All Texas school districts were examined to determine the relationship of district size and diversity to the accountability ratings of selected Texas school districts and the implications of including all data in the accountability rating system. Eight large districts and 12 small districts were matched demographically utilizing data from the 2003-2004 school year. Information from the Texas Education Agency was accessed over 2003-2004 and 2004-2005. The ratings were found to be lowered from Recognized to Academically Acceptable with the inclusion of these groups 6 out of 20 times. These findings indicate that the Texas accountability system, in its current structure, excludes certain students based upon race and economic status and is not in compliance with what the law intended. This study should be replicated on a larger scale to assess its validity for a larger sample of small districts. Equity among states should be examined to provide information for a nationwide accountability system.