2000

the houston

ANNUAL REPORT

nnenberg challenge

Established in 1997 with

funding from the Annenberg

Foundation and local matching

contributions, The Houston

Annenberg Challenge is a

not-for-profit, public-private

partnership dedicated to public

school reform in the greater

Houston area. Houston

Annenberg develops and funds

school programs, professional

development and leadership

institutes to promote higher

academic achievement by

all students.

Mission

In 1993, philanthropist Walter Annenberg dedicated

$500 million to the nation to improve public school

education. This generous donation resulted in 18

bequests to urban areas across the country, including

Houston, Philadelphia and Los Angeles. The Houston

Annenberg Challenge was founded in 1997 when

Ambassador Annenberg awarded local educators

and business leaders a $20 million matching grant for

public school reform. The remaining monies for the

five-year, $60 million initiative are funded by grants

from foundations such as the Brown Foundation and

Houston Endowment Incorporated, which each pledged

$10 million to The Houston Annenberg Challenge,

as well as donations from individuals and corporations.

As society moves toward an increasingly

knowledge-based workforce, it is critical that

educators and business leaders work together

to retool public schools to produce graduates

capable of solving complex problems and

working in teams. Through a variety of

initiatives, The Houston Annenberg Challenge

is working to ensure that these well-educated

graduates grow to become the bright, young

entrepreneurs that will continue to fuel our

city’s economic growth and make it the best

place to live in the nation.

History

Dear Ambassador Annenberg,

On behalf of the more than 76,000 students in the greater Houston area who are served by The HoustonAnnenberg Challenge and its partner schools, thank you for your commitment to the future of our children.Your vision for public school reform, as well as your generous financial contribution, has allowed us toprovide more than $14.4 million in direct grants to area schools, enabling teachers and administrators todevelop and implement programs aimed at improving student achievement.

Your generosity started The Houston Annenberg Challenge down the road to public school reform, a road the local communityhas traveled enthusiastically with us. Houston Endowment Incorporated and the Brown Foundation were our first major partners onthis journey. We are grateful for their support. A complete list of our other donors is included in this report.

We are now in the third year of our efforts to improve the quality of education that children receive in public schools. The first phase ofour programming is aimed at providing direct grants to area schools to enable them to develop and fund professional developmentprograms, to reduce a school’s isolation and to create a personalized learning environment for students.

As our partner schools have worked to achieve these goals, they have begun to produce plans and results that other schools—on both alocal and national level—are using as models for their own reform efforts. We are confident that these efforts will continue to producethe types of models and results that other schools and school districts will find useful as they forge their own reform plans.

In the second phase of our programming, we are moving to support teacher preparationprograms in partnership with local universities, to restructure high schools to producestudents for the New Economy and to create a Leadership Academy to enhanceprincipals’ management styles.

On the following pages, you will find some highlights from the past three years, as wellas our plans for the future. I trust that you will be pleased with our progress. We lookforward to an exciting future and thank you again for your generosity and vision.

Sincerely,

Linda ClarkeExecutive Director

Jonathan DayChairman of the Board

During Phase I, which began in 1997, the Challenge has provided more than $14.4 million

in direct grants to 88 schools in the greater Houston area. These schools encompass more

than 4,500 teachers and approximately 76,600 students in six school districts: Aldine, Alief,

Houston, Humble, North Forest and Spring Branch.

With a major focus on reading, mathematics and science, campuses use the Annenberg

funds to strengthen their chosen academic areas in one or more of the following ways:

Encouraging and providing ongoing professional development programs for

administrators and teachers. This professional development exposes educators to the

latest research on effective teaching tools and methods and provides an effective means

of sharing ideas with their peers. An example is Critical Friends Group, which pairs

educators in small groups to examine student work and develop strategies to accelerate

each child’s progress.

Reducing a school’s isolation by helping educators develop partnerships with parents,

businesses, universities and community organizations that help students learn tools and

skills useful in the real world.

Creating a personalized learning environment that forges the one-on-one relationships

crucial to ensuring children stay in school by reducing class size and reorganizing classes

into small groups.

Houston Annenberg’s partner schools have made great strides toward achieving these

goals; a number of their programs are now being replicated by other schools in the

greater Houston area and even across Texas. These programs also are receiving national

recognition as models for public school reform.

