I'm reading Molly Ivins' new book
Bushwacked, and she goes into detail on *'s policies in Texas schools, which were his prototype for the NCLBA.
One problem not mentioned yet is the dropout rate. Texas "Enronizes" the numbers so they only report a dropout rate of around 4% in poor districts, but outside asessments have put it between 40 and 52%. In essence, the school encourages students who likely won't pass the test to drop out, by holding them back before they take the test (and how many will do that repeatedly?) or some other means. That way the school's overall numbers look better.
Molly describes the plan as one designed for schools to fail and provoke a backlash against public schools, all the better to "train" (rather than educate) people who can't afford private schools.
TAPPED discusses the subject:
http://www.prospect.org/weblog/archives/2003/09/index.html#001539(if need be scroll down to
NO NUMBER LEFT UNFUDGED)