|
 |
|
|||
|
Texas Teacher Policies Earn High Ranking The National Council on Teacher Quality 50-state encyclopedia on states’ teacher policies, concludes that while Texas takes a leadership role, some policies are counterproductive to the nation’s teacher quality State Teacher Policy Yearbook 2007 is the first project of its kind to provide a 360-degree detailed analysis of how states are hurting or helping teacher quality-- and what they can do to fix broken and anachronistic policies. Although Texas is in an elite group of four states, its overall performance shows how much work is still ahead. In the six areas of teacher policy reviewed, the state earned mixed grades of one B, four Cs, and one D. “As is true for all states, Texas’ approach to the teaching profession needs an overhaul,” said Kate Walsh, president of NCTQ. “Unlike many states, Texas does appear to recognize this need and is showing real signs of progress.” Among the findings:
To download copies of the Texas report, which includes national comparisons: Eighty-six Percent of Texas School Districts Meet AYP Eighty-six percent of Texas school districts and 79 percent of the schools met 2007 Adequate Yearly Progress (AYP) standards, despite a substantial increase in the performance targets by which they are judged in this federal evaluation system. This year to earn a label called “Meets AYP,” the schools and districts had to test at least 95 percent of their students and at least 60 percent of the students had to pass the reading/English Language Arts test and at least 50 percent had to pass the mathematics exam. This represented a seven-percentage point increase in the reading performance target and an eight-percentage point increase in the math target. Schools and districts can also meet AYP by showing significant performance improvement. State tests in grades 3-8 and 10 that are used to determine these scores are the Texas Assessment of Knowledge and Skills (TAKS), TAKS-Alternative, State Developed Alternative Assessment II, Locally Developed Alternative Assessment, the Reading Proficiency Test in English and the Linguistically Accommodated Test. High schools and districts are also rated on the 2006 graduation rate, while elementary and middle schools are rated on attendance rates as well as test scores and participation. Data for all students, as well as African American, Hispanic, white, economically disadvantaged, special education and limited English proficient are analyzed. They must take action right away to improve their educational program,” he said. The preliminary 2007 results show that 86 percent or 1,056 school districts and charter holders met AYP requirements, compared to 88 percent or 1,079 districts in 2006. This year, 12 percent or 149 of the districts missed AYP, as did 11 percent or 132 last year. Both years, one percent of the districts were not rated. At the school level, 79 percent or 6,374 schools met AYP standards in contrast to 82 percent or 6,516 schools last year. Nine percent or 737 of the schools missed AYP in 2007, compared to 541 or 7 percent in 2006. Twelve percent of the schools in 2007 were not rated for a variety of reasons that include being a new school, a pre-kindergarten-kindergarten campus or a disciplinary alternative education campus. The most common reason a school missed AYP was math performance only or both reading and math performance. The requirement that at least 95 percent of the students be tested caused very few schools to miss AYP. The graduation rate indicator was the most common reason that districts missed AYP in 2007. AYP ratings for schools and districts are available at: http://www.tea.state.tx.us/ayp/. School Improvement Program If a school misses AYP for two years in a row for the same reason – math performance for example – and participates in the federal Title I program, the federal No Child Left Behind law requires that the schools move into a School Improvement Program (SIP) to aid the students. A school that has missed AYP for two years is in Stage 1 School Improvement. The 114 schools in Stage 1 are required to take a number of actions, including preparing a campus improvement plan with input from their community and offering high quality professional development designed to address the issues on the campus. The schools, by Aug. 27, must also send letters notifying families that their children may transfer out of these schools to other schools designated by the district. The district must provide transportation to those who transfer. Ninety-eight schools are in Stage 2, having missed AYP requirements for three years in a row. They must offer supplemental educational services (SES), such as tutoring to students, as well as continuing the corrective actions begun while in Stage 1. This year, 47 schools move to Stage 3. Because of four years of poor performance in the same indicator, these schools must continue to make supplemental educational services and transfer options available to students. The school district must enact at least one sanction from a list that includes replacing staff that deal with the relevant subject, lengthening the school year or school day, decreasing management level at the campus, appointing an outside expert, restructuring the internal organization, or fully implementing a new curriculum that is based on scientifically proven successful educational strategies. Twenty-three schools have reached Stage 4, after missing AYP requirements for five consecutive years in the same indicator. The school must continue to offer transfers to students. It must offer supplemental educational services or other supplemental services to students who remain at the school. The district must provide technical assistance to attempt to correct the school’s shortcomings. The school must also take one additional dramatic action such as:
