Parents, grandparents and other family members gathered outside the State House in Boston on Tuesday while officials inside discussed a recent state review of the city's school district and the potential for a state takeover.The rally and hearing followed a scathing new state report from the Department of Elementary and Secondary Education that said the district is "entrenched dysfunction" and has failed to carry out basic functions, such as providing for students with special learning needs and English learners and having consistent bus routes. "The state is moving closer to doing something that will be a disaster for our students," grandparent Nancy Lessin said. "We have new leadership in our mayor, and we'll soon have a new superintendent as you heard the mayor chronicle. They deserve a chance at-bat," Sen. Sonia Chang-Díaz, a Boston Democrat."If the commissioner does put forward a proposal for the board to designate a takeover of Boston Public Schools, we will be requesting a hearing and do process under the boards laws and regulations to continue to make our case," Boston Mayor Michelle Wu said on Tuesday. "No one is better equipped to accelerate the progress Boston has made than our Boston Public Schools communities." Commissioner of Elementary and Secondary Education Jeffrey Riley, who also spoke on Tuesday, recapped the state's recent report about BPS but said he has not made a decision about whether to seek a state takeover of the district. Riley said he will consider the issue for at least another week but wants written assurance from Wu that the district will improve basic functions, like adequate student transportation. “The situation is urgent but I’m hoping we can come to an agreement," Riley said. The introduction to DESE's 188-page report explains that it is a follow-up to a previous, District Review Report from 2020 that led the city and state to sign a memorandum of understanding regarding priorities for improvement. Boston agreed to improve its performance in certain areas while the state agreed to provide support and resources. The Board of Elementary and Secondary Education asked for this update after Boston Superintendent Brenda Cassellius announced her plans to resign after the conclusion of this school year.Read the whole DESE reportRead BPS' letter to the community about the reportRead BPS' letter to DESE about 'factual corrections'Read BPS' post review reflectionWu also detailed the steps the city is taking to improve the district, which include a round of interviews next week for new superintendent to lead BPS. Problems identified in the report fall into four categories: transportation, facilities, safety protocols and data reporting. "While the report highlights that BPS has made considerable progress in many key areas over the last three years, it also provides clear direction to areas where urgent action is needed," BPS Chief of Communications Gabrielle Farrell said in a statement. "As we continue to build upon the momentum we have created, we look forward to working collaboratively with DESE to ensure all BPS students can reach their full potential." BPS is failing to meet "acceptable minimum standards" for some of what DESE considers to be basic functions, including on-time transportation for students, the report states. In fact, the transportation situation has worsened since 2020, the report said.In the response BPS sent to DESE, district officials point out that there is now a tentative deal with the bus drivers' union that addresses necessary operational changes. Boston does not effectively or consistently track or respond to reports about bullying or other safety concerns, DESE found. Officials also suggested a separate review should be conducted into the impact of the reduction of school police. According to the report, the district fails at both the school and central levels to report accurately on key measures of success. Even graduation and dropout rates reported by Boston are "likely inaccurate due to a failure by BPS to ensure that schools possess appropriate documentation to withdraw an enrolled student." The authors also describe a "lack of urgency" in the district's effort to improve special education services."Persistent challenges in these areas have been exacerbated by significant leadership turnover in the district’s special education and English learner departments," the report states.BPS pushed back on the phrase "disturbing lack of urgency" regarding special education used in a draft of the report and it appears that the adjective was dropped from the final version. Hundreds of English learners are still not receiving the instruction required under an agreement with the U.S. Department of Justice and necessary strategies are not in place, the DESE report states. On the second page, the authors of the report suggest that district personnel may have coordinated their response to DESE's interviews, interfering with the state's ability to get an accurate picture of the issues. "This may have impeded the review team from forming a complete picture of BPS's strengths and challenges," the authors wrote. DESE found some strengths in areas, including the teacher pipeline and the use of one-time funding for school improvements, and is generally positive about the plans developed by the outgoing superintendent's team. The authors wrote that Cassellius "effectively led" several initiatives "despite challenges in managing a central office with entrenched dysfunction." They also warn that any progress achieved so far is vulnerable to disruption."BPS does not lack for plans," the report states, "but that strong execution of these plans is a rarity for the district."About the search for a new superintendent, the report explains that the Boston School Committee has a tight timeline to find a replacement when typical searches of this kind take a year or longer."The availability of quality candidates this late in the year is of significant concern," the report states. "The new superintendent will also face governance uncertainty, with active debates over whether the school committee should remain appointed by the mayor, elected, or a hybrid of the two. This follows a tumultuous period with numerous school committee resignations and significant turnover of the committee overall."Last week, the Boston City Council passed a resolution opposing state receivership for BPS.DESE can take over a local school committee if the district is chronically underperforming. Currently, Southbridge, Holyoke and Lawrence Public Schools are in receivership.