[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1266 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                S. 1266

   To allow a State to combine certain funds to improve the academic 
                    achievement of all its students.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 22, 1999

  Mr. Gorton (for himself, Ms. Collins, Mr. Gregg, Mr. Coverdell, Mr. 
 Brownback, Mr. Ashcroft, Mr. Helms, and Mr. Voinovich) introduced the 
 following bill; which was read twice and referred to the Committee on 
                 Health, Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL


 
   To allow a State to combine certain funds to improve the academic 
                    achievement of all its students.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Academic Achievement for All Act 
(Straight A's Act)''.

SEC. 2. PURPOSE.

    The purpose of this Act is to create options for States and 
communities--
            (1) to improve the academic achievement of all students, 
        and to focus the resources of the Federal Government upon such 
        achievement;
            (2) to give States and communities maximum freedom in 
        determining how to boost academic achievement and implement 
        education reforms;
            (3) to hold States and communities accountable for boosting 
        the academic achievement of all students, especially 
        disadvantaged children; and
            (4) to narrow achievement gaps between the lowest and 
        highest performing groups of students so that no child is left 
        behind.

SEC. 3. PERFORMANCE AGREEMENT.

    (a) Program Authorized.--A State may, at its option, execute a 
performance agreement with the Secretary under which the provisions of 
law described in section 4(a) shall not apply to such State except as 
otherwise provided in this Act.
    (b) Approval of Performance Agreement.--A performance agreement 
submitted to the Secretary under this section shall be approved by the 
Secretary unless the Secretary makes a written determination, within 60 
days after receiving the performance agreement, that the performance 
agreement is in violation of the provisions of this Act.
    (c) Terms of Performance Agreement.--Each performance agreement 
executed pursuant to this Act shall include the following provisions:
            (1) Term.--A statement that the term of the performance 
        agreement shall be 5 years.
            (2) Application of program requirements.--A statement that 
        no program requirements of any program included by the State in 
        the performance agreement shall apply, except as otherwise 
        provided in this Act.
            (3) List.--A list provided by the State of the programs 
        that it wishes to include in the performance agreement.
            (4) Use of funds to improve student achievement.--Include a 
        5-year plan describing how the State intends to combine and use 
        the funds from programs included in the performance agreement 
        to advance the education priorities of the State, improve 
        student achievement, and narrow achievement gaps between 
        students.
            (5) Accountability system requirements.--If a State 
        includes part A of title I of the Elementary and Secondary 
        Education Act of 1965 in its performance agreement, the State 
        shall include a certification that the State has the following:
                    (A)(i) developed and implemented the challenging 
                State content standards, challenging State student 
                performance standards, and aligned assessments 
                described in section 1111(b) of the Elementary and 
                Secondary Education Act of 1965, and for which local 
                educational agencies in the State are producing the 
                individual school performance profiles required by 
                section 1116(a)(3) of such Act; or
                    (ii) developed and implemented a system to measure 
                the degree of change from 1 school year to the next in 
                student performance on such assessments;
                    (B) established a system under which assessment 
                information is disaggregated by race, ethnicity, sex, 
                English proficiency status, and socioeconomic status 
                for the State, each local educational agency, and each 
                school, except that such disaggregation shall not be 
                required in cases in which the number of students in 
                any such group is insufficient to yield statistically 
                reliable information or would reveal the identity of an 
                individual student;
                    (C) established specific, measurable, numerical 
                performance objectives for student achievement, 
                including--
                            (i) a definition of performance considered 
                        to be satisfactory by the State on the 
                        assessment instruments described under 
                        subparagraphs (A) and (B) with performance 
                        objectives established for all students and for 
                        specific student groups, including groups for 
                        which data is disaggregated under subparagraph 
                        (B); and
                            (ii) the objective of improving the 
                        performance of all groups and narrowing gaps in 
                        performance between those groups; and
                    (D) developed and implemented a statewide system 
                for holding its local educational agencies and schools 
                accountable for student performance that includes--
                            (i) a procedure for identifying local 
                        educational agencies and schools in need of 
                        improvement;
                            (ii) assisting and building capacity in 
