<<Back to
Texas Education News
Texas Education News
April 2008
Copyright © 2008 Queue, Inc.
IN THIS ISSUE:
Texas Educator Excellence Grant (TEEG)
Program: Year One Evaluation Report
National Assessment of Educational Progress
(NAEP) Assesses Writing
Network Management Software Chosen by
Cypress-Fairbanks
This report presents findings stemming from the
first-year evaluation of the Texas Educator Excellence Grant (TEEG) program,
one of several statewide performance incentive programs in Texas. TEEG Cycle 1
provided approximately $100 million in noncompetitive, 12-month grants to over
1,100 public schools. Schools eligible to participate had records of academic
success and high percentages of economically disadvantaged students.
This report provides an overview of TEEG school selection criteria, program design features of schools' locally-designed performance incentive plans, teachers' attitudes and behaviors in TEEG schools, and interviews with schools that decided not to participate in TEEG.
Preliminary
findings during the first year of TEEG implementation indicate that many of the
traditional arguments against performance incentive policies, namely the
negative impact on teacher collaboration and instructional quality, were not
reported by teachers in Cycle 1 schools. While these findings do offer insight
into the early experiences of educators, authors caution that it is too soon to
attribute those findings to the TEEG program itself.
Full
report:
http://www.performanceincentives.org/data/files/news/BooksNews/FINAL_TEEG_Y1_Report___2808_correction.pdf
Five
school districts are finalists for the 2008 Broad Prize for Urban Education, an
annual $1 million award that honors urban school districts across the country
that are making the greatest progress in raising student achievement.
This
yearÕs five finalists are:
á Aldine Independent School
District, near Houston
á Broward County Public
Schools, Fort Lauderdale, Fla.
á Brownsville Independent
School District, on the Texas-Mexico border
á Long Beach Unified School
District, Calif.
á Miami-Dade County Public
Schools
The
Broad (rhymes with ÒroadÓ) Prize for Urban Education honors urban school
districts that demonstrate the greatest overall performance and improvement in
student achievement while reducing achievement gaps among ethnic groups and
between high- and low- income students.
The
winner of The Broad Prize, to be announced on Tuesday, Oct. 14 at the Museum of
Modern Art in New York City, will receive $500,000 in scholarships for
graduating seniors. Each of the four finalist districts will receive $125,000
in scholarships.
One
commonality among this yearÕs finalists, all of which serve significant
percentages of Hispanic students, is that Hispanic students made notable gains
in each district on multiple indicators. For example, Hispanic students in all
finalist districts both outperformed and showed greater improvement than their
peers in similar districts in their respective states. In addition, all five
made notable progress in narrowing achievement gaps between Hispanic students
and their white peers.
In
the running for the 2008 Broad Prize are two neighboring school districts:
Miami-Dade County and Broward County, the nationÕs fourth and fifth largest
districts, respectively. This yearÕs finalists include three previous
finalists, one of which is a former Broad Prize winner. This is Miami-DadeÕs
third consecutive year as a finalist, and the third time Aldine has been one of
the top five districts since the Prize was first awarded in 2002. Long Beach,
which won The Broad Prize in 2003, has been a finalist every year it has been
eligible. In addition to Long Beach, previous Broad Prize winners include the
New York City Department of Education (2007); Boston Public Schools (2006);
Norfolk Public Schools (2005), Va.; the Garden Grove Unified School District,
Calif. (2004); and Houston Independent School District (2002).
This
year, 100 of the largest urban school districts nationwide were eligible for
The Broad Prize. The five finalist districts were selected by a review board of
19 prominent education researchers, policy leaders, practitioners and
executives from leading universities, national education associations, think-tanks
and foundations. The review board evaluated publicly available academic
performance data compiled and analyzed by MPR Associates, Inc., a leading
national education research consulting firm, and selected the five districts
that stood out in areas that included:
á Academic performance and
improvement on state exams compared with other districts in the state with
similar low-income student populations
á Closure of income and
ethnic achievement gaps
á College readiness
indicators such as graduation rates, SAT, ACT and Advanced Placement exam data
Over
the next two months, teams of educational researchers and practitioners led by
SchoolWorks, an educational consulting company, will conduct site visits in
each finalist district to gather qualitative information, interview district
administrators, conduct focus groups with teachers and principals and observe
classrooms. The teams will also talk to parents, community leaders, school
board members and union representatives. A selection jury of prominent individuals
from business, industry, education and public service will then review both the
performance data and the qualitative site visit reports to choose the winning
school district.
