19 TAC §109.1002
The Texas Education Agency (TEA) withdraws an amendment to §109.1002,
concerning the financial accountability rating system that was published as
proposed in the August 6, 2004, issue of the
Texas
Register
(29 TexReg 7626). The section addresses financial accountability
ratings assigned to school districts by the TEA and provides the financial
accountability rating form entitled "School FIRST--Rating Worksheet." The
proposed amendment would have updated the rating system by adding a critical
indicator and enhancing other indicators. A new proposal adding more indicators,
establishing a different scoring process for many measures, and creating new
disclosure requirements will be brought forward at a future date.
Senate Bill (SB) 875, 76th Texas Legislature, 1999, added TEC, §39.201,
requiring the commissioner of education in consultation with the comptroller
of public accounts to develop proposals for a school district financial accountability
rating system that was to be presented to the legislature no later than December
15, 2000. TEC, §39.201, expired September 1, 2001. Subsequently, SB 218,
77th Texas Legislature, 2001, added TEC, §§39.201 - 39.204, requiring
the commissioner to adopt rules for the implementation and administration
of the financial accountability rating system prescribed by TEC, Chapter 39,
Subchapter I.
19 TAC Chapter 109, Budgeting, Accounting, and Auditing, Subchapter AA,
Commissioner's Rules Concerning Financial Accountability Rating System, adopted
to be effective October 20, 2002, establishes provisions that detail the purpose,
ratings, types of ratings, criteria, reporting, and sanctions for the financial
accountability rating system, in accordance with SB 218, 77th Texas Legislature,
2001. The adopted rules include the financial accountability rating form entitled
"School FIRST--Rating Worksheet" that explains the indicators that the Texas
Education Agency will analyze to assign school district financial accountability
ratings. This form specifies the minimum financial accountability rating information
that a district is to report to parents and taxpayers in the district.
The rating worksheet, along with accompanying calculation instructions,
was adopted in 19 TAC §109.1002 to be effective October 20, 2002, and
later amended to be effective May 7, 2003. The 2003 amendment to 19 TAC §109.1002
included minor technical edits that crosswalked exhibit numbers referenced
in the "School FIRST--Rating Worksheet," according to the new standard for
the Annual Financial and Compliance Report filed by school districts for fiscal
year 2002 - 2003. This rating worksheet, dated May 2003, establishes the indicators
applicable to school district financial accountability ratings issued in fiscal
years 2002 - 2003, 2003 - 2004, and to be issued in 2004 - 2005. These ratings
are assigned based on data from fiscal years 2001 - 2002, 2002 - 2003, and
2003 - 2004, respectively.
The withdrawn amendment to 19 TAC §109.1002 would have updated the
rating system by adding a new critical indicator and enhancing other existing
indicators. The revised rating system would have been applicable to school
district financial accountability ratings issued beginning in fiscal year
2005 - 2006. A new proposal adding more indicators, establishing a different
scoring process for many measures, and creating new disclosure requirements
will be brought forward at a future date.
Filed with the Office of
the Secretary of State on February 4, 2005.
TRD-200500512
Cristina De La Fuente-Valadez
Director, Policy Coordination
Texas Education Agency
Effective date: February 4, 2005
For further information, please call: (512) 475-1497