TBJ MARCH 2023
The Business of Education
Why do school districts need lawyers?
Written by Sarah S. Flournoy
School districts are a business. They own and lease commercial-size
buildings and other real estate; they employ hundreds, sometimes
thousands, of employees; they provide services to thousands of customers
each day; and they have multimillion-dollar budgets. Often, they are the
largest employer in their geographic area. For example, Fort Worth
ISD—one of the largest school districts in Texas—operates 140 campuses
plus administrative facilities, employs over 10,000 individuals,
educates almost 75,000 students daily, and manages an annual budget of
more than $800 million.1 Like a business, school districts
typically rely on lawyers to assist them in all these areas and more,
including negotiating contracts, purchasing land, constructing
buildings, addressing employee retention and discipline, and managing
litigation. But unlike private businesses, school districts are also a
governmental entity, the implications of which are not often readily
understood. This article discusses some of the unique legal issues
impacting school districts in their daily operations and how lawyers
assist them.
School districts must comply with an array of federal and state laws,
rules, and regulations. First and foremost is the U.S. Constitution.
School districts are political subdivisions of the state and therefore,
through the 14th Amendment, are subject to the restrictions imposed by
the first eight amendments to the Constitution.2 For example,
the Fourth Amendment prohibits student searches absent reasonable
suspicion.3 The Fifth Amendment prohibits schools from
requiring students to write letters of apology as a form of discipline
or forcing employees to provide a written response to misconduct
allegations absent a Garrity notice4 when criminal
conduct is alleged.
The First Amendment is more pervasive. Schools may regulate student
speech if it “materially disrupts classwork or involves substantial
disorder or invasion of the rights of others.”5 That
prohibition includes indecent, lewd, and offensive speech at a
school-sponsored event during school hours. It does not include an
off-campus social media post proclaiming: “[obscenity] school
[obscenity] softball [obscenity] cheer [obscenity]
everything.”6 Similarly, employee speech regarding matters of
public concern is protected under the First Amendment. But speech that
is purely personal job related is not. The First Amendment restricts
compelled speech like saying the Pledge of Allegiance each day. But it
also protects the freedom of inquiry that restricts schools from
removing objectionable books from their libraries. The First Amendment
protects students who wish to assemble and protest at school. But this
protected activity often leaves administrators walking a thin line
between protecting student safety and the education of others, while
avoiding interference of protected speech or retaliatory discipline
claims. Similarly, school board presidents are required to make
split-second decisions regarding the constitutionality of public speech
and audience behavior at school board meetings while attempting to
maintain order and manage the business conducted at the meetings.
Finally, schools are frequently at the crossroads where the free
exercise and establishment clauses collide, as with a football coach
praying in full athletic regalia at the 50-yard line immediately
following a Friday night game or students gifting classmates candy canes
with religious messages at a school Christmas party.7
While education is a power reserved to the states, the federal
government exerts significant control over public schools through
federal legislation. Federal discrimination laws apply to school
districts, prohibiting the exclusion of any person from an educational
program or activity on the basis of race, color, religion, sex, or
national origin.8 Further, under Title I of the Elementary
and Secondary Education Act of 1965, “[n]o person in the United States
shall, on the ground of race, color, or national origin, be excluded
from participation in, be denied the benefits of, or be subjected to
discrimination under any program or activity receiving Federal financial
assistance.”9
The federal government often uses the spending clause of the U.S.