For
more information about The Broad Prize, this yearÕs finalists and the review
board, please visit www.broadprize.org.
The National Assessment of Educational Progress (NAEP) assesses
writing for three purposes identified in the NAEP framework: narrative, informative,
and persuasive. The NAEP writing scale ranges from 0 to 300.
¥ In 2007, the
average scale score for eighth-grade students in Texas was 151. This was not
significantly different from their average score in 2002 (152) a nd was not
significantly different from their average score in 1998 (154).1
¥ Texas' average
score (151) in 2007 was lower than that of the nation's public schools (154).
¥ Of the 45 states and one other jurisdiction that participated in
the 2007 eighth-grade assessment, students' average scale score in Texas was
higher than those in 7 jurisdictions, not significantly different from those in
15 jurisdictions, and lower than those in 23 jurisdictions.2
¥ The percentage of students in Texas who performed at or above
the NAEP Proficient level was 26 percent in 2007. This percentage was
not significantly different from that in 2002 (31 percent) and was not
significantly different from that in 1998 (31 percent).
¥ The percentage of students in Texas who performed at or above
the NAEP Basic level was 86 percent in 2007. This percentage was not
significantly different from that in 2002 (83 percent) and was not
significantly different from that in 1998 (88 percent).
¥ In 2007, male students in Texas had an average score that was
lower than that of female students by 18 points. This performance gap was not
significantly different from that of 1998 (21 points).
¥ In 2007, Black students had an average score that was lower than
that of White students by 23 points. This performance gap was not significantly
different from that of 1998 (17 points).
¥ In 2007, Hispanic students had an average score that was lower
than that of White students by 23 points. This performance gap was not
significantly different from that of 1998 (20 points).
¥ In 2007, students who were eligible for free/reduced-price
school lunch, an indicator of poverty, had an average score that was lower than
that of students who were not eligible for free/reduced-price school lunch by
22 points. This performance gap was the same as that of 1998 (22 points).
¥ In 2007, the score gap between students at the 75th percentile
and students at the 25th percentile was 46 points. This performance gap was not
significantly different from that of 1998 (47 points).
ÒSerious
Problem- TexasÓ
State-funded preschools served over one
million children last year, yet public pre-K was unavailable for most 3- and
4-year-olds, according to the annual survey released by the National Institute
for Early Education Research (NIEER).
Funded by The Pew Charitable Trusts, The State of Preschool 2007
(http://nieer.org/yearbook/) ranks all 50 states on the percentage of children
served and spending per child. It also compares the number of quality
benchmarks each state meets for the 2006-2007 school year. The survey found
that enrollment, quality and state spending per child increased.
Yet, 12 states offered no state-funded
preschool education and others faltered in their commitment to the quality of
their early education programs. The report showed that nationally less than
half of all 4-year-olds were enrolled in government-supported preschool
education programs and one quarter received no preschool. For 3-year-olds the
situation was worse, with only 15 percent enrolled in public programs and 50
percent receiving no early education.
Children from wealthy families can attend
expensive private preschools while the federal Head Start program and most
state-funded preschool education is targeted at lower income families.
Research shows that high-quality preschool
education for disadvantaged children improves later high school graduation
rates and college attendance, employment opportunities and earnings, even
marriage rates. It lessens future crime, delinquency and teenage pregnancy. In
economic terms, high-quality preschool education returns to the individual and
the public up to $17 for each $1 invested. New studies find educational
benefits for middle-income children as well.
Alaska, Hawaii, Idaho, Indiana, Mississippi, Montana, New Hampshire, North Dakota, Rhode Island, South Dakota, Utah, and Wyoming have no state-funded
programs. Serious problems also exist in four states Ð California, Texas, Florida, and Ohio Ð that are home to
one-third of all American preschoolers."