PHASE I

BEACON SCHOOLS are shining examples ofprincipals, teachers, parents and students who have embraced and implemented theAnnenberg philosophy of whole school changewith great success. Grants provided by TheHouston Annenberg Challenge have fundedprofessional development activities at theseschools, transforming them from one-shotworkshops to daily learning embedded in the fabric of the school. The Beacon schoolsparticipate in a network of ongoing meetings,exchanges and visits and also share theirlearning experiences with the educationcommunity at large as both hosts and presenters at conferences and workshops.

Beacon Schools

Bethune AcademyBrowning Elementary SchoolDrew AcademyEisenhower High SchoolHelms Community Learning CenterKennedy Elementary SchoolLanier Middle SchoolPoe Elementary SchoolQuest High SchoolScott Elementary SchoolSpring Shadows Elementary School

LAMPLIGHTER SCHOOLS are on the move toward whole school reform. They areworking together to build professional learning communities with a common focus on academics.

Lamplighter Schools

Albright Middle SchoolAnderson AcademyAnderson Elementary SchoolBest Elementary SchoolBriscoe Elementary SchoolCage Elementary SchoolCarver High SchoolClifton Middle SchoolClinton Park Elementary SchoolCondit Elementary SchoolDeBakey High SchoolDeZavala Elementary SchoolEdison Middle SchoolElmore Middle SchoolFleming Middle SchoolFurr High SchoolGallegos Elementary SchoolGrantham Middle SchoolGregory-Lincoln (K-8)Hamilton Middle SchoolR.P. Harris Elementary SchoolHartman Middle SchoolHilliard Elementary SchoolHoffman Middle SchoolHogg Middle SchoolHolland Middle SchoolJohnston Middle SchoolJ. Will Jones Elementary SchoolKIPP AcademyLamar High SchoolLanier Middle SchoolMacGregor Elementary SchoolMcReynolds Middle School

Neff Elementary SchoolOates Elementary SchoolOlle Middle SchoolPershing Middle SchoolPine Shadows Elementary SchoolPleasantville Elementary SchoolPoe Elementary SchoolPort Houston Elementary SchoolProject ChrysalisRaymond Elementary SchoolReagan High SchoolReece AcademyReed IntermediateRees Elementary SchoolRevere Middle SchoolRiver Oaks Elementary SchoolRoberts Elementary SchoolWill Rogers Elementary SchoolScroggins Elementary SchoolSharpstown High SchoolSharpstown Middle SchoolSpring Branch Elementary SchoolStovall AcademyThompson Elementary SchoolMark Twain Elementary SchoolWest University Elementary SchoolWestbury High SchoolWharton Elementary SchoolWhidby Elementary SchoolEd White Elementary School Whittier Elementary SchoolWilson Elementary SchoolYES Middle School

Replicable ModelsThe work of The Houston A n n e n b e rg Challenge and its partner schoolscontinues to be recognized as some of the most successful andp romising whole school reform efforts in the country. As A n n e n b e rg -funded schools make pro g ress toward encouraging pro f e s s i o n a ldevelopment, reducing isolation and creating a personalized learninge n v i ronment, they are not only improving their own schools, they arec reating proven models that others can use in building their ownp rograms. A few of the most promising models include:

The Dual Language Program at Helms Community LearningCenter. In this program, native English- and Spanish- speakingchildren are included in the same classroom. The students learn bothlanguages naturally amongst themselves, along with instruction bythe teacher and teacher assistant.

The Early Literacy Program at Poe Elementary. The program offersintensive, small group instruction that allows for individual teachingto enrich personal skills.

The Fine Arts Centered Model at Bethune Academy. The schoolincorporates music, art, drama, dance and creative writing into thebasic subject curriculum.

The After-School Program at Best Academy. This model extendsthe school day for students and offers Saturday classes.

The Alternative Schedule Model at Kennedy Elementary.This captures time for teacher professional development each day.

The Academy Model for teachers and students at EisenhowerHigh School. This model centers around professional developmentin technology, international studies and school-to-work experiences.The Educational Service Manager Model at Eisenhower merges thecounselor and assistant principal role into one faculty member whofollows a small group of students from 9th grade through graduation.

The Nature Center and Gardens Project at Drew and Bethuneacademies and River Oaks and Browning elementary schools.

The Critical Friends Study Group Model used in Beaconschools. This is spreading to Lamplighter campuses, as wellas into the colleges of Education and Arts and Sciences atarea universities.

The Professional Development Model at Beacon schools.This is spreading throughout the six area districts that arepartners with Annenberg. This model incorporates aresident staff member responsible for professionaldevelopment on each campus and moves teacher learningfrom a one-shot workshop to training linked to continuouslearning in subject content area.

