Texas Education Agency Commissioner Mike Morath 082-903 September 23, 2016 Dr, Nobert Rodriguez, Superintendent Mr. Marco Reyes, President, Board of Trustees Pearsall Independent School District 318 Berry Ranch Road Pearsall, TX 78061-3315 Dear Dr. Rodriguez and Mr. Reyes: ‘The purpose of this letter is to provide official notice to Pearsall independent School District (ISD) regarding the appointment of a board of managers to the district and the escalation of the current monitor to a conservator. Board of Managers Appointment Pursuant to Texas Education Code (TEC) §§39.051-39.052 and 19 Texas Administrative Code (TAC) §97.1055(d)(1)(A), Pearsall ISD was assigned a 2015-2016 accreditation status of Not Accredited-Revoked based on the assignment of a 2011 academic accountability rating of Academically Unacceptable, and an academic accountability rating of Improvement Required for 2013, 2014, and 2015. For purposes of determining multiple years of academically unacceptable or insufficient performance, the academic accountability ratings issued for the 2010-2011 school year and the 2012-2013 school year are considered consecutive.’ 19 TAC §97.1055(a)(8). Pearsall ISD requested an informal review of the 2015-2016 Not Accredited-Revoked assignment, which was conducted before the former Commissioner of Education on December 2, 2015. Following the informal review, in which no final decision was issued, the district entered into an abatement agreement providing, in part, that if the district received a preliminary 2016 academic accountability rating of improvement Required or a preliminary 2015-2016 financial accountability * Academic accountability ratings were not issued forthe 2011-2012 school year.rating of Substandard Achievement, a board of managers would be appointed to the district to exercise all of the powers and duties assigned to a board of trustees of a school district by law, tule, or regulation. ‘The agreement further provided that a superintendent would be appointed during the term of the board of managers, and that the decision with respect to an appointment of a board of managers would be final and not appealable, ‘On August 15, 2016, the Texas Education Agency (TEA) released preliminary academic accountability ratings, which reflected that Pearsall ISD received a 2016 preliminary academic rating of Improvement Required. The district received an acceptable financial accountability rating for 2015-2016. Pursuant to the terms of the abatement agreement, as a result of the preliminary academic accountability rating of Improvement Required for 2016, | am appointing a board of managers to Pearsall ISD to exercise all of the powers and duties assigned to a board of trustees of a schoo! district by law, rule, or regulation. | will announce the board of managers and superintendent appointments in future correspondence. Conservator Appointment Further, effective immediately, | am escalating the role of the current monitor to a conservator, pursuant to TEC §39.102(a)(7) and 19 TAC §§ 97.1057, 97.1059 and 97.1073, due to the on- going and long-standing deficiencies and because such intervention is necessary to prevent substantial or imminent harm to the welfare of the district's students or to the public interest. As a TEA conservator, Doug Amold’s role will include, but is not limited to, the following + Attending board meetings, including executive session, and directing the board as necessary; + Ensuring that a comprehensive needs assessment of the district is performed; Overseeing the general administration of the district; and Overseeing the financial management and governance of the district to ensure the district complies with state and federal law. Please note that the escalation of the monitor to a conservator does not relieve the district of the responsibilty to, at all times, operate the district in compliance with all applicable statutes and rules. The agency reserves the right to implement all available interventions and sanctions under TEC, Chapters 39, and Title 19, TAC, Chapters 97, singly or in combination, to address the current, or any future, deficiencies identified for the district. ‘The cost of the conservator's services will be paid by the district in accordance with TEC §39.110. The conservator’s fee shall be $85 per hour plus necessary travel expenses not to exceed the state per diem rate. Failure to make timely payments to the conservator may result in appropriate amounts being deducted from the district's Foundation School Program (FSP) funds. Review Process This is your notice of my intent to appoint a board of managers and to escalate the role of Mr. Arnold by appointing him as a conservator. The district has waived its right to challenge the appointment of the board of managers pursuant to its abatement agreement. The district has the fight to request an informal review regarding the appointment of a conservator as set forth in 19, TAC §157.1123. However, this informal review shall be provided only if the district submits a written request for informal review not later than October 3, 2016. 19 TAC §157.1123(b). Writteninformation may be submitted by the required deadline for requesting an informal review. 19 TAC §157.1123(c). A request for informal review and any accompanying written information may be addressed as follows: Division of Enforcement Coordination Texas Education Agency 1701 North Congress Avenue Austin, Texas 78701 Fax: (512) 475-3685 :nforcementCoordination@tea.texas.gov. tno informal review is requested by the deadline, a final decision may be issued without informal review. 19 TAC §157.1123(d). Compliance and Cooperation Itis my sincere desire that all parties work together in a cooperative and productive manner. Any questions you may have relating to this correspondence may be addressed to Ron Rowell in the Division of Governance and Investigations at (512) 463-9623 or by email at ronald rowell@tea. texas. gov. Zen Mike Morath ‘Commissioner of Education MMice cc: Dr. Jeff Goldhorn, Executive Director, Region 20 ESC A.J. Crabill, Deputy Commissioner of Governance, TEA Kara Belew, Deputy Commissioner of Finance, TEA Penny Schwinn, Deputy Commissioner of Academics, TEA Leo Lopez, Associate Commissioner, Chief School Finance Officer, TEA Nora Hancock, Associate Commissioner, Grants and Federal Fiscal Compliance, TEA Von Byer, General Counsel, TEA Christopher Jones, Senior Legal Counsel, TEA Leah Martin, Director, Accreditation, TEA Ron Rowell, Director, Governance and Investigations, TEA Doug Amold, Conservator