District Data Strategies

My district compiles data on Edugence which is an online data management system. Teachers can track student test scores from prior grades to determine whether or not they should take honors classes or possibly be tested for special education services. This also tracks years in US schools which is important for ESL students. It can tell how many times the student took the TAKS test and when he passed.
We also use the online grade book to collect student data. We have recently updated the online grade book and now it gives us information about the students that we have in class. It gives teachers access to students personal information as well as class schedule.
My questions regarding the storage of data are as follows...
1. What do we do with the testing data after it has been recorded? What is it used for? When is it looked at and by whom?
2. How long does the data in Edugence stay? Is there something that can record the whole life as a student from K-12?
3. Can we add an e-portfolio to the student's records? It would serve as an online writing portfolio that would show student work from previous grades.
4. If the e-portfolio is not an option, can we provide the students with folders on the server that would last from K-12? If not, could we request a flash drive on the school supply list so students could keep all of their information?
I recommend that we use e-portfolios in schools because it makes the ease of student paper transfer much simpler. For ESL students coming into 6th grade, there are writing samples for each student. Instead of having all of those on paper, we could transfer files. This is safer for the environment and ensures that fewer papers are lost in the process. I also recommend that we make the student share drive available for all students from when they start in Garland schools and not delete them until they leave in 12th grade.
I also believe we should require flash drives for the students to allow them to work on projects at the library or at home. This would give those who need more time, enough time to complete the project. All of these strategies will give the teachers and students easier access to information.