California, Texas, Florida, and Ohio are among only seven
states that meet less than half of NIEER's quality benchmarks. All four spend
less than the national average per child. Texas and California do not limit class size. Ohio, Florida and California do not require preschool
teachers to have education comparable to public school teachers. Ohio serves not even 5,000 of
its nearly 150,000 4-year-olds.
On a more positive note, the yearbook
reported that in 2006-2007:
¥ Average state spending per child was
$3,642, halting a trend of declining per-child commitments that had persisted
since at least the 2002-2003 school year.
¥ More than one million 3- and 4-year-old
children attended state-funded preschool education programs.
¥ Thirty states increased enrollment.
Nationally, enrollment was up by 80,000.
¥ Eight states met higher quality standards.
Yet, some states still require preschool education teachers to have little more
than a high school diploma.
¥ Of the 26 states that served 3-year-olds,
enrollment increased in all but five states. Overall enrollment of 3-year-olds
was up 10 percent, mostly due to increases in Illinois, which became the first
state to commit to serving all 3-year-olds.
Pre-K funding could be attached to state
funding formulas for K-12 education to ensure that funds increase
proportionally with enrollment as it expands and that funding per child is more
dependable the authors say. They also said the federal government could play a
vital role by providing an inducement to states to expand enrollment,
particularly at age 3, by offering matching funds.
The 2007 Yearbook pointed out that
one-quarter of all 4-year-olds and half of all 3s had no access to preschool
education. State and federal regular preschool education, special education and
Head Start combined served 39 percent of the country's 4-year-olds, and some
attend private programs, leaving one-quarter of 4-year-olds with no preschool
program at all. At age 3, state and federal programs combined to serve only 15
percent. Even with some others attending private programs, 50 percent of
3-year-olds had no access to a preschool education.
Other key findings in the yearbook include:
Access:
¥ Enrollment increases in most states tended
to be modest, but some states made large gains. Enrollment increased by 52
percent in Tennessee, 33 percent in Pennsylvania, and 17 percent in Illinois, Florida, and New York.
¥ State pre-K programs served 22 percent of
4-year-olds and 3 percent of 3-year-olds nationwide.
¥ Three states with "Pre-K for
All" served more than half of their 4-year-olds: Oklahoma (68 percent), Florida (58 percent), and Georgia (53 percent). When Head
Start and preschool special education enrollments are taken into account, Oklahoma served 90 percent of all
4-year-olds; Florida, 71 percent; and Georgia, 65 percent.
Quality:
¥ North Carolina and Alabama once again met all 10 of
the NIEER quality standard benchmarks. Eight additional states--Arkansas, Illinois, New Jersey, New Mexico, Oklahoma, South Carolina, Tennessee, and Washington--had a state-funded pre-K
initiative meeting nine of the 10 benchmarks.
¥ Of the 38 states with preschool education
programs, Kansas
met the fewest benchmarks, three. Arizona, California, Florida, Maine, Ohio, and Texas met only four.
¥ Fewer than half the 38 pre-K states
required all lead teachers in their programs to hold a bachelor's degree. Eight
states did not require any state preschool teachers to have bachelor's degrees
-- Arizona,
California,
Colorado,
Delaware,
Georgia,
Minnesota,
Ohio,
and Washington.
Resources:
¥ The average state spending per child
enrolled was $3,642. Compared to the previous year, this is an increase of $175
per child before adjusting for inflation (and an increase of $32 after
adjusting for inflation).
¥ Of the 38 states with preschool education
programs, state pre-K spending ranged from just over $3 million in Nevada, a state with about 72,000
3- and 4-year-olds, to $533 million in Texas, which has about 758,000
3- and 4-year-olds.
¥ States still spent much less per child on
pre-K than on K-12.
¥ States continued to vary greatly in their
per-child spending. New Jersey was the top ranked state, spending $10,494 per
child. Twelve states continued to spend nothing on state pre-K.
