In fiscal year 2009, Picacho Elementary School District's student achievement was slightly lower in reading but similar in writing and math to peer districts'. In addition, the District's school met "Adequate Yearly Progress" for the No Child Left Behind Act. The District's operational efficiencies were mixed. The District's per-pupil administrative costs were higher than peer districts' because it had a lower student-to-administrator ratio. However, because the District has so few students, the addition of only one-half of an administrative position is needed to negatively affect this ratio. Similarly, plant operations costs per square foot were higher than peer districts' because each of Picacho ESD's plant staff maintained fewer square feet than peer districts.' The District's food service costs were higher than peer districts' and the federal National School Lunch Program's (NSLP) reimbursement rate because of overstaffing, and because the District provided free meals to all students even though 21 percent of its students did not qualify for free or reduced-prices lunches through the NSLP. As a result, the District used $36,000 of its Maintenance and Operation Fund monies to subsidize its food service operations. From fiscal year 2005 through fiscal year 2009, the District subsidized the program by a total of over $200,000. The District's transportation program was reasonably efficient with lower per-mile costs and efficient bus routes, but it did not meet all state safety requirements. First, the District did not document bus preventative maintenance activities, and three of its five buses received major violations for defective brakes. Second, the District is required to conduct annual drug tests and random drug and alcohol tests of its bus drivers, but the District conducted only annual drug tests. Finally, many of the District's teacher performance pay plan goals did not promote improved job performance.