v. Scansteel Service Center, Inc., 807 S.W.2d 476 (Ky.1991). Summary judgment “is only proper where the movant shows that the adverse party could not prevail under any circumstances.” Id. at 480 (citing Paintsville Hosp. Co. v. Rose, 683 S.W.2d 255 (Ky.1985)).

ANALYSIS

We begin our analysis with the ground primarily relied upon by the circuit court for declaring the KSB, KSD, and ATC appellees exempt from HB 1 furloughs; namely, that HB 1 violated Sections 2 and 183 of the Kentucky Constitution. The circuit court’s reasoning was as follows:

The Plaintiffs’ last and most compelling argument is that HB 1 treats the Commonwealth’s similarly situated teachers disparately. Teachers hired by local Boards of Education, consisting of the vast majority of the Commonwealth’s elementary and secondary school teachers, were exempted from the furlough authority in HB 1. However, elementary and secondary school teachers employed by the Executive Branch’s Department of Education, notably the Kentucky School for the Deaf and Kentucky School for the Blind, were furloughed pursuant to HB 1.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
443 S.W.3d 12, 2014 WL 2794977, Counsel Stack Legal Research, https://law.counselstack.com/opinion/board-of-regents-v-farrell-kyctapp-2014.