Schools are no longer  identified for choice when they have met their yearly performance goals  for at least 2 consecutive years. About 1 in 10 Schools Identified for Choice in the First 2 Years of NCLBA, and 1 Percent of Eligible Students Transferred in 2003- 2004

In each of the first 2 school years following enactment of NCLBA, from 10  to 12 percent of schools that received federal funds under Title I were  identified for school choice. Although Education has recently  begun to collect information on the number of transferring students, little  is known about their demographic or academic characteristics. Implementation of Choice Was Challenging in Selected Districts

Officials in most of the 8 districts we visited mentioned that they  supported the NCLBA focus on improved student performance and  accountability; however, they had difficulties providing school choice,  primarily because of tight timeframes and insufficient capacity. Most districts we visited did not have the final  performance data before school started in the fall. The compressed timeframe for making school status determinations and  implementing the choice option left parents little time to make transfer  decisions, and district and school officials expressed concerns that  parents did not have adequate time to make an informed decision. However, little information  was provided about the transfer schools. Many schools that districts offered as transfer options had not met state  performance goals in the prior year, and some were at risk themselves of  having to offer choice in the following year. In 2003-2004, the  estimated expenditures for transportation represented less than 7 percent  of the set-aside funds in all but one district we visited. Some of these  questions have been addressed in guidance but others remain. Based on this monitoring,  Education should consider whether or not additional flexibility or  guidance addressing capacity might be warranted. Appendix I: Scope and Methodology

The objectives of this report were to determine (1) the extent to which  Title I schools have been affected by the school choice provision of The  No Child Left Behind Act  (NCLBA) of 2001 in terms of the number of  schools identified for choice and the number of students exercising the  option; (2) the experiences of selected school districts in implementing the  choice provision; and (3) the kinds of guidance and technical assistance  that the Department of Education provided states and districts as they  implemented public school choice. On the basis of our discussions with state officials  and our own research, we selected districts located in seven states— California, Illinois, Ohio, Mississippi, Pennsylvania, Tennessee, and  Washington. Appendix II: NCLBA Interventions for Schools Not Meeting Yearly Performance Goals Over Time

Appendix III: Number of Title I Schools in Each State Identified for Choice in School Year 2002-2003

	Number of schools that

Appendix IV: Number of Title I Schools in Each State Identified for Choice in School Year 2003-2004

	Number of schools that

Appendix V: Number of Students in Each State Transferring under Choice Option in First 2 Years of NCLBA

	Number of students who transferred in 2002-2003

Appendix VI: Poverty and Minority Rates of Schools Required to Offer Choice and Schools Offered as Transfer Options

	Number of schools required to offer choice

For Chicago, minority data were not available for one of the 40 transfer schools.
Why GAO Did This Study

The school choice provision of the No Child Left Behind Act (NCLBA) of 2001 applies to schools that receive Title I funds and that have not met state performance goals for 2 consecutive years, including goals set before the enactment of NCLBA. Students in such schools must be offered the choice to transfer to another school in the district. GAO undertook this review to provide the Congress a report on the first 2 years of the implementation of NCLBA school choice. GAO reviewed (1) the number of Title I schools and students that have been affected nationally, (2) the experiences of selected school districts in implementing choice, and (3) the guidance and technical assistance that Education provided. GAO collected school performance data from all states, interviewed Education officials, and visited 8 school districts in California, Illinois, Ohio, Mississippi, Pennsylvania, Tennessee, and Washington.

What GAO Found

About 1 in 10 of the nation's 50,000 Title I schools were identified for school choice in each of the first 2 years since enactment of the No Child Left Behind Act (NCLBA) of 2001. The proportion of schools identified for choice varied by state. About 1 percent of eligible children, or 31,000 students, transferred in school year 2003-2004. However, little is known about the students who did and did not transfer or factors affecting parents' transfer decisions. Education has launched a study that will yield some information on these topics. Officials in most of the 8 districts GAO visited said they welcomed NCLBA's emphasis on improved performance, but had difficulties providing choice because of tight timeframes and insufficient classroom capacity. Final state determinations of the schools that met state yearly performance goals were not generally available before the school year started, so offers of transfers were based on preliminary determinations. District officials expressed concern that parents had inadequate time and information to make an informed decision. Parents were offered at least 2 possible schools as transfer options, but many of these schools had not met state performance goals in the most recent year. Because of limited classroom capacity in 4 of the districts, some students did not receive the opportunity to transfer. For students who transferred, transportation was provided on school buses, public transit or personal cars, and most districts spent less than 7 percent of the pool of funds that NCLBA required be set aside for that purpose in school year 2003-2004. Education issued extensive guidance on choice. However, the complexity of providing school choice raises a number of issues that have not been addressed in guidance available through October 2004, such as how to handle cases where schools receiving transfers later are identified for choice and how to expand capacity in the short-term within budgetary constraints.