Findings

Congress makes the following findings: (1)In order for the United States to retain a competitive edge in the world economy, it is essential that youth in the United States be prepared for the jobs of today and for the jobs of the future. Such jobs increasingly require postsecondary education, and according to a 2008 Department of Labor report, almost 90 percent of the fastest growing and best paying jobs require some postsecondary education. (2)Individuals without a regular secondary school diploma experience higher rates of unemployment, incarceration, poverty, and receipt of public assistance than individuals with a regular 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, but students who graduate late with a regular secondary school diploma are still more likely to earn an associate or a baccalaureate degree, to be employed full-time, and to obtain a job with retirement benefits and health insurance than are either students who drop out of secondary school or students who receive a GED. (4)About 1,300,000 secondary school students, which is approximately 1/3 of all secondary school students in the United States, fail to graduate with their peers every year. According to the Department of Education, the United States secondary school graduation rate is only 75 percent. (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 finish secondary school on time with a regular secondary school diploma, while more than 3/4 of White students finish secondary school on time with a regular secondary school diploma. (6)Nearly 2,000 secondary schools (about 12 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 34 percent of the Nation's African-American students and nearly 28 percent of Latino students attend these dropout factories, only 16 percent of White students do. (7)The average gap between State-reported graduation rates and independently reported graduation rates is approximately 11 percent. (8)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. (9)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. (10)State-set targets to make adequate yearly progress under the Secretary of Education's 2008 regulations are numerous in type and varied in aggressiveness. Twenty-eight States have set a graduation rate goal of less than 90 percent. At least 8 States have set status targets that do not take into consideration progress toward the State-set goal. Furthermore, only 2 of the 9 States that include extended year rates in measures of adequate yearly progress do so in a way that places a priority on graduating students within 4 years. (11)The most accurate graduation rate calculations rely on high-quality longitudinal data systems that track individual student data from the time a student enters kindergarten through the time such student finishes 12th grade. Forty-eight States plan to have data systems that will provide secondary school data that will allow such States to use the graduation rate formula specified in the Department of Education's 2008 final regulations not later than the 2011–2012 school year. (12)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 encouraged to leave school without a diploma. (13)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 among subgroups of students.

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; entering cohort; transferred into; transferred out

(A)

Adjusted Cohort

Subject to subparagraphs (D)(ii) through (G), the term adjusted cohort means the difference of— (i)the sum of— (I)the entering cohort; plus (II)any students that transferred into the cohort in any of grades 9 through 12; minus (ii)any students that are removed from the cohort as described in subparagraph (E). (B)

Entering cohort

The term entering cohort means the number of first-time 9th graders enrolled in the secondary school 1 month after the start of the secondary school’s academic year. (C)

Transferred into

The term transferred into when used with respect to a secondary school student, means a student who— (i)was a first-time 9th grader during the same school year as the entering cohort; and (ii)enrolls after the entering cohort is calculated as described in subparagraph (B). (D)

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 has confirmed has transferred— (I)to another school from which the student is expected to receive a regular secondary school diploma; or (II)to another educational program from 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 the student having transferred out, 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. (E)

Cohort removal

To remove a student from a cohort, a school or local educational agency shall require documentation to confirm that the student has transferred out, emigrated to another country, or is deceased. (F)

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. (G)

Special rule

For those secondary schools that start after grade 9, the entering cohort shall be calculated 1 month after the start of the secondary school's academic year in 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 postsecondary education 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)form the adjusted cohort; 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 form the adjusted cohort for that year's graduating class; 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 year's 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 be promoted to the next grade, in accordance with State and local educational agency policies; (B)has a 90 percent or higher school attendance rate; (C)has failed not more than 1 semester in English or language arts, mathematics, science, or social studies; and (D)has failed not more than any 2 credit-bearing courses. (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 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 2011–2012, 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 and cross tabulation

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 and cross tabulated by race, ethnicity, gender, disability status, migrant status, English proficiency, and status as economically disadvantaged, and made public, except that such disaggregation or cross tabulation 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)

Statewide Exit Codes

Not later than 1 year after the enactment of the Every Student Counts Act, each State that receives funds under this subpart shall— (A)design a statewide exit code system, in consultation with local educational agencies; (B)require all local educational agencies to use the statewide exit code system; and (C)provide technical assistance and support to local educational agencies to assist such agencies with the implementation of the statewide exit code system. (4)

Reporting graduation rates

Subject to paragraph (5), not later than school year 2011–2012, and every school year thereafter, each State that is assisted under this part shall ensure that the State, all local educational agencies in the State, and all secondary schools in the State 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)

