168.124. 1. The board of education of a school district may place onleave of absence as many teachers as may be necessary because of a decreasein pupil enrollment, school district reorganization or the financialcondition of the school district. In placing teachers on leave, the boardof education shall be governed by the following provisions:
(1) No permanent teacher shall be placed on leave of absence whileprobationary teachers are retained in positions for which a permanentteacher is qualified;
(2) Permanent teachers shall be retained on the basis ofperformance-based evaluations and seniority (however, seniority shall notbe controlling) within the field of specialization;
(3) Permanent teachers shall be reinstated to the positions fromwhich they have been given leaves of absence, or if not available, topositions requiring like training and experience, or to other positions inthe school system for which they are qualified by training and experience;
(4) No appointment of new teachers shall be made while there areavailable teachers on unrequested leave of absence who are properlyqualified to fill such vacancies;
(5) A teacher placed on leave of absence may engage in teaching oranother occupation during the period of such leave;
(6) The leave of absence shall not impair the tenure of a teacher;
(7) The leave of absence shall continue for a period of not more thanthree years unless extended by the board.
2. Should a board of education choose to utilize the mechanism forreducing teacher forces as provided in subsection 1 of this section in anattempt to manage adverse financial conditions caused at least partially bya withholding of, or a decrease or less than expected increase in,education appropriations, then the district additionally shall follow theprovisions of subsection 3 of this section.
3. If a school district has an unrestricted combined ending fundbalance of more than ten percent of current expenditures in its teachers'and incidental funds, and in the subsequent fiscal year such district,because of state appropriations, places a contracted teacher on leave ofabsence after forty days subsequent to the governor signing the elementaryand secondary education appropriation bill, the district shall pay theaffected teacher the greater of his or her salary for any days worked underthe contract, or a sum equal to three thousand dollars.
(L. 1969 p. 275 ยง 168.112, A.L. 1983 H.B. 38 & 783, A.L. 1984 H.B. 1456 & 1197, A.L. 1993 S.B. 49, A.L. 2004 S.B. 968 and S.B. 969)