The Innovation Schools Act of 2008, § 22-32.5-102, et seq. C.R.S., was designed to provide a pathway for schools and districts to develop and implement innovative practices in a wide variety of areas and contexts to improve student outcomes. Innovation schools are required to articulate a vision around the autonomies they are seeking, as well as to gain support from a variety of stakeholders, including teachers, administrators, and School Accountability Committee members, before receiving the Innovation school designation. In compliance with the requirements of § 22-32.5-111, C.R.S., the Colorado Department of Education (CDE) has prepared this annual report divided into the following parts: (1) Overview of the Innovation Schools Act; (2) Current Demographics of Innovation Schools; (3) Description of the Innovations Implemented; (4) Summary of the Academic Performance of Innovation Schools; and (5) Recommendations for Legislative Changes.