[Congressional Record Volume 153, Number 65 (Monday, April 23, 2007)]
[Senate]
[Pages S4843-S4852]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BINGAMAN (for himself, Mr. Burr, and Mr. Kennedy):
  S. 1185. A bill to provide grants to States to improve high schools 
and raise graduation rates while ensuring rigorous standards, to 
develop and implement effective school models for struggling students 
and dropouts, and to improve State policies to raise graduation rates, 
and for other purposes; to the Committee on Health, Education, Labor, 
and Pensions.
  Mr. BINGAMAN. Mr. President, I wanted to take a few minutes of the 
Senate's time to talk about a bill that I introduced, along with 
Senator Burr and Senator Kennedy, entitled the Graduation Promise Act 
of 2007, or GPA.
  This bill would create a Federal-State-local partnership to improve 
the Nation's graduation rates and help transform our lowest performing 
high schools. This is a bill we just introduced today.
  I thank Senator Burr and Senator Kennedy for their commitment to 
improving our high schools and for increasing graduation rates in this 
country. I am very pleased to be working with both of them on this 
legislation. I am also very glad that GPA, this legislation we have 
introduced, is supported by the Alliance for Excellent Education, by 
the Center for American Progress, by Jobs for the Future, by the 
National Council of La Raza, by First Focus, and many other education 
groups.
  Nearly 20 years ago, the Nation's Governors met for the first 
education summit and, as far as I know, for the only national education 
summit in our country's history. They met with the first President Bush 
in Charlottesville, VA. They agreed to set high expectations for 
education for the coming decade. That was the decade following 1989.
  One of those standards they set was for an increase in high school 
graduation rates to 90 percent by the year 2000. Today, we are not even 
close to achieving that goal. In fact, the Nation's graduation rate has 
stagnated at around 70 percent instead of 90 percent. Graduation rates 
for Hispanic and African-American students are lower than that. In my 
home State of New Mexico, by some estimates, the graduation rate is 
less than 60 percent in some high schools.
  Many students are entering the ninth grade significantly behind in 
their reading and mathematics skills. They are ill-prepared to master 
the challenges of the typical high school curriculum. Not surprisingly, 
these students are more prone to academic failure and grade retention 
and, accordingly, the dropout rates among these students are 
disturbingly high, specifically in the ninth grade.
  But low graduation rates are only one broad indicator of the crisis 
affecting our Nation's high schools. Even if a student makes it to 
graduation, only a third of all students who enter the ninth grade will 
graduate with the skills and the knowledge necessary to go on to 
college or to succeed in the modern workplace. They are not receiving 
the kind of quality education that permits a seamless transition to a 
job or postsecondary education. Again, this problem disproportionately 
affects minority students. Only 16 percent of Hispanic students and 23 
percent of African-American students graduate prepared for college, 
compared to 40 percent for other students.
  This situation is simply unacceptable. In the global technology-based 
economy we live in today, a high school diploma is a minimum 
qualification for most jobs in our fastest growing sectors. The United 
States ranks 19th in high school graduation rates among major 
industrial democracies.
  The Federal Government recognized that investments in early childhood 
and elementary grades are critical to a student's academic growth and 
success. Still, attention and resources must be sustained throughout 
the middle and high school years as well if the national goal of 
leaving no child behind is to be met. Unfortunately, we have not been 
doing this. Only about 8 percent of all title I dollars go to our high 
schools today.
  Our continued economic security hinges on preparing our young people 
to enter college and to enter the 21st century workforce. In fact, our 
national security depends on it.
  Fortunately, research has come to light that will help us to better 
understand the factors behind the low graduation and student 
performance data. For instance, we can identify the high schools that 
are producing the majority of dropouts in this country. These schools--
roughly 2,000 schools I am referring to--represent about 15 percent of 
all high schools in the country, and they have persistently low rates 
of graduation and low rates of grade promotion.
  If we look at the typical senior class at one of these high schools, 
it will have decreased in size by at least 40 percent since the 
students entered the school 4 years earlier. These high schools are in 
every State. They tend to be concentrated in urban areas, and they 
serve more than a third of our African-American and Hispanic students 
nationwide. Unfortunately, there are 23 of these high schools in my 
home State of New Mexico.
  Research has also shed light on the specific factors that allow us to 
predict who is going to drop out of high school. We can identify with 
up to 80 percent accuracy the future dropouts as early as the ninth 
grade. We can do so by looking at such predictors as course failure, 
poor attendance, behavior problems, and retention in earlier grades. 
Students who enter high school significantly lagging behind in their 
academics and who show signs of becoming disengaged from the school are 
prone to drop out unless additional support is put in place.
  Finally, research-based solutions with solid evidence of success are 
transforming of our high schools with low graduation rates. 
Restructuring schools into smaller, more personalized learning 
environments ensures that students become engaged from the time they 
enter the ninth grade on. Sustained efforts to boost attendance ensure 
they will not fall further behind.
  Schools that have combined these efforts with a high-quality 
curriculum and structural improvements have been very successful at 
improving student performance and improving graduation rates. They have 
done so with transitional math and English for ninth graders that will 
help them catch up by offering challenging curricula and tangible 
contextual applications of

