12/10/11

Yesterday, the Texas Education Agency announced comments may be filed through January 9, 2012, to the emergency Commissioner of Education rule containing minimum standards for declaration of a financial exigency by the board of trustees of a school district.  A request for a public hearing on the proposed Commissioner Rule must be received not more than 14 days after publication in the Texas Register on December 9, 2011.

The rule states, "Financial exigency means the financial position of a school district as a whole is such that the financial resources of the school district are insufficient to support existing academic programs or the school district is unable to finance the full compensation of staff for the current or succeeding fiscal year."  

According to Title 19, Texas Administrative Code, Section 109.2001, Financial Exigency, the board of trustees may be declared if one or more of the six stated conditions excerpted from the rule exist.  

1. "a decrease of more than 20% in unassigned General Fund balance per student in weighted average daily attendance over the past two years or a projected reduction of 20% compared to the current year;
2. a decline in enrollment by more than 10% over the past 5 years;
3. a reduction of more than 10% in total General Fund total funding per student in weighted average daily attendance or a projected reduction of 10% compared to the current year;
4. an unforeseen natural disaster requiring significant expenditures for repair or remediation in excess of 15% of the current year General Fund budget;
5. an unanticipated major expense, including significant repair costs; litigation expenses, excluding lawsuits against the state; or tax refunds in excess of 15% of the current year General Fund budget; or
6. any other circumstances approved in writing by the commissioner of education." 
   

School districts must notify the Commissioner of Education within 20 calendar days of the adoption of a resolution or an extension declaring financial exigency. 

To access the Texas Education Agency Commissioner's Rule for financial exigency, click on the link below. 

 Emergency Commissioner Rule for Financial Exigency (13.86 KB)

To access the Texas Education Agency announcement for the comment period to the proposed new Commissioner Rule for Financial Exigency, click on the link below.

http://www.tea.state.tx.us/index4.aspx?id=2147504635

To send a comment email This e-mail address is being protected from spambots. You need JavaScript enabled to view it