SRC-ARR S.B. 875 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 875
76R7322 CAS-DBy: Shapiro
Education
4/27/1999
As Filed


DIGEST 

Currently, the school district accountability system is based entirely upon
student performance data. The Texas Education Agency (TEA), the Business
and Education Coalition (a business education advocacy group), and others
are preliminarily studying a "numbers-based" school district financial
accountability system. The financial accountability system being discussed
at a  staff level at TEA does not use the qualitative findings that local
auditors find and put in districts' audited annual financial reports sent
to TEA. S.B. 875 would require TEA, with the assistance of an advisory
committee, to create a school district financial accountability rating
system based upon findings in districts' audited financial reports and
quantitative data collected through the Public Education Information
Management System (PEIMS). 

PURPOSE

As proposed, S.B. 875 requires financial accountability of school districts.

RULEMAKING AUTHORITY

Rulemaking authority is granted to the State Board of Education in SECTION
1 (Section 39.201(a), Education Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 39, Education Code, by adding Subchapter I, as
follows: 
 
SUBCHAPTER I. FINANCIAL ACCOUNTABILITY

Sec. 39.201. FINANCIAL ACCOUNTABILITY RATING SYSTEM. Requires the State
Board of Education (board), by rule, to establish a financial
accountability rating system (system) for school districts based on certain
criteria. Requires the system to compare the performance of each school
district on financial excellence indicators with standards established by
the board. 

Sec. 39.202. ADVISORY COMMITTEE. Requires the commissioner of education
(commissioner) to establish an advisory committee composed of certain
representatives, to assist the board in developing and implementing the
system. 

Sec. 39.203. PRIVATE ACCOUNTING CONSULTANT. Requires the Texas Education
Agency (agency) to contract with a private accounting firm familiar with
school district management and accounting practices to assist in developing
and implementing the system through systematically categorizing analyzing
district audit findings and through other means specified in the contract. 

Sec. 39.204. ANNUAL REPORTS. Requires the agency each year to prepare and
distribute to each school district a report that rates the district's
performance on the financial excellence indicators. Requires the report to
include the recommendations of the commissioner under Section 44.008(e) and
other appropriate recommendations. Requires the board of trustees to
disseminate and publicize the report in accordance with the rules of the
commissioner. Authorizes the report to be combined with other reports and
financial statements, including  other reports under this chapter.  

SECTION 2.  Amends Section 44.008(e), Education Code, to require the
commissioner to notify the appropriate county or district attorney, who
shall aggressively and thoroughly investigate, and the attorney general, if
the audit report reflects that penal laws have been violated. 

SECTION 3. Amends Section 402.028, Government Code, by adding Subsection
(d), to require the attorney general to ensure that prosecuting attorneys
and the general public are aware of the availability of assistance under
this section, including assistance in the investigation and prosecution of
crimes involving public school funds. 

SECTION 4. Emergency clause.
                      Effective date: upon passage.