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EXECUTIVE SUMMARY
Executive Summary Overview
Summary of Costs and Savings by Recommendation (Exhibit 4)

In April 2002, Texas Comptroller Carole Keeton Rylander began a review of the Hitchcock Independent School District (HISD). Based upon more than four months of work, this report identifies HISD's exemplary programs and suggests concrete ways to improve district operations. If fully implemented, the Comptroller's 66 recommendations could result in net savings of more than $2.9 million over the next five years.

Improving The Texas School Performance Review

Soon after taking office in January 1999, Texas Comptroller Carole Keeton Rylander consulted school district officials, parents and teachers from across Texas and carefully examined past reviews and progress reports to make TSPR more valuable to the state's school districts. With the perspective of a former teacher and school board president, the Comptroller has vowed to use TSPR to increase local school districts' accountability to the communities they serve.

Recognizing that only 52 cents of every education dollar is spent on instruction, Comptroller Rylander's goal is to drive more of every education dollar directly into the classroom. Comptroller Rylander also has ordered TSPR staff to share best practices and exemplary programs quickly and systematically with all the state's school districts and with anyone else who requests such information. Comptroller Rylander has directed TSPR to serve as a clearinghouse of the best ideas in Texas public education.

Under Comptroller Rylander's approach, consultants and the TSPR team will work with districts to:

  • Ensure students and teachers receive the support and resources necessary to succeed;
  • Identify innovative ways to address the district's core management challenges;
  • Ensure administrative duties are performed efficiently, without duplication, and in a way that fosters education;
  • Develop strategies to ensure the district's processes and programs are continuously assessed and improved;
  • Challenge any process, procedure, program or policy that impedes instruction and recommend ways to reduce or eliminate obstacles; and
  • Put goods and services to the "Yellow Pages Test": government should do no job if a business in the Yellow Pages can do that job better and at a lower cost.

Finally, Comptroller Rylander has opened her door to Texans who share her optimism about the potential for public education. Suggestions to improve Texas schools or the school reviews are welcome at any time. The Comptroller believes public schools deserve all the attention and assistance they can get.

For more information, contact TSPR by calling toll-free 1-800-531-5441, extension 5-3676, or see the Comptroller's Web site at www.window.state.tx.us.

TSPR In Hitchcock ISD

In May 2001, the Comptroller received a request for a Texas School Performance Review (TSPR) from Mayor Pro Tem Theo Blue of the Village of Tiki Island. Mayor Blue cited the high cost of operations and a low tax collection rate as the motivation for the request.

Comptroller Rylander selected Hitchcock for a review in February 2002 and began onsite work in April 2002. The Comptroller's office selected McConnell Jones Lanier and Murphy, a Houston-based firm to assist the agency with the review at a cost of $85,000. The review team interviewed district employees, board members, parents, business leaders and community members and held a public forum at Stewart Elementary School on April 11, 2002 from 5:00 p.m. to 8:00 p.m.

To obtain additional comments, the review team conducted three focus group sessions with teachers, principals, parents and community members. To ensure that all stakeholder groups had input, TSPR sent surveys to students, parents, teachers, campus and central administrators and support staff.

A total of 199 respondents answered surveys. Fifty administrative and support staff;three principals and assistant principals; 40 teachers; 28 parents and 78 students completed written surveys as part of the review. Details from the surveys and public forums appear in Appendices A through F.

The review team also consulted two databases of comparative educational information maintained by the Texas Education Agency (TEA)-the Academic Excellence Indicator System (AEIS) and the Public Education Information Management System (PEIMS).

HISD selected peer districts for comparisons based on similarities in student enrollment, student performance and community and student demographics. The selected peer districts were Anahuac, Boling, East Chambers, La Marque, Hempstead and Royal ISDs. TSPR also compared HISD to district averages in TEA's Regional Education Service Center IV (Region 4), to which Hitchcock ISD belongs, and to the state as a whole.

During its four-month review, TSPR developed 66 recommendations to improve operations and save taxpayers more than $4.1 million by 2006-07. Cumulative net savings from all recommendations (savings minus recommended investments or expenditures) would reach more than $2.9 million by 2006-07.

A detailed list of costs and savings by recommendation appears in Exhibit 4. Many TSPR recommendations would not have a direct impact but would improve the district's overall operations.

