A severance payment is any amount paid by the board of trustees of an independent school district to or in behalf of a superintendent on early termination of the superintendent's contract that exceeds the amount earned by the superintendent under the contract as of the date of termination, including any amount that exceeds the amount of earned standard salary and benefits that is paid as a condition of termination of the contract.
A district must file a Superintendent Payment Disclosure Form with the Texas Education Agency not later than 60 days following execution of an agreement to make payments of any kind to a departing superintendent or any payment under such an agreement, whichever is sooner. The interim superintendent, new superintendent, or school board president is responsible for timely filing of the Superintendent Payment Disclosure Form. Reporting on the disclosure form is required regardless of whether the district considers the payment to be a severance payment within the meaning of the Texas Education Code (TEC), §11.201(c).
The commissioner shall reduce the district's Foundation School Program (FSP) funds for the school year following the school year in which the first payment is made subject to an FSP reduction amount. Districts will be subject to reductions to FSP state funding amounts in TEC, Chapter 42, for one or more school years until the liability amount(s) has (have) been liquidated in full, if the liability to the state exceeds the total flow of estimated earned revenue to a district under the FSP. The reduction in FSP state aid payments may apply to any FSP state aid sources of estimated earned revenue. The reductions in FSP state aid will be proportionately deducted from each FSP state aid payment for the school year(s).
Additional information can be found in the Texas Administrative Code, (TAC), Title 19 §§105.1021-1023 and the Texas Education Code (TEC), §11.201(c).
Superintendent Payment Disclosure Form (PDF, 320KB)
For additional information, contact:
Alma Obregon (512) 475-1993 email@example.com
Division of Financial Compliance
Phone: (512) 463-9095