academic achievement and implement education pol-
icy. 
(2) To reduce the administrative costs and com-
pliance burden of Federal education programs in 
order to focus Federal resources on improving aca-
demic achievement. 
(3) To ensure that States and communities are 
accountable to the public and to parents for advanc-
ing the academic achievement of all students, espe-
cially disadvantaged children. 
(c) DEFINITIONS.— 
(1) IN
GENERAL.—Except as otherwise pro-
vided, the terms used in this Act have the meanings 
given the terms in section 8101 of the Elementary 
and Secondary Education Act of 1965 (20 U.S.C. 
7801 et seq.). 
(2) OTHER TERMS.—In this Act: 
(A) ACCOUNTABILITY.—The term ‘‘ac-
countability’’ means that public schools are an-
swerable to parents and other taxpayers for the 
use of public funds and shall report student 
academic progress to parents and taxpayers 
regularly. 
(B) STATE.—The term ‘‘State’’ has the 
meaning given such term in section 1122(e) of 
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the Elementary and Secondary Education Act 
of 1965 (20 U.S.C. 6332(e)). 
(C) STATE MANAGEMENT DECISION.—The 
term ‘‘State management decision’’ means a de-
cision by a State, as determined by State Au-
thorizing Officials or by referendum, to assume 
full management responsibility for the expendi-
ture of Federal funds for certain eligible pro-
grams for the purpose of advancing, on a more 
comprehensive and effective basis, the edu-
cational policy of such State. 
(D) STATE AUTHORIZING OFFICIALS.—The 
term ‘‘State Authorizing Officials’’ means the 
State officials who shall authorize the submis-
sion of a State management decision, and any 
amendments thereto, on behalf of the State. 
Such officials shall include not less than two of 
the following: 
(i) The Governor of the State. 
(ii) The highest elected education offi-
cial of the State, if any. 
(iii) The legislature of the State. 
(E) STATE
DESIGNATED
OFFICER.—The 
term ‘‘State Designated Officer’’ means the 
person designated by the State Authorizing Of-
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ficials to submit to the Secretary, on behalf of 
the State, a State management decision, and 
any amendments thereto, and to function as the 
point-of-contact for the State for the Secretary 
and others relating to any responsibilities aris-
ing under this Act. 
SEC. 2. STATE MANAGEMENT DECISION. 
(a) IN GENERAL.—Each State is authorized to sub-
mit to the Secretary a State management decision permit-
ting the State to receive Federal funds on a consolidated 
basis to manage the expenditure of such funds to advance 
the educational policy of the State. 
(b) PROGRAMS ELIGIBLE FOR CONSOLIDATION AND 
PERMISSIBLE USE OF FUNDS.— 
(1) SCOPE.—A State may choose to include 
within the scope of the State management decision 
of the State any program for which Congress makes 
funds available to the State if the program is for a 
purpose described in the Elementary and Education 
Secondary Act of 1965 (20 U.S.C. 6301). A State 
may not include any program funded pursuant to 
the Individuals with Disabilities Education Act (20 
U.S.C. 1400 et seq.). 
(2) USES OF FUNDS.—Funds made available to 
a State pursuant to a State management decision 
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under this Act shall be used for any educational pur-
pose permitted by State law of the State submitting 
a State management decision. 
(3) REMOVAL
OF
FISCAL
AND
ACCOUNTING 
BARRIERS.—Each State educational agency that op-
erates under a State management decision under 
this Act may modify or eliminate State fiscal and ac-
counting barriers that prevent local educational 
agencies and schools from easily consolidating funds 
from other eligible Federal, State, and local sources 
in order to improve educational opportunities and re-
duce unnecessary fiscal and accounting require-
ments. 
(c) CONTENTS OF DECISION.—Each State manage-
ment decision shall contain— 
(1) a list of eligible programs that are subject 
to the State management decision; 
(2) an assurance that the submission of the 
State management decision has been authorized by 
the State Authorizing Officials, specifying the iden-
tity of the State Designated Officer; 
(3) the duration of the State management deci-
sion; 
(4) an assurance that the State will use fiscal 
control and fund accounting procedures; 
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(5) an assurance that the State will meet the 
requirements of applicable Federal civil rights laws 
in carrying out the State management decision and 
in consolidating and using the funds under the State 
management decision; 
(6) an assurance that in implementing the 
State management decision the State will seek to ad-
vance educational opportunities for the disadvan-
taged; 
(7) a description of the plan for maintaining di-
rect accountability to parents and other citizens of 
the State; 
(8) an assurance that in implementing the 
State management decision, the State will seek to 
use Federal funds to supplement, rather than sup-
plant, State education funding; and 
(9) a description of how the State will address 
persistently failing public schools. 