The Portfolio work of Beacon schools. This work is being used locally and nationally, with several of the schoolsmaking presentations to other schools and districts. Theseschools also have been approached to publish a book on their work.

FLOODLIGHT SCHOOLS are the result of TheHouston Annenberg Challenge’s partnershipwith Houston I.S.D. In 1999, HoustonAnnenberg created a partnership with ProjectGRAD (Graduation Really Achieves Dreams)to enter four Houston ISD K-12 schoolgroups, called feeder patterns, beginningwith Wheatley High School. The HoustonAnnenberg Challenge is funding ongoingprofessional development in these schools.

Floodlight Schools

Atherton Elementary SchoolBruce Elementary SchoolConcord Elementary SchoolCrawford Elementary SchoolDogan Elementary SchoolEliot Elementary SchoolFleming Middle SchoolN.Q. Henderson Elementary SchoolIsaacs Elementary SchoolAnson Jones Elementary SchoolMartinez Elementary SchoolMcReynolds Middle SchoolPugh Elementary SchoolScott Elementary SchoolScroggins Elementary SchoolE.O. Smith Elementary SchoolE.O. Smith Middle SchoolWheatley High School

In Phase II, which began in early 2000, The Houston Annenberg Challenge is working

to influence the external forces that shape the public school system, including:

Partnering with area universities to restructure their curriculum for students

majoring in education to include the tools they need to be effective teachers.

Creating and operating a Leadership Academy that helps principals move to a

distributed leadership style of management that supports the New Economy model

of schooling.

Working to restructure all 24 comprehensive high schools in Houston ISD to

enhance learning for students, including the creation of a model high school at

Houston ISD’s Reagan High School.

Partnering with the ExxonMobil Foundation and Houston ISD to create a pilot

project to identify, develop and place K-5 mathematics specialists in the classroom.

Partnering with the Neuhaus Education Center to create literacy programs for the

whole family.

Developing a pilot after-school program to improve academic performance.

PHASE I I

MATHEMATICS INITIATIVE

In September 2000, the ExxonMobilFoundation, Houston ISD and The HoustonAnnenberg Challenge launched a $1.3million, three-year pilot project to identify,develop and place K-5 mathematicsspecialists in the classroom. The project,which is jointly funded by all threeorganizations, is working to improvestudent achievement in mathematics bystrengthening teachers’ knowledge ofmathematics and instructional methods.

The first five specialists—selected fromHouston ISD elementary teachers—haveformed the first Annenberg Critical FriendsGroup focused on mathematics. Theycurrently are working on the design andimplementation of a more innovativeapproach to math instruction, to teamteaching and to providing professionaldevelopment activities.

The project’s first year is targetingthird-grade students in eight Houston ISD elementary schools. Future plans for the project include a mathematicsspecialist network for educators in Alief ISD, Fort Bend ISD and additional Houston ISD schools.

DEPARTMENT OF EDUCATION GRANT

The single most important contribution tostudents’ achievement is the quality of theirteachers. To ensure that teachers areadequately prepared and receive adequatesupport and ongoing professionaldevelopment opportunities, The HoustonAnnenberg Challenge has formed apartnership with four Houston universities,six public school districts and the HoustonCommunity College System. The goal of thepartnership is four-fold:• To restructure teacher preparation so that there is a unified, seamless approach to developing skills and content knowledge for teachers beginning with their college classes and carrying through the first two years of teaching and beyond.• To create a regional faculty composed of outstanding educators, business partners and members of the community.• To integrate technology into teacher preparation.• To involve content specialists as equal partners in teachers’ preparation and professional development.

This work is funded in part by a $5.8million grant from the U.S. Department of Education.

PASSPORT TO SUCCESS

Of the more than 28 million children whoseparents work outside the home, the U.S.Department of Education estimates that atleast five million of these are “latchkey”children who come home each day to emptyhouses. To address this problem, TheHouston Annenberg Challenge createda pilot after-school program called “Passportto Success.” Not only is the programdesigned to keep children safe and out oftrouble, it also provides an outstandingopportunity to improve the academicperformance of participating children. From 3 p.m. to 5 p.m. each day, childrenparticipate in a variety of activities rangingfrom homework and computer labs to artprojects, journal writing and leisure reading.Upon completion of their assignments,children receive a “stamp” in their passportbook, with incentives provided for acompleted book. The program, which isoffered at eight area schools, also includesfield trips each month, whole family retreatsand parent classes.