The State of Preschool 2007 is available at
http://nieer.org/yearbook/pdf/yearbook.pdf
State Profiles are available at:
http://nieer.org/yearbook/states/
Texas
Report:
http://nieer.org/yearbook/pdf/yearbook.pdf#page=136
Technology
Counts is
a joint project of Education Week and the Editorial Projects in Education Research
Center. As in previous years, the EPE Research Center surveyed the states to
assess the status of K-12 educational technology across the nation in the areas
of access, use, and capacity. The report assigns grades to the states for their
technology performance overall and in those three categories. The state report
assembles key findings from the survey and other sources.
CaliforniaÕs scores:
Access to technology C
Use of technology B-
Capacity to use technology B
Overall grade C+
Complete Texas report:
http://www.edweek.org/media/ew/tc/2008/30TX_STR2008.h27.pdf
Cypress-Fairbanks Independent
School District (CFISD) has selected WhatsUp Gold to monitor and manage its
wide area network (WAN) infrastructure. With over 70 school campuses educating
over 96,000 students, Cypress-Fairbanks relies on WhatsUp Gold to alert IT
staff to network problems before they occur.
ÒWe looked at other solutions
including HP Openview and Ericcson/Marconi,Ó said Frederick Brenz,
network-WAN/telecom manager for CFISD. ÒThose products are reactive. WhatsUp
Gold allows us to be proactive. ItÕs a great feeling when weÕre onsite fixing a
network problem before the users even know one exists.Ó
Cypress-Fairbanks uses WhatsUp
Gold to manage everything from PCs and servers to HVAC plant systems to
building lighting to real-time security cameras. The software alerts staff to
network trouble spots and monitors bandwidth and device utilization to maintain
peak efficiency. WhatsUp Gold allows administrators to report on the networkÕs
performance, discover and map network assets and analyze trend data over time.
ÒWhatsUp is scanning over a
thousand devices for us 24 hours a day, seven days a week. For the first time
in the years IÕve been with the district, we see the problems before we get
trouble calls,Ó added Brenz. ÒAs a result our teachers can teach their classes
and use technology resources without interruption.Ó
As one of the nationÕs
fastest-growing school districts, Brenz also faces the challenge of rapidly
scaling the districtÕs network infrastructure to meet the needs of its growing number
of schools, teachers and students. WhatsUp Gold is an ideal solution, as it is
built to grow with its customers, and scales easily to accommodate multiple,
dispersed locations and tens of thousands of devices.
ÒFrom 1995 to 2006 we opened 23 new schools in our district,Ó
said Brenz. ÒWe now have over 13,000 employees. WhatsUp took everything we
could throw at it, and itÕs been a lifesaver for our IT staff. I donÕt know how
we could have supported our growth without it.Ó
Frisco
ISD, Texas
Frisco
Independent School District, Texas' (the district) has a solid and improving
financial profile, historically conservative and stable financial management,
impressive tax assessed valuation (TAV) growth, and a strong and diverse
regional economy. The district continues to be the fastest growing in the
state, leading to substantial operating and capital pressures and very high
debt ratios. General fund reserve levels have improved and now approximate the
district's fund balance target. Moreover, the operating reserve level is
expected to increase again at the close of the current fiscal year due to a
change in the district's reporting period from August 31 to June 30.
Located
approximately 20 miles north of Dallas, area transportation improvements and
housing affordability have led to accelerated population and enrollment growth
over the past decade. The district's estimated population surged from
approximately 6,700 in 1990 to an estimated 105,000 presently. Enrollment for
2007-2008 is up roughly 15% from the prior year, and has expanded at an average
annual rate of more than 20% since fiscal 2001. While district officials expect
continued steady growth over the near term, a significant decline in housing
starts currently in the district likely will generate a slowdown in enrollment
gains at some point. Officials estimate that residential construction in the
district is down 50% from recent peaks.
TAV
growth continues to be very healthy, averaging annual increases of roughly 20%
over the past five fiscal years. For fiscal 2008, the district's TAV grew by
more than $2.5 billion, or another 21%, to $14.9 billion. Fitch believes the
pace of TAV growth will slow going forward, as the slowdown in housing
construction more than offsets the commercial development activity that
reportedly is continuing at a solid pace. Over the longer term, recently
completed and ongoing roadway improvements that connect the district with other
parts of the Dallas-Fort Worth metropolitan area bode well for future growth.
