Retention is defined as when a student is required to repeat the grade in which they were enrolled the previous year. This report provides important information on statewide student grade retention statistics, including retention data by grade level, race/ethnicity, gender, in special education status, limited English proficiency status, and low-income and Title I status. Additionally, the report provides a comparison of retention data and MCAS (Massachusetts Comprehensive Assessment System) scores. Overall, the majority (about 94 percent) of retained students with a MCAS performance level for both school years received either the same or higher performance level in 2004. About 6 percent of retained students with a MCAS performance level for both school years received a lower performance level in 2004 than 2003. Appended to this report are: (1) district retention rates by grade level; and (2) district retention rates by race/ethnicity categories. (Contains 19 tables and 14 figures.)