1). RSN is to  provide RTT grantees one-on-one technical assistance that is tailored to  the grantee’s RTT reform plans. RTT Spurred Reform amid Different Types of State and District Capacity Challenges

		RTT Both Accelerated Reforms Already Under Way and Spurred New Reform Efforts

RTT accelerated reforms under way or spurred new reforms in all 19  states and in an estimated 81 percent of districts that were awarded RTT  grants, according to states and districts we surveyed (see fig. 2 for district  survey responses). States and Districts Faced Moderate but Different Capacity Challenges Implementing RTT

In our survey of states and districts that received RTT funds, we asked  officials to identify capacity challenges they faced in implementing and  sustaining RTT and the level of difficulty associated with each challenge  identified. Overall, they  rated this challenge as moderate; however, about one-quarter to one-third  of RTT states reported that obtaining support from state legislatures,  organizations that represent teachers and/or administrators, and district  leaders was very or extremely challenging. Districts also reported particular difficulties with human capital capacity— the second greatest challenge they faced implementing RTT. 3). 4). Rural Districts Faced Greater Capacity Challenges Than Urban and Suburban Districts in Many of the Reform Areas

Rural school districts reported facing significantly greater challenges than  urban districts in the standards and assessments and data systems core  reform areas when implementing RTT, according to our survey results  (see fig. also required to hold grantees accountable for meeting the commitments  made in their approved RTT applications. Many RTT States Found Education’s Technical Assistance the Most Helpful Resource

		States Found Technical Assistance Most Helpful in Building and Sustaining Capacity

According to our state survey, individualized technical assistance  provided by Education program officers was the most helpful resource  when building capacity to implement and sustain reform plans (see fig. Education officials noted that it was unlikely  that the department would receive such a large amount of funding ($43  million) for technical assistance again. In addition, according to Federal Standards for  Internal Control, policies and procedures help ensure that necessary  actions are taken to address risks to achieving the entity’s objectives. Despite the large number of schools running a school-wide program,  districts and schools may not be using the flexibilities to combine Title I  funds with other federal funds to their fullest extent due, in part, to a lack  of organizational capacity at the state and district levels. This  toolkit, when finalized, may help states and districts better understand  how to leverage their formula grants to sustain reform activities and help  raise student achievement—a primary objective of education reform. Such guidance—when developed and fully  implemented—may help auditors better understand funding flexibilities in  existing formula grants and help states and districts fully leverage these  flexibilities. Conclusions

As Education’s technical assistance contract for RSN comes to a close,  and it develops new processes for technical assistance under the new  Office of State Support, it has an opportunity to apply the technical  assistance that RTT states reported as most helpful, such as  individualized technical assistance and professional development, to  other grant programs that the office oversees. Recommendations

To help ensure that states are better able to sustain RTT reforms and that  Education can effectively support other grant programs managed by the  Office of State Support, we recommend that the Secretary of Education  direct the Office of State Support to fully implement and incorporate into  its coordinated technical assistance policies and procedures the types of  support that would be useful in sustaining RTT reforms and providing  effective support to grantees in other programs supporting education  reform that the Office of State Support oversees. To help states address capacity challenges as they sustain  comprehensive education reforms similar to RTT, we recommend that the  Secretary of Education direct the Office of State Support to take steps,  such as: providing ongoing individualized technical assistance to states to help  them target assistance to rural districts, particularly in the reform  areas that were most challenging for rural districts;  finalizing and disseminating guidance to be included in Education’s  toolkit to help states leverage federal formula grants to sustain  education reforms; and  clarifying and improving understanding of how funding flexibilities in  existing formula grants could be used to support education reform  efforts to help states and the audit community address impediments to  using formula grants in different ways. Education did not  explicitly agree or disagree with our recommendations, but outlined steps  to address many elements contained in them. We reviewed and analyzed existing literature on capacity  issues and competitive grants in K-12 education using GAO’s prospective   We examined the features of RTT, and  evaluation synthesis approach.reviewed findings from published reports to identify capacity challenges. Expert Panel