                        local educational agencies and schools 
                        identified as in need of improvement to improve 
                        teaching and learning; and
                            (iii) implementing corrective actions if 
                        the assistance and capacity building under 
                        clause (ii) is not effective.
            (6) Performance goals.--
                    (A) Student achievement data.--Each State shall 
                establish student performance goals for the 5-year term 
                of the performance agreement that, at a minimum--
                            (i) establish a single high standard of 
                        performance for all students;
                            (ii) take into account the progress of 
                        students from every local educational agency 
                        and school in the State;
                            (iii) measure changes in the percentages of 
                        students at selected grade levels meeting 
                        specified proficiency levels of achievement 
                        (established by the State) in the final year of 
                        the performance agreement, compared to such 
                        percentages in the baseline year (as described 
                        in subparagraph (C));
                            (iv) set numerical goals to attain by the 
                        end of the term of the performance agreement 
                        to--
                                    (I) improve the performance of the 
                                groups specified in paragraph (5)(B); 
                                and
                                    (II) reduce achievement gaps 
                                between the highest and lowest 
                                performing groups of students by 
                                raising the achievement levels of the 
                                lowest performing students in 
                                mathematics and reading, at a minimum; 
                                and
                            (v) require all students in the State to 
                        make substantial gains in achievement.
                    (B) Additional indicators of performance.--A State 
                may identify in the performance agreement any 
                additional indicators of performance such as 
                graduation, dropout, or attendance rates.
                    (C) Baseline performance data.--To determine 
                student achievement levels for the baseline year, the 
                State shall use its most recent achievement data when 
                executing the performance agreement.
                    (D) Consistency of performance measures.--A State 
                shall maintain, at a minimum, the same challenging 
                State student performance standards and assessments 
                throughout the term of the performance agreement.
            (7) Fiscal responsibilities.-- An assurance that the State 
        will use fiscal control and fund accounting procedures that 
        will ensure proper disbursement of, and accounting for, Federal 
        funds paid to the State under this Act.
            (8) Civil rights.--An assurance that the State will meet 
        the requirements of applicable Federal civil rights laws.
            (9) Private school participation.--An assurance that the 
        State will provide for the equitable participation of students 
        and professional staff in private schools in accordance with 
        section 14503 of the Elementary and Secondary Education Act of 
        1965 (20 U.S.C. 8893).
            (10) State financial participation.--An assurance that the 
        State will not reduce the level of spending of State funds for 
        education during the term of the performance agreement.
            (11) Annual report.--An assurance that not later than 1 
        year after the execution of the performance agreement, and 
        annually thereafter, each State shall disseminate widely to the 
        general public, submit to the Secretary, distribute to print 
        and broadcast media, and post on the Internet, a report that 
        includes--
                    (A) student performance data, disaggregated as 
                provided in paragraph (5)(A)(ii); and
                    (B) a detailed description of how the State has 
                used Federal funds to improve student performance and 
                reduce achievement gaps to meet the terms of the 
                performance agreement.
    (d) Special Rule.--If a State does not include part A of title I of 
the Elementary and Secondary Education Act of 1965 in its performance 
agreement, the State shall--
            (1) certify that it has developed a system to measure the 
        academic performance of all students; and
            (2) establish performance goals in accordance with 
        subsection (c)(6) for such other programs.
    (e) Amendment to Performance Agreement.--A State may submit an 
amendment to the performance agreement to the Secretary under the 
following circumstances:
            (1) Reduce scope of performance agreement.--Not later than 
        1 year after the execution of the performance agreement, a 
        State may amend the performance agreement through a request to 
        withdraw a program from such agreement. If the Secretary 
        approves the amendment, the requirements of existing law shall 
        apply for any program withdrawn from the performance agreement.
            (2) Expand scope of performance agreement.--Not later than 
        1 year after the execution of the performance agreement, a 
        State may amend its performance agreement to include additional 
        programs and performance indicators for which it will be held 
        accountable.

SEC. 4. ELIGIBLE PROGRAMS.

