Responsive Education Solutions Annual Report 2009

Dear Reader, On behalf of the Board of Directors and Executive Team of Responsive Education Solutions, I want to welcome you to our 2009 Annual Report and thank you for your support in celebrating our tenth anniversary. You will find many statistics and facts throughout the following pages that outline the positive outcomes from our ten�year history. Yet, we want you to notice so much more than just information. We encourage you to take note of the theme running throughout each story, each statistic and each page. That theme is “Hope and Change.” Many educators are satisfied with the idea of teaching for its own sake. In fact, many feel that if the educator teaches, the job of education is complete. However, at Responsive Education Solutions, this is not enough for us. We strongly feel that the purpose of education is not fulfilled until the student learns. Our goal is not only to teach but also to provide hope for students, parents and communities alike. Our mission is to see lives changed through our work. Educating students takes a clear focus on learning as the main goal and changing lives as the ultimate purpose. If we truly want to change our world, we have to start with each individual connected with our work. Whether it be teachers finding real significance as those who make a difference in the lives of students; parents finding real educators who care almost as much for their children as they do; or students finding that success is not just for others but can be achieved and sustained throughout life, this close�knit community of stakeholders is determined to do what it takes to change lives. Our commitment to life�changing education ensures that the successes of the past ten years will not remain historical in nature, to look back on in future days. Rather, our successes serve as landmarks in our journey to change lives, to change families and to change our world. These landmarks allow us to celebrate what we have achieved. Yet, they also beckon us to the higher call to continue in this journey. Thank you for taking the time to read this report. After reading it, I hope you will join us in this journey to change lives. With best wishes and appreciation,

Charles Cook Chief Executive Officer

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Board of Directors Lupe Gonzalez Board President Marvin Reynolds Board Vice President Dan Maddalena Board Secretary Judge Willard French Board Member Ben Klingenstein Board Member Earl Little Board Member

Executive Team

Chuck Cook Chief Executive Officer Alan Wimberley Chief Systems Officer Robert Davison Chief Operating Officer Rosalinda Gonzalez Chief Academic Officer Dan Clower Chief Financial Officer

In 1998, our first year of operation, ResponsiveEd was granted the opportunity to open an unprecedented 15 schools. Ten years later, we now operate 35 charter schools across Texas and will be opening an additional 6 throughout the forthcoming year. We offer grades from Elementary to High School, each providing challenging and student�centered curriculum and programs. We are the largest charter school organization in Texas, and we are changing lives and providing hope to hundreds of communities across the state. Premier High Schools

Vista Academies

iSchool High

Quest Middle Schools

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Our total number of campuses has more than doubled since our first year. However, our total number of graduates has increased by 1,309� in that same amount of time.

Landmarks of the Journey

In education, academic success is marked by performance on required testing. ResponsiveEd experienced phenomenal success in ResponsiveEd the 2008�09 school year. Our schools achieved the state’s highest TAKS Progress Measure ratings on our campuses designed for alternative education status. 2005�2009 On our elementary and high school campuses designed for standard education status, our campuses received “Exemplary” or “Recog� 100 nized” ratings, identifying 2009 ResponsiveEd as one of the most 90 90� charter school systems 2008 high schools received successful 80� in Texas and among the most 80 successful of any school system 2007 2006 statewide. 70� 70 2005 67� As a system accredited by 63� the Texas Education Agency, we surpassed our goals as our students performed exceptionally on all state�mandated testing, and we saw a 60 huge increase in our number of graduates. Beyond that, as one of the few charter school systems accredited by the Southern Association of 50 Colleges and Schools, our family of schools far exceeded the standard and created a greater definition of excellence and quality. This landmark year provides a true measure of progress on our journey. ResponsiveEd Yet, we are careful to remind Statewide AEA Rating Comparison ourselves that test scores are not what makes a ResponsiveEd campus “exemplary”. It is 2008�2009 important and necessary to view statistics, measure performance and make decisions Texas Average ResponsiveEd based on data. It is good to know how we are 94� doing as an educational entity designed to 100 90� 89� ensure effective learning. An education is so 90 88� 88� 85� 81� much more than numbers, though. Yes, we do 80� 78� 80 73� test. And, when we do, our students and campuses test well. But for us, exemplary 70 campuses do more than that. 60 What is an “exemplary” campus to us? 50 The World English Dictionary describes exemplary as “setting an example so admirable that 40 others would do well to copy it.” We like that 30 definition. We believe our campuses set an 20 example. Did we meet and exceed academic standards last year? Yes. But a ResponsiveEd 10 campus sets an example far beyond testing. 0 Our teachers and students continue to confirm All Students African Hispanic White Economically that for us. We believe this is education as American Disadvantaged education was meant to be. III

