Austin ISD’s effort to stave off a possible state takeover suffered a major setback Thursday after the Texas Education Agency rejected the district’s plan to hand three struggling middle schools to an external nonprofit operator.

In a letter sent Thursday to Superintendent Matias Segura, TEA officials said Texas Council for International Studies failed to demonstrate a record of turning around campuses with repeated failing accountability ratings and, in some cases, partnerships with the nonprofit had produced worse academic outcomes.

District leaders applied for the partnership in March under the SB 1882 program, which can shield campuses from certain state sanctions when districts turn over operations to outside organizations. But without the partnership protections, Dobie, Webb and Burnet middle schools remain on a collision course with state intervention if accountability scores do not improve this year. Under state law, Education Commissioner Mike Morath must either close campuses or replace the elected school board with an appointed board of managers when a campus receives five consecutive failing accountability ratings.

According to the letter, the district is still free to pursue the partnership, but would not receive a reprieve from accountability ratings that is offered under the SB 1882 program.

The decision comes as Dobie, Webb and Burnet students finished the school year Thursday. Earlier in the spring, the middle schools completed state standardized testing. Those results, expected this summer, will heavily shape the accountability ratings that could determine whether the state intervenes in Austin ISD.

“While we’re disappointed by the Texas Education Agency’s response, we look forward to sharing additional details that reinforce our certainty that TCIS has the experience and capacity to meaningfully improve student outcomes at these three schools,” Segura said in a statement.

Segura said Austin ISD partnered with the nonprofit to ensure Dobie, Webb and Burnet receive the exceptional academic support they deserve, reiterating his confidence in Texas Council for International Studies’ “proven ability to lift student outcomes.”

Austin ISD is beefing up resources aimed at systemic improvement across all schools, especially where students need the most support to reach their highest potential, Segura’s statement said. Student outcomes have continued to improve over the past two years, the statement continued, and the district sees promising trends in Austin ISD’s data that the district is demonstrating accelerated student academic growth.

Texas Council for International Studies did not immediately respond to a request for comment.

The state’s rejection marks another escalation in a monthslong effort by Austin ISD leaders to prevent state intervention at the campuses, which have faced mounting accountability pressure for years. Trustees approved the partnership earlier this year despite criticism questioning the timeliness and transparency of the process.

The decision does not automatically trigger a state takeover of Austin ISD. Still, the Texas Education Agency has increasingly shown a willingness to intervene in districts tied to chronically failing campuses, including recent takeovers in Houston, Fort Worth and Lake Worth ISD that replaced elected school boards with state-appointed managers.

Public information records previously obtained by Austin Current showed Texas Council for International Studies was the only organization to submit a bid to operate the three schools. Board members approved the sole bidder just days before the March 31 deadline to submit an application for SB 1882 benefits in a high-stakes move to skirt state intervention. According to Thursday’s letter, district leaders submitted additional information to the state in May before the application was ultimately denied.

Texas Council for International Studies has led 16 SB1882 partnerships since 2019 across San Antonio, Edgewood and Longview ISDs with mixed results. The nonprofit, which was founded as a partner organization focused on supporting students and schools implementing the International Baccalaureate programs in Texas, meets only two of three criteria for SB1882 partnerships added by state education leaders as of March 2020, according to TEA’s letter.

While it has been in existence for at least three years and managed multiple campuses, Texas Council for International Studies does not have a track record of managing campuses to academic success or significantly improving academic performance, TEA’s letter said.

Only five of the 16 campuses led by Texas Council for International Studies under SB1882 partnerships since 2019 faced “D” or “F” ratings at the time the partnerships were approved and three of those schools have either received worse ratings or failed to improve since, according to TEA.

Earlier this year, Austin ISD leaders expressed confidence in contracting Texas Council for International Studies as an operational partner for Dobie, Webb and Burnet middle schools. In a March board meeting, Segura said “After spending time with the partners and understanding their structure, having conversations with the staff at these schools, meeting with principals, I am confident this partner and this iteration will help us be successful.”

Executive Director of Governance, Accountability and Board Services Joshua Jeon previously told Austin Current that the district intended to move forward with the partnership even if the state were to deny SB1882 benefits.

This is a developing story.