This descriptive analysis updates an earlier study of California's Title I school districts in program improvement (July 2008 "Characteristics of California School Districts in Program Improvement. Issues & Answers"), which was based on performance data for 2005/06, with another year of data. By 2006/07 more school districts were in program improvement, with nearly 100 districts moving into the corrective action phase of district improvement (also called Year 3). California's accountability system continues to identify problems at the district level that are missed at the school level. The new data show that more districts have moved into program improvement status and that few have moved out. Analysis of the new data also confirms the following findings from the previous report: (1) District accountability system monitored the progress of many students overlooked by the school accountability system; (2) Districts in program improvement tended to be larger, with more students and more schools, and more urban than other districts; (3) Districts in program improvement had different demographics from districts not identified for improvement, including higher proportions of Hispanic, Black, English language learner, and socioeconomically disadvantaged students; and (4) Districts in program improvement did not meet proficiency targets in multiple areas. (Contains 6 notes, 1 figure, and 6 tables.) [This report was prepared for the National Center for Education Evaluation and Regional Assistance, Institute of Education Sciences (IES) by Regional Educational Laboratory West administered by WestEd. For the "Issues & Answers" report, see ED502146.]