Educational Accountability and State Flexibility Act - Amends the school improvement program under part A of title I of the Elementary and Secondary Education Act of 1965 to require each state to establish a multi-tiered accountability system that places each public school in a tier that reflects the state's annual assessment of the extent to which the school needs improvement. (This replaces the current system of assessing schools as needing improvement, corrective action, or restructuring.)
Requires states to weigh school needs by considering the extent to which: (1) schools are making adequate yearly progress (AYP) toward state academic performance standards for students overall and for poor, minority, disabled, and limited English proficient student subgroups in particular; (2) schools are progressing toward the required graduation rate; and (3) a school's students are growing academically.
Requires distinct tiers for schools: (1) making AYP; (2) nearly making AYP, achieving student academic growth, and improving their graduation rate; (3) not making AYP for a significant number of categories of students; and (4) not making AYP for multiple years.
Lists minimum consequences for schools placed into each of these tiers: consequences that range from requiring states to recognize successful schools, to requiring local educational agencies (LEAs) to implement alternative school governance models or school improvement strategies based on a specified system of support model.
Denies the Secretary of Education any authority to approve or disapprove of a state's multi-tiered accountability system.
Requires state-approved providers of supplemental educational services to demonstrate success in serving any category of students at schools that do not make AYP. Authorizes LEAs to negotiate performance-based contracts with providers of supplemental educational services.