Acknowledgements

The Comptroller's office and McConnell Jones Lanier and Murphy wish to express appreciation to the HISD Board of Trustees, Superintendent Dr. Ruth Kane, district employees, students, parents and community residents who helped during the review.

Hitchcock ISD

HISD is located in Galveston County, approximately 40 miles south of downtown Houston. The town has a population of approximately 6,400. In 2001-02, the district serves its 1,123 students in four campuses including two elementary schools, one middle school and one high school. A Head Start program is operated on one of the district's elementary school campuses. Due to declining enrollment and to reduce cost, the district plans to consolidate the two elementary schools in 2002-03.

In 2001-02, HISD's students are 39.2 percent Anglo, 37.2 percent African American, 22.8 percent Hispanic, 0.6 percent Asian/Pacific Islander and 0.2 percent Native American. More than 64 percent of the district's students are economically disadvantaged. The ethnicity of teachers includes
81 percent Anglo, 12.7 percent African American, 4.2 percent Hispanic and 2.1 percent Native American.

HISD's Texas Assessment of Academic Skills (TAAS) passing rate has improved by more than 33 percent during the last five years, however, HISD's overall 2000-01 TAAS passing rate of 71.3 percent is still 10.8 percentage points lower than the statewide average of 82.1 percent. In 2000-01, TEA rated the district as Academically Acceptable, with the high school receiving a Recognized rating and the other three schools an Acceptable rating.

Exhibit 1 details the demographic characteristics of HISD and its peer school districts.

Exhibit 1
Demographic Characteristics of HISD
and Peer School Districts
2000-01
    Racial/Ethnic Percentage Percent
Economically
Disadvantaged
District Student
Enrollment		 Percent
African
American		 Percent
Hispanic		 Percent
Anglo		 Percent
Other
La Marque 4,063 65.5% 13.6% 20.2% 0.7% 49.0%
Royal 1,469 34.9% 44.4% 20.2% 0.5% 69.2%
Anahuac 1,421 21.6% 16.6% 59.4% 2.4% 43.7%
Hempstead 1,399 38.4% 31.8% 29.7% 0.2% 59.9%
Hitchcock 1,225 36.4% 23.3% 39.5% 0.8% 64.2%
East Chambers 1,126 13.9% 13.7% 71.7% 0.7% 42.4%
Boling 974 20.3% 36.9% 42.8% 0.0% 48.7%
Region 4 876,901 21.9% 36.8% 36.0% 5.3% 47.4%
State 4,059,619 14.4% 40.6% 42.0% 3.0% 49.3%
Source: Texas Education Agency (TEA), Academic Excellence Indicator System (AEIS), 2000-01.

HISD served 1,123 students during 2001-02, a decrease of 17.9 percent over the last five years (Exhibit 2). District officials expect enrollment to continue to decline.

Exhibit 2
HISD Student Enrollment History
1997-98 through 2001-02
School Year Actual
Student
Enrollment		 Percent
Change from
1997-98
1997-98 1,368 N/A
1998-99 1,292 (5.6%)
1999-2000 1,233 (9.9%)
2000-01 1,225 (10.4%)
2001-02 1,123 (17.9%)
Source: TEA, AEIS, 1997-98 through 2000-01 and PEIMS 2001-02.

In addition, the district has more than 250 employees; slightly more than 37 percent are teachers. The district's 2001-02 budget is approximately $10.8million, an increase of 3.8 percent over the 2000-01 annual budget of $10.4 million. HISD spent 40.7 cents of every dollar on instruction in 2000-01, which is significantly lower than the 52-cent state average.

HISD's 2002 tax rate is $1.71 per $100 value; $1.49 for Maintenance and Operations and $0.22 for debt service. In 2001-02, HISD's property value was $200,256 per student, compared to the state average of $236,543 per student.

HISD recently experienced a leadership change after almost 20 years with the same superintendent. The district's previous superintendent retired and the new superintendent started with the district in June 2001. During its July 2002 meeting, the board voted not to extend the current superintendent's contract.

On August 1, 2002, the Texas Education Agency released the TAAS results for the 2001-02 school year. HISD received an overall Academically Acceptable rating, unchanged from its 2000-01 rating. According to these latest reports, all four of HISD's schools received Academically Acceptable ratings. Because this information came late in the review process, and because information regarding the cumulative test results will not be available until November 2002, the AEIS data presented throughout the rest of this report reflects 2000-01 information.

