Comment. Texas Press Association (TPA) commented that many of the proposed changes will beneficially improve financial accountability of Texas schools. However, TPA stated that the proposed amendment to 19 TAC §109.1001(o)(4)(A), re-lettered as 19 TAC §109.1001(q)(4)(A), would significantly reduce the notice the public receives in advance of certain public hearings. TPA stated the proposed amendment would reduce transparency and the likelihood that members of the public would see the notice and that the proposed change would run contrary to the overarching purpose of financial accountability reporting requirements and impede, not promote, government transparency and accountability. For that reason, TPA objects to the proposed amendment in 19 TAC §109.1001(q)(4)(A).

Agency Response. The agency disagrees. Section 109.1001(q)(4)(A) was not intended to reduce transparency or accountability to stakeholders but to ensure school districts are creating an environment that is efficient and informative to all stakeholders.

Comment. TCSA commented that it welcomes the proposed changes to 19 TAC §109.1001(n)(3), which will allow all public schools to appeal a FIRST rating for any adverse issue that would result in a change of the preliminary rating.

Agency Response. The agency agrees and has maintained language as proposed.

Comment. TCTA recommended that TEA add an indicator that would include a classroom teacher to total staff ratio.

Agency Response. The agency disagrees. The indicators as proposed are aligned with TEC, §39.082(a)(2)(B), which enables the commissioner to provide meaningful financial oversight of school district finances.

STATUTORY AUTHORITY. The amendment is adopted under Texas Education Code (TEC), §39.082, as amended by SB 1837, 85th Texas Legislature, Regular Session, 2017, which states that the financial performance of a charter school operated by a public IHE under the TEC, Chapter 12, Subchapter D or E, shall be evaluated using only the indicators adopted under the TEC, §39.082, determined by the commissioner by rule as appropriate to accurately measure the financial performance of such charter schools. The statute also requires the commissioner to develop and implement a financial accountability rating system for public schools and establishes certain minimum requirements for the system, including an appeals process; TEC, §39.083, which requires the commissioner to include in the financial accountability system procedures for public schools to report and receive public comment on an annual financial management report; TEC, §39.085, which requires the commissioner to adopt rules to implement the TEC, Chapter 39, Subchapter D, which addresses financial accountability for public schools; and TEC, §39.151, which requires the commissioner to provide a process by which a district or charter school can challenge an agency decision related to academic or financial accountability under TEC, Chapter 39. This process must include a committee to make recommendations to the commissioner. These provisions collectively authorize and require the commissioner to adopt the financial accountability system rules, which implement each requirement of statute applicable to districts and open-enrollment charter schools.

CROSS REFERENCE TO STATUTE. The amendment implements Texas Education Code, §§39.082, as amended by SB 1837, 85th Texas Legislature, Regular Session, 2017; 39.083; 39.085; and 39.151.