Fiscal Notes

March 1999

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On this page:

Making the Grade

From the Comptroller: Education Comes First

New Grants Upcoming

Student Bodies

On Page 2:

Schoolhouse Squeeze

Whiz Kids

Preparing for the 21st Century

Texas stats -- Fiscal and economic data

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Making the Grade
Performance-based accountability
improves Texas schools, test scores

Policymakers may argue about whether Texas' public school accountability system is documenting or driving improvement, or both, but the results are clear--test scores are improving. Since 1994, scores on the Texas Assessment of Academic Skills (TAAS) have improved at every grade level and in every ethnic and economic group.

Texas public school students have made dramatic academic strides over the past few years, and the state's system for identifying both weaknesses and strengths in schools is evolving into an important tool for district and school improvement. At the district level, the accountability system has triggered close examination of instructional programs that need work, while at the state level, the system is shaping educational policy.

Though criticized by various education interest groups, Texas' accountability system and the progress of its students have achieved national recognition. Most discussion of the accountability system today revolves around ways to improve it.

Focus on results: Making public schools more accountable to students, parents and taxpayers has long been a major goal for Texas school reformers. In 1984, the Legislature approved a massive reform package that included such well-known measures as "no-pass, no-play" and a maximum class size of 22 students in kindergarten through fourth grade. The reforms began the move toward a performance-based accountability system.

In 1993, the same legislation that established the state's current controversial school finance system created the basis for an assessment-based accountability system.

School accountability was further enhanced during the 1995 comprehensive Texas Education Code recodification, which returned much local control and accountability to school districts.

Between 1980 and 1985, Texas administered the Texas Assessment of Basic Skills (TABS) statewide, then switched to the Texas Educational Assessment of Minimum Skills (TEAMS) until 1990. Neither of these tests was linked with state accreditation of school districts.

Responding to complaints that TEAMS was geared to minimum skills, the state developed and started using TAAS in the 1990-91 school year. In 1994, as part of the new accountability system, TAAS results became a significant factor in a school district's accreditation status.

Setting standards: The accountability system is administered by the Texas Education Agency (TEA), the State Board of Education and the commissioner of education. The commissioner sets specific statewide standards--measures of performance such as test scores, dropout rates and attendance rates. The system is designed to analyze the performance of all students as well as demographic subgroups.

Core TAAS tests, administered each spring, are given for reading and math in grades 3 through 8 and 10; writing in grades 4, 8 and 10; and science and social studies in grade 8. Additional TAAS tests, algebra and biology tests, and Spanish for grades 3 through 6 do not affect a district's rating. Of all these tests, the most widely publicized is the TAAS exit-level exam, which students begin taking in the 10th grade and must pass to qualify for a high school diploma.

In the accountability system, districts receive one of four performance ratings: "exemplary," "recognized," "academically acceptable" or "academically unacceptable." Individual campuses also are rated with similar performance standards. The term "academically unacceptable" is not used at the campus level. Campuses in the lowest group are deemed "low-performing." A district's rating is determined primarily by the number of students passing the TAAS, but dropout and attendance rates are considered too. Other measures of student performance, such as the Scholastic Assessment Test scores and the number of students taking advanced placement "honors" courses, are reported but do not affect a district or campus rating.

Much of the value--and controversy--of the accountability system lies in its capacity to publicize the good and the bad news about public schools. The late summer release of accountability ratings is an annual media event, with most newspapers around the state publishing local results. State law requires TEA to produce an annual "campus report card" detailing campus performance measures, most prominently TAAS passing rates. Local teams of teachers, parents and community members also use the reports to guide locally developed plans for campus improvement.

Raising the bar: The accountability system was designed to become more rigorous over time. In 1998, 40% of all students and 40% of all student demographic subgroups had to pass the TAAS for a district or a campus to be rated "academically acceptable." In 1994-95, the standard was 25%. The state passing standard has risen by 5% per year and will continue at that rate until 2000, when at least half of all students and half of all student subgroups must pass the TAAS for a district to remain "academically acceptable." In 1998, a district or campus had to pass at least 80% of its students and subgroups to be considered "recognized." Ninety percent of all groups must pass the TAAS for a district or campus to gain an "exemplary" rating.

