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EXECUTIVE SUMMARY
Executive Summary Overview
Summary of Costs and Savings by Recommendation (Exhibit 6)

In March 2002, Texas Comptroller Carole Keeton Rylander began a review of the Kerrville Independent School District (KISD) as part of a five-district project that also included reviews of the neighboring Ingram, Center Point, Hunt and Divide school districts, all located in Kerr County. Based upon more than five months of work, this Texas School Performance Review (TSPR) report identifies KISD's exemplary programs and suggests concrete ways to improve district operations. If fully implemented, the Comptroller's 77 recommendations could result in net savings of more than $2 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 the Texas School Performance Review 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 Website at www.window.state.tx.us.

TSPR in Kerrville ISD

KISD is the largest school district in Kerr County with 4,689 students and is located 62 miles northwest of San Antonio. The district covers 167 square miles, including the city of Kerrville. The area attracts hundreds of artists who support a variety of arts and cultural events. Today more than one million tourists visit the area annually. The Texas Education Agency's (TEA's) Regional Education Service Center XX (Region 20) in San Antonio, Texas serves the district.

The Comptroller contracted with SDSM Inc., an Austin-based firm, to assist us with this review. The review team interviewed district employees, school board members, parents, business leaders and community members and held a public forum on Tuesday, March 26, from 5:00 p.m. to 8:00 p.m. at the Kerrville Tivy High School library. To obtain additional comments, the review team conducted small focus-group sessions with teachers and principals. The Comptroller's office also received letters and phone calls from parents, teachers and community members.

In addition, a total of 619 respondents answered written surveys distributed by the review team, including 134 district administrators and support staff, 13 principals and assistant principals, 153 teachers, 206 parents and 113 students. Details from the surveys, the public forum and the focus groups appear in Appendices A through F.

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

KISD selected five "peer districts" for comparative purposes, based on similarities in student enrollment, student performance and community and student demographics. The districts chosen were Aransas County, Brenham, Levelland, Marble Falls and Midlothian ISDs.

In 2001-02, KISD served 4,689 students. Of these, 60 percent were Anglo, 34.8 percent Hispanic, 3.8 percent African American and 1.4 percent other. Economically disadvantaged students made up 46.5 percent of the total student population. Exhibit 1 compares KISD's demographic characteristics with those of its peer districts, TEA's Region 20 and the state.

Exhibit 1
Demographic Characteristics of KISD
And Peer School Districts
2001-02

  Student Enrollment Ethnic Group
(Percent)		 Economically Disadvantaged
District Number Five-Year Percent Change* African American Hispanic Anglo Other Percent Five-Year Percent Change*
Brenham 4,716 (4.8%) 29.9% 13.8% 54.7% 1.7% 39.0% (0.5%)
Midlothian 4,699 22.9% 2.4% 11.6% 84.8% 1.0% 15.5% (24.0%)
Kerrville 4,689 (0.5%) 3.8% 34.8% 60.0% 1.4% 46.5% (0.2%)
Marble Falls 3,648 8.2% 2.1% 27.9% 68.5% 1.6% 42.0% (4.5%)
Aransas County 3,337 (5.5%) 4.6% 30.1% 55.3% 9.9% 46.9% (7.1%)
Levelland 3,024 (12.4%) 5.7% 54.7% 39.5% 0.2% 53.4% 1.1%
Region 20 337,299 5.5% 7.0% 64.2% 27.3% 1.4% 61.0% 0.2%
State 4,150,741 6.6% 14.4% 41.7% 40.8% 3.1% 50.5% 4.1%

Source: Texas Education Agency (TEA), Public Education Information Management System (PEIMS), 2001-02.
*Percent Change is defined as 2001-02 values minus 1997-98 values divided by 1997-98 values.

During its five-month review, TSPR developed 77 recommendations to improve KISD's operations and save its taxpayers nearly $3 million. Cumulative net savings from all recommendations (savings minus recommended investments or expenditures) would reach more than $2 million over a five-year period.