(d) MINIMUM DURATION.—The duration of the State 
management decision shall— 
(1) be greater than or equal to 5 years; and 
(2) be less than or equal to 10 years. 
(e) REVIEW, IMPLEMENTATION, AND RECOGNITION 
BY THE SECRETARY.— 
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(1) IN GENERAL.—The Secretary shall review 
the State management decision received from the 
State Designated Officer not more than 60 days 
after the date of receipt of such decision, and shall 
approve, with respect to permitting the State to re-
ceive the funds described in subsection (a), such 
State management decision unless the State man-
agement decision fails to meet the requirements 
under subsection (c). 
(2) RECOGNITION BY OPERATION OF LAW.—If 
the Secretary fails to take action within the time 
specified in paragraph (1), the State management 
decision, as submitted, shall be deemed to be ap-
proved. 
(f) AMENDMENT
TO STATE MANAGEMENT DECI-
SION.— 
(1) IN GENERAL.—The State Authorizing Offi-
cials may direct the State Designated Officer to sub-
mit amendments to a State management decision 
that is in effect. Such amendments shall be sub-
mitted to the Secretary and considered by the Sec-
retary in accordance with subsection (e). 
(2) AMENDMENTS AUTHORIZED.—A State man-
agement decision that is in effect may be amended 
to— 
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(A) expand the scope of such State man-
agement decision to encompass additional eligi-
ble programs; 
(B) reduce the scope of such State man-
agement decision by excluding coverage of a 
Federal program included in the original State 
management decision; 
(C) modify the duration of such State 
management decision; or 
(D) achieve such other modifications as the 
State Authorizing Officials deem appropriate. 
(3) EFFECTIVE DATE.—The amendment shall 
specify an effective date. Such effective date shall 
provide adequate time to assure full compliance with 
Federal program requirements relating to an eligible 
program that has been removed from the coverage of 
the State management decision by the proposed 
amendment. 
(4) TREATMENT
OF
PROGRAM
FUNDS
WITH-
DRAWN FROM STATE MANAGEMENT DECISION.—Be-
ginning on the effective date of an amendment exe-
cuted under paragraph (2)(B), each program re-
quirement of each program removed from the State 
management decision shall apply to the State’s use 
of funds made available under the program. 
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SEC. 3. TRANSPARENCY FOR RESULTS OF PUBLIC EDU-
CATION. 
(a) IN GENERAL.—Each State operating under a 
State management decision under this Act shall inform 
parents and the general public regarding the student 
achievement assessment system, demonstrating student 
progress relative to the State’s determination of student 
proficiency, as described in paragraph (2), for the purpose 
of public accountability to parents and taxpayers. 
(b) ACCOUNTABILITY SYSTEM.— 
(1) IN GENERAL.—The State shall determine 
and establish an accountability system to ensure ac-
countability under this Act. 
(2) ACADEMIC
ACHIEVEMENT.—Any account-
ability system established by a State pursuant to 
paragraph (1) shall— 
(A) be focused on the academic achieve-
ment of students; and 
(B) include a system, as determined by the 
State, of evaluating the academic achievement 
and progress of students. 
(c) REPORT
ON STUDENT PROGRESS.—Not later 
than 1 year after the effective date of the State manage-
ment decision, and annually thereafter, a State shall, in 
a format acceptable to such State, disseminate widely to 
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parents and the general public a report that describes stu-
dent progress. The report shall include— 
(1) student performance data disaggregated by 
various student groups, as determined by the State; 
(2) a description of other high-quality school 
options available to parents in the State; and 
(3) a description of how the State has used 
Federal funds to improve academic achievement, re-
duce achievement disparities between various stu-
dent groups, and improve educational opportunities. 
SEC. 4. ADMINISTRATIVE EXPENSES. 
(a) IN GENERAL.—Except as provided in subsection 
(b), the amount that a State with a State management 
decision may expend for administrative expenses shall be 
limited to 1 percent of the aggregate amount of Federal 
funds made available to the State through the eligible pro-
grams included within the scope of such State manage-
ment decision. 
(b) STATES NOT CONSOLIDATING FUNDS UNDER 
PART A OF TITLE I.—If the State management decision 
does not include within its scope part A of title I of the 
Elementary and Secondary Education Act of 1965 (20 
U.S.C. 6311 et seq.), the amount spent by the State on 
administrative expenses shall be limited to 3 percent of 
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the aggregate amount of Federal funds made available to 
the State pursuant to such State management decision. 
SEC. 5. EQUITABLE PARTICIPATION OF PRIVATE SCHOOLS. 
Each State consolidating and using funds pursuant 
to a State management decision under this Act shall pro-
vide for the participation of private school children and 
teachers in the activities assisted under the State manage-
ment decision in the same manner as participation is pro-
vided to private school children and teachers under section 
8501 of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 7881). 
Æ 
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