"If a nation expects to be ignorant and free, in a state of
civilization, it expects what never was and never will be."

-- Thomas Jefferson, 1816

Transforming the Federal Role in Education So That No Child is Left Behind

As America enters the 21^st Century full of hope and promise, too many of our neediest students are being left behind.

Today, nearly 70 percent of inner city fourth graders are unable to read at a basic level on national reading tests. Our high school seniors trail students in Cyprus and South Africa on international math tests. And nearly a third of our college freshmen find they must take a remedial course before they are able to even begin regular college level courses.

Although education is primarily a state and local responsibility, the federal government is partly at fault for tolerating these abysmal results. The federal government currently does not do enough to reward success and sanction failure in our education system.

Since 1965, when the federal government embarked on its first major elementary-secondary education initiative, federal policy has strongly influenced America's schools. Over the years Congress has created hundreds of programs intended to address problems in education without asking whether or not the programs produce results or knowing their impact on local needs. This "program for every problem" solution has begun to add up -- so much so that there are hundreds of education programs spread across 39 federal agencies at a cost of $120 billion a year. Yet, after spending billions of dollars on education, we have fallen short in meeting our goals for educational excellence. The academic achievement gap between rich and poor, Anglo and minority is not only wide, but in some cases is growing wider still.

In reaction to these disappointing results, some have decided that there should be no federal involvement in education. Others suggest we merely add new programs into the old system. Surely, there must be another way a way that points to a more effective federal role. The priorities that follow are based on the fundamental notion that an enterprise works best when responsibility is placed closest to the most important activity of the enterprise, when those responsible are given greatest latitude and support, and when those responsible are held accountable for producing results. This education blueprint will:

• Increase Accountability for Student Performance: States, districts and schools that improve achievement will be rewarded. Failure will be sanctioned. Parents will know how well their child is learning, and that schools are held accountable for their effectiveness with annual state reading and math assessments in grades 3-8.

• Focus on What Works: Federal dollars will be spent on effective, research based programs and practices. Funds will be targeted to improve schools and enhance teacher quality.

• Reduce Bureaucracy and Increase Flexibility: Additional flexibility will be provided to states and school districts, and flexible funding will be increased at the local level.

• Empower Parents: Parents will have more information about the quality of their childs school. Students in persistently low-performing schools will be given choice.

Though these priorities do not address reforms in every federal education program, they do address a general vision for reforming the Elementary and Secondary Education Act (ESEA) and linking federal dollars to specific performance goals to ensure improved results. Details about other programs and priorities will be provided at a later date.* Our priorities in this blueprint consist of seven performance-based titles:

1. Improving the academic performance of disadvantaged students
2. Boosting teacher quality
3. Moving limited English proficient students to English fluency
4. Promoting informed parental choice and innovative programs
5. Encouraging safe schools for the 21^st Century
6. Increasing funding for Impact Aid
7. Encouraging freedom and accountability

* (These proposals are presented within a new legislative framework. There are programs and policies in the current Elementary and Secondary Education Act that are not addressed in these proposals. The proposals that are starred in this document will be considered separately from the ESEA reauthorization.)

There will be additional funds targeted to needy schools and districts. States and school districts will have the flexibility to produce results, and may lose funds if performance goals are not met.

In America, no child should be left behind. Every child should be educated to his or her full potential. This proposal sets forth the Presidents proposed framework to accomplish that goal. This Administration will work with Congress to ensure that this happens quickly, and in a bipartisan manner.

The Policy

The Administration's education reform agenda is comprised of the following key components, many of which would be implemented during the re-authorization of the Elementary and Secondary Education Act (ESEA):

• Accountability and High Standards. States, school districts, and schools must be accountable for ensuring that all students, including disadvantaged students, meet high academic standards. States must develop a system of sanctions and rewards to hold districts and schools accountable for improving academic achievement.

