High-quality state assessment systems are the cornerstone of No Child Left Behind (NCLB), making it possible for school systems to collect data on student achievement to diagnose where students are doing well and where they are doing poorly. This provides information that teachers, administrators, and policymakers can use to customize and improve education, and to target federal resources and interventions to those students who are most in need of help. By setting standards and holding schools accountable for getting their students on grade level, states can ensure that no child is left behind to progress through life lacking the basic skills needed in our increasingly competitive, global economy. This report highlights that as of June 2008, 32 states have implemented high quality standards and assessment systems, which have received the status of Full Approval or Full Approval with Recommendations. The systems of three additional states have been designated Approval Expected because those states have submitted evidence demonstrating that their standards and assessment systems will likely meet the NCLB requirements. It is unlikely that the remaining states will have fully approved standards and assessment systems by the end of the 2007-2008 school year. In addition, some states that have fully approved standards and assessment systems may revise their standards or assessments in ways that result in systems that do not meet all NCLB requirements. The Department of Education will continue its practice of designating states to reflect their level of compliance with NCLB requirements for standards and assessment systems. The Department's designation system reflects a continuing effort to enforce NCLB while recognizing the complexities surrounding the development of standards and assessment systems. To further aid in this effort, the Department has revised its peer review process for standards and assessments so as to provide more feedback and greater transparency to states.