Two charter schools have reached Stage 5 after having six years of substandard performance. They are the Richard Milburn Academy of Killeen and I Am That I Am Academy in Dallas. Both schools missed AYP this year because of math performance. Along with continuing to provide supplemental services and transfer options to students, these schools must carry out one of the following restructuring options:
Complete information about the sanctions imposed when schools enter the School Improvement Program is available at: http://www.tea.state.tx.us/nclb/titleia/sip/2007-08/2007-08_sip.html. A list of schools and districts in the School Improvement Program is available at: http://www.tea.state.tx.us/nclb/titleia/sip/2007-08/Documents/ti_pre_sip_list.pdf. The list of districts in the School Improvement Program is available at: http://www.tea.state.tx.us/nclb/titleia/sip/200708/Documents/ti_pre_sip_district.pdf. AYP ratings may be appealed up to Sept. 7 but a school or district on the SIP list must begin to implement the required actions while awaiting the results of the appeal. ACT High School Profile Report The Graduating Class of 2007: Texas The ACT High School Profile Report for each state provides information about the performance of 2007 graduating seniors who took the ACT as sophomores, juniors, or seniors. The reports focus on performance, access, course selection, course rigor, college readiness, awareness, and articulation. To see the report: http://www.act.org/news/data/07/pdf/states/Texas.pdf Forbes Magazine Rates Collin County as Second Best School District in the U.S. for the Buck See article at: http://www.forbes.com/2007/07/05/schools-taxes-education-biz- A NEW REPORT FROM THE CENTURYFOUNDATION: SOCIOECONOMIC INTEGRATION PLANS STEER CLEAR OF SUPREME COURT’S OBJECTIONS ON RACE AND MEET GOALS OF ACHIEVEMENT AND RACIAL DIVERSITY Communities that are committed to fostering diversity in public schools were dealt a serious blow today when, in an historic ruling, the U.S. Supreme Court restricted the ability of school districts to use race as a factor in school assignment plans. Districts should not give up on integration, however, says Richard D. Kahlenberg, senior fellow at The Century Foundation. “A growing number of school districts across the country have begun to use students’ socioeconomic status as a factor in school integration plans,” he says, “and preliminary evidence suggests such plans can raise academic achievement and produce racially diverse schools in a manner that is legally bullet-proof.”He examines twelve such school systems and finds that when socioeconomic school integration plans are well implemented, they can boost academic achievement and also provide students with a racially integrated schooling environment. Rescuing Brown v. Board of Education: Profiles of Twelve School Districts Pursuing Socioeconomic School Integration features detailed studies of three leading districts with the longest standing and most comprehensive socioeconomic integration policies—Wake County (Raleigh), North Carolina; La Crosse, Wisconsin; and Cambridge, Massachusetts. It also includes profiles of nine additional communities that are using socioeconomic status as a factor in assignment—Berkeley, California; Brandywine, Delaware; Charlotte- Mecklenburg, North Carolina, Manatee County, Florida; McKinney, Texas; Minneapolis, Minnesota; Omaha, Nebraska; Rochester, New York; and San Francisco, California. In addition, the report looks at school districts that may move toward socioeconomic integration. These include districts already discussing that possibility (including Burlington, Vermont; and Pasadena, California) as well as districts now employing race as a criterion which may shift toward socioeconomic status (including Louisville, Kentucky; Seattle, Washington; Lynn, Massachusetts; and others). “Brown v. Board of Education stood for racial integration of schools and equal educational opportunity,” says Kahlenberg. “School districts that are promoting socioeconomic integration are vigorously pursuing both goals. Given the Supreme Court’s decision, socioeconomic integration moves to the cutting edge of equitable school reform.” The report notes that today, most districts seek to achieve socioeconomic integration through public school choice and magnet schools rather than compulsory busing. Rescuing Brown v. Board of Education: Profiles of Twelve School Districts Pursuing Socioeconomic School Integration : http://www.tcf.org/publications/education/districtprofiles.pdf Texas School District Signs $3.7 Million Performance Contract with TAC “Through the performance contract, TAC will address several critical issues our district faced,” said Larry Bonner, business manager for Gregory – Portland ISD. “TAC will complete a comprehensive, self-funded, district-wide facility improvement program that uses guaranteed energy savings to eliminate any risk to school district.” Major problems the contract will address include mechanical equipment failures causing comfort issues; lack of district-wide control of building equipment usage; water leaks in several roofs; aging lighting systems and inconsistent lighting levels; and old and inefficient plumbing