• Annual Academic Assessments. Annual reading and math assessments will provide parents with the information they need to know how well their child is doing in school, and how well the school is educating their child. Further, annual data is a vital diagnostic tool for schools to achieve continuous improvement. With adequate time for planning and implementation, each state may select and design assessments of their choosing. In addition, a sample of students in each state will be assessed annually with the National Assessment of Educational Progress (NAEP) 4^th and 8^th grade assessment in reading and math.

• Consequences for Schools that Fail to Educate Disadvantaged Students.Schools that fail to make adequate yearly progress for disadvantaged students will first receive assistance, and then come under corrective action if they still fail to make progress. If schools fail to make adequate yearly progress for three consecutive years, disadvantaged students may use Title I funds to transfer to a higher-performing public or private school, or receive supplemental educational services from a provider of choice.

• Focus on Reading in Early Grades. States that establish a comprehensive reading program anchored in scientific research from kindergarten to second grade will be eligible for grants under a new Reading First initiative.

• Early Childhood Reading Instruction. States participating in the Reading First program will have the option to receive funding from a new "Early Reading First" program to implement research-based pre-reading methods in pre-school programs, including Head Start centers.

Expanding Flexibility, Reducing Bureaucracy:

• Title I Flexibility. More schools will be able to operate Title I schoolwide programs and combine federal funds with local and state funds to improve the quality of the entire school.

• Increased Funds to Schools for Technology. E-rate funds and technology grant funds will be consolidated and distributed to schools through states and local districts based on need. This will also ensure that schools no longer have to submit multiple grant applications and incur the associated administrative burdens to obtain education technology funding.

• Reduction in Bureaucracy. Overlapping and duplicative categorical grant programs will be consolidated and sent to states and school districts.

• New State and Local Flexibility Options. A charter option for states and districts committed to accountability and reform will be created. Under this program, charter states and districts would be freed from categorical program requirements in return for submitting a five-year performance agreement to the Secretary of Education and being subject to especially rigorous standards of accountability.

• Rewards for Closing the Achievement Gap. High performing states that narrow the achievement gap and improve overall student achievement will be rewarded.

• Accountability Bonus for States. Each state will be offered a one-time bonus if it meets accountability requirements, including establishing annual assessments in grades 3-8, within two years of enacting this plan.

• "No Child Left Behind" School Rewards. Successful schools that have made the greatest progress in improving the achievement of disadvantaged students will be recognized and rewarded with "No Child Left Behind" bonuses.

• Consequences for Failure. The Secretary of Education will be authorized to reduce federal funds available to a state for administrative expenses if a state fails to meet their performance objectives and demonstrate results in academic achievement.

• School Reports to Parents. Parents will be enabled to make informed choices about schools for their children by being given access to school-by-school report cards on student achievement for all groups of students.

• Charter Schools. Funding will be provided to assist charter schools with start-up costs, facilities, and other needs associated with creating high-quality schools.

• Innovative School Choice Programs and Research. The Secretary of Education will award grants for innovative efforts to expand parental choice, as well as to conduct research on the effects of school choice.

• All Students Taught by Quality Teachers. States and localities will be given flexibility in the use of federal funds so that they may focus more on improving teacher quality. States will be expected to ensure that all children are taught by effective teachers.

• Funding What Works. High standards for professional development will be set to ensure that federal funds promote research-based, effective practice in the classroom.

• Strengthening Math and Science Education. K-12 math and science education will be strengthened through math and science partnerships for states to work with institutions of higher education to improve instruction and curriculum.

Making Schools Safer for the 21^st Century:

• Teacher Protection. Teachers will be empowered to remove violent or persistently disruptive students from the classroom.

• Promoting School Safety. Funding for schools will be increased to promote safety and drug prevention during and after school. States will be allowed to give consideration to religious organizations on the same basis as other nongovernmental organizations when awarding grants for after-school programs.

