Findings

Congress makes the following findings: (1)To retain the competitive edge of the United States in the world economy, it is essential that America's youth be prepared for the jobs of today and for the jobs of the future. Such jobs increasingly require a postsecondary education, and almost 90 percent of the fastest growing and best paying jobs require some postsecondary education according to a 2008 Department of Labor report. (2)Individuals without a secondary school diploma experience higher rates of unemployment, incarceration, living in poverty, and receiving public assistance than individuals with at least a secondary school diploma. (3)According to the 2009 Center for Public Education report “Better late than never? Examining late high school graduates”, on-time graduation with a regular secondary school diploma leads to the best outcomes for students, and students who graduate late with a regular secondary school diploma are more likely to earn an associate's or a bachelor's degree, to be employed full-time, and to obtain a job with retirement benefits and health insurance than either secondary school dropouts or GED recipients. (4)About 1,230,000 secondary school students, which is approximately one-third of all secondary school students, fail to graduate with their peers every year. According to the Department of Education, the United States secondary school graduation rate is the lowest the rate has been since 2002. (5)The graduation rates for historically disadvantaged minority groups are far lower than that of their White peers. Little more than half of all African-American and Hispanic students will finish secondary school on time with a regular secondary school diploma compared to over three-quarters of White students. (6)Nearly 2,000 secondary schools (about 10 percent of all secondary schools in the United States) produce about half of the Nation's secondary school dropouts. In these schools, the number of seniors is routinely 60 percent or less than the number of freshmen 3 years earlier. While almost half of the Nation's African-American students and nearly 40 percent of Latino students attend these dropout factories, only 11 percent of White students do. (7)The graduation rate calculations used by most States for reporting and accountability are inconsistent and misleading. Not only does this obscure the graduation rate crisis, particularly for poor and minority students, but it also makes it impossible to compare graduation rates across schools, school districts, and States. (8)The average gap between State-reported and independently reported graduation rates is approximately 12 percent. (9)In 2005, all 50 of the Nation's Governors signed the National Governors Association's Graduation Rate Compact, pledging to use a common, accurate graduation rate. (10)In 2008, the Secretary of Education released final regulations that also require States to report a common graduation rate calculation. However, since the Department of Education did not specify in the regulations what graduation rate goals and growth targets are appropriate and how States should include 4-year rates and extended year rates in calculating adequate yearly progress, it is necessary to clarify these goals, targets and rates in order to create a meaningful Federal accountability system for secondary schools. (11)The most accurate graduation rate calculations are reliant on high-quality longitudinal data systems that track individual student data from the time a student enters the kindergarten through grade 12 educational system until the student leaves the kindergarten through grade 12 educational system. In 2008, 42 States had the 4 elements of a statewide longitudinal data system that are necessary to calculate the National Governor’s Association Compact rate at the school level. (12)Forty-nine States should have secondary school data that will allow the States to use the National Governor's Association Compact rate formula not later than school year 2011–2012. (13)An accountability system with meaningful graduation rate goals— (A)holds schools, school districts, and States responsible for both student achievement and outcomes; and (B)ensures that low-performing students are not unnecessarily held back or pushed out (encouraged to leave school without a diploma). (14)Prior to the 2008 regulations, the amendments to the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.) made by the No Child Left Behind Act of 2001 (Public Law 107–110) did not require consistent calculations, meaningful goals, or disaggregation of graduation rates. Without clear guidance from the Department of Education, most secondary schools can continue to make adequate yearly progress by making as little as 0.1 percent improvement or less in secondary school graduation rates each year and can do so with a consistent, or even growing, secondary school graduation gap.

Secondary school graduation rates

Subpart 1 of part A of title I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6311 et seq.) is amended by inserting after section 1111 (20 U.S.C. 6311) the following:

1111A.

Secondary school graduation rates

(a)

Definitions

In this section: (1)

Adjusted cohort; transferred in; transferred out

(A)

In general

Subject to subparagraphs (C)(ii) through (F), the term adjusted cohort means the difference of— (i)the sum of— (I)the number of first-time ninth graders; plus (II)any students that transferred in to the cohort in any of grades 9 through 12; minus (ii)any students removed from the cohort. (B)

Transferred in

The term transferred in when used with respect to a secondary school student, means a student who enrolls after the beginning of the entering cohort's first year in secondary school, up to and including enrolling in grade 12. (C)

Transferred out

(i)

In general

The term transferred out when used with respect to a secondary school student, means a student who the secondary school or local educational agency confirms has transferred to another school or another educational program for which the student is expected to receive a regular secondary school diploma. (ii)

Confirmation requirements

(I)