    (a) Eligible Programs.--The provisions of law referred to in 
section 3(a) except as otherwise provided in subsection (b), are as 
follows:
            (1) Part A of title I of the Elementary and Secondary 
        Education Act of 1965.
            (2) Part B of title I of the Elementary and Secondary 
        Education Act of 1965.
            (3) Part C of title I of the Elementary and Secondary 
        Education Act of 1965.
            (4) Part D of title I of the Elementary and Secondary 
        Education Act of 1965.
            (5) Section 1502, part E of title I of the Elementary and 
        Secondary Education Act of 1965.
            (6) Part B of title II of the Elementary and Secondary 
        Education Act of 1965.
            (7) Section 3132 of title III of the Elementary and 
        Secondary Education Act of 1965.
            (8) Title IV of the Elementary and Secondary Education Act 
        of 1965.
            (9) Title VI of the Elementary and Secondary Education Act 
        of 1965.
            (10) Section 307 of the Department of Education 
        Appropriation Act of 1999.
            (11) Comprehensive school reform programs as authorized 
        under section 1502 of the Elementary and Secondary Education 
        Act of 1965 and described on pages 96-99 of the Joint 
        Explanatory Statement of the Committee of Conference included 
        in House Report 105-390 (Conference Report on the Departments 
        of Labor, Health and Human Services, and Education, and Related 
        Agencies Appropriations Act, 1998)''.
            (12) Part C of title VII of the Elementary and Secondary 
        Education Act of 1965.
            (13) Title III of the Goals 2000: Educate America Act.
            (14) Sections 115 and 116, and parts B and C of title I of 
        the Carl D. Perkins Vocational Technical Education Act.
            (15) Subtitle B of title VII of the Stewart B. McKinney 
        Homeless Assistance Act.
    (b) Allocation Amounts.--A State may choose to combine funds from 
any or all of the programs described in subsection (a) without regard 
to the program requirements of such provisions, except as otherwise 
provided in this Act and except that allocation ratios provided under 
the provisions referred to in subsection (a) shall remain in effect 
unless otherwise provided.
    (c) Uses of Funds.--Funds made available under this Act to a State 
shall be used for any educational purpose permitted by State law of the 
participating State.

SEC. 5. WITHIN-STATE DISTRIBUTION OF FUNDS.

    (a) In General.--The distribution of funds from programs included 
in the performance agreement from a State to a local educational agency 
within the State shall be determined by the State legislature and the 
Governor of the State. In a State in which the constitution or State 
law designates another individual, entity, or agency to be responsible 
for education, such other individual, entity, or agency shall work in 
consultation with the Governor and State legislature to determine the 
local distribution of funds.
    (b) Local Hold Harmless of Part A Title 1 Funds.--
            (1) In general.--In the case of a State that includes part 
        A of title I in the performance agreement, the agreement shall 
        provide an assurance that each local educational agency shall 
        receive an amount equal to or greater than the amount such 
        agency received under part A of title I of the Elementary and 
        Secondary Education Act of 1965 in the fiscal year preceding 
        the fiscal year in which the performance agreement is executed.
            (2) Proportionate reduction.--If the amount made available 
        to the State from the Secretary for a fiscal year is 
        insufficient to pay to each local educational agency the amount 
        made available to such agency for the preceding fiscal year, 
        the State shall reduce the amount each local educational agency 
        receives by a uniform percentage.

SEC. 6. LOCAL PARTICIPATION.

    (a) Nonparticipating State.--
            (1) In general.--If a State chooses not to submit a 
        performance agreement under this Act, any local educational 
        agency in such State is eligible, at its option, to submit to 
        the Secretary a performance agreement in accordance with this 
        section.
    (2) Agreement.--The terms of a performance agreement between an 
eligible local educational agency and the Secretary shall specify the 
programs to be included in the performance agreement, as agreed upon by 
the State and the agency, from the list under section 4(a).
    (b) State Approval.--When submitting a performance agreement to the 
Secretary, an eligible local educational agency described in subsection 
(a) shall provide written documentation from the State in which such 
agency is located that it has no objection to the agency's proposal for 
a performance agreement.
    (c) Application.--
            (1) In general.--Except as provided in this section, and to 
        the extent applicable, the requirements of this Act shall apply 
        to an eligible local educational agency that submits a 
        performance agreement in the same manner as the requirements 
        apply to a State.
            (2) Exceptions.--The following provisions shall not apply 
        to an eligible local educational agency:
                    (A) Within state distribution formula not 
                applicable.--The formula for the allocation of funds 
                under section 5 shall not apply.
                    (B) State set aside shall not apply.--The State set 
                aside for administrative funds in section 7 shall not 
                apply.

SEC. 7. SET-ASIDE FOR STATE ADMINISTRATIVE EXPENDITURES.