• Rescuing Students from Unsafe Schools. Victims of school-based crimes or students trapped in persistently dangerous schools will be provided with a safe alternative. States must report to parents and the public whether a school is safe.

• Supporting Character Education. Additional funds will be provided for Character Education grants to states and districts to train teachers in methods of incorporating character-building lessons and activities into the classroom.

Title I
(Part A: Closing the Achievement Gap for Disadvantaged Students)
Overview

The federal government can, and must, help close the achievement gap between disadvantaged students and their peers.

To meet that goal, the federal investment in Title I must be spent more effectively and with greater accountability. This proposal changes current law by requiring that states, school districts and schools receiving Title I funds ensure that students in all student groups meet high standards. Schools must have clear, measurable goals focused on basic skills and essential knowledge. Requiring annual state assessments in math and reading in grades 3-8 will ensure that the goals are being met for every child, every year. Annual testing in every grade gives teachers, parents and policymakers the information they need to ensure that children will reach academic success.

Schools that fail to make sufficient progress should receive special assistance. Students should not be forced to attend persistently failing schools, and they must at some point be freed to attend adequate schools. Under this plan, disadvantaged students will not be required to sacrifice their education and future for the sake of preserving the status quo.

Accountability for student performance must be accompanied by local control and flexibility. If schools are to be held to high standards, they must have the freedom to meet those standards.

Summary of Proposals

Close the achievement gap for disadvantaged students by providing states additional assistance and flexibility in return for implementing rigorous accountability for results:

Sets High Standards. Most states have established standards for what students should know in reading and math. This proposal requires that states also set challenging content standards in history and science.

Establishes Annual Assessments for Every Child in Grades 3-8. Annual reading and math assessments will provide parents with the information they need to know how well their child is doing in school, and how well the school is educating their child. With adequate time to plan and implement, states may select and design assessments of their choosing. The only requirement would be that the results in student achievement would be comparable from year to year. States will have three years to develop and implement the assessments. Federal funds will cover the cost of developing these assessments.

Requires Progress Reports on All Student Groups. In keeping with current law, states will be required to report student assessment results to parents. In order to hold schools accountable for improving the performance of all students, these results must also be reported to the public disaggregated by race, gender, English language proficiency, disability, and socio-economic status.

Expects Adequate Yearly Progress for Disadvantaged Students. Under current law, districts must determine whether each Title I school is making adequate yearly progress based on whether its students are meeting state content and performance standards. The status quo does not ensure, however, that disadvantaged students within each school make progress. Under this proposal, a states definition of adequate yearly progress must apply specifically to disadvantaged students, as well as to the overall student population. This expectation will serve to hold schools and districts accountable for improving the performance of disadvantaged students and to help educators, parents and others discern whether achievement gaps are closing.

Helps States with Technical Assistance Funds to Help Turn Around Low-Performing Schools. Federal funds will be available to states and districts to augment their efforts to provide capacity building and technical assistance to schools identified as needing improvement. State technical assistance provided with these funds must be grounded in scientifically-based research.

Increases Flexibility for Schools. Flexibility will be increased by lowering the schoolwide poverty threshold from 50 percent to 40 percent, so that more schools can combine their federal dollars to improve the quality of the school.

Provides Corrective Action for Low-Performing Schools and Districts. Schools and districts that have not made adequate yearly progress for one academic year will be identified by the district or state as needing improvement. Immediately after identification, these schools will receive assistance to improve performance:

• If the identified school still has not met adequate yearly progress after two years, the district must implement corrective action and offer public school choice to all students in the failing school.

• If the school fails to make adequate progress after three years, disadvantaged students within the school may use Title I funds to transfer to a higher performing public or private school, or receive supplemental educational services from a provider of choice. All non-public providers receiving federal money will be subject to appropriate standards of accountability.

• Students may continue to attend a school of choice for the duration of the time they would have attended the failing school. Choice options must continue to be offered until two years after the school is no longer identified as being in need of improvement.

