Agency Response: The agency disagrees and has maintained the subsection as proposed, allowing a school district to provide its written plea for consideration to declare exigency for financial relief. If a school district identifies any other circumstance not listed under 19 TAC §109.2001(b)(1)-(5) that it considers a reason for declaration of financial exigency, a school district is given the opportunity under subsection (b)(6) to present it for consideration by the commissioner of education.

Comment: The Texas State Teachers Association (TSTA) commented that the standard described in 19 TAC §109.2001(b)(6) is too broad and should be deleted, stating that "there can be no exceptions to the minimum standards required by statute."

Agency Response: The agency disagrees and has maintained the subsection as proposed, allowing a school district to provide its written plea for consideration to declare exigency for financial relief. If a school district identifies any other circumstance not listed under 19 TAC §109.2001(b)(1)-(5) that it considers a reason for declaration of financial exigency, a school district is given the opportunity under subsection (b)(6) to present it for consideration by the commissioner of education.

§109.2001(c) and (d)

Comment: The TASB commented that 19 TAC §109.2001(c) and (d) of the proposed rule are satisfactory and track the statutory requirements.

Agency Response: The agency agrees. As a technical edit, subsection (d) was modified at adoption to require that the specified notice be signed by both the board president and the school district superintendent for shared responsibility and accountability.

Comment: The Texas AFT commented that 19 TAC §109.2001(c) and (d) should be revised to clarify that an extension of a declaration of financial exigency is subject to the same criteria laid out in subsection (b) for an initial declaration.

Agency Response: The agency agrees and has modified subsection (d) to clarify that the conditions set forth in subsection (b) also apply to an extension of a declaration of financial exigency. Additionally, as a technical edit, subsection (d) was modified at adoption to require that the specified notice be signed by both the board president and the school district superintendent for shared responsibility and accountability.

Comment: The Texas AFT commented that 19 TAC §109.2001(d) should be amended to require the agency to certify the existence of the conditions asserted in the board resolution.

Agency Response: The agency disagrees. This type of provision would exceed the authority provided by the authorizing statute.

§109.2001 in General

Comment: The TSTA commented in favor of the rule's establishing criteria for declaration of financial exigency, stating that the rule's language "provides the kind of accountability that the Legislature clearly intended."

Agency Response: The agency agrees.

Comment: The Texas Classroom Teachers Association (TCTA) expressed support for the proposed rule and commented that the rule "strikes an appropriate balance for districts that have unanticipated and urgent need to reduce staff while maintaining the incentive for districts to make staffing decisions on a predictable basis during the nonrenewal season in the spring." The TCTA also commented that the planned changes to the Financial Integrity Rating System of Texas (FIRST) rules, which will prevent a district declaring financial exigency from obtaining the highest rating of Superior Achievement, "will help ensure that the declaration of financial exigency is a tool used judiciously."

Agency Response: The agency agrees.

Comment: The superintendent of Cypress-Fairbanks ISD commented that "each locally elected Board of Trustees should have discretion in determining when a financial exigency declaration is the best course of action." The superintendent also expressed support for the recommendation of the Texas School Alliance (TSA) related to modifying the rule language and encouraged the commissioner to create a committee of district representatives from across the state to provide the commissioner with feedback before adopting a final rule.

Agency Response: The agency disagrees. The TEC, §44.011(e), requires the commissioner of education to set minimum standards for school district financial conditions that must exist for declaration of financial exigency by the board of trustees of the school district. If a school district identifies any other circumstance not listed under 19 TAC §109.2001(b)(1)-(5) that it considers a reason for declaration of financial exigency, a school district is given the opportunity under 19 TAC §109.2001(b)(6) to present it for consideration by the commissioner of education. The agency also notes that the comments submitted by the TSA were received by the agency after the public comment period ended and, therefore, were not included in this summary document.

The new section is adopted under the TEC, §44.011, as added by Senate Bill 8, 82nd Texas Legislature, 2011, which authorizes the commissioner to adopt by rule minimum standards concerning school district financial conditions that must exist for declaration of a financial exigency by the board of trustees of the district.

The new section implements the TEC, §44.011.