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Declaration of Financial Exigency

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Division of Financial Audits
The terms of this formare governed by 19 Texas Administrative Code Chapter 109, Subchapter BB, 109.2001.
Definition
Financial exigency means the financial position of the school district as a whole is such that the financial resources
of the school district are insufficient to support the school district's instructional programs or the school district is
unable to finance the full compensation of staff for the current or succeeding fiscal year.
Requestor Information
Name of School District County-District Number
(Beaumont Independent School District
Date of Initial Declaration (expires on last day of fiscal year)
'May 29, 2014
Reason for Declaration
123-910
Fiscal Year Begin Date (month/year) Fiscal Year End Date (month/year)
September 2014 'August 2015
Financial exigency may be declared by the board of trustees for different reasons. Please select your school
district's reason for declaration or extension of financial exigency (check all that apply):
1. A decrease of more than 20 percent in unassigned General Fund balance per student in weighted average
daily attendance over the past two years or a projected reduction of 20 percent compared to the current
year.
K 2. A decline in enrollment by more than 10 percent over the past five years.
3. A reduction of more than 10 percent in total General Fund total funding per student in weighted average
daily attendance over one year or a projected reduction of 10 percent compared to the current year.
4. A natural disaster or casualty loss defined as damage, destruction, or loss of property resulting froman
^ identifiable event that is sudden, unexpected, or unusual; and that requires expenditures for repair or
remediation in excess of 15 percent of the current-year General Fund budget.
5. Any of the following, or a combination of the following, that exceeds 15 percent of the current-year
General Fund budget: an unanticipated major expense, including significant repair costs; litigation
expenses, excluding lawsuits against the state; or tax refunds.
6. Any other circumstances approved in writing by the commissioner of education. (Please attach
documentation and a description of the circumstances.)
Approval
This formmust be printed and signed by the board president and superintendent. TEA must receive the
declaration of financial exigency within 20 calendar days of declaration. Please mail the signed formto Texas
Education Agency, Division of Financial Audits, 1701 N. Congress Ave., Austin, TX 78701.
Certification
I hereby certify that the board has determined that the school district meets one or more of the reasons for
declaration of financial exigency in accordance with 19 TAC Chapter 109, Subchapter BB, 109.2001.
Name of Board President
'Gwen Ambres
Name of Superintendent
'Timothy B. Chargois
For TEA Use Only
Received Date
Signature of Board President Signature Date
I
(040K,
Signature of Superintendent

May 29, 2014
Signature Date

'May 29 2014



BEAUMONT INDEPENDENT SCHOOL DISTRICT
BOARD RESOLUTION
WHEREAS, Texas Education Code section 44.011 authorizes a Board of Trustees to declare a
financial exigency; and
WHEREAS, the financial position of Beaumont Independent School District ("BISD") as a
whole is such that the financial resources of BISD are insufficient to support the District's
instructional programs and the District is unable to finance the full compensation of staff for the
current and succeeding fiscal years ("FY"), including FY 2013-2014 and FY 2014-2015; and
WHERAS, BISD has experienced a decrease of more than 20% in unassigned General Fund
balance per student in weighted average daily attendance over the past two years; and
WHEREAS, these changes impacting the District's financial position will result in a budget
deficit in the amount of $20 million+ for FY 2014-2015; and
WHEREAS, the Board has considered budget options in order to produce a budget reduction of
at least $25 million for FY 2014-2015; and
WHEREAS, pursuant to BISD Policy DFFA (Local), the BISD Superintendent of Schools
recommends, and the Board hereby declares, a financial exigency; and
WHEREAS, BISD will address this serious fiscal crisis of the FY 2013-2014 and FY 2014-2015
thoughtfully and forcefully to protect the educational mission of BISD, protect the employability
of BISD staff, and protect the future fiscal security of BISD; and
NOW, THEREFORE, BE IT RESOLVED THAT:
The Board of Trustees of the Beaumont Independent School District hereby declares a financial
exigency that may result in the discharge or non-renewal of one or more employees within the
District; and
BE IT FURTHER RESOLVED THAT: This declaration of a financial exigency shall continue
for FY 2014-2015;
BE IT FURTHER RESOLVED THAT:
The declaration of financial exigency results in a reduction in force pursuant to Policy DFFA
(Local); and
BE IT FURTHER RESOLVED THAT:
As a component of the declaration of financial exigency, the Board of Trustees of BISD hereby
directs the Superintendent to followPolicy DFFA (Local) and return to the Board with
recommendations for employment areas to be affected by the reduction in force.
President, Board of Trustees, Beaumont Independent District
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Gwen Ambres Date
Secretary, Board of Trustees, Beaumont Independent District
01 a
Terry D. Williamis Date
Pursuant to Texas Education Code Section 44.011, the Board shall notify the Commissioner of
Education of the adoption of this resolution within 20 calendar days of adoption by submitting
notice of the date the resolution was adopted and the reason(s) for the declaration of financial
exigency to the Texas Education Agency division responsible for financial audits; the notice must
be signed by the Board President.

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