This report is the third in a series of annual reports looking at the state of online education across the country. The goal of "Keeping Pace" is to be a useful document for policymakers and practitioners, and as such it takes a journalistic approach to research and writing instead of an academic approach. This report has two goals: first, to add to the body of knowledge about online education policy and make recommendations for advances; and second, to serve as a reference source for information about programs and policies across the country. With these twin goals in mind, the report starts with sections exploring key issues such as funding, teaching, and accountability, including analysis and recommendations. The second part of the report includes information on programs and policies across the country, broken down by regions and states. Profiles are provided for over 80% of states; for the remaining states, insufficient information did not warrant a profile. Although presented first, the key issues section of the document builds on the state profiles in the second section. The state profiles contain most of the footnotes and references to source documents. Appended are: (1) Glossary of online learning terms; and (2) Online learning policy resources. (Contains 84 footnotes.) [Additional funding for this paper was provided by the Illinois Virtual High School.]