Documentation required

The confirmation of a student's transfer to another school or educational program described in clause (i) requires documentation from the receiving school or program that the student enrolled in the receiving school or program. (II)

Lack of confirmation

A student who was enrolled, but for whom there is no confirmation of transfer or completion, shall not be considered a transfer or an error, but shall remain in the cohort as a nongraduate for reporting and accountability purposes under this section. (iii)

Programs not providing credit

A student enrolled in a GED or other alternative educational program that does not issue or provide credit toward the issuance of a regular secondary school diploma shall not be considered transferred out. (D)

Cohort removal

To remove a student from a cohort, a school or local educational agency shall confirm that the student has transferred out, emigrated, or is deceased. (E)

Treatment of other leavers and withdrawals

A student who was retained in a grade, enrolled in a GED program, aged-out of a secondary school or secondary school program, or left secondary school for any other reason, including expulsion, shall not be considered transferred out, and shall remain in the adjusted cohort. (F)

Special rule

For those secondary schools that start after grade 9, the cohort shall be calculated based on the earliest secondary school grade at the secondary school. (2)

Alternative educational setting

The term alternative educational setting means— (A)a secondary school or secondary school educational program that— (i)is designed for students who are under-credited or have dropped out of secondary school; and (ii)awards a regular secondary school diploma; or (B)a secondary school or secondary school educational program designed to issue a regular secondary school diploma concurrently with a postsecondary degree or not more than 2 years of college credit. (3)

Cumulative graduation rate

The term cumulative graduation rate means, for each school year, the percent obtained by calculating the product of— (A)the result of— (i)the sum of— (I)the number of students who— (aa)formed the adjusted cohort 4 years earlier; and (bb)graduate in 4 years or less with a regular secondary school diploma (which shall not include a GED or other certificate of completion or alternative to a diploma except as provided in paragraph (6)(B)); plus (II)the number of additional students from previous cohorts who graduate in more than 4 years with a regular secondary school diploma (which shall not include a GED or other certificate of completion or alternative to a diploma except as provided in paragraph (6)(B)); divided by (ii)the sum of— (I)the number of students who formed the adjusted cohort for that graduating class 4 years earlier; plus (II)the number of additional student graduates described in clause (i)(II); multiplied by (B)100. (4)

4-year adjusted cohort graduation rate

The term 4-year adjusted cohort graduation rate means the percent obtained by calculating the product of— (A)the result of— (i)the number of students who— (I)formed the adjusted cohort 4 years earlier; and (II)graduate in 4 years or less with a regular secondary school diploma (which shall not include a GED or other certificate of completion or alternative to a diploma except as provided in paragraph (6)(B)); divided by (ii)the number of students who formed the adjusted cohort for that graduating class 4 years earlier; multiplied by (B)100. (5)

On-track student

The term on-track student means a student who— (A)has accumulated the number of credits necessary to promote to the next grade, in accordance with State and local educational agency policies; and (B)has failed not more than 1 semester in English or language arts, mathematics, science, or social studies. (6)

Regular secondary school diploma

(A)

In general

The term regular secondary school diploma means the standard secondary school diploma awarded to the preponderance of students in the State that is fully aligned with State standards, or a higher diploma. Such term shall not include GEDs, certificates of attendance, or any lesser diploma award. (B)

Special rule

For a student who has a significant cognitive disability and is assessed using an alternate assessment aligned to an alternate achievement standard, receipt of a regular secondary school diploma or a State-defined alternate diploma aligned with completion of the student's right to a free and appropriate public education under the Individuals with Disabilities Education Act (20 U.S.C. 1400 et seq.) shall be counted as graduating with a regular secondary school diploma for the purposes of this section, except that not more than 1 percent of students served by the State or local educational agency, as appropriate, shall be counted as graduates with a regular secondary school diploma under this subparagraph. (7)

Under-credited student

The term under-credited student means a secondary school student who is a year or more behind in the expected accumulation of credits or courses toward an on-time graduation as determined by the relevant local educational agency's and State educational agency's secondary school graduation requirements for an on-time graduation. (b)

Calculating and reporting accurate graduation rates

(1)

Calculating graduation rates

Not later than school year 2010–2011, and every school year thereafter, each State educational agency and local educational agency that is assisted under this part shall calculate, using a statewide longitudinal data system with individual student identifiers for each school served by the State or local educational agency, as the case may be— (A)the 4-year adjusted cohort graduation rate; and (B)the cumulative graduation rate. (2)

Calculation at school, LEA, and State levels; disaggregation

The 4-year adjusted cohort graduation rate and the cumulative graduation rate shall be calculated at the school, local educational agency, and State levels in the aggregate and disaggregated by race, ethnicity, gender, disability status, migrant status, English proficiency, and status as economically disadvantaged, except that such disaggregation shall not be required in a case in which the number of students in a subgroup is insufficient to yield statistically reliable information or the results would reveal personally identifiable information about an individual student. (3)