A detailed list of costs and savings by recommendation appears in Exhibit 5. Many TSPR recommendations would not have a direct financial impact but would improve the district's overall operations.

Acknowledgments

The Comptroller's office wishes to express their appreciation to the KISD Board of Trustees, former Superintendent Dr. Mark Jackson, as well as district employees, students, parents and the community who helped during the review.

Kerrville ISD

KISD's enrollment has fallen since 1997-98, from 4,712 students to 4,689 students in 2001-02, a 0.5 percent decrease over five years (Exhibit 2).

Exhibit 2
KISD Actual Student Enrollment History by Year

School Year Actual
Student
Enrollment		 *Percent
Change
From the
Prior Year
1997-98 4,712 N/A
1998-99 4,805 2.0%
1999-2000 4,727 (1.6%)
2000-01 4,662 (1.4%)
2001-02 4,689 0.6%

Source: TEA, AEIS, 1997-98 through 2000-01 and PEIMS, 2001-02.
*Percentages are rounded.

The district's 2000-01 Texas Assessment of Academic Skills (TAAS) passing rate for all tests taken in grades three through 10 was 89.5 percent, well above Region 20's average of 79.3 percent and the state average of 82.1 percent. The district's 2000-01 passing rate is second highest compared to its peers and has increased each of the last four years from an 83.7 percent passing rate in 1996-97 to the 89.5 percent passing rate in 2000-01 (Exhibit 3).

Exhibit 3
Percent of Students Passing TAAS, All Tests Taken (Grades 3-8 and 10)
1996-97 through 2000-01

District 1996-97 1997-98* 1998-99** 1999-2000** 2000-01** Percentage
Point Change
from 1996-97
to 2000-01***
Kerrville 83.7% 84.4% 87.1% 88.1% 89.5% 5.8
Midlothian 81.2% 83.7% 89.6% 91.2% 93.7% 12.5
Aransas County 81.0% 84.0% 79.5% 86.5% 84.3% 3.3
Marble Falls 80.2% 81.8% 80.6% 83.0% 87.0% 6.8
Brenham 71.8% 73.3% 76.4% 79.1% 80.2% 8.4
Levelland 71.6% 76.2% 80.2% 81.9% 83.3% 11.7
Region 20 66.6% 72.3% 74.4% 77.1% 79.3% 12.7
State 73.2% 77.7% 78.3% 79.9% 82.1% 8.9

Source: TEA, AEIS, 1996-97 through 2000-01.
*Recalculated from original posting to include special education and grade 3 and 4 Spanish TAAS.
**Recalculated from original posting to include special education and grade 3-6 Spanish TAAS.
***Percent Point Change is defined as 2000-01 minus 1996-97.

TEA rated KISD as Recognized in 2000-01. The district has been rated Recognized in four of the last five years, with two of its elementary schools rated Exemplary in 2000-01.

On August 1, 2002, the Texas Education Agency released the TAAS results for the 2001-02 school year. KISD received an overall Recognized rating, as compared to its 2000-01 rating of Recognized. According to these latest reports, the district has three Exemplary schools: Daniels Elementary, Nimitz Elementary, and Tivy Upper Elementary; one Recognized school: Starkey Elementary; and four Academically Acceptable schools: Tivy High School, Hill Country High School, Peterson Middle School, and Kerr County Juvenile Facility. 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.

KISD's annual budget was nearly $24.9 million for 2001-02. KISD had the highest property tax rate among its peer districts in 2000-01 (Exhibit 4).

Exhibit 4
Adopted Tax Rate and Taxable Property Value per Pupil
KISD and Peer Districts
2001-02
District Adopted
Tax Rate		 Property Value
Per Pupil
Kerrville $1.733 $274,156
Aransas County $1.612 $333,264
Brenham $1.572 $273,567
Levelland $1.445 $267,726
Marble Falls $1.645 $331,069
Midlothian $1.720 $298,915
Source: TEA, PEIMS, 2001-02 and Comptroller's Office Preliminary 2001 Tax Rates data.