• There will be an appropriate transition period for schools that have already been identified as needing improvement under current law.

Rewards Schools and States That Narrow the Achievement Gap. Schools and states that make significant progress in closing the achievement gap will be honored with awards from a "No Child Left Behind" school bonus fund and an "Achievement in Education" state bonus fund.

Puts in Place Consequences for Failure. States that fail to make adequate yearly progress for their disadvantaged students will be subject to losing a portion of their administrative funds. Sanctions will be based on a states failure to narrow the achievement gap in meeting adequate yearly progress requirements in math and reading in grades 3 through 8. Progress on state assessments will be confirmed by state results on an annual sampling of 4^th and 8^th grade students on the National Assessment of Educational Progress (NAEP) in math and reading.

Protects Homeschools and Private Schools. Federal requirements do not apply to home schools or private schools. Protections in current law would be maintained.

(Part B: Reading First)
Overview The Administration is committed to ensuring that every child can read by the third grade. To help meet this goal, a new program will be established known as the "Reading First" initiative.

The Reading First initiative gives states both the funds and the tools they need to eliminate the reading deficit. The findings of years of scientific research on reading are now available, and application of this research to the classroom is now possible for all schools in America. The National Reading Panel issued a report in April 2000 after reviewing 100,000 studies on how students learn to read. The panel concluded:

"effective reading instruction includes teaching children to break apart and manipulate the sounds in words (phonemic awareness), teaching them that these sounds are represented by letters of the alphabet which can then be blended together to form words (phonics), having them practice what they have learned by reading aloud with guidance and feedback (guided oral reading), and applying reading comprehension strategies to guide and improve reading comprehension."

The Reading First initiative builds upon these findings by investing in scientifically-based reading instruction programs in the early grades. Ensuring that more children receive effective reading instruction means that more children will receive the help they need before they fall too far behind. This will also reduce the cost burden on all levels of government as fewer children are diagnosed as needing IDEA services simply because they did not receive proper reading instruction during the crucial early years.

Summary of Proposals

Creates Comprehensive, Statewide Reading Programs to Ensure Every Child is Reading by the Third Grade. States and local districts will have access to funds from the new Reading First program to implement comprehensive, science-based reading programs in Kindergarten through second grade. The Reading Excellence Act would be consolidated under Reading First. The Even Start family literacy program (Title I Part B) also would become a part of this larger initiative, while continuing to fund family literacy programs throughout the nation.

Supplements Reading First with an Early Childhood Reading Initiative. States participating in the Reading First program will have the option to receive "Early Reading First" funding to implement research-based reading programs in existing pre-school programs and Head Start programs that feed into participating elementary schools. The purpose of this program is to illustrate on a larger scale recent research findings that children taught pre-reading and math skills in pre-school enter school ready to learn reading and mathematics.

(Title III)
Overview

One of Americas greatest attributes is our diversity. Ensuring that all children, regardless of background, have the chance to succeed is a central purpose of the federal role in education. The changes that our schools have witnessed over the last decade have created new challenges to teaching and learning. All parents want their children to graduate with the basic tools needed to work and succeed in today's global marketplace. For the more than 3 million Limited English Proficient (LEP) students in America, this means learning English in school.

Unfortunately, there are indications that LEP students are not receiving the services they need to make this transition. For example, research has shown that English language learners, when compared with their English-fluent peers, tend to receive lower grades and often score below the average on standardized math and reading assessments. This is partly because federal funding for bilingual education currently has no performance measures attached to it. Our proposal will give districts more flexibility in using bilingual funds in exchange for effectively transitioning LEP students into English fluency and improving their achievement.

In order for all students to meet high standards, limited English proficient (LEP) students need to master English as quickly as possible. To accomplish this goal, states and school districts will be held accountable for making annual increases in English proficiency from the previous year. Moreover, they will be required to teach children in English after three consecutive years of being in school.

