Suspends Initiative 732 cost-of-living adjustments for educational employees for fiscal years 2009-2010 and 2010-2011.

Requires state salary allocations to be adjusted in future years such that, by the end of the 2014-2015 academic year, salary rates will be, at a minimum, equal to what they would have been if Initiative 732 cost-of-living adjustments had not been suspended.