After four months, TSPR has found that HISD is facing a number of challenges including:

  • improving board governance;
  • enhancing curriculum and staff proficiencies;
  • increasing operating efficiencies; and
  • expanding the monitoring of service contracts.

Improve board governance

Develop a board members' code of conduct and board operating procedures.HISD's board does not follow a code of conduct or standard operating procedures to guide board behavior. Some board members have become involved in issues outside of their purview. A code of conduct and board operating procedures that each member commits to will reduce conflicts among board members and allow the board to conduct school business in a more cordial and effective manner.

Schedule and attend "team of eight" teambuilding training. Three out of seven HISD board members have not completed the required three hours per year of teambuilding training as required by the Texas Administrative Code. All board members and the superintendent are required to attend this training together to help the team of eight develop a good working relationship. Resolving divisiveness between board members and the superintendent will help the district to focus upon its primary mission of educating students.

Define board expectations for the superintendent. The HISD board and superintendent have not developed a cooperative working relationship. Trust can only be forged when both parties share a mutual understanding of each other's roles, responsibilities and expectations. By clarifying expectations, roles and responsibilities and establishing a clear set of performance standards, district business can be carried out in a more efficient manner and criticism and praise are more likely to be based on performance.

Develop an annual calendar of board activities and keep it updated. The board does not use a calendar to identify its activities and some members do not fulfill their obligations to their constituents by attending and appropriately participating in all board meetings and workshops. The board has repeatedly canceled and rescheduled workshops for teambuilding and policy review because of the absence of a quorum. By developing a calendar, each board member should be able to arrange work schedules that will enable them to attend, participate in board actions and fulfill their responsibilities to the district, the students and their constituents.

Enhance curriculum and staff proficiencies

Conduct a comprehensive curriculum audit. HISD does not have a comprehensive curriculum development and management system. The district's curriculum is not aligned to their teaching and testing methods. Curriculum auditing is an all-encompassing management tool that examines the entire curriculum development and delivery system and gives administrators and boards the impetus and means to improve student performance. A curriculum audit, estimated to cost approximately $30,000, will identify student objectives, increase control over resources and transform curriculum guides into usable management tools.

Develop a comprehensive plan for teacher staff development. HISD's teacher staff development is informal and does not target teacher skills and student performance. Most staff development has been planned and conducted at the campus levels and is not a part of an overall district plan. The district does not have a plan that identifies training needs, includes specific training requirements, focuses on increasing student development or focuses on the specifics of special student populations like gifted and talented students or students with disabilities. A comprehensive teacher staff development plan will assist the district in having a more targeted approach to training and subsequently improve student performance.

Increase operating efficiencies

Implement staffing allocation formulas and staff accordingly. The district does not use staffing allocation formulas to ensure that staffing levels are adjusted proportionate to student enrollment. HISD's enrollment decreased by 17.9 percent from 1997-98 to 2001-02, but staffing increased by 13 percent. The district's general fund expenditures have increased 11.1 percent between 1997-98 and 2000-01 causing the cost per student to increase from $5,686 to $7,051 during the same period. By implementing staffing allocation formulas and reducing staffing to mirror current enrollment, the district will save more than $2.2 million over five years.

Close the HISD tax office and enter into an interlocal agreement with Galveston County for tax collection. HISD's tax office is not cost effective to operate and has a relatively low tax collection rate of 93.3 percent. HISD's board discussed closing the tax office in its April 2002 board meeting and voted to keep it open at the June 2002 meeting. Closing the tax office and contracting with the Galveston County Tax Assessor-Collector will decrease the district's operating cost and increase tax collections, thus providing the district more than $1 million over the next five years to spend on its educational needs.

Implement a just-in-time purchasing process. The district does not operate an efficient centralized warehousing operation to receive and distribute supplies to schools. By acquiring supplies on a just-in-time basis and contracting with the vendor for delivery directly to the schools or departments, the district can reduce one warehouse staff position, make the process more cost effective and save the district $94,000 over five years.

Expand monitoring of service contracts

Monitor and track the custodial contractor's performance. The district has contracted for custodial services since 1994, yet schools remain dirty. Despite the fact that the contractor provides an on-site contract manager, there is virtually no responsibility taken for contract oversight by the contractor, nor the district. By implementing a formal contract management program for the custodial contract and assigning this function to the district's chief financial officer, the district will be in a position to ensure that service improves or the contract is terminated based on performance.