fixtures. Each facility will be linked with a TAC Vista energy management system (EMS) that includes a central workstation for accessing and programming the system at any school through a graphical user interface. A laptop will be provided for remote EMS access. TAC will also replace or repair various heating, ventilation and air conditioning (HVAC) systems and components; upgrade lighting to T8 fluorescent lamps with electronic ballasts at most campuses; replace roofs on four buildings; and install efficient plumbing fixtures in seven facilities.Discovery Education And Texas Regional Education Service Centers Partner to Provide Unitedstreaming To Texas Schools Award-winning video-on-demand service to benefit over 3.8 millions students and their teachers Discovery Education, the leader in digital video and multimedia learning, announced today that it has reached an agreement to provide unitedstreaming™ to all K-12 schools in 18 of the 20 Texas Regional Education Service Center regions through the 2011-2012 school year. Through an Education Service Center Consortium agreement, Discovery Education unitedstreaming is now available to nearly the entire K-12 student population of Texas. “The 18 Education Service Centers are thrilled that we are now able to offer the majority of Texas schools Discovery Education unitedstreaming at the lowest possible cost,” said Dr. Randal Douglas, Director of Educational Technology Services, ESC Region XI. “We believe the service offers educators the dynamic and innovative content that’s needed to really engage 21st century students in learning.” Discovery Education unitedstreaming is the leading digital video education service used in U.S. schools and the only one scientifically proven to increase student achievement. The service includes a powerful selection of more than 4,000 full-length videos and other valuable features including photography, encyclopedia and reference articles, tools for curriculum development, assignment creation, quiz and test building and more. Led by unitedstreaming, Discovery Education’s school services also include Discovery Education Science Connection, Discovery Education ThinkLink Assessment, PowerMediaPlus.com and Discovery Health Connection, which collectively, are used by more than one million educators and reach more than 35 million students nationwide. The 20 Texas regional centers were established in 1967 after the Texas Legislature directed that the State Board of Education establish them to provide services to school districts. These regional education service centers (ESCs) were directed to (1) assist school districts in improving student performance in each region of the system, (2) enable school districts to operate more efficiently and economically, and (3) implement initiatives assigned by the legislature or the commissioner. Regional ESCs support local districts and charter schools in attaining the mission set forth by the Texas Education Agency, which states that ESCs are “to build the capacity for excellence in the Texas public education system and hold the system accountable for providing students with a quality education that enables them to achieve their potential.”HP Awards Nearly $2.5 Million to 15 Schools HP has awarded nearly $2.5 million in equipment, cash and professional development opportunities to 25 U.S. learning institutions as a part of the 2007 HP Technology for Teaching Leadership awards. Part of the company’s 2007 HP Technology for Teaching grant program, the awards are designed to transform and improve learning in the classroom through innovative uses of technology. K-12 grants HP is awarding more than $1.2 million in HP equipment, cash and professional development to teams of teachers at 15 K-12 public schools. Each school will receive 11 HP Tablet PCs, 10 HP digital cameras, 10 all-in-one printers, 10 digital projectors and stipends for the 15 teachers involved in the technology integration work. The award additionally includes a professional development program for educators funded by HP and provided by the International Society for Technology in Education. Each school will receive training and mentoring as they implement their projects. The value of the grant award for each school is more than $81,000. An example of a K-12 grant-winning project is at Riley Creek Elementary School in Gold Beach, Oregon, where students in grades 6 through 8 studied tsunamis and developed tsunami preparedness plans based on what they learned in their research. The result was a complete transformation of the teaching practice of each member of the team, making classes more interactive and engaging. Team data about student learning showed increased attainment of subject matter concepts and skills in math, science, language arts, social studies, health and computer applications. Grantees included: Sanchez Middle School, El Paso, Texas 114 Grantees Share $25 Million in Funds from the Voluntary School Choice Program 14 projects in 12 states will share $25 million in grants under No Child Left Behind's Voluntary School Choice Program (VSCP) to help states and school districts create or expand public school choice initiatives. "Parents know what's best for their children. By giving families more choices and injecting a little competition into the system, we support innovations that help students and schools improve," Spellings said. The grantees—states, school districts or partnerships—are in Florida, Michigan, Oregon, Illinois, Texas, Connecticut, Pennsylvania, New