Reporting graduation rates

Subject to paragraph (4), not later than school year 2010–2011, and every school year thereafter, each State educational agency, local educational agency and school that is assisted under this part shall report annually, as part of the State and local educational agency report cards required under section 1111(h), each of the following: (A)

4-year adjusted cohort graduation rate

The 4-year adjusted cohort graduation rate, in the aggregate and disaggregated by each of the subgroups described in paragraph (2). (B)

Cumulative graduation rate

The cumulative graduation rate, in the aggregate and disaggregated by each of the subgroups described in paragraph (2). (C)

Number and percentage of students graduating in more than 4 years

The number and percentage of secondary school students graduating in more than 4 years with a regular secondary school diploma as described in subsection (a)(3)(A)(i)(II), disaggregated by the number of years accounted for in the cumulative graduation rate and by each of the subgroups described in paragraph (2). (D)

Number and percentage of students removed from cohort

The number and percentage of secondary school students who have been removed from the adjusted cohort, in the aggregate and disaggregated by each of the subgroups described in paragraph (2). (E)

Number and percentage of continuing students

The number and percentage of students from each previous adjusted cohort that began 4 years or more earlier who have not graduated from and are still enrolled in secondary school. (4)

Use of interim graduation rate

In the case of a State that does not have an individual student identifier longitudinal data system, with respect to each graduation rate calculation or reporting requirement under this section, the State and local educational agencies and secondary schools in the State shall temporarily carry out this section by using an interim graduation rate calculation that meets the following conditions: (A)

Number of graduates compared to number of students

The calculation shall measure or estimate the number of secondary school graduates compared to the number of students in the secondary school's entering grade. (B)

Dropout data

The calculation shall not use dropout data. (C)

Regular secondary school diploma

The calculation shall count as graduates only those students who receive a regular secondary school diploma. (D)

Disaggregation

The calculation shall be disaggregated by each of the subgroups described in paragraph (2). (E)

Annual basis and rate of growth

The calculation shall be used on an annual basis to determine a rate of growth, as described in subsection (c). (F)

Timeframe limitation

The interim graduation rate calculation may only be used through the end of school year 2010–2011. (G)

Reporting use of interim graduation rate

Each State that receives assistance under this part shall describe in the State's plan submitted under section 1111 the interim graduation rate used in accordance with this paragraph. (5)

Reporting on alternative settings

Not later than school year 2010–2011, and every school year thereafter, each State educational agency and local educational agency that receives assistance under this part and contains an alternative education setting which establishes an alternative 4-year completion requirement as described in subsection (c)(3)(C)(iii), shall report annually as part of the State and local educational agency report cards required under section 1111(h), the following: (A)The name of each alternative education setting that establishes an alternative 4-year completion requirement. (B)A description of the program provided at each setting and the population served. (C)The enrollment of such settings in the aggregate and disaggregated by each of the subgroups described in paragraph (2), including as a percent of overall enrollment. (D)Whether the setting is a new school or setting. (E)The alternative 4-year completion requirement as described in subsection (c)(3)(C)(iii). (6)

Reporting percent of on-track students

Not later than school year 2010–2011, and every school year thereafter, every State educational agency, local educational agency, and school that receives assistance under this part shall report annually, as part of the State and local educational agency report cards required under section 1111(h), the percent of on-track students for each secondary school grade served by the State educational agency, local educational agency, and school, respectively, other than the graduating grade for the secondary school, in the aggregate and disaggregated by each of the subgroups described in paragraph (2). (7)

Reporting additional indicators

(A)

In general

A State may report additional complementary indicators of secondary school completion, such as— (i)a college-ready graduation rate; (ii)a dropout rate; (iii)in-grade retention rates; (iv)percentages of students receiving GEDs, certificates of completion, or alternatives to a diploma; and (v)in the case of a State with exit examinations, students who have completed course requirements but failed a State exam required for secondary school graduation. (B)

Definitions for indicators

The Secretary shall promulgate and publish in the Federal Register regulations containing definitions for the indicators described in clauses (i), (ii), and (iii) of subparagraph (A) that are consistent with the definitions used by the National Center for Educational Statistics, in order to ensure that the indicators are comparable across schools and school districts within a State. (C)

Prohibition

For purposes of reporting or accountability under this section, the additional indicators shall not replace the 4-year adjusted cohort graduation rate or the cumulative graduation rate. (D)

Rule of construction

Nothing in this Act shall be construed to prohibit a State from reporting indicators of secondary school completion that are not described in subparagraph (A). (8)

