The sweeping decentralization reform ofthe education system introduced by the Government in 2007 topromote greater school autonomy and more efficient spendingproduced impressive efficiency gains and set the foundationfor better adjustment to local needs. Despite initialsuccesses, lingering concerns remain about theaccountability of schools to the local community. Thus, as apart of a continued engagement with the Government ofBulgaria, this study records the achievements of the reformsand highlights outstanding challenges. Its aim is to assessprogress in the functioning of the model of delegatedfinancing and governance in the education sector. The studyaims to identify where the model could be strengthened tofurther improve the achievement of the objectives of thereform. The study focuses on four questions: (1) To whatextent are the reforms leading to a more efficient system?(2) Is there any evidence that the quality of education hadbeen impacted by these reforms? (3) What is the equityimpact of the school closures? (4) How are accountabilitymechanisms affecting the role of the major stakeholders?