Following the reauthorization of the Individuals with Disabilities Education Act (IDEA, 2004), states were required to develop a State Performance Plan (SPP; U.S. Department of Education, 2011) addressing 20 accountability indicators for students with disabilities, ages 3 to 21. First and arguably foremost among these is Indicator 1, the ''percent of youth with IEPs [Individualized Education Programs] graduating from high school with a regular diploma'' (Office of Special Education Programs [OSEP], 2012). Reasons for the prominence of this indicator are well-known. Graduation from high school is a predictor of many critical outcomes in adulthood, including psychosocial well-being (Liem, Dillon, & Gore, 2001), physical health (Freudenberg & Ruglis, 2007; Winkleby, Jatulis, Fran, & Fortmann, 1992), longevity (Molla, Madans, & Wagener, 2004), employment (National Center for Education Statistics [NCES], 2002), and earnings (U.S. Census Bureau, 2011). However, district-level reporting requirements of the State Performance Plan do not take into account key factors that are known to affect graduation rates and that are beyond the control of individual school districts. An analysis of four years of accountability data from a large southeastern state showed that district differences in graduation rates for students with disabilities were highly related to sociodemographic factors including district poverty, the percentage of students with disabilities who were Black or African American, and the percentage of students with disabilities who were Hispanic. Differences in graduation rates were not related to district size. This article discusses the study's findings and implications for district accountability and offers recommendations for district administrators.