A study examined alternatives to retention or social promotion. Chapter 1 considers the short-term and long-term consequences of each alternative and concludes that neither improves declining graduation rates, declining ability to meet employer requirements, or the achievement gap between white students and students of color. Chapter 2 recommends standards-driven reform that includes effective and nonpunitive assessment. Chapter 3 suggests that prevention and early intervention, through quality preschool education, are preferable to remediation. Chapter 4 emphasizes flexibility in structuring curriculum, instructional practices, and classroom time so that every student continually engages in learning and receives appropriate interventions. Chapter 5 recommends an alignment of student and teaching standards, with a strategy at state and district levels to attract, train, and keep effective schoolteachers. Chapter 6 states that schools should never give up on students at any point in their education, though special attention should be given to the first year of middle school and high school. Each chapter has a summary of suggested state policies and actions. Sidebars give real-world examples of effective schools or programs. An appendix summarizes successes in standards-based reform in North Carolina, Texas, and Connecticut. (Contains 131 references.) (RKJ)