Specifics of the Obama administration's plan for reauthorizing No Child Left Behind, the landmark education bill enacted by the Bush administration in 2002, were laid out for the first time in the budget proposal unveiled today.

The administration put forward two fundamental changes to the structure of NCLB, also known as the Elementary and Secondary Education Act: a new yardstick to hold schools accountable for compliance with the law and a shift from formula-driven federal funding to a model that emphasizes competition and performance. Both are controversial.

Renewal designs call for replacing "adequate yearly progress," the key-measuring tool under NCLB, with new and still undetermined standards for college and career readiness. Without the old measurement standards, which require schools to test students on their proficiency in English and math, the bill's original goal of having 100 percent of students proficient in these areas by 2014 is essentially null.

The budget proposal includes $14.5 billion for states to adopt accountability systems linked to college- and career-readiness standards -- but those standards don't exist yet. Ostensibly, the Common Core State Standards Initiative, a state-led effort to produce common standards in English and math for grades K-12, will create them. Every state but Texas and Alaska has signed on to Common Core, and Secretary Arne Duncan has often praised the initiative's efforts. However, Common Core has yet to produce a finalized version of the standards. The administration says it will work with congressional leaders from both sides of the aisle to create the new accountability system in the coming months.

A move away from adequate yearly progress standards may raise concern from stakeholders who want to ensure that accountability, the most valued takeaway from the Bush-era law, is not lost with any changes. However, Amy Wilkins, vice president for government affairs and communications at Education Trust, a nonprofit dedicated to closing the achievement gap, is optimistic about this development.

Wilkins gives the administration the benefit of the doubt that college- and career-ready standards will mean a more sophisticated accountability regime. But the devil is in the details. "The budget document is less than a blueprint, it's a skeleton," Wilkins said. Until the Education Department rolls out more details of the standards, the risks it will carry are largely unknown.

In a highly unusual move, $1 billion within the proposal is contingent on Congress renewing NCLB this year. Some of these funds would be dedicated to a new initiative under Title I -- a program that provides financial assistance to low-income students -- that rewards schools and school districts for making significant progress. The contingent clause signals President Obama's seriousness about moving forward with NCLB renewal in 2010.

"Everybody wants to give the administration the chance to fix this law," said Andrew Rotherham, a leading education expert, but he cautions people to remember that this is just a request. "As the Obama administration saw with health care, when things hit the Hill, all bets are off."

All of the new money proposed for reauthorizing NCLB is for programs based on competitive allocation; if adopted, nearly 30 percent of the total budget for NCLB would be funded by "competitive" dollars. "Race to the Top taught us that competition and incentives drive reform," Duncan said. "So even as we continue funding important formula programs like Title I and IDEA [the Individuals with Disabilities Education Act], we are adding money to competitive programs that are changing the landscape of our education system."

In an effort to cut down on red tape and boost efficiency, the budget also proposes consolidating 38 programs run under the Elementary and Secondary Education Act into 11 funding streams, based in full or in part on competition. Some formula-driven programs, such as Mathematics and Science Partnerships, would be converted into a competitive-dollar funding stream under the proposal.

The consolidation was guided by six priority areas, according to an Education Department spokesperson: school turnaround, teachers and leaders, well-rounded education, supporting student success, innovation, and meeting the needs of special populations. "These are the areas we identified the federal government can have the highest leverage for change," the spokesperson said.

Additionally, the administration recommends axing six programs that, according to the Education Department, "duplicate local or state programs that have not had a significant measurable impact." The cut would generate $122 million in savings. The changes in funding are sure to ruffle feathers among lawmakers, as districts stand to lose or gain money under the new regime.

As announced last week, the president's total request represents a 6 percent increase in education funding; $3.5 billion more than fiscal 2010. It's one of the few areas where the administration isn't recommending a cut or a spending freeze, reflecting the view Obama expressed in last week's State of the Union address: "The best anti-poverty program around is a world-class education."