	Introduction

Beginning with adoption of the Improving America's Schools Act (IASA) in 1994 ( P.L. 103-382 ), and continuing through enactment of the Education Flexibility Partnership Act of 1999 ( P.L. 107-110 ), the authorization of special forms of flexibility for grantees has been a major focus of most federal K-12 education assistance legislation. This report provides an overview of these authorizations for state and local flexibility in administering federal K-12 education programs. In general, these flexibility authorities apply to federal aid programs authorized by the Elementary and Secondary Education Act (ESEA), the largest source of federal aid to K-12 education. ESEA programs are authorized through FY2008, and the 110 th Congress is considering whether to amend and extend the ESEA. This report will be updated regularly to reflect major legislative developments and available information. Purposes of Accountability Requirements

Federal K-12 education assistance program requirements include a broad range of activities, services, or outcomes that SEAs, LEAs, and other aid grantees are expected to provide, perform, or achieve with, or in return for, federal grants, in order to show evidence that program goals are being met—that is, to establish accountability for appropriate use of federal aid funds. These intended forms of accountability include
target accountability : assuring that funds are focused on eligible localities, pupils, and purposes, usually for the ultimate purpose of promoting more equal educational opportunities; outcome accountability : assuring that funds are used effectively to improve student achievement and enhance the quality of K-12 instruction—either in specific subject areas or for particular types of pupils, or overall; and fiscal accountability : assuring financial integrity and providing that federal aid funds constitute a net increase in resources for the eligible pupils or purposes, rather than potentially replacing (supplanting) state or local funds that would otherwise be available for the same purpose. The rationale offered for this preference is that "...State-Flex and Local-Flex participants have undergone comprehensive planning to improve teacher quality and the academic achievement of all students, especially disadvantaged students, and are held to a higher degree of accountability...."

			Comparison With Other Flexibility Authorities in the No Child Left Behind Act

In comparison to the Transferability authority described earlier, State-Flex and Local-Flex are relatively broad, since all of the funds under the affected programs may be involved, the funds may be used for any purpose authorized under any ESEA program (including the exceptionally wide range of activities authorized under Title V-A), and only a comparatively small number of specified program requirements apply to the use of these funds. Each of the special flexibility authorities is significantly limited in terms of the number of states and LEAs that may participate, the number and size of the ESEA and related programs affected, and/or the range of program requirements that may be waived. With the major exceptions of the Transferability authority, the Innovative Programs block grant, and Title I-A schoolwide programs, states and/or LEAs are allowed to waive a variety of federal program requirements in return for some degree of accountability based on pupil achievement outcomes. These special flexibility authorities, particularly those enacted as part of the NCLB, have been adopted in a policy context of substantially increased accountability requirements and authorized degrees of flexibility in general for the ESEA and related federal programs. The flexibility authorities often include a variety of requirements for regular reporting on ways in which the authorities have been used, and the impact of increased flexibility on pupil achievement. How Significant Are the Degrees of Flexibility Allowed under These Authorities? For What Purposes Have Special Flexibility Authorities Been Used, and Is There Evidence That These Have Resulted in Increased Pupil Performance or Had Other Major Impacts? Are the Outcome Accountability Requirements Consistent with the Increased Flexibility Provided under These Authorities?
Beginning with the Improving America's Schools Act in 1994, and continuing through the Education Flexibility Partnership Act of 1999 and the No Child Left Behind Act of 2001 (NCLB), the authorization of special forms of flexibility for grantees has been a focus of federal K-12 education legislation. These flexibility authorities apply primarily to programs under the Elementary and Secondary Education Act (ESEA), the largest source of federal aid to K-12 education.
In general, federal K-12 education assistance program requirements include activities or outcomes that state or local educational agencies (SEAs, LEAs) are expected to provide or achieve in order to establish accountability for use of funds consistent with the purposes of authorizing statutes. These requirements are usually intended to provide target accountability, ensuring that funds are focused on eligible localities, pupils, and purposes; outcome accountability, ensuring that funds are used effectively to improve student achievement and improve the quality of K-12 instruction; and fiscal accountability, ensuring financial integrity and providing that federal funds constitute a net increase in resources.
Special flexibility authorities allow exceptions to these general requirements; they include Ed-Flex, Secretarial case-by-case waivers, ESEA Title I-A schoolwide programs, flexibility for small rural LEAs, the Innovative Programs block grant, Transferability authority, plus the State and Local Flexibility Demonstration Program (State-Flex and Local-Flex). In general, these authorities: (a) increase the ability of states or LEAs to use federal aid more completely in accordance with their own priorities; (b) are significantly limited in terms of the number of states and LEAs that may participate, the number and size of the programs affected, or the range of requirements that may be waived; (c) sometimes require a degree of accountability based on pupil achievement outcomes in return for increased flexibility, although the primary outcome requirements are applicable to all states and LEAs participating in Title I-A and other ESEA programs; (d) often attempt to require reports on ways in which the authorities have been used and the impact of flexibility on pupil achievement; and (e) have been adopted in a policy context of substantially increased accountability requirements and authorized degrees of flexibility in general with respect to some aspects of the ESEA and related programs.
Major issues regarding special forms of flexibility in federal K-12 education programs include the following: How significant are the degrees of flexibility allowed under these authorities? Is there substantial state or local interest in the authorized forms of flexibility? For what purposes have special flexibility authorities been used in the past, and is there evidence that these have resulted in increased pupil performance or had other major impacts? And are the outcome accountability requirements consistent with the increased flexibility provided under these authorities? ESEA programs are authorized through FY2008, and the 110th Congress is considering whether to amend and extend the ESEA. This report will be updated regularly to reflect major legislative developments and available information.