100� of our

the highest possible

academic rating

roel esquivel “T hey believe in me, and they believe in who I can become.” Roel's future was looking bright at his previous school. He was excelling in his studies as well as achieving in both basketball and track. But Roel soon began to experiment with drugs and to lose sight of what was really important��his friends and his education. He pursued this lifestyle until the last week of school when police officers came and arrested him for possession of drugs. As he was led to the police car, the crowd formed. All of his former coaches gathered around to look on as the student with so much potential was handcuffed and put in the backseat. Roel remembers the day well and recalls, "I felt low, lower than dirt." He glanced up and looked into the eyes of his favorite coach. Roel saw the hurt and disappointment that was so boldly written across his coach’s face. At that moment, he knew that this was not what life was about, and he knew he needed to change. After a short time in jail, he asked his mother if he could be transferred to Premier High School. He knew that at Premier he could get his life on track, finish his credits faster and start taking his education seriously again. Roel has started to succeed once more. Now, he stays out of trouble because he knows that the road he was on left few options for the future. However, Premier gives him the chance to pursue a life full of opportunity. Roel says, "I know I've changed because of the people that are here. They believe in me, and they believe in who I can become."

watch Roel’s entire story at: www.Lives-Education.com/roel

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johneen ardoin “ T he education that I received from Premier was invaluable.” Johneen had always been a gifted student, but she was overwhelmed by the demands that she faced. So, as a result, she began to hate going to school. Even though she wanted to stop going, she knew that dropping out was not the right decision. She met with her mom, and they decided it was time for a change. She enrolled in Premier High School and not only continued to succeed, but her love of education returned. While at Premier, she was awarded “Student of the Year” and was always encouraged by the teachers who told her that she could do anything. She graduated from Premier and received a full scholarship which would cover her education all the way through receiving a doctorate degree. Johneen is currently pursuing her Masters Degree and holds a 4.0 grade�point average. She says, “The education I received from Premier was invaluable. Not only did it provide me with the scholastic tools that I needed to succeed, it also showed me that my education and what I did with it was my choice.”

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watch Johneen’s entire story at: www.Lives-Education.com/johneen

Culture & Character Responsive Education Solutions has a proven ability to listen to the community, conduct the necessary research and create an effective academic program designed to provide success and excellence for students. More than an instructional mission, ResponsiveEd is committed to changing lives and providing hope through education. It may take the form of parents find� ing a quality choice for their elementary�aged child. It may be an older student finally finding a school that provides the commitment to do what it takes to help him or her attain a high school diploma. Parent after parent, student after student, educator after educator���the testimonies and stories of success through change and hope continue growing. All ResponsiveEd campuses are professional learning communities. This environment calls for a dual role for educators: to be dependent on each other for the good of the student and to teach students to be independent learners. ResponsiveEd educators under� stand that the success of the student comes first. On a ResponsiveEd campus, there is a consistent collaboration between educators. Whether monitoring student progress or sharing ideas, ResponsiveEd professionals depend on each other to continually create and define a successful environment for students. Our educators also consistently lead students to become independent learners. Developing this characteristic in students produces a sense of accom� plishment that continues long past graduation.