The review team found KISD's staff members to be dedicated, competent and focused on student achievement. The board, administration, staff and community all recognize that they must continue to make improvements wherever needed for their students. The district fully understands, however, that it faces several challenges, including:

  • controlling spending and rebuilding its fund balance;
  • managing staff size;
  • enhancing educational services to students with special needs; and
  • involving community in decision-making.

Key Findings and Recommendations

Control Spending and Rebuild its Fund Balance

  • Create a board audit committee to address district finance and audit issues. KISD's financial challenges over the past four years limit the ability of the district to accomplish its mission and goals. Between 1997-98 and 2001-02, budgeted revenues rose 2.2 percent while budgeted expenditures increased 15.2 percent. A board audit committee would provide critical oversight of the district's financial position by allowing board members to participate in selecting an external auditor, overseeing the audit of the district and meeting quarterly to review the district's financial performance.
  • Establish a general fund balance policy and develop administrative procedures to achieve and maintain it. The district does not maintain a TEA-recommended optimum fund balance, nor does it have a policy pertaining to the general fund balance. The district's fund balance lost 78 percent of its value between 1997-98 and 2000-01 and has an estimated value for 2001-02 of $246,677, about 1 percent of its budgeted expenditures. By establishing a policy and procedures that require reports to the board about the fund balance, the district will be better able to rebuild its reserves.
  • Develop procedures for the proper accounting and reporting of special revenue funds. The district lacks basic accounting procedures for its special revenue funds, which are funds that are legally restricted to expenditures for specified purposes such as federal grants, to ensure they are properly administered. The district has not requested federal funds in a timely manner and has not recorded expenditures that were directly related to federal programs. Consequently, $132,358 in general operating funds were used in 2000-01 to pay costs that might otherwise have been paid with federal dollars. External auditors have commented on this deficiency in management letters for 1997-98 through 2000-01. Establishing basic operating procedures for funds administration would ensure that proper reports are filed and all grant funds available are collected and expended to enhance the district's educational programs.
  • Develop and follow procedures to more accurately estimate revenues. The district over-estimated revenues from 1998-99 through 2000-01. Audited financial statements show that actual local revenues were overstated by an average of just less than 1 percent, state revenues by 4.8 percent and federal revenues by 30 percent. By overestimating revenues, budgets had to be amended during the school year or money had to be added to the budget from the district's reserve funds. Developing specific procedures for estimating revenues that take into consideration prior year variances will help the district more accurately budget for the coming year.
  • Hire an internal auditor who reports directly to the board. KISD does not have an internal auditor to monitor and strengthen district internal controls. An internal auditor can conduct detailed reviews of internal controls and develop an internal audit plan that ensures the district is following generally accepted accounting procedures as well as board approved policies. An internal auditor can also ensure that the board is kept aware of the status of the district's financial, educational and operational programs.The annual cost for this position would be $51,750.

Manage Staff Size

  • Adopt staffing standards for school administrative and support staff. Compared to standards set by the Southern Association of Colleges and Schools, KISD has more campus administrators, professional support and campus clerical staffing than are needed to efficiently operate its schools. Implementing staffing formulas based upon student enrollment would allow the district to eliminate four and a half administrative positions and five clerical positions resulting in savings of nearly $1.3 million over the next five years.
  • Reduce staffing in Child Nutrition to match industry standards. KISD is using more labor hours to prepare the meals than are recommended. Meals per labor hour (MPLH) is a standard efficiency performance measure comparing the number of meals served to the total hours worked to produce the meals. By bringing staffing in line with industry MPLH standards, the district could realize a savings of nearly $53,000 each year.
  • Implement a controlled retirement incentive plan. KISD has nearly 28 percent of its teachers with more than 20 years experience. The district has 14 staff including four teachers who will meet the Teacher Retirement System (TRS) retirement eligibility requirements in the next two years. Adopting a controlled retirement incentive plan, which provides financial incentives for staff to plan their retirement based on district staffing needs, would help the district better manage human resources and avoid a possible mass exodus of employees in any one year. A controlled retirement incentive plan could save the district more than $296,000 over a five-year period and avoid a staffing crisis.