Summary of Proposals

Streamlines ESEA Bilingual Education Programs. These programs will be streamlined into performance-based grants to states and local districts.

Sets Performance Objectives for Improving English Fluency. As part of their application for funds, states will set performance objectives to ensure LEP children achieve English fluency within three years. States would also ensure that LEP students meet standards in core content areas that are at least as rigorous as those in classes taught in English.

Imposes Sanctions for Poor Performance. States that do not meet their performance objectives for LEP students could lose up to ten percent of the administrative portion of their funding for all ESEA state administered formula grant programs.

Frees School Districts to Select a Teaching Approach That Meets the Needs of Students. Regulations on the funds mandating a particular method of instruction to educate LEP students will be prohibited.

(Title IV)
Overview

The purpose of Title IV is to promote parental choice and to increase the amount of flexible funds available to states and school districts for innovative education programs.

Systems are often resistant to change no matter how good the intentions of those who lead them. Competition can be the stimulus a bureaucracy needs in order to change. For that reason, the Administration seeks to increase parental options and influence. Parents, armed with data, are the best forces of accountability in education. And parents, armed with options and choice, can assure that their children get the best, most effective education possible.

Summary of Proposals

Promotes Charter Schools. Funding will be provided to assist charter schools with start-up costs, facilities, and other needs associated with creating high-quality schools.

Broadens Education Savings Accounts. The amount of funding that can be contributed annually to these accounts will be increased to $5,000 and allowable uses of funds will be expanded to include education-related expenses in Kindergarten through 12^th grade.*

Expands School Choice. A school choice fund will be created and administered by the Secretary of Education to demonstrate, develop, implement, evaluate, and disseminate information on innovative approaches that promote school choice.

Consolidates Categorical Grant Programs to Send More Dollars to Classrooms. Overlapping and duplicative grant programs will be consolidated into one flexible grant for innovative programs and sent to states and school districts. Funds may be used for local innovative programs, as well as to provide choice to students in persistently failing or dangerous schools so they can attend adequate, safe schools of choice.

Expands Public-Private Partnership in School Construction. States are currently allowed to issue a certain number of tax-exempt bonds for private contractors to build public facilities, such as airports and low-income housing. Public school construction is currently not an allowable use of such bonds. By allowing private activity bonds to be used for public school construction, local districts across America will be able to leverage additional funds to be used for school construction and repair. The amount of bonds in each state able to be used for public-private partnerships in school construction would be based on the state population.*

(Title V)
Part A: Supporting Drug and Violence Prevention and Education for Students and Communities
Overview

The purpose of Title V is to help children meet challenging academic standards by empowering states and school districts with the means to provide a high-quality education that is also safe and drug free.

This proposal seeks to ease the burden of administering two separate but similar programs that clearly overlap each other in statute and practice. It streamlines the Safe and Drug Free Schools program and the 21^st Century Learning Centers program into a performance-based grant for before and after-school learning opportunities, as well as for violence and drug prevention activities. States are held accountable for using research-based programs to improve academic achievement, improve school safety, and reduce drug use. In addition, this Title ensures that parents know whether their child attends a safe school, and frees students from those that are dangerous.

Summary of Proposals

Consolidates and Simplifies Funding for the Safe and Drug Free Schools Program and the 21^st Century Learning Centers Program. School districts will be able to use federal dollars on after-school learning opportunities and drug and violence prevention activities.

Establishes Accountability for School Safety and Achievement. In order to receive funds for this program, states must develop a definition for a "persistently dangerous school" and must report on safety on a school-by-school basis. Victims of serious, school-based crimes and students trapped in persistently dangerous schools will be provided the option to transfer to a safe alternative.

Grants Teachers Control Over Their Classrooms. Teachers will be empowered by the states to remove violent or persistently disruptive students from the classroom. In order to receive funds from this program, states must adopt a zero-tolerance policy for violent or persistently disruptive students.

