The number of students retained in grade in the Austin (Texas) Independent School District (AISD) has increased dramatically since new promotion policies were instituted in 1981 and Texas House Bill (HB) 72 was passed. Elementary school promotion is now tied to mastery of essential skills; secondary students must meet attendance requirements, as well as maintain an average of 70 in all courses and a minimum of 70 in certain required courses. In AISD in 1986-87, 4,118 students are repeating part or all of a grade, especially in grades one, seven, and nine. AISD spends approximately $3,500 per student to provide an extra full year of instruction. Research shows that retention has not helped most elementary students overcome their deficit in learning in the long run. It appears best to provide alternative instruction without retaining most low achievers. Special programs such as summer school, transitional classes, Transitional Academic Program, and Academic Incentive Program could help to reduce the number of retainees. If retained, students also need special instruction. At the secondary level, minimizing the number of credit units repeated, providing intense remediation in basic skills, and promoting students as soon as possible may decrease the dropout rate. (Author/JGL)