SCHOOLS FOR A NEW SOCIET Y

In June 2000, the Carnegie Corporation ofNew York awarded The Houston AnnenbergChallenge and Houston ISD a $250,000planning grant for high school reform. Morethan 20 cities were invited to apply for thehighly competitive planning grant, with nineother cities also receiving funds for highschool reform. The grant will allow TheHouston Annenberg Challenge, which isalready committing significant resources todeveloping a pilot program for high schoolreform at Houston ISD’s Reagan High School,and Houston ISD to focus on accelerating thechange and improvement in the district’s 24comprehensive high schools.

A team of parents, students, teachers andother community organizations is alreadyhard at work on the Carnegie project. Uponcompletion of the strategic planning phase,the 10 school districts selected for Phase I of the initiative will compete for an additional$40 million in grants from the CarnegieCorporation for implementation of their plans.

LEADERSHIP ACADEMY

Research shows that the principal, as theleader of the school, is either the key or the barrier to successful school reform. This two-year academy, created by HoustonAnnenberg, is working to assist principals in meeting the state of Texas PrincipalCertification Standards. The Academyprovides a series of intensive institutes with

nationally recognized speakers on leadershipskills and issues in school reform revolvingaround the Annenberg philosophy. Principalsalso meet monthly in small teams. Twenty-eight principals entered the Academy’s firstJohn P. McGovern M.D. class in June 2000.The second class starts its work beginning in summer 2001.

FAMILY LITERACY

Research suggests that home literacy, whichtakes advantage of everyday activities todevelop the skills children need to becomesuccessful readers, is key to preparing themfor school.

As part of its Phase II efforts, The HoustonAnnenberg Challenge is working with theNeuhaus Education Center to create FamilyLiteracy Programs at four elementary schoolsin Houston ISD. Funded in part by a $300,000 grant from the Cullen Foundation,the programs seek to improve studentachievement by involving the entire family in literacy-based activities.

The program is being piloted at R.P. Harris,Pleasantville, Oates and Whittier elementaryschools. A school-based coordinator and ateam of four teachers are being trained in aspecially developed curriculum. A minimumof 10 families will participate in the initialprogram, which meets two days a week for atleast four hours. While parents and olderchildren attend the program, a childcareprovider, who is also trained in family literacyactivities, cares for younger siblings.

EVALUATION

The Houston Annenberg Challenge is working with a

team of 15 researchers from three universities to

conduct an independent evaluation of its efforts to

reform public schools. The researchers, led by

Dr. Pedro Reyes from the University of Texas, include

teams from the University of Houston, the University

of Texas and Rice University. Their first evaluation

report was completed in fall 1999 and shows that

professional development has skyrocketed at schools

funded by Houston Annenberg.

The evaluators’ initial findings also show that

academic achievement is up at most participating

schools and a number of communities are working

together for the first time. A complete copy of the

report is available at the evaluators’ website.

www.utexas.edu/projects/annenberg/index.html

$20 millionThe Annenberg Foundation

$10 millionBrown FoundationHouston Endowment Incorporated

$500,000M. D. Anderson FoundationGordon and Mary Cain FoundationExxonMobil Foundation The Fondren Foundation

$250,000 to $499,999Carnegie CorporationCullen FoundationThe Powell Foundation

$100,000 to $249,999The Chase Texas FoundationMarion & Speros Martel FoundationJohn P. McGovern M.D. FoundationThe Rockwell Foundation*Vinson & Elkins, LLPUnited Way of the Texas Gulf Coast

$50,000 to $99,999Joe B. Foster FoundationGeorge and Mary Josephine Hamman

FoundationMaconda Brown O’Connor, Ph.D.Shell Oil Company Foundation

$25,000 to $49,999Ocean Energy

$10,000 to $24,999Clayton Fund* Houston ChronicleJack H. & William M. Light Charitable TrustMr. Harry M. ReasonerMr. J. Victor Samuels

Under $10,000Mr. & Mrs. James BuescherMs. Billye Callier/Sterling Academic

AssessmentMr. Leonel CastilloMs. Barbara ChristopherMr. & Mrs. Bruce A. Craig* Continental AirlinesMr. Jonathan DayMs. Honora DiazMs. Lynne Marion DoolittleMs. Janice DupuyEmployment & Training Centers, Inc.Ky & Almuth EwingMr. John & Ms. Jana FedorkoMs. Ann Friedman, Ph.D.Mr. H. Devon Graham, Jr.Mr. Jenard GrossGreater Houston Community FoundationHackett Family FoundationHobby Family FoundationMr. & Mrs. C.W. Hudspeth

