Mary Anne Shetty, deputy commissioner for authorizing and policy at the Texas Education Agency, told the State Board of Education’s Committee on Civil Initiatives on Thursday that TEA has begun work on Generation 31 of the agency’s open‑enrollment charter application process and is making several substantive changes aimed at aligning applications with accountability and finance requirements.

The update is intended to “design and execute an application process that authorizes high‑quality charter schools that launch as ARB‑rated schools,” Shetty said. Key changes include publication timing, new applicant materials, alignment with legislative changes and accountability rules, and additional launch supports for new operators.

Why it matters: the agency said the revisions are intended to reduce reviewer variability, clarify expectations for applicants and strengthen launch conditions so new charters enter the state with stronger instructional and financial planning. Board members pressed staff for more performance data on previously authorized charters and details about what TEA will provide to new campuses.

What TEA described
- Three application tracks: new operator, experienced operator and high‑performing entity (HPE). TEA staff said questions and criteria were streamlined to improve coherence of responses and reviewer consistency.
- Instructional materials and accountability alignment: TEA revised the high‑quality instructional materials (HQIM) section to align with the agency’s MRAA approval process and related accountability expectations.
- Finance workbook: the financial plan workbook was revised to align with changes from House Bill 2 so applicants’ budgets better reflect current funding rules.
- Virtual/hybrid addendum: following the passage of Senate Bill 569, TEA is adding a virtual/hybrid charter addendum that will let applicants propose full‑time virtual or hybrid campuses or programs through the standard charter application process.
- HPE process: TEA described an abbreviated, data‑driven pathway for high‑performing entities that relies on an eligibility review using Domain 1 (student proficiency) data; eligible applicants then enter due diligence including site visits, meetings with current authorizers, and portfolio review before a commissioner recommendation and board consideration.
- Timeline changes: TEA expects to publish the Generation 31 application in mid‑August (later than usual) to allow time for the virtual/hybrid addendum. Information sessions will run August–September, optional supports through November, application due mid‑November, external review January–April, capacity interviews in May and commissioner recommendations in May with board consideration after that.
- SPO/SVOE engagement: TEA will continue to offer stakeholder participation in SPO/SVOE (State Board member) meetings for applicants who are under consideration, and staff noted a modified rolling timeline for HPE applications with potential January and April board windows.
- Year‑0 and year‑1 support: TEA described an expanded “Strong Charter School Launch” support package for newly authorized campuses that includes monthly checklists, monthly meetings in year 0, multi‑day early site visits by cross‑functional teams (finance, special populations, instruction) and a first‑year support visit to observe classes and generate a recommendation report.

Board feedback and unanswered data requests
Board members asked for an annual charter performance report, including projected vs. actual enrollment for new charters and performance data for charters approved in prior cycles. Shetty said TEA maintains charter data on the Texas Performance Reporting System (TXschools) and produces individualized charter school performance framework reports but that public release of recent accountability results has been constrained by an ongoing accountability lawsuit. Shetty said 2023 results exist and TEA can produce tailored reports if the board specifies what it wants; she estimated some requests could be prepared by December but noted official fall PEIMS counts are not final until late February.

Board members also asked for more transparency on incubator funding and relationships. Shetty said TEA’s incubator is funded via a Region 13 grant and that Bellwether was selected through a regional RFP; she said external incubators also operate outside the agency process and applicants may use either type of support.

What TEA will follow up on
Staff agreed to share more detailed technical guidance on how Domain 1 proficiency is equated to A/B ratings for HPE eligibility, provide options for a board‑requested annual charter performance package, and clarify what data TEA can provide for campus‑level D/F reports and for nonprofit (c3) financial relationships for ISDs and charter operators.

Speakers quoted in this report are identified in the committee transcript. Direct quotations come from Mary Anne Shetty’s presentation and subsequent Q&A with board members.

Ending note: TEA signaled it will keep the board updated as the Generation 31 materials and the virtual/hybrid addendum are finalized and as timelines are set for the January and April board windows for high‑performing entity considerations.