Constitution to encourage or discourage certain behavior by
schools.10 For example, the Individuals with
Disabilities Education Act, or IDEA, “provides federal funds to assist
state and local agencies in educating children with disabilities ‘and
conditions such funding upon a State’s compliance with extensive goals
and procedures.’”11 Schools and educational
agencies must also comply with the Family Educational Rights and Privacy
Act, or FERPA,12 which prohibits schools from
releasing student records without parental consent except in limited
situations.13 Federal law frequently conditions
“receipt of federal education funds on a state’s waiver of Eleventh
Amendment immunity.”14
Schools are governed by the Texas Constitution. The Texas Constitution,
Article VII, Section 1, declares: “A general diffusion of knowledge
being essential to the preservation of the liberties and rights of
people, it shall be the duty of the Legislature of the State to
establish and make suitable provision for the support and maintenance of
an efficient system of public free schools.” This provision is the basis
for nearly biannual lawsuits contesting the Legislature’s funding for
public schools and challenging whether that funding meets the “suitable”
threshold. Additionally, the Texas Constitution prohibits government
entities from gifting public funds for private
benefit.15 This provision hinders the ability of
school districts to grant mid-contract raises or bonuses, dispose of
obsolete property, make donations, and regift donations intended for
students. For example, if a bad weather day prompts late arrival, exempt
employees are paid, but paying non-exempt employees may constitute a
gift of public funds.
Schools are governed by the Texas Education Code. Most education laws
affecting K-12 school districts are found in Title 2. Subtitle C
provides information on the organization of local school boards and the
separation of powers between school boards, superintendents, and
principals. For school district personnel employed under Chapter 21
contracts, Subtitle D Chapter 21 governs their certification
requirements and the terms of their employment, including annual
evaluation and termination. Chapter 21 provides complex due process
procedures for mid-contract terminations that generally make it more
cost effective for a school district to leave an employee on paid
administrative leave for the remainder of the school year rather than
pursue a mid-contract termination in January or later. Subtitle G
Chapter 37 contains similar due process procedures for student
discipline, though significantly less cumbersome and time consuming.
As a governmental entity, schools are also subject to both the Texas
Open Meetings Act and the Texas Public Information Act. Every school
board meeting must be preceded by a publicly posted agenda, must be open
to the public, and must provide the public an opportunity to speak on a
topic before it is considered by the board. The agenda must be specific
enough to reasonably alert the public as to what the board is
considering. Further, under the Public Information Act, the public is
entitled to the records of the school district to gain a complete
understanding of how the district operates and to hold public officials
accountable. Exceptions to both acts are available in limited
circumstances, but, at least with the Public Information Act, consent of
the Texas attorney general is required.
Schools, with their lawyers, navigate a variety of other laws. For
example, school districts hold elections, act as taxing authorities, and
issue bonds. Campus administrators are routinely presented with family
court orders for enforcement or called to testify in family court
matters. Chapter 37 of the Education Code, under Subtitle G Safe
Schools, addresses student discipline with a multitude of cross
references both internal and to the Texas Penal Code. During the last
legislative session, House Bill 1927 was signed into law, requiring a
multi-page legal opinion for school district clients attempting to
succinctly explain the resulting penal code provisions regarding whether
and how school districts may regulate guns being brought onto their
campuses.
Finally, like private businesses, schools may be subject to
investigations by the Equal Employment Opportunity Commission, the Texas
Workforce Commission, the Texas attorney general, and local law
enforcement. Schools are also regularly investigated by the U.S.
Department of Education Office for Civil Rights and the Texas Education
Agency. Occasionally, the U.S. Department of Justice may also
investigate. Complaints filed with state licensing agencies like the
Board of Nursing and the Department of Licensing and Regulation also
prompt investigations.
While all of these laws impact education, like business attorneys,
school lawyers provide their legal expertise so their clients have the
time and resources needed for their day job—educating students.
TBJ
SARAH S. FLOURNOY
began practicing in the area of school law following six years as a
secondary social studies teacher in a Title I school district and five
years as a corporate attorney. She works primarily with both public and
private K-12 educational entities on a broad range of legal issues
including employment, student discipline, special education, contracts,
procurement, policy development, elections, and open government. In
addition to special education due process hearings, Flournoy has
defended educational entities before state and federal agencies as well
as before federal and state courts. Prior to joining Brackett &
Ellis in Fort Worth, she served at Irving ISD as its in-house attorney
for three years.