The Austin Independent School District (AISD) adopted a new and more specific policy about elementary student retention in the 1981-82 school year. Students will be at least 1 year behind in their reading levels at grades 1 through 6 and/or 1 year behind in mathematics competencies at grades 4 through 6 to be considered for retention. Within the district evaluation program, a Retention and Promotion Study found that retainees gained an average of .8 of a grade equivalent year on the Iowa Tests of Basic Skills (ITBS) in reading after a year's instruction, and that principals and teachers seemed to emphasize performance in daily work. The Final Report documents and analyzes the ITBS data and a survey of district teachers and principals to determine the effects of the retention policy and to compare the progress of retained students to 1980-81 levels. Policy effects on retention rates and achievement are discussed overall; by grade; and by ethnicity, income level, and other characteristics. Data from student master files, records, and reports; and case studies of 12 retained students are provided in the appendixes. (CM)