On March 9, 2007, the NFISD board voted 4-3 to terminate Dr. James Simpson, the superintendent. In May, the state ordered the district to reinstate Simpson, saying that he had been denied due process. In November that year the TEA appointed an academic overseer to monitor the district; the TEA had sent a financial overseer in March. On January 23, 2008, the trustees voted to rehire Simpson. On January 28, the "Houston Chronicle" reported that an independent auditor had told the trustees that the district was close to bankruptcy, and three days later that the TEA had investigated the district for possible illegality in the use of construction funds for general purposes. On February 4, a trustee requested to change his "Yes" vote for re-instating Simpson to a "No". The TEA denied the district's decision to reinstate Simpson. In March that year, the Northeast Education First community group asked for the state to fire the school board; Governor Rick Perry denied the request. On March 26 the district stated that it would lay off 90 teachers to try to reduce its budget crisis. The TEA estimated that the district would have a $17 million debt by August 2008.