As
is the case with other fast-growing Texas school districts, direct and overall
debt levels are high, and principal amortization is slow. Debt ratios likely
will remain elevated given the May 2006 voter approval of a $798 million bond
measure, among the largest bond measures ever approved in the state. The
district has consistently received strong community support for growth-related
capital programs, which is a credit strength. The 2006 authorization will fund
the construction of 19 schools, support facilities, site acquisition, and
technology and equipment purchases. After this issuance, the district will have
about $708.5 million in remaining bond authorization. The district anticipates
returning to market with another bond sale in fall, 2008.
Historically,
financial performance has been sound despite the pressures associated with
rapid enrollment growth and wealth equalization payments. Healthy TAV increases
and solid budget execution generally have produced strong revenue gains and
favorable year-end results. For fiscal 2007, the district benefited from the
new state funding formula, continued TAV growth and good expenditure controls;
as a result, the district reported operating net income of roughly $15 million
for the year; the unreserved general fund balance totaled $26.7 million, or
nearly 15% of spending and transfers out. For fiscal 2008, the district is
planning to change its reporting period to a June 30 fiscal year to better
coincide with the school year. This change is expected to contribute to a
projected $12 million operating surplus, further swelling reserve levels.
Struggling high school
readers achieve gains on the Texas Assessment of Knowledge and Skills and
shrink the gap with students statewide
Struggling
readers in the Dallas Independent School District (ISD) who used Scientific Learning¨ (http://www.scilearn.com/)
Fast ForWord¨ products
achieved gains on the Texas Assessment of Knowledge and Skills (TAKS) and made
significant progress toward closing the achievement gap, according to a new
study.
The four-year longitudinal study covered 2004 through 2007 and investigated the effects of the Fast ForWord products. Fast ForWord is a family of educational software products that accelerate learning by developing the student brain to process more efficiently. The productsÕ impact on the reading skills of 828 high school students in Dallas ISD was evaluated. After using the Fast ForWord software, students improved their TAKS reading scores and narrowed the gap between their scores and the scores of students across the state by 23 percent.
ÒMany
students get to the secondary level but donÕt have basic literacy skills.
Without these skills, itÕs almost impossible to manage core subjects that get
harder as students go through each grade level. As a result, you end up with a
high dropout rate and low graduation rate. We needed a solution that could
quickly fill in gaps and allow students to accelerate their learning, so they
could catch up and successfully complete school,Ó said Meredith Smith,
executive director for special education for Dallas ISD. ÒAs we began using the
Fast ForWord software, we saw that where we had good implementations, students
were making great strides. In addition to the achievement gains students have
made, the Fast ForWord program has given our students confidence and
self-esteem. It gives students hope, which is so important at the secondary
level. WeÕve been really pleased with the results.Ó
In
addition to achieving gains immediately after using the Fast ForWord software,
the struggling readers continued to increase their achievement levels the year
following their Fast ForWord participation. This supports other studies showing
that using the Fast ForWord products strengthens studentsÕ foundational skills
and better positions the students to benefit from the classroom curriculum. It
also supports studies showing that the acquisition of reading skills by Fast
ForWord participants is accelerated even after participation is stopped.
The
Fast ForWord products were included as a reading intervention strategy for all
secondary students identified for tier two interventions. Tier two eligibility
was defined as students reading below the 40th percentile or students who had a
TAKS Reading score below 2100. As part of this intervention, Dallas ISD
students were assigned to use the products for approximately 50 minutes per
day, five days per week. On average, participants used the products for 60 days
during a 5 ½ month period.
Results
of the study can be seen at http://www.scilearn.com/results/longitudinal/main=dallas6.
Despite
the capital and operating challenges associated with enrollment growth, White
Settlement Independent School District, TX's financial performance remains
favorable. After posting a $1.5 million deficit in fiscal 2001, the district
aggressively set out to improve its margins by changing administrative staff
and implementing a site based financial management approach. By the end of
fiscal 2005, the unreserved general fund balance had increased to 17.4%, or 63
days of operating expenditures and transfers out. However, despite the
anticipation of a modest surplus, fiscal 2006 netted a shortfall of $1.2
million, ending the year with an unreserved fund balance of 13.1%, or 48 days
of expenditures and transfers out. The fiscal 2006 deficit was primarily
attributable to lower than projected state revenue, transitional payroll costs,
and rising utility costs. Although management anticipated a large $2 million
surplus for fiscal 2007, actual results were more modest with a $435,000
increase to fund balance for the year.
