June 21, 2016 5:39 PM

Paxton provides one piece of the puzzle on property disposition of failed charter schools

“The AG opinion today has provided some direction as to what that process should be, including the involvement of the General Land Office (GLO) in the Commissioner’s disposition of such property.”

Attorney General Ken Paxton’s office today offered an answer to one subsection of an issue that continues to dog the Texas Education Agency: what to do about the real property of a charter holder once a charter is either returned or revoked.

Recent legislation has accelerated the actions on revoking charters issued by the state. In the last two years, TEA has revoked 17 charters, which is more charters than it revoked in the last two decades. That’s left the agency with pressing property issues, including the issue of what to do when a charter holder liquidates a property holding TEA considers to belong to the state.

The question raised in a request sent by former Commissioner Michael Williams was whether TEA was obligated to return real property to the portfolio of the Permanent School Fund. Paxton’s reply was that TEA had a right to claim the property, and that it would be up to the agency to come up with a matter of disposition, in conjunction with the General Land Office.

By Kimberly Reeves