Data anomalies

(A)

In general

When an individual student record indicates a student was enrolled in more than 1 secondary school or a student record shows enrollment in a secondary school but no subsequent information, such student record shall be assigned to 1 adjusted cohort for the purposes of calculating and reporting school, local educational agency, and State 4-year adjusted cohort graduation rates and cumulative graduation rates under this subsection. (B)

Special rule

A student who returns to secondary school after dropping out of secondary school, or receives a diploma from more than 1 school or educational program served by any 1 local educational agency, shall be counted— (i)only once for purposes of reporting and accountability under this section; and (ii)as part of the student's original adjusted cohort. (9)

Monitoring of data collection

Each State that receives assistance under this part shall conduct regular audits of data collection, reporting, and calculations by local educational agencies in the State. The Secretary shall assist States in their efforts to develop and retain the capacity for collection, analysis, and public reporting of 4-year adjusted cohort graduation rate and cumulative graduation rate data. (c)

School, local educational agency, and State accountability

(1)

Graduation rate goal

Each State that receives assistance under this part shall seek to have all students graduate from secondary school prepared for success in college and work. (2)

Graduation rate calculation

Each State that receives assistance under this part shall use aggregate and disaggregated cumulative graduation rates as the additional indicator described in section 1111(b)(2)(C)(vi) for the purposes of determining each secondary school's and local educational agency's adequate yearly progress. (3)

Annual measurable objectives

The Secretary shall require a State, local educational agency, or school that receives assistance under this part and has a cumulative graduation rate below 90 percent in the aggregate or for any subgroup described in subsection (b)(2), to increase the cumulative graduation rate, in the aggregate or for such subgroup, respectively, in order to make adequate yearly progress under section 1111(b)(2), as follows: (A)

Baseline for cumulative graduation rates

Subject to subparagraph (B), the cumulative graduation rate calculated and reported in accordance with this section for the first school year that begins after the date of enactment of Every Student Counts Act shall serve as the baseline graduation rate. Each school year thereafter, cumulative graduation rates calculated at the school, local educational agency, and State levels in the aggregate and disaggregated by each subgroup described in subsection (b)(2) shall be evaluated for annual growth in accordance with subparagraph (C). (B)

Baseline adjustment

In the case of a State that uses an interim graduation rate, after the State has implemented an individual student identifier longitudinal data system and can calculate the 4-year adjusted cohort graduation rate and the cumulative graduation rate, but not later than the 2010–2011 school year, the State shall use the cumulative graduation rate as the baseline graduation rate for reporting and accountability under this section. (C)

Annual growth

(i)

In general

In order for a State, local educational agency, or school to make adequate yearly progress under section 1111(b)(2), the State, local educational agency, or school, respectively, shall demonstrate increases in the cumulative graduation rate from the baseline graduation rate, in the aggregate and for each subgroup described in subsection (b)(2), by an average of 3 percent per school year, until the cumulative graduation rate, in the aggregate and for each such subgroup, equals or exceeds 90 percent. (ii)

AYP not made

A secondary school shall not be considered to have made adequate yearly progress under section 1111(b)(2) if— (I)the school's 4-year adjusted cohort graduation rate, in the aggregate or for any subgroup described in subsection (b)(2), falls below the cohort's initial baseline graduation rate or shows no improvement over a 4-year period; or (II)fewer than 90 percent of the students included in the cumulative graduation rate, in the aggregate or for any subgroup described in subsection (b)(2), are students who graduate from secondary school in 4 years. (iii)

Special rule

A secondary school or secondary school educational program that is an alternative education setting may apply to the State to establish an alternative 4-year completion requirement for purposes of determinations under clause (ii)(II) if— (I)the secondary school or educational program submits to the State— (aa)a description of the secondary school or educational program; and (bb)an alternative 4-year completion requirement; and (II)the State approves the use of the alternative 4-year completion requirement for such purposes. (4)

Delayed applicability to schools

Paragraphs (2) and (3)(C) shall not apply to a secondary school until the beginning of school year 2011–2012. (d)

Reporting requirement

Not later than 90 days after the date of the enactment of the Every Student Counts Act, and annually thereafter, each State educational agency that receives assistance under this part shall submit to the Secretary, and make publicly available, a report on the implementation of this section. Such report shall include— (1)a description of each category, code, and the corresponding definition that the State has authorized for identifying, tracking, calculating, and publicly reporting student status; and (2)if using an interim graduation rate pursuant to subsection (b)(4), a description of the efforts of the State to implement the cumulative graduation rate and the expected date of implementation, which date shall not be later than the beginning of school year 2011–2012.