Austin Independent School District
April 2000
In July 1999, I announced my intention to have my Texas School Performance Review (TSPR) conduct a management and performance review of the Austin Independent School District (AISD). I was motivated by reports that AISD officials had manipulated student dropout data and the results of the state-mandated student achievement test, the Texas Assessment of Academic Skills (TAAS); by AISD's lagging student performance; and by its escalating property tax rate.
AISD has the largest percentage of low-performing schools in the state, and the student passing rate on the TAAS test is 10 points below the state average and 11 points below regional averages. In addition, it is one of the wealthiest school districts in Texas, yet it spends just 48 cents of every education dollar on classroom instruction--and that's unacceptable.
I did not wait for an engraved invitation before auditing this district. I graduated from AISD. My sons graduated from AISD and received an outstanding education. Now, I want my grandchildren and all of the children and grandchildren of the Capital City to have that same opportunity. Implementation of these recommendations will certainly help the district achieve that goal.
As a result of my staff's six-month review, I am prepared today to recommend a 15-percent cut in administration, the sale of the Carruth Administration Building on Sixth Street and subsequent relocation of administrative services to the vastly underused Reagan High School, the reconstitution of the lowest performing schools, and the transformation of Reagan High School into an AISD Regional Magnet Campus.
These are only a few of the 163 recommendations detailed in this review that could save $70 million over the next five years. The report also proposes nearly $13 million in reinvestments to improve the district's educational services and other operations. Net savings are estimated at more than $57 million.
The $57 million in net savings that we have identified in this report and counted as dollar savings are hard, certifiable savings. But there are a number of other recommendations in this report that we did not calculate into cost savings that we believe can help the district make up the difference from the money it will lose due to Chapter 41 and save additional millions each year.
- Kiddos in Classrooms--AISD has experienced an anemic average annual growth rate of 1.1 percent in student enrollment over the last five years while the city's population boomed. If AISD's student enrollment had kept pace with Austin's growth, the district would be in better financial shape. Surrounding districts have grown between 5 and 10 percent annually--Round Rock ISD grew nearly 5 percent, Del Valle by more than 6 percent, Pflugerville by more than 8 percent and Leander by 10 percent.
AISD should develop a plan with the city and county and business community to bring students and families back to the district. A formal strategy should be established to attract new students and an aggressive dropout recovery program should be implemented. Because each new child in school equates to about $5,000 in revenues that the district would be able to keep, a 1 percent increase in enrollment over the current growth rates would generate an additional $3.85 million annually for the district.
- Mothballing--We recommend that the district use a balanced approach of school closings, shifts of grade levels to underused facilities, and attendance zone changes to ensure that facilities are used to capacity. Until additional students are recruited to the district, underutilized schools should be temporarily closed. Each mothballed school could save the district $2 million to $3 million annually.
- Comprehensive Technology Plan--The district may be able to free up between $6 million and $8 million annually of the $83 million earmarked for technology upgrades over the next five years by creating a comprehensive plan that identifies all costs and aggressively seeks grant funding. Without a solid plan of action, the district should set aside that money annually so it is not lost.
Carole Keeton Rylander
Comptroller of Public Accounts