Provides authority and specifies a process for the Superintendent of Public Instruction (SPI) and the State Board of Education to implement an accountability system that recognizes successful schools and requires certain actions by school districts with persistently lowest-achieving schools, according to federal definitions. The bill establishes a new process for transferring principals to a subordinate position, which applies only to principals hired after the bill takes effect and in school districts with more than 35,000 students. It requires public colleges of education that offer residency certification to submit a proposal to offer an alternative route program. The bill also sets forth in statute numeric values for the Basic Education prototypical school funding formula adopted in 2009, to take effect September 1, 2011 and adopts a schedule for phasing in kindergarten through third grade class size reduction, increased funding for maintenance, supplies, and operating costs, and full-day kindergarten.