York, Massachusetts, Minnesota, Alaska, and South Carolina. Seven grantees are also recipients from the first implementation of the program in 2002. Grantees develop the program with parental and community involvement, in concert with those who will carry out the program, including teachers, administrators and other staff. Some grantees use the first project year to plan and design the public school choice initiative. To ensure the widest possible reach and participation, the funds can be used to help notify parents about the existence of the choice program, what the program offers and the program's availability. A portion of the funds can be used to provide transportation (or the costs of transportation to and from public elementary, secondary or charter schools) for students selected to participate in the program. For more program information visit www.ed.gov/programs/choice/index.html. Grantees and their first-year funding amounts follow (* return grantee): La Villa ISD To Become First LearnSafe™ Certified School District in Texas LearnSafe Team to Begin District Safety and Security Audit to Satisfy Texas Senate Bill 11 Requirements MDI, Inc. has announced that La Villa Independent School District has signed an agreement with the company to implement the LearnSafe school safety and security initiative and achieve LearnSafe Certification Status. The multi-year contract, when implemented, will designate La Villa as the first district in Texas to gain LearnSafe Certification. The LearnSafe Team will begin work immediately on a safety and security assessment and site survey project for the district’s elementary, middle and high school campuses to include neighboring risk factors. The initial assessment will empower La Villa ISD to meet all compliance requirements under Texas SB 11, which calls for all school districts in the state to conduct security audits, at least once every three years, across all district operating facilities and report the results to the board of trustees and the state. It will also provide the LearnSafe Team with the information necessary to provide the right levels of security for the district, based on the quantitative and qualitative risk identified at each operating location. The deadline for completion of the first round of safety audits for Texas public school districts is August 31, 2008. “I applaud the La Villa School District, its Administration team and its School Board Members for taking the initiative to become the first school in our state to partner with the LearnSafe program to obtain their safety and security certification,” stated Saul Garcia, School Board Trustee for Edcouch Elsa Independent School District, which is a neighboring district to La Villa. “The most common statement in news reports given by community members after an incident of mass violence is, 'I never thought this would happen here.' With the LearnSafe Initiative in place, schools can now state that they have a proactive behavioral intervention program in place to prevent incidents of school violence from occurring, the detection and response capabilities necessary to identify and contain the incidents and, if an incident does take place, they are prepared to deal with it using an emergency management process that exceeds NIMS (National Incident Management System) Homeland Security compliance guidelines,” he added. In addition to MDI’s unified video surveillance, access control, automated lockdown and alarm management solution, the LearnSafe Team is comprised of:
“The Texas border region is considered by many to be a high threat area due to its proximity to the Mexican border, which is lined with dense ranchland that is difficult for law enforcement agencies to patrol and enforce,” said Collier Sparks, President and CEO of MDI, Inc. “In addition to the common Homeland Security threats, the district’s elementary school is a few hundred yards from a state maximum security prison and the school administration has done an incredible job of dealing with safety issues, limited security budgets and funding constraints over the past few years. As a LearnSafe Certified school system, district administrators and teachers can now focus on education, while our world-class team handles the design, implementation and management of their safety and security,” he concluded. A Professional Funding Specialist will work with La Villa school district administrators to complete the LearnSafe funding package. LearnSafe’s unique approach to funding delivers customized packages to schools based on the most appropriate short and long term options available. In most cases, LearnSafe is able to fund from 75% to 100% of the program without the need to issue vehicles that will increase taxpayer burden. MDI Security Systems is an official contract holder in The Cooperative Purchasing Network (TCPN). The TCPN contract is available for use by thousands of public and private schools, colleges, universities, cities, counties and other government agencies in the States of Texas, Arizona, Arkansas, New Mexico and Oklahoma to purchase products and services without having to undergo the time and direct costs associated with establishing a competitive bidding process. Fitch has assigned its underlying 'A+' rating to $100 million of El Paso Independent School District (the district), Texas' Bonds. The underlying 'A+' rating and Positive Outlook reflect the district's stable and growing reserve levels, accelerating taxable values, and sustained voter support for much needed bond programs. Offsetting risks