Enhance Educational Services to Students with Special Needs

  • Strengthen Gifted and Talented (G/T) and Advanced Placement (AP) programs. In 2001-02 the district's spending on its G/T program hovered at $40 per student, 95 percent below the state average of $959 per student. The district ranks below the state average in percent of students completing AP courses, taking AP exams and meeting the minimum scores for course credit. Strengthening its programs for gifted students and encouraging students to take and pass advanced courses will ensure that children are academically challenged and fully prepared for college.
  • Increase Minority Participation in the G/T program and AP Courses and Exams. KISD minority students are underrepresented in G/T programs and in AP courses and tests. While minorities represent 40 percent of the student body, only 12 percent of G/T students and 12.2 percent of students enrolled in AP courses are minority students. By increasing community awareness of these programs through notices in its newsletters and articles in the local newspaper and recruiting minority representatives of parent organizations to advocate the program to minority parents and students, the district can increase minority student participation and encourage students to reach their full potential.
  • Develop a reintegration program that provides Discipline Alternative Education Program (DAEP) students with access to social services and counseling. KISD's DAEP program does not meet during the regular school day due to a lack of facility space; consequently, students do not have access to district counseling services, mentors, libraries or other educational support or school services. Furthermore, there is no transition program to help students successfully return to their home school. By developing a reintegration program to monitor returning students and provide support services for them, counselors and principals can ensure that students are able to succeed in the regular educational environment.

Involve Community in Decision-Making

  • Provide opportunities for meaningful community discussion about facility needs and update the facility master plan. Comments made by teachers, parents and district staff in surveys and focus groups indicate that some individuals have significant concerns about the need for new schools based on projected growth in enrollment, the location of the new facilities and the impact of the cost of these facilities on district operations. Updating the facilities plan would provide an excellent opportunity to create a dialog with the community about the challenges the district faces in providing an appropriate educational setting for its children. By including the community in this process, KISD will demonstrate the district's willingness to listen to community concerns and address them.
  • Eliminate routine executive sessions before each regular board meeting. Executive sessions are held at the beginning of each regular board meeting. This practice can be perceived by the public as non-compliance with the Open Meetings Act. Executive sessions are permitted for personnel matters, sale of real property, hearing of student and employee grievances and legal discussions with school attorneys. The Texas Government Code and Texas Open Meetings Act encourage districts to discuss as much of the district's business as possible in meetings open to the public. By scheduling executive sessions only when necessary, the board can remove any perceptions of secrecy to its meetings.
  • Develop measurable goals and evaluation tools at the district level to improve parental involvement. Parental involvement takes place largely at the school level, and focus groups with parents and community leaders indicate that, while some schools are succeeding in involving parents in activities, others schools are not. Involving parents in children's education is essential to a quality education program. By tracking participation levels and using participation evaluations, the district can determine which schools need more parental support and target community involvement efforts towards those schools.

