Dependent variable
Public sector performance is complex and multidimensional. Public organizations are typically required to meet multiple and potentially conflicting organizational goals (Rainey 1993). Moreover, their achievements are judged by a diverse array of constituencies, such as taxpayers, staff and politicians. The criteria, weighting, and interpretation of performance indicators are thus all subject to ongoing debate and contestation amongst key stakeholders (Boyne 2003). There are many ways to evaluate school district performance. In Texas, the most important and salient performance measure is student performance on the state standardized test, the Texas Assessment of Academic Skills (TAAS). The federal ‘No Child Left Behind’ policy is based on the Texas experience with this test. It is a basic skills test designed to measure student success and teacher effectiveness. All students in grades 3–8 and 10 must take the test. Students in tenth grade must pass the test in order to graduate from high school. These test scores are used by the Texas Education Agency (TEA) to rank districts and are widely reported in the news media; the state standardized test is the most visible indicator of school performance and the quality of schools. This performance measure is the percentage of students in a district who pass all (reading, writing, and math) sections of the test.