Renegotiate the agreement with the transportation contractor to include provisions for monitoring and controlling costs. The transportation contract lacks clearly defined performance measures and provides annual price increases based on the Houston-Galveston Consumer Price Index without an assurance that the transportation function has met certain standards. The contract does not provide for the contractor to provide the district with driver evaluations. Reports submitted to the TEA by the contractor on behalf of the district are inconsistent between years and reflect an inverse relationship between operating costs, annual miles and annual ridership. By requiring the contractor to comply with established performance measures, HISD will maximize the funds spent on transportation services.

Monitor and track the performance of the food service contractor and incorporate tighter controls to ensure profitability targets are met. HISD does not adequately monitor the Food Service program's contractor and has not enforced the guaranteed district profit of $50,312 in 1999-2000 and $23,676 in 2000-01. District staff do not regularly meet with the food service contractor. By enforcing the contract's provisions, the district will maximize its resources in the food service program.

Exemplary Programs and Practices

TSPR identified a number of "best practices" in HISD. Through commendations in each chapter, the report highlights HISD's model programs, operations and services provided by HISD administrators, teachers and staff. Other school districts throughout Texas are encouraged to examine these exemplary programs and services to see if they could be adapted to meet their local needs. TSPR's commendations include the following:

  • HISD's superintendent is seeking innovative ways to solicit input from the community and improve the district's image. The superintendent has initiated a series of public forums and communicates frequently with the news media to improve the district's image in the community. These public forums and others meetings are held in either schools or community facilities located throughout the district.
  • HISD's student discipline policies provide students an incentive to improve academically. Previously, students who violated the district's Code of Conduct or the Dress Code were penalized by mandatory reductions of 20 percent on grades they received on their assignments and were placed in In-School Suspension (ISS). The superintendent encouraged the board to revisit the policy so that students with discipline problems could preserve their academic standings. The board adopted revisions providing students more incentive to complete makeup work and to improve their grade standings.
  • The Northside Elementary School uses Title I money to fund curriculum specialists. Federal Title I money is being used to pay for one reading and one math curriculum specialist to help teachers at Northside Elementary address curriculum needs. These specialists attended curriculum meetings and training outside the district. Using the "train the trainer" model, these specialists are now training their colleagues. Specialists also aligned the curriculum of that school to the Texas Essential Knowledge and Skills and initiated benchmark testing for all PreK-2 students.
  • HISD has established a Telecommunication Committee, TelCom, to address short-term and long-term technology needs of the district. TelCom was formed in September 2001 to discuss infrastructure issues related to the district's telecommunication, network and computer hardware needs. The committee's diverse membership includes key HISD teachers, administrators and the director of Technology. Having a broad cross-section of participants ensures that issues are discussed from all perspectives, including funding, educational and technical feasibility.

Savings and Investment Requirements

Many of TSPR's recommendations would result in savings and increased revenue that the district could use to improve classroom instruction. The savings opportunities identified in this report are conservative and should be considered minimums. Proposed investments of additional funds usually are related to increased efficiencies or savings, or improved productivity and effectiveness.

TSPR recommended 66 ways to save HISD more than $4.1 million in gross savings over a five-year period. Reinvestment opportunities will cost the district more than $1.2 million during the same period. Full implementation of all recommendations in this report could produce net savings of more than $2.9 million by 2006-07.

Exhibit 3
Summary of Net Savings
TSPR Review of Hitchcock Independent School District
Year Total
2002-03 Initial Annual Net Savings
2003-04 Additional Annual Net Savings
2004-05 Additional Annual Net Savings
2005-06 Additional Annual Net Savings
2006-07 Additional Annual Net Savings
One Time Net Savings (Costs)		 $330,464
$685,059
$699,972
$667,332
$714,885
($177,073)
TOTAL SAVINGS PROJECTED FOR 2002-2007 $2,920,639

A detailed list of costs and savings by recommendation appears in Exhibit 4. The page number for each recommendation is listed in the summary chart for reference purposes. Detailed implementation strategies, timelines and the estimates of fiscal impact follow each recommendation in this report. The implementation section associated with each recommendation highlights the actions necessary to achieve the proposed results. Some items should be implemented immediately, some over the next year or two and some over several years.

TSPR recommends the HISD board ask district administrators to review the recommendations, develop an implementation plan and monitor its progress. As always, TSPR staff is available to help implement proposals.