January 18, 2008

Dear Chief State School Officers:

I am writing to inform you about the recent decision (January 7, 2008) by the 
United States Court of Appeals for the Sixth Circuit in *School District of 
the City of Pontiac, et al. v. Secretary of the United States Department of Education 
(No. 05-2708)*, and to provide guidance to states and school districts while 
this matter works its way through legal proceedings.

In this case, the National Education Association (NEA), along with several 
  school districts and a number of state and local NEA affiliates, challenged 
  the No Child Left Behind Act of 2001 (NCLB) as an unfunded mandate, arguing 
  that school districts are not obligated to comply with the requirements of NCLB 
  to the extent that compliance would require them to spend their state or local 
  funds. The district court dismissed plaintiffs' claims. However, by a 
  2-1 vote, a panel of the Sixth Circuit reversed the district court's decision. 
  The Sixth Circuit noted that federal statutes must provide clear notice to states 
  and school districts of their obligations if they decide to accept federal funds. 
  The court concluded that NCLB does not provide clear notice that states and 
  school districts must comply with all NCLB requirements if, to do so, they must 
  incur additional costs not paid for by federal funds. In concluding that there 
  was not clear notice to states and school districts, the court relied on its 
  interpretation of the so-called "unfunded mandates provision" in 
  section 9527(a) of the Elementary and Secondary Education Act (ESEA), as amended 
  by NCLB.

I strongly disagree with the Sixth Circuit's decision and am exploring 
  all legal remedies to overturn the decision. NCLB is not an unfunded mandate 
  but rather a compact between a state and the federal government that asks the 
  state and its school districts, in exchange for receiving substantial federal 
  dollars, to demonstrate results. This investment in our children is creating 
  opportunities for every child in America to have access to a high quality education. 
  Indeed, states and school districts are seeing student achievement rise, especially 
  for poor and minority children. Data show that NCLB is working. In my view, 
  the Sixth Circuit's decision undermines the efforts we have made under 
  NCLB to improve the education of our nation's children, particularly those 
  children most in need. If the decision stands, it would represent a fundamental 
  shift in practice.

The Sixth Circuit's jurisdiction consists of the states of Michigan, 
  Kentucky, Ohio, and Tennessee. Courts outside the Sixth Circuit may reject its 
  reasoning. Moreover, the Sixth Circuit's ruling, if it stands, would only 
  provide a limited defense in future enforcement proceedings. No state or school 
  district should regard the ruling as license to disregard NCLB’s requirements.
  As you know, the President and I are working hard to reauthorize NCLB and have 
  pushed to make it an even better law. We are still hopeful that Congress will 
  pass a strong and reauthorized NCLB in the near future to help students and 
  teachers. If Congress fails to act, I will continue to seek the input of states 
  and school districts to identify administrative remedies to facilitate implementation 
  of this strong law.

More than ever, it is critical, for the interests of our students, to focus 
  our collective efforts on meeting the requirements of NCLB so that all students 
  can be proficient by the year 2014. I look forward to working cooperatively 
  with all of you for the sake of our nation's students.

| | Sincerely,        
| | ------------------
| | /s/               
| | Margaret Spellings

|Last Modified: 01/28/2008
|-------------------------