include the operating and capital pressures associated with a projected surge in enrollment. Substantial troop additions to Ft. Bliss will add significantly to the district's historically stable enrollment base and is spurring residential and commercial development in the northeastern part of El Paso (the city). The district will be challenged in providing sufficient instructional space for military and civilian dependents, facilitated by the passage of its second major bond authorization in four years. Despite these large authorizations, additional state debt support will keep debt levels above average but manageable. The maintenance of solid reserve levels through the impending enrollment boost, along with continued solid tax base growth, may lead to positive credit considerations. The district, the seventh largest school district in the state, encompasses over 250 square miles and serves the majority of the City of El Paso. The area's economy is based on international trade and manufacturing, copper mining, and ore smelting. Stability is also provided by the large military presence (Fort Bliss and Biggs Army Airfield) and educational concerns (the University of Texas at El Paso). As a result of base realignment, Ft. Bliss is expected to receive 20,000 additional troops with the majority of school age troop dependents enrolling in the district. By 2011, the increased troop strength is expected to boost district enrollment by about 9,600 in military and civilian personnel dependents. The district's tax base is diverse with taxable values increasing again after years of stagnant growth. Taxable assessed valuation (TAV) grew by a notable 10% and 16% in fiscal years 2006 and 2007, respectively, increasing by $2.7 billion over that period. The expansion of Ft. Bliss has spurred the development of large master planned communities as about 65% of the additional troops are expected to live off-base. Furthermore, the relocation of air cavalry and armored aviation units to Ft. Bliss is expected to attract high-technology companies for both services and research and development. The city's unemployment rate is already trending down to near record levels, totaling 5.2% in April 2007. The district's direct debt profile remains modest at over $600 per capita and 1.7% TAV although overall debt ratios are now moderately high as a percentage of TAV (6%) but moderate on a per capita basis at over $2,100. The district's principal amortization rate was previously rapid but is now average at 47% in ten years. With the issuance of the remaining $130 million in authorization over the next three years, the district's debt burden should remain stable although there is potential additional state aid in the future due to favorable legislation for districts impacted by base realignment. The district's financial performance has improved notably since a new board and administration implemented improved cost controls and budget cuts, leading to operating surpluses over the last two fiscal years. Fiscal 2006 posted a $7.6 million general fund surplus, increasing its undesignated fund balance to $42.3 million or 10.8% of spending. Additionally, projected fiscal 2007 results point to a similar operating surplus and a nearly 12% reserve. Preliminary fiscal 2008 budget projections are balanced based on modest enrollment increases and additional teacher pay raises. The board and management have adopted a goal of maintaining at least 45 days of expenditures in reserves.Fitch Ratings has assigned an underlying 'A' rating to Canutillo Independent School District, Texas' (the district) bonds. The 'A' underlying rating is based on the district's growing tax base, conservative fiscal management, and sound financial results with maintenance of healthy reserve levels. Offsetting risks include high debt levels with additional capital needs, operating pressures related to accelerated enrollment growth, and moderate tax base concentration. Recent completions of the Artcraft and Transmountain Highways have spurred development of additional residential subdivisions, as well as commercial and industrial operations adding substantial value to the district's tax base. In light of its growth and changing demographics, continued challenges for the district will be the balancing of growing local resources, facility needs, and debt issuance to maximize state support and maintenance of manageable debt ratios. Located in the northeastern corner of El Paso County, the district serves a population of about 22,350, covering 67 square miles that include portions of the City of El Paso and neighboring rural areas. The district benefits from greater El Paso's strategic location and extensive transportation network, serving as a major port of entry linking Mexico, Texas, and New Mexico. With enrollment at approximately 5,500 students by the end of fiscal 2007, the district is experiencing moderate annual enrollment growth averaging about 3%, but expects the growth rate to accelerate as new subdivisions break ground and major troop additions begin to arrive at Fort Bliss as the result of military base realignment. Ongoing and planned residential developments are adding new homes ranging from affordable to high-end gated communities, diversifying the district's home values which historically have been modest. District officials report that nearly 1,400 residential units are in the development stage, estimated to add about 2,000 students to the district schools by fiscal 2012. Taxable values continue to outpace enrollment