4-Year adjusted cohort size and 4-year graduates

The final number of students in the 4-year adjusted cohort and the total number of 4-year graduates in the aggregate and disaggregated by each of the subgroups described in paragraph (2). (C)

Cumulative graduation rate

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

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 it took the students to graduate and by each of the subgroups described in paragraph (2). (E)

Number and percentage of students removed from cohort

The number and percentage of secondary school students who have been removed from the 4-year adjusted cohort by exit code (as described in subsection (b)(3)), in the aggregate and disaggregated by each of the subgroups described in paragraph (2). (F)

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. (5)

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 2012–2013. (G)

Reporting use of interim graduation rate

Each State that receives assistance under this part and does not have an individual student identifier longitudinal data system shall describe in the State's plan submitted under section 1111 the interim graduation rate used in accordance with this paragraph. (6)

Reporting on alternative settings

Not later than school year 2011–2012, 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 that establishes an alternative 4-year completion requirement as described in subsection (c)(4)(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 as described in subsection (c)(4)(C)(iii). (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)(4)(C)(iii). (7)

Reporting percent of on-track students

Not later than school year 2011–2012, and every school year thereafter, each 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). (8)

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; (v)average attendance rates in the aggregate and disaggregated by each of the subgroups described in paragraph (2); and (vi)in the case of a State with exit examinations, students who have completed course requirements but failed a State examination 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). (9)

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. (10)

Monitoring of data collection

Each State that receives assistance under this part shall conduct regular audits of the data collection, use of exit codes (as described in subsection (b)(3)), reporting, and calculations that are carried out 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— (A)seek to have all students graduate from secondary school prepared for success in college and career; and (B)meet the graduation rate goal as described in this subsection. (2)

Graduation rate calculation

Each State that receives assistance under this part shall use aggregate and disaggregated 4-year adjusted cohort graduation rates or 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)

Meeting graduation rate goal

In order to meet the graduation rate goal, a State, local educational agency, or school shall demonstrate that it has a 4-year adjusted cohort graduation rate or a cumulative graduation rate above 90 percent in the aggregate and for all subgroups described in subsection (b)(2). (4)

Annual measurable objectives

The Secretary shall require a State, local educational agency, or school that receives assistance under this part and that has not met the graduation rate goal in the aggregate or for any subgroup described in subsection (b)(2) to increase the 4-year adjusted cohort graduation rate or 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 4-year adjusted cohort and cumulative graduation rates

(i)

In General

Subject to subparagraph (B), the 4-year adjusted cohort graduation rate calculated and reported in accordance with this section for the first school year that begins after the date of enactment of the Every Student Counts Act shall serve as the baseline 4-year adjusted cohort graduation rate and the cumulative graduation rate calculated and reported in accordance with this section for such first school year shall serve as the baseline cumulative graduation rate. (ii)

Annual Growth

Each school year after the baseline year described in clause (i), 4-year adjusted cohort graduation rates and 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 2013–2014 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 4-year adjusted cohort graduation rate from the baseline 4 year adjusted cohort graduation rate or increases in the cumulative graduation rate from the baseline cumulative graduation rate, in the aggregate and for each subgroup described in subsection (b)(2), by an average of 3 percentage points per school year, until the 4-year adjusted cohort graduation rate or 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 initial baseline 4-year adjusted cohort 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)

Alternative 4-year completion requirement

Notwithstanding clause (ii), a secondary school or secondary school educational program that is an alternative education setting may apply to the State for a waiver of the requirement in clause (ii) that at least 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 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. (5)

Delayed applicability to schools

Paragraphs (2), (3), and (4)(C) shall not apply to a secondary school until the beginning of school year 2012–2013 or, in the case of a State using an interim rate, shall not apply to a secondary school until the first school year after such State adjusts its baseline graduation rate as described in paragraph (4)(B). (d)

Reporting requirement

Not later than 90 days after the date of 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, exit code, and the corresponding definition that the State has authorized for identifying, tracking, calculating, and publicly reporting student status; (2)if using an interim graduation rate pursuant to subsection (b)(5), a description of the efforts of the State to implement the 4-year adjusted cohort graduation rate and the cumulative graduation rate and the expected date of implementation, which date shall be not later than the school year 2013–2014; and (3)a description of waivers granted in the State under subsection (c)(4)(C)(iii), which shall include— (A)the total number of waivers granted in the State under subsection (c)(4)(C)(iii); (B)a description of each waiver granted; (C)the number of students who are enrolled in secondary schools or secondary school education programs receiving such waivers; and (D)the cumulative graduation rates of the secondary schools or secondary school education programs receiving such waivers.