This report summarizes the eighth survey of state directors of special education by the National Center on Educational Outcomes at the University of Minnesota. Results include all 50 states and the Bureau of Indian Affairs, American Samoa, and Palau. State directors report increased participation rates of students with disabilities in state assessments and, in many cases, improvement in performance as well. This first year of alternative assessment implementation has been challenging, but most states now have systems in place and are grappling with how to include the results in their accountability systems in ways that show the progress of every student toward state and district standards. Additional findings include: (1) more states listed positive consequences of inclusive standards, assessments, and accountability, then listed negative consequences; (2) more than half reported increases in participation rates; (3) two-thirds of directors reported stable or increased performance levels of students with disabilities on these tests; (4) most states are using portfolios or body of evidence approaches for their alternate assessments; and (5) 25 states include alternate assessment participants in all components of their accountability system. Appendices include charts on student participation and performance levels. (CR)