Responsive Education Solutions is dedicated to creating and maintaining a culture of high expectations and individual responsibility. To change our world, educators must champion the idea that a child can attain any goal, retain all learned knowledge and sustain a lifestyle that proves beneficial for the entire lifetime of the student. Successful people have similar traits. The ability to take responsibility for yourself and work hard, doing the right thing, seeing yourself as part of a greater community���these characteristics define success in today’s world. Add to these the element of character such as doing the right thing because it’s the right thing to do and giving yourself to your community. Therefore, character and success go together. ResponsiveEd designs an academic environment using Seven Habits of Effective Students and Character First to teach more than academic subjects. Students at ResponsiveEd schools learn how to make good decisions as well as making good grades.

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Education at Responsive Education Solutions focuses on the learning of the child, rather than on the teaching of the educator. There is a defined sense of responsibility taken by ResponsiveEd educators to ensure that learning happens. The blend of effective and professional curriculum, teachers and standards places focus and value where it belongs��on the success of the student. Interwoven with these elements are passion, commitment and love for students that drives educators to realize their true calling. ResponsiveEd has experienced exponential growth and success, yet these achievements serve as an encouragement to continue improving and helping students succeed.

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Whether it’s the first day of kindergarten or graduation night, ResponsiveEd students and parents recognize quality education blended with compassion and care.

ResponsiveEd Graduates 2000�2009 900

2008�2009

851

800 2007�2008

700

2005�2006

600

2003�2004

479

500 400

100

526

2001�2002

311

300 200

687

Total Graduates

2000�2009

1999�2000

65

4,244

From Enrollment to Graduation In our first year, 65 students walked across a stage to receive their high school diplomas. This past year, that number rose to 851. As students move beyond high school to make their own way, we under� stand the growing urgency to ensure that they have the best possible opportunities in life. As part of this life in the new century, the greatest opportunities are afforded those with a solid education. ResponsiveEd continues to provide more students each year with that education. Over the past ten years, more than 4,200 students have been equipped with an educa� tion that opens doors and affords a better life as they take their place in our society.

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ResponsiveEd exists for one inarguable reason: options. As the number of students statewide grows, more and more parents and students are wanting to choose where and how they are educated. Though schools may come and go, campuses, 400 communities ResponsiveEd specifically in this past year, are defined and identified by increasing numbers and waiting lists. While adhering to our core value to stay “small by design” in our classrooms, we experienced this past year an explosion of growth in our enrollment. People, having discovered ResponsiveEd, are affirming our belief that quality education will be recognized and sought after as the choice among parents and students.

ResponsiveEd

reaches over

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ResponsiveEd Enrollment 2000�2009 4000

2008�2009

3,845

3500 2007�2008

3000

2,742

2500

2003�2004

2,393

2000 1500 1000 500 0

Enrollment Growth 1999�2000

726

1999�2009

529�

ResponsiveEd considers the investment of financial resources to be a sacred trust and experienced tremendous validation of our efficient operations in the past year.

Financial Outlook Fiscal Year 2007�2008

BALANCE SHEET Assets Total Current Assets �4,973,283 Property and Equipment, Net of Depreciation �3,076,605 Other Assets �266,630 Total Assets $8,316,518 Liabilities and Net Assets Current Liabilities �3,080,438 Long�Term Liabilities �890,029 Net Assets �4,346,051 Total Liabilities and Net Assets $8,316,518

Revenue 2003�2010

40M

35M

30M

2010 Projected

�39,487,575

Revenue Growth

2003�2010

340�

2009 Estimate

�31,135,131

25M

2008

�22,065,217 2007

20M

�17,863,442.76 2005

15M

�15,967,645.54 2003

10M

FUNCTION EXPENSE SUMMARY Program Services �15,611,932 Instruction and Related Services Instructional and School Leadership �2,755,833 $18,367,765 Total Program Services Support Services �1,996,374 Administrative Support Services �400,296 Student Support Services Facility Maintenance and Operations �2,268,183 �72,583 Security and Data Processing Services �77,349 Fundraising and Community Services $4,814,785 Total Support Services $23,182,550 Total Expenditures

�11,623,639.94 Security & IT �72,583 .3� Facilities �2,268,183 9.8� Student Support �400,296 1.7�

Community Services �77,349 .4�

Administrative �1,996,374 8.6� Campus Leadership �2,755,833 11.9�

Instruction �15,611,932 67.3�

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Premier High Gives Students the Opportunity to Succeed. At Premier High Schools, the student matters. In 2008�09, our Premier High Schools set new standards of excellence. Though previously characterized as campuses for alternative education students, Premier educators created a level of quality that is no longer confined within the limits of an alternative education. Applying sound educational practice and focused atten� tion, Premier proved to be a place of success for students needing additional opportunities, students seeking innovative methods, and students wanting a true learning�based environment. Though some students may have been left out or fallen behind by traditional systems, Premier offers a program designed to ensure that all students learn and all students succeed. Academic strengths are maximized and weaknesses are strengthened. Premier campuses continue to be centers of hope and opportunity for all students. iSchool High offers a rigorous curriculum with an emphasis on preparing students for higher education and 21st�century careers. Like other ResponsiveEd campuses, student success is paramount to the mission of the school. iSchool uses project�based learning �PBL�, virtual courses and engaging instruction to keep content relevant for students. The school also features a one�to�one ratio of computers to students. Individualized instruction, includ� ing mentoring, tutoring, group work and special interactive workshops are keys to success. Individual accountability where students take responsibility for their success is a hallmark of iSchool High. Conducted in an environment of collabora� tion and a culture of business�like practice, iSchool High sets, rather than meets, standards for quality and excellence.

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iSchool High Offers Students the Choice to Upgrade Their Education.

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zac cureton “I’m a person here, and this is a community.” The life of a large, impersonal high school campus put Zac off. It seemed like the only individual attention any students were given was the negative attention that was given to the students who caused the most trouble. Zac was dissatisfied with the distractions. He was tired of being just a number. He was ready for a change of atmosphere. The experience he found at iSchool High was just what he needed. At iSchool, the small class size, personal instruction and positive relationships with his fellow classmates �not to mention the faculty� challenged Zac to do his best. Instead of being overlooked and “just another face in the crowd,” Zac flourished in the iSchool environment and found within himself leadership qualities he never knew existed. Zac’s iSchool experience was so positive that he actually considered a career as a teacher! Today, having graduated from iSchool, Zac is attending college and is a psychology major. He still comes back to iSchool now and then to visit the teachers who made such a difference in his life.

watch Zac’s entire story at: www.Lives-Education.com/zac

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, the raney s “It was just a really good match for our daughter.” Emmy Raney needed a change of pace, and her parents, Keith and Donna, found it for her when they enrolled her at Vista Academies. From the very beginning, Emmy felt warmly welcomed by everyone at her new school. The individualized approach and specialized curriculum offered at Vista Academy were just what she needed. Emmy’s Mom and Dad were impressed with her new school. They didn’t have to wonder how Emmy was doing��they were updated on Emmy’s progress by her teacher on a daily basis and constantly encouraged to be involved in her education. Progress was swift. Emmy blossomed in her studies at Vista and developed a new love for reading. Donna says, “We feel like this curriculum will help Emmy continue to have a love for reading for the rest of her life.”

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watch The Raney’s entire story at: www.Lives-Education.com/theraneys

Vista Academies Are Elementary Schools Offering Personalized Instruction. The secret to the success of Vista Academies is caring, energetic teachers who offer a personalized educational approach for each child. Our second year of offering elementary schools was characterized by an assurance that we were meeting the needs of parents as well as students. Vista provides a small�school community designed to allow parents involvement in the education of their child. Vista, while receiving ratings of “exemplary” and “recognized,” is centered on the partnerships created with families and stakeholders. This system of campuses is proving to be the choice for more families seeking education based on the development of the whole child. While teachers provide the structure necessary for young students to mature and progress, technology designed to measure the difference between each child's needs and abilities is utilized to maximize student learning. Each student attending a Vista Academy is diagnosed with appropriate measurement tools to assess his or her current level. Teachers use these tools to assist in meeting each child’s needs. Students are excited to come to school. Parents are grateful for a choice in education. Teachers are loyal to the approach. Vista continues to be a proud part of the ResponsiveEd family of schools. Quest Middle Schools is an exciting new opportunity for students in the middle school years. Using a classical curriculum including literacy, logic and the humanities, Quest helps middle school students build a solid foundation for success in later years. Beyond the classical aspect, however, Quest Middle Schools also provides curriculum designed to teach wisdom. Knowledge is crucial, but wisdom is a vital part of any person’s growth and maturity. We believe middle school is the perfect opportunity to teach this impor� tant, though often overlooked, aspect of education. Character education is also taught at all levels, and leadership skills training is offered through our “7 Habits of Effective Teens” environment. Quest Middle Schools administrators and teachers care about students and have a passion to see them reach their full potential. While “no child left behind” may be a slogan for some, Quest educators, parents and students work together to create an environment committed to the highest quality in education for all students.