Ms. Susan JhinMs. Burdine C. JohnsonMs. Michaelann KelleyHarris & Eliza Kempner FundKennedy-Wilson PropertiesRobert W. and Pearl Wallis Knox Foundation* The Kroger Co.Mr. William Gentry LeeRalph M. & Clara P. LewisMs. Marion McCollamMs. Elizabeth MacIntyreMr. & Mrs. Jim MacIntyreMr. & Mrs. William James MillerMs. Karol Musher, M.A., CCC-SLPMs. Joann NavratilThe Gary & Lee Rosenthal FoundationSamuels Foundation of the Houston Jewish

Community FoundationMs. Carey C. ShuartStrake FoundationMs. Nancy ThompsonDr. & Mrs. Peter ThompsonMs. Nellie Thorogood, Ph.D.Mr. H. Michael TysonMs. Angela ValenzuelaMs. Andrea WhiteMs. Isabel Brown WilsonMrs. Rosie Zamora

* denotes in-kind contribution

MAJOR DONORS

The Houston Annenberg Challenge was founded with a $20 million grant from philanthropist Walter Annenberg. Since that time, the generouscontributions of local foundations, corporations and individuals have enabled The Houston Annenberg Challenge to continue its work.

Donated Use of Facilities 1%

STATEMENT OF ACTIVITY––FISCAL YEARS ENDED JUNE 30,2000 AND 1999

JUNE 30,2000 JUNE 30,1999

REVENUEThe Annenberg Foundation $3,525,882 $5,323,582 Grants and Contributions 2,395,209 1,417,816 Donated Use of Facilities 43,940 46,401 Investment Income 281,161 100,999

Total Revenue 6,246,192 6,888,798

EXPENSES

Program Services 6,886,574 3,769,996 Administration 196,441 240,050 Fund-Raising 116,444 16,208

Total Expenses 7,199,459 4,026,254 Changes in Net Assets $(953,267) $2,862,544

STATEMENTS OF FINANCIAL POSITIONS AS OF JUNE 30,2000 AND 1999

JUNE 30,2000 JUNE 30,1999

Cash & Cash Equivalents $5,905,726 $3,161,495 Grants Receivable 5,866,806 8,097,315

Total Assets $11,772,532 $11,258,810

Grants Payable 5,344,233 3,990,000 Other Payables 174,363 61,607

Total Liabilities 5,518,596 4,051,607

Net Assets 6,253,936 7,207,203

Total Liabilities and Net Assets $11,772,532 $11,258,810

The following information was extracted from financial statements that were audited by anindependent accounting firm. A complete set of audited financial statements is available uponrequest. The Houston Annenberg Challenge is a 501 (c)(3) tax-exempt charitable organization.

REVENUE

EXPENSES

The Annenberg Foundation56%

Program Services95%

Grants and Contributions

38%

Investments 5%

Administration 3%

Fund-Raising 2%

FINANCIAL REPORT

THE HOUSTON ANNENBERG CHALLENGE

BOARD OF TRUSTEES

Jonathan Day, ChairmanManaging Partner

Mayor, Day, Caldwell & Keeton, LLP

Andrea White, PresidentCivic Volunteer

Janice Dupuy, SecretaryConsultant, NUCO

BOARD MEMBERS

Leonel CastilloEducation Liaison, Mayor’s Office

Joe B. FosterChairman, President & CEO

Newfield Exploration Company

Ann Friedman, Ph.D.Adjunct Pro f e s s o r, The University of Houston

H. Devon Graham, Jr.R.E. Smith Interest

Jenard GrossPresident, Gross Investments

Linda P. LayReal Estate Development

Daniel LeffPresident & CEO, Enron Energy Services

Karol Musher, M.A., CCC-SLPSpeech, Language and Learning Disorders

Texas Children’s Hospital

Maconda Brown O’Connor, Ph.D.President, Brown Foundation

Harry ReasonerManaging Partner, Vinson & Elkins, LLP

J. Victor SamuelsChairman, Victory Packaging

Nellie Carr Thorogood, Ph.D.Vice-Chancellor for Organizational

Development & Institutional Renewal, North Harris Montgomery

Community College District

H. Michael TysonVice Chairman, Retired, Chase Bank Texas

Rosie ZamoraPresident, Telesurveys Research Associates

EXECUTIVE DIRECTORLinda Clarke

1001 Fannin, Suite 2210 Houston, Texas 77002-6709 713-658-1881 fax 713-739-0166

www.houstonannenberg.org