gains. The district's taxable assessed valuation (TAV) increased by an average of more than 12% annually since 2001 and increased by approximately 22% in the current fiscal year. In fiscal 2007, the Hoover Co. was the largest taxpayer, representing nearly 8% of appraised value, with the leading 10 taxpayers representing about 19%, down from 30% or more in past years. Although the industrial sector maintains a dominant presence in the district's tax base, its concentration has begun to give way to residential and commercial growth in the last five years. Economic growth is projected to continue with the availability of affordable land and recent completions of the Artcraft and Transmountain Highways. The district's current financial profile reflects operating and capital pressures resulting from accelerated enrollment growth. Following depletion of unreserved general fund balance in fiscal 1996, the district restored levels to a healthy 16.5% of expenditures by the end of fiscal 2003. Since then, the district has drawn down on reserves, but primarily for planned pay go capital expenditures. Fiscal 2006 ended with a moderate $1.5 million drawdown, somewhat larger than expected but was also the result of $1.7 million in capital improvements made out of the general fund budget leaving an unreserved general fund balance of $4.7 million, or 11.7% of expenditures. For fiscal 2007, the district budgeted for a modest $830,000 drawdown due to the additional cost of operating a new middle school and a $4,000 teacher pay increase to stay competitive with surrounding school districts. However, the budget is based on conservative enrollment projections well below recent historical averages and the district currently estimates results will be better. Fitch Ratings has assigned an 'AAA' rating to Hidalgo Independent School District, Texas' (the district) bonds. Hidalgo ISD is located in the southern-most region of Texas on the border with Mexico, encompassing 36 square miles and the city of Hidalgo, with a current population of slightly less than 9,000 and growing at a slower pace than that of Hidalgo County since 2000. While more than doubling in student enrollment since the 1980s, current enrollment growth has remained manageable at an average annual rate of 2.6% over the past five fiscal years. Tax base growth continues to outpace student enrollment gains at slightly less than 7% annually over the past five years, primarily due to ongoing commercial and industrial development near the area's international bridges. Fiscal 2006 brought unreserved/undesignated general fund balance down to a total of $3.6 million or 15% of spending, which was roughly a 4% decline from the prior year. The district continues to maintain an unreserved/undesignated general fund balance of no less than 15% since fiscal 2004 however. Revenues and expenditures remain on target for fiscal 2007 according to district officials, and it is expected that the district will close the year by adding approximately $500,000 to the general fund balance. District officials indicate they expect to adopt a balanced budget for fiscal 2008. This offering represents the first portion of the district's recent $15 million authorization, approved by approximately 90% of the voters. The entire authorization will be used to supplement funding for existing construction projects. The remaining portion of this authorization is projected to be issued in the summer of 2008. More than half of the district's debt service is supported by the state due to the district's low property wealth. Consequently, the direct debt burden is moderate, although the overall debt burden is high, primarily due to the fewer number of individuals who live in the district as compared with other area districts. Fitch Ratings assigns its 'AAA' rating to Paris Independent School District (ISD, or the district), Texas' bonds. Bond proceeds will be used for the construction, acquisition, renovation, and equipment of school buildings, acquisition of school sites, to refund a portion of the district's outstanding debt and to pay issuance costs. The 'A' rating reflects the district's growing financial reserves, steady tax base expansion, and strong voter support for its capital needs. However, the rating also incorporates the magnitude of the district's capital plan and the associated large debt-service tax rate increase, although partially offset by the legislated statewide reduction in school districts' operations and maintenance tax levy. Notably, due to conservative budgeting and improved staffing ratios, the district's financial performance has remained balanced despite a stagnant enrollment base which limits state aid revenue growth. The service area of Paris ISD includes most of the city of Paris, Texas, which is the county seat and major economic center for Lamar County. Paris and Lamar County are located northeast of Dallas and the county's northern boundary borders the Red River and Oklahoma. The estimated 2006 population of Paris is about 26,600 and the district's fiscal 2007 average daily attendance (ADA) totaled 3,573. District ADA has been declining modestly over the past five fiscal years as the district is approaching full maturity with limited ongoing residential development. The county's primary employment sectors are manufacturing, educational and health services, and trade, with many of the major manufacturing employers being located in Paris. The unemployment rates in the city and county have improved since peaking in 2003 and