The Texas Education Code requires the Texas Education Agency to submit a comprehensive biennial report containing a summary of information related to grade level retention of students in the Texas public school system. This report looks at retention in Texas based on data collected over a 3-year period, beginning with the 1993-94 school year. The information is analyzed by grade, ethnicity, and gender, as well as other student characteristics. The trends identified in this report provide policymakers with a basis for reviewing state policies related to grade level retention and the needs of students at risk of school failure. In 1995-96, 144,683 students were retained in grade in Texas, for an overall retention rate of 4.3%. The highest retention rate was at grade 9; at the elementary level, the highest retention was in grade 1. Hispanic American and African American students were more likely to be retained than White students; males and disadvantaged students also displayed higher rates of retention. Districts in urban areas had the highest retention rates. Four appendixes contain data on retention by grade and ethnicity, retention by district, retention by campus characteristics, and district retention rates by grade. (Contains 10 tables, 3 figures, and 9 references.) (SLD)