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February 15, 2002

No Child Left Behind

Ilene Rosenthal

By Ilene Rosenthal

On December 13, the U.S. House of Representatives overwhelmingly passed legislation to overhaul the 36-year-old Elementary and Secondary Education Act (ESEA). Entitled the No Child Left Behind Act, the recent legislation sets new demands for states and school districts to improve student achievement. It also authorizes more than $26 billion for K-12 education, although only $22.6 billion is expected to be appropriated in fiscal year 2002.

The new legislation focuses the federal role on closing the achievement gap between disadvantaged students and their peers. Key changes are as follows:

Testing and Accountability: States are required to implement annual reading and math assessments for grades 3-8. These testing provisions are key to holding state and local school districts accountable for improving student achievement. States must publicly report test scores and must develop plans for getting all children proficient on state tests within 12 years.

Public School Choice: Schools that do not meet the timetable for raising student achievement will be labeled as "failing." School districts are required to offer public school choice to all students in a failing school, and provide transportation where needed. If a school continues to fail after three years, students in that school would be eligible to receive approximately $400 to $600 in federal money for after-school tutoring from a public or private institution.

Title I: This cornerstone program aimed at helping disadvantaged students will be increased by $1.6 billion to $10.4 billion in fiscal year 2002. Targeted will be the poorest schools, which will most likely give a significant boost to urban schools.

Reading First: $900 million has been authorized to help states and school districts establish scientific research-based K-3 reading programs. $75 million has been authorized for an "Early Reading First" competitive grant initiative to enhance the reading readiness of children ages 3-5 in high-poverty areas.

Technology: $1 billion has been authorized for a single technology block grant program that consolidates several existing technology programs, including the Technology Literacy Challenge Fund and the Local Innovation Challenge Grants. States will distribute half of the money to individual school districts through competitive grants and half based on the current Title I formula. The average formula grant under this approach will be approximately $6,000, with many districts getting $1,000 or less. Since little can be accomplished with technology for such small sums of money, the Senate had preferred to have all technology monies distributed competitively. The 50-50 split reflects a compromise between the House and the Senate.

After-School Programs: Up to $1.25 billion will be distributed to states by formula for 21st Century Community Learning Center programs. States will distribute these monies by competitive grants to eligible local entities. Under the new law, community-based and faith-based organizations, as well as other public or private entities, may apply for these grants. (Under the current law, only school districts were eligible.)

Flexibility and Accountability: The new legislation significantly expands state and local flexibility to shift federal dollars from one program to another. Under the new law, school districts are permitted to transfer up to 50 percent of funds from one federal program to another without the approval of the state. Similarly, states will be able to transfer up to 50 percent of state activity funds between formula grant programs. Under no circumstances, however, can any money be transferred out of Title I.

The new ESEA has been long in coming. Congress began ESEA reauthorization in 1999, but the effort was derailed by partisan ideology and election-year politicking in 2000. That a bill was finally passed this year is a testament to the commitment of both Congress and the president to refocus the federal role on the education of poor children.

Ilene Rosenthal is president of New Image Media, LLC, an educational consulting company specializing in government affairs.


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