are both modestly higher than state and national norms. Per capita income for the county is lower than both the state and national experience. After nearly depleting its financial cushion in fiscal 2001, the district has posted general fund operating surpluses annually through fiscal 2006. General fund reserves were drawn down to only 1.4% in fiscal 2001 after transferring over $840,000 to the district's worker's compensation fund and health insurance fund for the purpose of eliminating their accumulated deficits. Both funds have been restructured and have since paid back the general fund. Operating surpluses in recent years were aided by a surge in retirements (enabled by a now restricted loophole in social security benefits), enabling the district to replace departing senior personnel with entry-level teachers and staff. The district also adjusted its staffing ratios at the secondary levels, allowing greater efficiencies. As a result, the district's undesignated fund balance has grown to $4.6 million or 19% of expenditures and transfers out in fiscal 2006. District officials project break-even results for fiscal 2007 and the proposed fiscal 2008 budget is balanced and based on level ADA. In the absence of a formal fund balance policy, district management has established one-month's expenditures (8.3%) as the minimal fund balance goal and a three-month (25%) target as its optimal goal.Fitch Ratings has assigned its underlying 'AA' rating to Coppell Independent School District (the district), TX's bonds, series 2007. The upgrade to 'AA' from 'AA-' reflects the district's continued strong financial performance, strong voter support, steady taxable assessed valuation (TAV) growth, and the strength and diversity of the regional economy. Financial reserves have expanded despite the ongoing pressures of large wealth equalization payments due to its status as a property-rich school district. The district's proactive management practices under the new state funding formula are expected to further increase its financial flexibility. The district's direct debt levels remain manageable and should trend downward given the absence of future capital needs in the near to medium term due to the maturity of the district. Subsequently, any capital needs will be associated with prospective high-end development in the North Lake area. Located about 18 miles northwest of downtown Dallas, the district serves the city of Coppell and small portions of Dallas and Irving in northwest Dallas County. The district's most significant growth occurred in the 1990s and until recently was considered to be relatively built-out at about 10,000 students. Recently a large 350-acre tract of land around North Lake that lies within the district's property boundaries in the city of Dallas was rezoned to residential use. The district estimates a potential 30% increase in student population upon eventual full build-out. The proposed development is currently stalled due to ongoing negotiations between surrounding local governments over the provision of basic city services. Given its lakeside location, proximity to downtown Dallas, and the scarcity of developable land in the area, this property will likely be developed with high-end luxury residences, which will add to the district's already wealthy tax base. The district's TAV has grown steadily. Preliminary values for fiscal 2008 point to a 14% surge, resulting in a solid $7.2 billion tax base. Although the district's tax base has matured, the prospects for continued TAV growth in the near term are strong given the ongoing commercial development along major thoroughfares that traverse the district. Excluding the North Lake area, the community is relatively built-out with about 50% of the area developed as residential, but continued commercial growth is projected. Local wealth levels remain above state and national averages. Direct debt as a percentage of TAV is average and more moderate on a per capita basis reflecting the strong commercial and industrial tax base of the district. Including overlapping debt, overall debt ratios rise to moderate levels, but remain manageable. This is the final installment of the district's $50 million authorization that was approved by a large 81% of district voters. This issuance is not expected to have an impact on the current debt service tax rate due to the district's strong tax base growth for fiscal 2008 and available reserves in the debt service fund. Near- to mid-term capital needs will be limited given the maturity of the district's residential areas. Uncertainty remains regarding the timing of the servicing needs for the currently undeveloped North Lake area. However, an offsetting rise in taxable valuations and population growth upon development is expected to offset the effect of the district's debt ratios. Financial performance and reserve levels are strong. Fiscal 2006 ended with a better than projected general fund balance of $17.7 million, which maintained the unreserved general fund balance at 17% of spending, comparable to fiscal 2005 levels. The district projects adding about $4 million to general fund balance by the close of fiscal 2007, even with 4% pay increases across the board and a net increase of full-time staff. The fiscal 2008 budget projects a modest operating deficit, although the district typically achieves better results. Notably, the district's budgeted wealth transfer payment is down over 21% due to the new state funding formula, substantially reducing general fund pressure. |
||||
