The board announced its decision on Wednesday, while noting it’s still important to monitor the county school system closely.
The state board seized Lincoln County schools in 2000 for shoddy buildings, illegal hiring practices and low student test scores.
Lincoln County officials have since worked to resolve most of its issues.
In 2009, the board voted to restore control over curriculum to the county.
Outgoing State Schools Superintendent Steve Paine said the local board is ‘‘functionally well.’’