The American Recovery and Reinvestment Act of 2009 (ARRA), also known as the economic stimulus bill, channeled an unprecedented $100 billion into the nation's public education system. These funds were intended not only to avert teacher layoffs and stabilize state and local education budgets in the short term, but also to encourage reforms that will improve student achievement and thus strengthen the nation's economy in the long term. This report describes findings from the survey sections that deal with the condition of state education funding in fiscal years 2011 and 2012, the status of state implementation of ARRA-related reforms, the influence of ARRA's Race to the Top (RttT) program on reform agendas in states that did and did not receive these competitive grants, and the capacity of state education agencies to carry out ARRA reforms. The authors' analysis led to four broad conclusions that cut across the more detailed findings in specific sections of the survey. These four conclusions are: (1) The ambitious agenda of education reform attached to ARRA may hit a wall in 2012; (2) The capacity of many states to implement ARRA reforms could be constrained by cuts in state education agencies' operating budgets and limited staffing levels; (3) States are responding sooner and more actively in some ARRA reform areas than in others; and (4) ARRA has helped to create a common reform agenda for states based on broad federal goals. Timelines for Fully Implementing Key ARRA-Related Reform Strategies are appended. (Contains 10 tables and 3 footnotes.)