Not only is the bar being raised on the basic TAAS percentage passing standard, other student performance measures and tests are being phased in. This year, Spanish TAAS scores for third and fourth graders will affect a district's final accountability rating for the first time. Also this year, TAAS results for some special education students must be included in calculations of campus and district ratings. The number of "exemplary" and "recognized" schools in Texas is expected to drop as students previously exempted are brought into the accountability system.

Recognizing that the legitimacy of the accountability system is essential, the commissioner of education regularly gathers groups affected by and implementing the system to ensure it is realistic and moving as quickly as possible toward more rigorous performance standards.

Student performance: Excluding special education and limited-English speaking students, 78% of students in 1998 passed all TAAS sections, compared with 56% in 1994. The percentage of African American students passing all sections rose from 33% in 1994 to 63% in 1998, while the percentage of Hispanic students passing all sections rose from 41% to 68% during the same period. In addition, the number of "exemplary" and "recognized" districts has risen dramatically in the past four years. At the campus level, even with increasing performance standards, the number of districts and campuses determined "academically unacceptable" or "low-performing" continues to decline.

Not only are TAAS results demonstrating the increasing achievement of Texas students, Texas' scores on the National Assessment of Educational Progress (NAEP) have risen as well. More Texas seniors are taking college entrance exams than ever before, and the math scores of graduating seniors are rising. The number of students taking advanced placement exams has more than doubled in the last four years.

Where scores have not increased, the accountability system has made a difference. Poor performance ratings apparently force changes at individual campuses. "Low-performing" campuses are required to conduct comprehensive evaluations and public hearings. If improvement is not forthcoming, the commissioner of education is authorized to close campuses, although that has never happened. The commissioner, however, has ordered that certain chronically low-performing campuses be reconstituted, meaning that all of the staff must reapply for their jobs. This was done successfully in the San Antonio ISD.

Most often, districts respond with extra efforts, including closer program evaluation and personnel changes. Some districts immediately replace the principal at a low-performing school, or dismiss school personnel and hire new staff.

Even for schools that are not officially low-performing, the accountability system has had an impact. Teachers and staff now use assessment results more frequently to determine where particular students or teachers need extra help, or to indicate that a particular class, campus or program is missing some component of the curriculum.

At the school district level, instructional programs receive more scrutiny. Too often in the past, districts initiated new programs to address a particular educational need, but subsequent district-level evaluations were insufficient. The accountability system, in some instances, has encouraged districts to make hard decisions about which programs should be continued or revised.

At the state level, information from the accountability system shapes education policy. For example, the Governor's Reading Initiative, a remediation program aimed at ensuring that all students read on grade level, was a response, in part, to poor results on TAAS reading tests in grades 3 through 5.

Texas at the top: At least 32 states and 34 urban school districts now have accountability systems based, in part, on test scores. Newspapers and journals across the U.S. consistently cite Texas as a leader in school accountability and student achievement. Education Week recognized Texas and North Carolina as coming "the closest to having all the components of a complete accountability system" in its special report "Quality Counts, '99."

On the other hand, critics question the accountability and TAAS assessment system, arguing that teaching efforts focus excessively on test preparation such as practice tests, drills and test-taking skills, while areas of core instruction are ignored. Others argue that the system discriminates against minorities, driving up dropout rates. Supporters of the accountability system respond that mastery of the basic skills tested by TAAS is essential to a solid education. Studies prove that early intervention can reduce dropout rates by helping students become successful early on. Reading initiatives and proposals to end social promotion are programs predicated on that theory.