To obtain information on lessons learned from RTT that could inform  future education reform efforts, we convened a group of knowledgeable  individuals for an expert panel. An external expert  who conducted extensive research on K-12 education and federal policy  vetted our initial list of panelists. Review of Laws, Regulations, and Guidance and Interviews with Officials

For all three objectives, we reviewed relevant federal laws, regulations,  and guidance—including federal internal control standards and  Education’s Handbook for the Discretionary Grant Process—and  interviewed federal, state, and district officials and other experts regarding  capacity to implement and sustain RTT reforms.
Why GAO Did This Study

Education created RTT under the American Recovery and Reinvestment Act of 2009. From 2010 through 2011, Education awarded $4 billion in competitive grant funds to 19 states to reform core areas of K-12 education. RTT states also committed to building capacity to implement and sustain reforms. GAO and others previously reported that capacity challenges had adversely affected RTT implementation and could hinder efforts to sustain the reforms. GAO was asked to further examine these challenges.
This report examines: (1) the effect of RTT on reform and capacity challenges states and districts faced, (2) how helpful Education's assistance was to states in building and sustaining capacity, and (3) lessons learned that could inform future reform efforts.
GAO surveyed all 19 RTT states and a generalizable sample of RTT districts; held an expert panel; reviewed RTT applications, progress reports, relevant federal laws and regulations, and literature; and interviewed officials from seven selected states and districts, chosen based on survey responses. GAO selected expert panelists based on research or experience with RTT, capacity issues, and federal grants.

What GAO Found

The Department of Education's (Education) Race to the Top (RTT) program encouraged states to reform their K-12 educational systems, but states and districts faced various capacity challenges in implementing the reforms. RTT accelerated education reforms underway and spurred new reforms in all 19 RTT states and in an estimated 81 percent of districts, according to GAO's surveys of RTT grantees and districts that received RTT funds. At the same time, states and districts noted various challenges to their capacity to successfully support, oversee, and implement these reform efforts. For example, about one-quarter to one-third of RTT states reported that their greatest challenges involved obtaining support from stakeholders such as teacher organizations. In contrast, districts primarily reported that their greatest challenges involved financial and human capital capacity, especially with competitive compensation and standards and assessments. Additionally, rural districts reported facing greater challenges than urban and suburban districts. Education is to assist grantees in achieving successful project outcomes according to its grants handbook, while holding them accountable for their RTT reform plans. Yet, GAO found no specific activities tailored to rural needs in areas grantees identified as most challenging. A better understanding of the capacity challenges rural districts face could help Education better target its technical assistance to districts that need it the most.
In response to GAO's survey, many RTT states reported that technical assistance from Education officials and its contractor was more helpful than other RTT resources, such as web-based materials. Ten states also reported they would benefit from additional support in areas such as training and professional development. Education created a new office to oversee and provide coordinated support to RTT and other programs, and intends to develop office-wide coordinated technical assistance policies. Federal internal control standards note that adequate policies help ensure that actions are taken to address risks to achieving an agency's objectives. However, Education has not determined the type or amount of technical assistance to be provided and its policies are still being developed. RTT's $43 million technical assistance contract ends in June 2015, which may create a gap in assistance to states. Unless Education focuses on technical assistance activities that states found most useful, it risks providing ineffective assistance to programs supporting these education reforms.
GAO's panel of RTT and grant experts identified key lessons learned, such as leveraging existing funding flexibilities under federal formula grants, to help address capacity needs and sustain reforms when RTT ends in September 2015. Districts and schools may not, however, be using these flexibilities to their fullest extent, in part because of uncertainty about what is allowed under federal requirements. Federal internal control standards state that information should be communicated in a form that enables an agency to achieve its objectives. Education lacks time frames for finalizing and disseminating new guidance for states to clarify federal formula grant flexibilities; and recognizes the need for, but has not developed guidance to help auditors better understand these flexibilities. Such guidance, when finalized, may help states and districts sustain education reforms, thereby raising student achievement – a primary objective of reform.

What GAO Recommends

GAO recommends that Education incorporate into its coordinated policies technical assistance grantees found most useful, target assistance to rural districts, and issue guidance to help states and auditors with funding flexibilities. Education did not explicitly agree or disagree with GAO's recommendations, but outlined steps to address many aspects of them.
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