Quest Middle Schools Are Models of Classical Curriculum and Community-Based Campuses.

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Book Drive For KidsA New Initiative by ResponsiveEd ResponsiveEd's Book Drive For Kids is a nonprofit charity seeking to empty dusty shelves and put children’s books into the hands of kids who need them. Many families and organizations have children’s books they no longer need or use. Many low�income and at�risk children have no books of their own. Book Drive For Kids seeks to put the two together. Our approach is simple. First, we create awareness of the need. Second, we collect and distribute books. Third, we recycle books that are donated but are in poor condition and cannot be used. Everyone can help. Whether you donate a book, volunteer to run a book drive or giveaway event, donate to help us build a library or to purchase new books for children, there’s a place for you at Book Drive For Kids. To find out more, please visit our website: www.BookDriveForKids.com

First Charter School System to Display Student Artwork at TEA Art Exhibit Every year the Texas Education Agency collaborates with the Texas Commission on the Arts to exhibit student artwork in many government buildings in the Austin area. ResponsiveEd is honored to be the first char� ter school system to be invited to display our students’ work. The education of our students is always our first priority, and we welcome an opportunity to show their creativity and talent to others. We encourage our students to use their talents and to develop their skills for

the future. A collection of over 200 pieces of art created by our students will be on display and seen by the public at these exhibits. It is with a sense of pride in their participation and honor in their achievements that we support them as they represent all of us in our state’s capitol.

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What The Future Holds . . . Responsive Education Solutions

The very name of our company defines our journey. The 2008�09 school year was a shining example of our landmarks on that journey.

We were responsive.

The diverse nature of our campuses, from elementary schools to high schools, demonstrated our ability to be responsive to each community and create the most effective program aligned with needs.

We educated.

Our results and successful ratings speak for themselves. Every campus accepted the challenge and every campus succeeded. This past year was a watershed for excellence based on learning as the goal.

We developed solutions.

Meeting the challenges of educating effectively is an equation rather than a problem to solve. We solved that equation time and time again in 2008�09. As a result, education flourished in our system and learning happened.

So, what does the future hold?

As we look back to our landmarks and forward to new challenges, we know this journey depends on our two most basic beliefs.

Providing hope . . .

We will continue to seek the disenfranchised older student needing another chance. We will continue to create innovative opportunities for the advanced student needing more challenges. We will continue building elementary campuses, connecting with parents and the community. Hope lies at the heart of what we do and why we do it. At no time in our history have we been more aware of the need to provide hope, and we will strive to never forget this throughout our future.

Changing lives . . .

The true success of what we will do, now and in our future, may not be seen for years to come. Our goal is to see lives changed in such a way that twenty years from now children of our current students will have better lives because their parents attended a ResponsiveEd campus. Communities will be filled with thousands of former ResponsiveEd students who are now leaders among their peers, and ResponsiveEd will still be changing lives through education. As we continue on this journey, we know we are blessed to be able to do something significant and life�changing. Our personal hope is that you will join us on this journey and find your place among us as we continue to give all we have for those who need all we are.

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To learn more about ResponsiveEd and to hear the full stories of the lives that have been changed, visit:

www.Lives�Education.com

www.PremierHighSchools.com R

www.iSchoolHigh.com

www.ResponsiveEd.com Responsive Education Solutions PO Box 292730 Lewisville, TX 75029

www.QuestMiddleSchools.com

www.Vista�Academies.com