Exemplary Programs and Practices

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

  • KISD has a high rate of student participation and performance on ACT and SAT examinations. Compared to its peers, KISD has the second highest percent of students (70 percent) who took the Academic College Test (ACT) or the Scholastic Aptitude Test (SAT) in 2000-01. KISD's average SAT score is 1058 and its average ACT score is 21.8, which are the highest among the peer districts and surpass both the regional and state averages. The regional averages are 946 for the SAT and 19.5 for the ACT, and the state averages are 990 for the SAT and 20.3 for the ACT. KISD encourages students throughout the year to sign up for the ACT or SAT. The district also offers fee waiver options for students who cannot pay the registration fees. These strategies have increased testing participation and improved performance on the tests.
  • KISD has reduced its dropout rate by offering alternative programs for at-risk students. KISD provides alternative programs for students through the Hill Country High School (HCHS) and the Disciplinary Alternative Education Program (DAEP). HCHS offers an individualized and self-paced proficiency-based learning system and offers special services including a career center that provides vocational testing, job information and job counseling. DAEP offers a highly structured learning environment with a focus on helping students with disciplinary problems to take more responsibility for their actions. These programs have been instrumental in keeping the district's dropout rate below the state average in 1998-99 and 1999-2000.
  • KISD effectively uses teachers as school technologists to provide responsive, cost-effective technology support at each school. KISD has an effective program to provide first level diagnostic support at each school. School technologists are capable of solving a number of problems without having to contact the Technology Department. Their familiarity with handling technology problems also enables them to solve more complex problems with phone support from the Technology Department.
  • The district established the Kerrville Public School Foundation to fund innovative teaching approaches and educational projects. The district established a foundation to support innovative teaching approaches, academic projects and continuing education. The foundation's activities have resulted in field trips to the state capitol, Reading Renaissance Workshops, microscopes for the science department, software purchases and books for the Reading Recovery program.
  • KISD's local food service organization builds teamwork and increases employee morale through professional development, community service and employee recognition activities. KISD has a local collaborative food service association composed of various Child Nutrition Department staff that has boosted morale and facilitated professional development. KISD has developed its own employee association to further professional staff development.
  • Providing information regarding board activities and board policies on the district Web site improves communications with employees, parents and the community. Board agendas, policies and the superintendent's weekly memos to the board are posted on the district's Web site, helping KISD communicate important events to its employees, parents and the community. By posting extensive information about its activities, the board helps its employees, parents and community understand the issues facing the school district.
  • The district performs an annual salary survey to determine market competitiveness. KISD's Human Resources Department conducts an annual salary and benefit analysis to determine market competitiveness. The survey findings help set compensation goals for the district budget. Administrators, directors and the board use the information to make decisions on how best to allocate available district funds.
  • The district has established a thorough and well-executed budgeting process. The budget process at KISD is extremely thorough and solicits input from all key, district decision makers. The assistant superintendent of Business and Finance meets with each budget manager to explain the process, review the budget worksheet line by line and address any questions that might arise.
  • The district uses cooperative agreements to efficiently and cost-effectively procure items. KISD uses several cooperative-purchasing agreements that help control product costs while reducing the workload by reducing the number of separate competitive bids. This practice allows the district to obtain a variety of goods and equipment at reasonable prices and eliminates some of the effort and expense associated with the bidding process.
  • The Transportation Department transfers special program students between buses at a central transfer location. The Transportation Department keeps special program transportation costs low and productivity high by transferring special program students between buses at a central transfer location. Transfers maximize bus capacity, consolidate trips and limit long, cross-town routes that result in more productive services and cost savings.

Savings and Investment Requirements

Many of TSPR's recommendations would result in savings and increased revenue that could be used to improve classroom instruction. The savings estimates 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 77 ways to save KISD nearly $3 million in gross savings over a five-year period. Reinvestment opportunities would cost the district nearly $900,000 during the same period. Fully implementing all recommendations in this report could produce net savings of more than $2 million by 2006-07 (Exhibit 5).

Exhibit 5
Summary of Net Savings
TSPR Review of Kerrville 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 (Costs)/Savings		 $213,649
$420,053
$480,704
$496,925
$548,776
($73,833)
TOTAL SAVINGS PROJECTED FOR 2002-2007 $2,086,274

A detailed list of costs and savings by recommendation appears in Exhibit 6. The page number for each recommendation is listed in the summary chart for reference purposes. Detailed implementation strategies, timelines and estimates of fiscal impacts 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 that the KISD board ask district administrators to review these recommendations, develop an implementation plan and monitor its progress. As always, TSPR is available to help implement its proposals.