To learn more about district and school decision making for No Child Left Behind (NCLB) restructuring, the Center on Education Policy (CEP) turned to California, a state with a substantial number of schools in restructuring and several state and regional supports for making decisions about restructuring. In the summer and fall of 2005, CEP reviewed state, regional, and district restructuring documents and interviewed decision makers at the state, regional, district, and school levels. Reported findings include: (1) 49% increase in the number of schools placed in restructuring between 2004-05 and 2005-06 due primarily to state-raised adequate yearly progress (AYP) targets; (2) Detailed decision-making for restructuring is handled at the school or district level; (3) Decisions about restructuring are based on student achievement and school climate; (4) Most frequently used restructuring option was "undertaking any other any major restructuring of the school's governance that produces fundamental reform"; and (5) Charter schools have become the least popular option, although they remain a viable choice. The report concludes that districts and schools in California are not simply picking an option from the federal list. Processes advocated by the state Department of Education ask districts and schools to reveal and take ownership of problems for which there are no easy answers. For many teachers and administrators, this may be the first time they have had to openly face such problems. Although wrestling with the problems takes time and creativity state and district officials hope that effective innovations for raising student achievement will be developed, which they see as more important that simply satisfying NCLB requirements. (Contains 2 tables.) [This publication was researched and written with assistance from Nancy Kober, Diane Stark Rentner, and Jack Jennings.]