Critics also voice concern over the number of students exempted from the test because they move to a new school or district, or are in special education or limited-English proficiency programs. Defenders of the accountability system note that the state tested 1.7 million students in 1995 and 1.8 million in 1998. During that time, scores continued to climb as standards were increased. The state tested 107,000 more students and exempted 43,000 fewer students. The state also has instituted a special accountability system for alternative education campuses to ensure students in alternative programs receive adequate instruction.

Alleged improprieties in test score administration and reporting are also pointed to as indications of fundamental problems with the accountability system. School district officials have been accused of manipulating accountability data or tampering with test document security. Mike Moses, the commissioner of education, defends the integrity of the accountability system, saying TEA regularly investigates instances of assessment security and accountability data manipulation. In fact, often it is TEA's analysis of district-submitted data that triggers these investigations.

The debate over the accountability system now centers on the mechanics of future improvements or changes in the sanctions for poor performance. Most recently, some education interest groups have criticized the assessment and accountability system as too easy, arguing that the TAAS and state passing standards are too low. Supporters of the present system argue that with standards rising every year, too many changes threaten the system's stability and validity.

Moses has suggested significant changes that include more tests and higher standards. He proposed adding a more difficult exit-level TAAS, increasing the subjects and skills tested by the TAAS, and expanding the number of grades tested.

While proposals to beef up the assessment system ultimately depend upon the Legislature, Moses also urges more rigorous standards within his statutory authority--including continuing the 5%-a-year increase in the "acceptable" passing rate standard until it reaches 70%.

Also, the Comptroller's Challenging the Status Quo recommends initiatives to further improve accountability, including establishing a bonus system for teachers who improve academic performance; raising the academic standards so that by 2005 70% of students will be required to pass the TAAS for a school to obtain an acceptable rating; authorizing the commissioner of education to restaff low-performing schools and revoke administrators' certificates in chronically low-performing schools; and increasing district financial accountability by setting up a system similar to the academic accountability system for district finances.

Often the most contentious discussions revolve around sanctions for poor performance. The existing accountability system has always carried a severe penalty for individuals failing the exit-level TAAS test by denying them a high school diploma. School districts and campuses also have faced penalties for poor performance--the imposition of an intervention team by TEA or even a master to run the district.

Legislative proposals to severely reduce social promotions would place more responsibility for learning on individual students at an early age.

Determining the delicate balance between too much or too little testing and between organizational and individual responsibility for the results of public education will no doubt be topics of continuing debate.

Contributing to this article:
Gary Price

From the Comptroller:
Education Comes First

Nothing is more important than education. As a former public school teacher and former school board president, but most importantly as a mother and grandmother, I have a deep and abiding interest in education excellence for all Texas children. I intend to put my experience to work as "the education watchdog" for the people of Texas. The Comptroller has eight statutory public education responsibilities, and I intend to exercise them fully. Public education has been my priority and will continue to be my priority as Comptroller.

One of my duties is to audit school district budgets and operations for efficiency and effectiveness. On an average, only 52 cents of every education dollar is going into classroom instruction. That's unacceptable. We must ensure the highest quality schools at the most reasonable cost, and the best way we can achieve that is to make sure more of every possible education dollar is put directly into the classroom.

We must maximize our limited resources in a way that can improve the quality of education for the greatest number of children possible. Student scores in Texas have climbed to the top tier nationwide after the state passed landmark legislation based on the simple but powerful principles of local control and increased accountability.

Yet our schoolchildren must not only compete with schoolchildren from New York and California, but from Europe and Asia as well. As Texas competes more vigorously in world markets, our children must be prepared to meet the growing and more sophisticated demands of the international marketplace.

I intend to propose practical and cost-effective options for districts to help them redirect their financial resources into the classroom. The central mission of a school is to provide students with an education, not to run transportation service, cafeterias or other ancillary services. Schools can channel more money into the classroom by achieving greater efficiencies in ancillary services and introducing innovative management practices into school district operations.

