Common use of Trombone Clause Clause in Contracts

Trombone Clause. If the State imposes permanent reductions to continuous revenue, such as a negative COLA, a Workload Reduction, or other continuous revenue reduction, the loss in revenue will result in a reduction of compensation or revenue provided to each employee unit. The reduction will take place in the fiscal year the reduction is implemented, if known and there is sufficient time to implement the change prior to January 1, or the following year if the change is communicated too late in the fiscal year. The level of reduction for each unit will be based on the same 85/15 formula share as is used to allocate the revenue under this RAF agreement. If the total of the unit’s share of 85% COLA and 85% of Growth does not cover the increase in costs charged to COLA (i.e. salary and benefit costs for column, step and class advances; increases to mandated payroll deductions; increases due to health and welfare premium increases for all participating employees; cost of FTES rolled back from summer to meet Base and Growth FTES goals; and bargaining agreement requirements; excluding the cost for new positions), then reductions will take place in the fiscal year the reduction is implemented, and the level of reduction for each unit will be based on the same 85/15 formula share as used to allocate the revenue under this RAF agreement. Once such a reduction in continuous revenue is confirmed, and/or if the revenue from COLA and Growth does not cover the increased costs charged to COLA, the District will formally notify each unit, in writing, about the cause of the reduction, and each unit’s pro-rata share of the reduction. The District and each unit will negotiate how the reduction will impact the unit and be implemented. If an agreement as to how the reduction goal is to be met is not finalized and approved within 90 days of the notification by the District to the employee unit, the District may implement the required reductions at its discretion. If the State restores a specific reduction to continuous revenue, or any portion thereof, and that previous reduction had resulted in a reduction to an employee unit, any funding lost by the unit will be restored on a pro-rata basis to each unit. For example, if 50% of the funding loss is restored, 50% of each unit’s share of the reductions will be restored to the unit and utilized at each unit’s discretion.