Portions
of the district properties lie in the Barnett-Shale formation enabling the district
to materialize revenue inflows from natural gas exploration rights and possibly
royalties. District administrators plan to use these funds to increase the
general fund balance and for non-recurring expenditures. Although not a formal
commitment, district administrators would like to increase the general fund
balance to at least 90 days of operating expenditures and transfers out over
the next few years. For fiscal 2008, the district adopted a balanced budget,
and officials expect break-even operating results at year-end.
Indicative
of the strong community support for the district, voters passed a $137 million
bond authorization in February 2004 with a 72% approval rate. The previous bond
program, which was begun in fiscal 2002, was originally intended to last the
district through fiscal 2009. However, increased residential development as
people migrate west from Fort Worth spurred the acceleration in the
implementation of the long-term capital improvement program. This is the final
installment of the 2004 bond authorization to complete the projects expected to
meet district capital needs until enrollment reaches between 7,000 and 7,500
students, currently forecast to occur around 2010.
Debt
levels are high and principal amortization is slow, due to the district's
accelerated student growth environment and its need to meet facility demands
while limiting the effect to existing taxpayers. The slow pace of principal
repayment (at less than 20% in 10 years) and reflects the historical use of
capital appreciation bonds (CABs), which also comprise the entirety of the
current offering. Although the amount and specific projects are yet to be
determined, the district anticipates returning to the voters for additional GO
authorization as early as May 2009 to prepare for additional growth related
infrastructure needs.
Located
west of Fort Worth, White Settlement ISD serves a student population of
approximately 5,700 in the primarily residential communities of west Tarrant
County. As the level of residential development activity slows in the district,
its TAV and enrollment growth continues to although at a somewhat moderated
pace compared with prior years. The district added more than 1,000 new students
in the past five fiscal years and expects continued growth with the addition of
water and sewer infrastructure in the western portion of the district. In the
same five fiscal years, the district's TAV increased at an average annual
compound rate of nearly 13%, at least half of which was attributable to new
home construction and most recently attendant commercial development. Lockheed
Martin, although not entirely located within district boundaries, is the
largest employer for district residents and has expanded to 16,500 employees
with its production of a new jet fighter.
Judson
ISD
Judson
Independent School District (ISD), Texas' (the district) experienced
accelerated student enrollment growth in 2006 and 2007, which slowed somewhat
in 2008. Maintenance of solid reserve levels remains important to future credit
quality. Current financial performance and expected tax base growth suggest the
district will be able to maintain its financial profile over the near term.
Located
in Bexar County, northeast of San Antonio and approximately 57 square miles in
size, Judson ISD serves the residential communities of Universal City, Live
Oak, Selma, Converse, and Kirby. Student average daily attendance has grown at
an annual average of 3.5% over the past five fiscal years, spurred by the
district's affordable housing market; the growth rate climbed to the 5%-6%
range in fiscals 2006 and 2007. The sizable commercial presence in the district
helps shoulder the costs associated with the district's growing operating and
capital needs.
As
part of the larger San Antonio metro area, economic development within the
district is concentrated primarily in distribution, warehousing, and food
manufacturing businesses, stimulated by access to various transportation
corridors. The area continues to experience increased retail development with
the growth of residential construction. Additional retail and commercial
projects are in various stages of planning and construction. Proximity to
Randolph Air Force Base and Fort Sam Houston Army Base adds to the area
economy, although the military exposes the district to risks associated with
possible future base realignments. Neither facility is currently on any type of
base realignment/closure list, however. Tax base growth continues at slightly
over 12% annually over the past five years.
General
fund reserve levels remain strong. Conservative fiscal management has enabled
the district to maintain undesignated general fund balances of no less than 20%
of expenditures and transfers out since fiscal 2003. Fiscal 2007 ended with an
operating surplus of $7.0 million and an undesignated general fund balance of
$32.7 million, or 24.7% of expenditures and transfers out. Officials expect to
close fiscal 2008 with essentially break-even results.