We must apply the "Yellow Pages" test during our audits to evaluate whether it would be more efficient and effective to contract for certain services and projects. Government should do no job if there is a business in the Yellow Pages that can do that job better and at a lower cost. Quality education for our children is my No. 1 priority as Comptroller. As "the education watchdog" for the people of Texas, I can assure you my bite will be as big as my bark! The children of Texas are our greatest natural resource. We must ensure they have quality education to meet the challenges of a global economy in the 21st century.

-CAROLE KEETON RYLANDER
Texas Comptroller of Public Accounts

New Grants Upcoming

To combat underage tobacco use, the Comptroller has awarded almost $750,000 in grants to local law enforcement agencies in the past 18 months. Under Senate Bill 55, enacted in 1997, minors are prohibited from using or possessing tobacco products, and retailers are barred from selling these products to them.

So far, 113 sheriff and police departments in 67 counties have received funds to enforce SB 55, which mandates penalties for retailers who sell or provide tobacco products to minors. Offenders can receive written citations upon conviction and be fined $1,000 per violation.

A third round of grants will be awarded in September. Information and grant applications will be available in May.

The grants, which range in size from $2,000 to $25,000, are based on population, the number of licensed tobacco retailers in a law enforcement agency's jurisdiction and proposed use of the funds.

Law enforcement officials may use the grants to conduct inspections to ensure that retailers are not selling tobacco products to minors and are complying with other legal provisions such as posting warning signs about penalties. The grants can be used also to educate the public about the law.

From January to October 1998, the Comptroller's office conducted 2,985 tobacco-related inspections and found 485 violations. In fiscal 1998, law enforcement agencies that received grants conducted 4,766 inspections and found 495 violations.

For more information or to report SB 55 violations, call the Comptroller's tobacco hotline at 1-800-345-8647.

Student Bodies
Enrollment trends show Texas public schools
are becoming more diverse

Texas public school enrollment has grown 21% in the last 10 years, outpacing the national average by 6%. Since 1992, the growth in student numbers has occurred across grade levels.

In 1988, 3.2 million students attended public schools, and the majority were Anglo. Ten years later, the student ranks had swelled to almost 3.9 million, more than half of whom were members of minority groups. Between 1988 and 1998, the Hispanic student population grew 45%, African American enrollment increased 19% and other minorities, most of whom are Asian or Pacific Islanders, expanded their numbers by 63%. By contrast, the Anglo student population only grew 5% during the same period.

The most remarkable growth was that of the Hispanic population, which accounted for seven out of 10 of the 667,000 new students in the last decade.

Decade of change: Not only are most of today's public school students members of minority groups, many are poor. The number of economically disadvantaged students, defined as those who are eligible for the federal free- or reduced-price lunch program, grew 65% in the last 10 years. In 1988, economically disadvantaged students made up 35% of the student population; in 1998, they were 48%.

The changing demographics of public education is expected to continue. In 1998, Hispanic students comprised 42% of kindergartners and 31% of 12th graders, evidence that more Hispanic students are enrolling at the lower grades. On the other hand, Anglos made up 42% of kindergartners and 52% of 12th graders. The other two groups, African American and "other minority," were relatively stable across grade levels at 14% and 3%, respectively.

Special populations: Of the 667,000 students to enter public schools since 1988, six out of 10 participate in special education or bilingual education/English-as-a-second language (ESL) services. The number of special education students increased by 75% between 1988 and 1998. Of these students, 56% were identified as learning disabled, 19% had speech impairments and the remainder had any one of 11 other handicapping conditions. Participation in bilingual education or ESL programs almost doubled in the same period, as did enrollment in gifted and talented programs.

The growing number of students who need special services means increased costs to the state and the local districts. School districts are required to provide services such as compensatory education for students at risk of dropping out, bilingual education for students who are not native English speakers, and appropriate special education services for the growing number of children with learning disabilities and other handicapping conditions.

All told, 44% of Texas students are enrolled in a special program of some sort, and 12% are enrolled in more than one.

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