Focuses on What Works. An emphasis will be placed on preventing drug use and violence among youth and ensuring that schools utilize funds for programs that have demonstrated proven effectiveness in making schools safer. Funds may be used for after school programs, to provide students with safety and anti-substance abuse activities before, during and after school; and to educate students about the dangers of drugs, especially newly emerging drugs.

Allows Community-Based Organizations to Receive Grants for After-School Programs. Before and after-school learning opportunities will be expanded by granting states and school districts freedom to award grants to faith-based and community-based organizations.

Facilitates Crime Prevention and Prosecution. The Federal Education Rights and Privacy Act (FERPA) will be amended to make it easier for public school districts and local law enforcement authorities to share information regarding disciplinary actions and misconduct by students.*

Strengthens Gun Law Enforcement. Project Sentry, a new federal-state partnership will be established to identify, prosecute, punish, and supervise juveniles who violate state and federal firearms laws. *

Increases Funds for Character Education. Funding for character education grants to states and districts to train teachers in methods of incorporating character-building lessons and activities in the classroom would be increased.

(Part B: Grants for Education Technology)
Overview

The Administration believes schools should use technology as a tool to improve academic achievement, and that using the latest technology in the classroom should not be an end unto itself.

This proposal begins to accomplish that goal by streamlining duplicative technology programs into a performance-based technology grant program that sends more money to schools. Consolidating the technology grant programs and allocating with E-rate funds by formula ensures that schools will not have to submit multiple grant applications and incur the associated administrative burdens to obtain education technology funding. Furthermore, a single program will facilitate comprehensive and integrated education technology strategies that target the specific needs of individual schools.

Summary of Proposals

Sends More Dollars to Schools for Technology. Consolidated technology grant programs and E-rate funds will be allocated by formula to states and school districts to ensure that more technology funds reach the classroom. Funds will be targeted to high-need schools, including rural schools and schools serving high percentages of low-income students.

Reduces Paperwork and Increases Flexibility. Burdensome paperwork requirements will be eliminated by sending E-rate funds to schools by a formula instead of the current application process. Flexibility will be increased by allowing funds to be used for purposes that include software purchases and development, wiring and technology infrastructure, and teacher training in the use of technology.

Allows Funds to be Used for Internet Filters. In support of Childrens Internet Protection Act of 2000, funds may be used to purchase filters to protect children from obscene and adult material on the Internet.

Focuses Funds on Proven Means of Enhancing Education Through Advanced Technology. States will be encouraged to set performance goals to measure how federal technology funds are being used to improve student achievement.

Offers Matching Grants for Community Technology Centers. Matching federal grants will be provided through the Community Development Block Grant Program administered by the Department of Housing and Urban Development in order to establish Community Technology Centers in high poverty areas.*

(Title VI)
Rebuilding Schools for Native Americans and Children from Military Families
Overview

The federal government has a special obligation to certain schools those schools that educate the children of families who serve in the United States military and those that educate Native American children.

However, the federal obligation to these schools has often not been met, most notably in the area of school construction. These shortfalls can be addressed by increasing funds for construction in the Impact Aid Program and the Bureau of Indian Affairs.

Approximately 700,000 dependents of military personnel are educated in public schools. More than three-quarters of these students are educated in 600 school districts located on or near military facilities. Funded by the Department of Education, these "Military Impacted Schools" are located throughout the country. Schools educating military dependents generally receive federal school construction funding from the Department of Defenses Education Activity program for DODEA schools located on military facilities, and through the Department of Educations "Impact Aid" program for other public schools located on or near such facilities.

During the 1999 school year, more than 50,000 children attended 185 Native American schools in 23 states. The majority of these schools managed by the Bureau of Indian Affairs (BIA) are concentrated in Arizona, New Mexico, North Dakota, South Dakota, and Washington State. Enrollment in BIA schools is growing, having increased by 25 percent since 1987. While more children are attending BIA schools, they are doing so in physical environments that are among the worst in the nation.