District
debt levels are high and are expected to remain so, even after factoring in
state support for a portion of existing debt service. Direct debt to taxable
assessed value is 8% and direct debt per capita is almost $5,000 (without state
assistance). The new-money portion of the current offering represents the final
phase of borrowing from a $236.3 million authorization, which was structured as
four separate propositions and approved by voters in November 2006. The
majority of the authorization will be used for the construction of three
elementary schools and the demolition/reconstruction of Judson High School.
Capital needs are expected to remain substantial over the near term. The
district will not look for additional authorization until the 2010 bond
election.
Fort
Bend ISD (Texas)
Located
in northeastern Fort Bend County, the district is a rapidly growing residential
and commercial sector of the Houston metropolitan statistical area (MSA). Along
with continuing residential development, particularly in the county's many
master-planned communities, expanded high-technology development has
supplemented the county's historical base of mineral production, manufacturing,
and agriculture. As a result, TAV has nearly doubled in the last five years to
$20.5 billion in fiscal 2008, from $10.5 billion in fiscal 2001. Preliminary
fiscal 2009 TAV estimates point to more moderate, but sustained growth of $1.3
billion, or 6.5% increase from the fiscal 2008 values.
The
current offering represents the first installment of $428 million, the
district's largest bond package, approved by a margin of 10,587 voters in
support and 5,683 against the proposition at an election held in November 2007.
The bond program includes $252.7 million for new campuses, $139 million for
school renovations and new support facilities, $23.6 million for technology, $11.2
million for transportation, and $1.5 million for safety and security equipment.
The district's current debt service tax rate of $0.21 per $100 TAV compares
favorably to other school districts with similar growth pressures. The voter's
were presented with the possibility of debt service tax rates increasing by a
maximum of $0.11 per $100 TAV to support the entire bond program and the
district anticipates a modest three cent increase to the tax rate as a result
of this offering. Currently 60%-65% built out, the district anticipates
reaching a peak enrollment of 100,000 students in about 20 years, requiring
additional bond authorizations every four years.
After
the current offering, direct debt is $1,584 per capita and almost 3% of TAV
after adjusting for state support for 22% of the district's outstanding debt.
Overlapping debt attributable to 46 entities (including many MUDs) is
substantial totaling nearly $1.2 billion, increasing the district's high
overall debt burden to $4,656 per capita and 8.7% of TAV. Debt service carrying
charges remain moderate at 11% of general and debt service funds in fiscal
2007. Principal amortization is slow at 36% in 10 years which is not unusual
for fast-growing school districts.
Despite
the fast enrollment growth trend, the district has maintained strong financial
operations due to extensive cost-containment efforts and conservative revenue
projections in the development of its annual budgets. After several years of
slight decreases in financial margins due to planned draw downs for one-time
capital expenditures, the district's undesignated reserves have increased
annually since fiscal 2003. In fiscal years 2005 and 2006, the district posted
outstanding positive operating results of $18 million and $26.4 million,
respectively. A large part of these gains were attributable to the influx of
Katrina students which the district absorbed in 2005.
Budgetary
measures that contained expenditure pressures include: the replacement of
retiring teachers with new teachers on a lower pay grade, adjustments to health
insurance plans, and energy contracts. Fiscal 2007 ended with another large
surplus of $6.8 million, resulting in an unreserved, undesignated fund balance
of $99.6 million, or 23% of spending. The district adopted a balanced budget
for fiscal 2008.
Fort
Bend County's population, estimated at 509,822 in 2007 has grown by 22% since
the 2000 census. The population of Sugar Land, the county's largest city,
similarly grew by a rapid 15% to nearly 80,000 during the same period. Growth
in the county has been sustained by the continued development of master-planned
communities. Despite the slowdown in home sales, the median home price in the
Houston MSA has held steady at about $150,000 and experienced very modest
swings in prices since 2005. The county's unemployment rate of 4% in December
2007 remains well below state and national averages of 4.3% and 5.0%,
respectively. Wealth levels of the county's population are notably higher than
those for the Houston MSA and state.