A three-member panel has upheld Arkansas Education Commissioner, Dr. Tom Kimbrell's recommendation to proceed with non-union contracts for the next school year.
The Pulaski County Special School Distict is in financial distress.
The state-controlled district withdrew recognition of the PACT and the Pulaski Association of Support Staff (PASS) in April.
Weeks of negotiations between the district and unions failed to cut costs from the 2012-2013 budget.
In May, the unions sued to regain recogniton and restore negotiated teacher and staff contracts.
The new contracts cut the number of days teachers work from 192, to 190 days, and adds some duties.