Summary of Proposals

Increases Funds to the Impact Aid Construction Program. Funds will improve the quality of public school buildings and eliminate the backlog of repairs and construction for schools on or near military facilities and those serving children from Native American lands.

Establishes a Tribal Capital Improvement Fund. Funds will help replace schools and eliminate the backlog of school repairs in Bureau of Indian Affairs schools. *

(Title VII)
Overview

The purpose of Title VII is to establish a system for how states and school districts will be held accountable for improving student achievement.

States and school districts will be granted unprecedented flexibility by this proposal in how they may spend federal education funds. Accountability for student results is expected in return. States will submit plans that address specific accountability requirements. States and schools that make significant progress will be honored with rewards. The Secretary of Education will be authorized to withhold administrative funds from states that fail to make adequate progress.

Sanctions and rewards will be based on state assessment results as confirmed by the results of an annual sample of students in each state on the National Assessment of Educational Progress (NAEP) 4^th and 8^th grade assessment in reading and math.

Summary of Proposals
Frees Schools, Local School Districts, and States with More Flexibility:

Creates a Charter Option for States and Districts on the Cutting-Edge of Accountability and Reform. Interested states or school districts will be able to enter into a charter agreement with the Secretary of Education. The agreement would offer freedom from the current requirements placed on categorical grant programs in return for submitting a five-year performance agreement to the Secretary establishing specific goals for increased student performance. During the course of the charter, states or school districts will be subject to strict accountability for improving student achievement, review during the course of the charter, and sanctions for failing to meet the terms of the agreement. A state or school district would lose "charter" status if student achievement and other performance indicators did not improve as agreed to in the charter.

Increases Funding for the Individuals with Disabilities Education Act (IDEA). IDEA funds will be increased in order to reduce the burden that states and local districts bear in meeting the special needs of their disabled students. *

Increases Accountability for Improved Student Achievement:

Expects States to Improve Academic Achievement. In a manner similar to that in current law, states will, within a reasonable period of transition, submit to the Secretary of Education a consolidated state plan for all ESEA funds. The plan will include assurances that the state:

• Has adopted standards, annual assessments of all children in grades 3-8 in math and reading, reporting, and consequences for academic achievement in LEAs and schools. Federal funds will be available to help pay for such assessments and state accountability systems.

• Has developed a system of sanctions and rewards to hold LEAs accountable for meeting performance objectives.

• Publishes school-by-school report cards for parents, as well as on the Internet for all public schools. These report cards should include math and reading results disaggregated by ethnicity, gender, poverty, students with disabilities as compared to non-disabled students, and English proficiency. These report cards should be integrated with existing state and local report cards where possible.

• Agrees to participate in an annual National Assessment of Educational Progress (NAEP) for grades 4 and 8, in reading and math. Congress would fund administration of the test.

Creates Sanctions for Low-Performing States. The Secretary of Education will be authorized to reduce the amount a state may use for administration of ESEA programs if a state fails to meet its performance objectives. Sanctions will be based on whether a state meets its performance objectives for improving the achievement of disadvantaged students and English language proficiency.

Creates an Achievement in Education Fund. The "Achievement in Education" fund will reward high-performing States that have made the greatest progress in closing achievement gaps and improving English proficiency. Performance will be evaluated using state assessment results. Those results will be confirmed with other indicators of academic achievement and the National Assessment of Educational Progress (NAEP).

Grants Bonuses for Early Implementation of Annual Assessments. States that implement annual reading and math assessments in grades 3-8 before the end of the second year after this plans enactment will be eligible to receive a one-time bonus.

Awards "No Child Left Behind" School Bonuses. This proposal reforms the current Blue Ribbon Schools program. The Secretary of Education will administer a "No Child Left Behind" bonus fund that would honor and provide financial rewards to schools that make significant progress in closing the achievement gap.