NCLB (2001) aims to have all public school students scoring on "proficient" or "advanced" levels on state reading and math tests by the school year 2013-14.  NCLB holds schools and districts accountable for "adequate yearly progress" (AYP) toward incrementally meeting the goal of 100% proficiency by that school year.  AYP is measured by:

• the percentage of students who met test score goals: both a) the total school population and b) all subgroups of more than 20 students: racial/ethnic groups, economically disadvantaged students, special education students, and limited English proficiency students (20 is the number in New Jersey; the number is set by the states);
• percentage of students who took the test across the school and in subgroups with more than 40 students (must be 95% or higher);
• graduation rates for high schools or attendance for elementary schools.
  

Year I of failure to make AYP
The school is placed on notice that it has another year to develop its improvement strategies.  No consequences.

Year II
Officials must develop a two-year school improvement plan.  Districts must offer students the option to transfer from the school to another public school that isn't facing consequences.  The district pays for transportation for those students.

Year III
Districts must offer public school choice for all students and, in addition, for low-income students, free tutoring services from a list of approved providers, both public and private, paid for from 20% of Title I funds.

Year IV
The state will place the school under a "corrective action plan." The consequences may be changes in the staff or curriculum, lengthening the school day or year, or some other action.

Year V
The state will create a new plan for the school including at least one radical change: replacing the entire staff, converting the school into a charter school, turning over management of the school to the state or a private management company, or other major management restructuring.

Year VI
The school implements the restructuring plan.