    (a) In General.--Except as otherwise provided under subsection (b), 
a State that includes part A of title I of the Elementary and Secondary 
Education Act of 1965 in the performance agreement may use not more 
than 1 percent of such total amount of funds allocated to such State 
under the programs included in the performance agreement for 
administrative purposes.
    (b) Exception.--A State that does not include part A of title I of 
the Elementary and Secondary Education of 1965 its performance 
agreement may use not more than 3 percent of the total amount of funds 
allocated to such State under the programs included in the performance 
agreement for administrative purposes.

SEC. 8. PERFORMANCE REVIEW.

    (a) Failure To Meet Terms.--If at the end of the 5-year term of the 
performance agreement a State has failed to meet at least 80 percent of 
the performance goals submitted in the performance agreement, the 
Secretary shall terminate the performance agreement and the State shall 
be required to comply with the program requirement, in effect at the 
time of termination, of each program included in the performance 
agreement.
    (b) Penalty for Failure To Improve Student Performance.--If a State 
has made little or no progress toward achieving its performance goals 
by the end of the term of the agreement, the Secretary shall reduce 
funds for State administrative costs for each program included in the 
performance agreement by 50 percent for the 2-year period following the 
end of the term of the performance agreement.

SEC. 9. RENEWAL OF PERFORMANCE AGREEMENT.

    (a) Notification.--A State that wishes to renew its performance 
agreement shall notify the Secretary of its renewal request not less 
than 6 months prior to the end of the term of the performance 
agreement.
    (b) Renewal Requirements.--A State that has met at least 80 percent 
of its performance goals submitted in the performance agreement at the 
end of the 5-year term may reapply to the Secretary to renew its 
performance agreement for an additional 5-year period. Upon the 
completion of the 5-year term of the performance agreement or as soon 
thereafter as the State submits data required under the agreement, the 
Secretary shall renew, for an additional 5-year term, the performance 
agreement of any State that has met at least 80 percent of its 
performance goals.

SEC. 10. ACHIEVEMENT GAP REDUCTION REWARDS.

    (a) Closing the Gap Reward Fund.--
            (1) In general.--To reward States that make significant 
        progress in eliminating achievement gaps by raising the 
        achievement levels of the lowest performing students, the 
        Secretary shall annually set aside sufficient funds from the 
        Fund for the Improvement of Education under part A of title X 
        of the Elementary and Secondary Education Act of 1965 to grant 
        a reward to States that meet the conditions set forth in 
        subsection (b) by the end of their 5-year performance 
        agreement.
            (2) Reward amount.--The amount of the reward referred to in 
        paragraph (1) shall be not less than 5 percent of funds 
        allocated to the State during the first year of the performance 
        agreement for programs included in the agreement.
    (b) Conditions of Performance Reward.--A State is eligible to 
receive a reward under this section if the State reduces by not less 
than 25 percent, over the 5-year term of the performance agreement, the 
difference between the percentage of highest and lowest performing 
groups of students that meet the State's definition of ``proficient'' 
as referenced in section 1111(b)(1)(D)(i)(II) of the Elementary and 
Secondary Education Act of 1965, for the following:
                    (A) Content areas.--The reduction in the 
                achievement gap shall include not less than 2 content 
                areas, one of which shall be mathematics or reading.
                    (B) Grades tested.--The reduction shall occur in at 
                least 1 grade level.

SEC. 11. STRAIGHT A'S PERFORMANCE REPORT.

    The Secretary shall make the annual State reports described in 
section 3 available to the House Committee on Education and the 
Workforce and the Senate Committee on Health, Education, Labor and 
Pensions not later than 60 days after the Secretary receives the 
report.

SEC. 12. CONSTRUCTION.

    To the extent that provisions of title XIV of the Elementary and 
Secondary Education Act of 1965 are inconsistent with this Act, this 
Act shall be construed as superseding such provisions.

SEC. 13. DEFINITIONS.

    For the purpose of this Act:
            (1) Local educational agency.--The term ``local educational 
        agency'' has the same meaning given such term in section 14101 
        of the Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 8801).
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Education.
            (3) State.--The term ``State'' means each of the 50 States, 
        the District of Columbia, the Commonwealth of Puerto Rico, 
        Guam, the United States Virgin Islands, the Commonwealth of the 
        Northern Mariana Islands, and American Samoa.

SEC. 14. EFFECT ON STATE LAW.

    Nothing in this Act shall be construed to supersede or modify any 
provision of a State constitution or State law that prohibits the 
expenditure of public funds in or by sectarian institutions.
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