From Duncan's post on this:
But the president and I want to send a message to everyone: governors and mayors, school board members and teachers, parents and students; businesses and non-profits. We all need to work together to win this race so that our students can outcompete any worker in the world.
To win the race, states have to have standards and tests that prepare students to succeed in college and careers. They’ll need to recruit and reward excellent teachers and principals. They must have data systems to track students’ progress and to identify effective teachers. They must identify their lowest-performing schools and take dramatic action to turn them around.