[[Page S4844]]

learning in order to rekindle the interests of these students and 
creating teaching teams, targeting professional development for the 
teachers to help them meet this challenge. A combination of these 
interventions has improved student performance and increased graduation 
rates. We know this problem can be solved to meet the goal.
  This legislation has been introduced by Senators Burr and Kennedy, 
and I hope very much this legislation and many of its provisions can be 
included when we get to a markup of the No Child Left Behind 
legislation later this year.
  I submit we cannot afford to let the estimated 2,000 failing high 
schools continue to push students off the path to prosperity. 
Collectively, these schools serve about 2.4 million students. We need 
to ensure for the continued prosperity of the country that these 
students remain in school and graduate with the skills needed to become 
productive citizens.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1185

       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 ``Graduation Promise Act of 
     2007''.

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) In general.--The terms ``local educational agency'', 
     ``secondary school'', and ``State educational agency'' have 
     the meanings given the terms in section 9101 of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     7801).
       (2) Graduation rate.--The term ``graduation rate'' (except 
     when used as part of the term ``averaged freshmen graduation 
     rate'') has the meaning given the term in section 
     1111(b)(2)(C)(vi) of the Elementary and Secondary Education 
     Act of 1965 (20 U.S.C. 6311(b)(2)(C)(vi)).
       (3) High-priority.--The term ``high-priority'', when used 
     with respect to a secondary school, means a school that--
       (A) has low student achievement; and
       (B)(i) has a low graduation rate; or
       (ii) feeds students into a high school that has a low 
     graduation rate.
       (4) High school.--The term ``high school'' means a 
     secondary school in which the--
       (A) entering grade of the school is not lower than grade 6; 
     and
       (B) highest grade of the school is--
       (i) grade 12; or
       (ii) in the case of a secondary school approved by a State 
     to issue a regular diploma concurrently with a postsecondary 
     degree or with not more than 2 years' worth of postsecondary 
     academic credit, grade 13.
       (5) Institution of higher education.--The term 
     ``institution of higher education'' has the meaning given the 
     term in section 101(a) of the Higher Education Act of 1965 
     (20 U.S.C. 1001(a)).
       (6) Secretary.--The term ``Secretary'' means the Secretary 
     of Education.
       (7) State.--The term ``State'' means each of the several 
     States of the United States, the District of Columbia, the 
     Commonwealth of Puerto Rico, the United States Virgin 
     Islands, Guam, American Samoa, the Commonwealth of the 
     Northern Mariana Islands, and the Republic of Palau.

      TITLE I--HIGH SCHOOL IMPROVEMENT AND DROPOUT REDUCTION FUND

     SEC. 101. FINDINGS.

       The Senate finds the following:
       (1) About a third of our Nation's high school students fail 
     to graduate in 4 years, and another third graduate without 
     the skills and knowledge needed to succeed in college or the 
     workplace. The outcomes for minority students are even worse: 
     only about 52 percent of Hispanic, 56 percent of African-
     American, and 57 percent of Native-American students graduate 
     on time, compared to 78 percent of white students.
       (2) More than a decade after Congress declared a national 
     goal that 90 percent of American high school students 
     graduate from high school we are far from that target and 
     graduation rates have stagnated.
       (3) Half of the Nation's dropouts attend a ``dropout 
     factory''-- schools where 40 percent or more of the freshman 
     class has disappeared by the time the students reach their 
     senior year. These schools, which are located in nearly every 
     State, primarily serve minority and poor students, and have 
     fewer resources and less qualified teachers than schools in 
     more affluent neighborhoods with larger numbers of white 
     students. In fact, almost half of African-American students 
     and nearly 40 percent of Latino students--compared to only 11 
     percent of white students--attend high schools in which 
     graduation is not the norm.
       (4) If the Nation's high schools and colleges raise the 
     graduation rates of Hispanic, African-American, and Native-
     American students to the levels of white students by 2020, 
     the potential increase in personal income across the Nation 
     would add, conservatively, more than $310,000,000,000 to the 
     United States economy.
       (5) If the high school graduation rate for male students 
     increased by just 5 percent, the Nation could save almost 
     $5,000,000,000 a year in reduced spending on crime-related 
     expenses such as prisons and medical costs for victims. An 
     additional $2,700,000,000 could be generated in income if 
     these high school graduates went on to college at the same 
     rate as other male students.
       (6) A high school diploma is increasingly important for 
     success in the 21st century economy. In fact, an estimated 80 
     percent of current jobs and approximately 90 percent of the 
     fastest-growing, highest-paying jobs require some sort of 
     education beyond high school.
       (7) The Nation spends more than $1,400,000,000 a year to 
     provide remedial courses to community college students who 
     recently completed high school. And that figure does not 
     include the almost $2,300,000,000 that the economy loses 
     because students who take remedial courses, particularly in 
     reading, are more likely to leave college without getting a 
     degree, and thereby reduce their earning potential. Across 
     the Nation, 42 percent of community college freshmen and 20 
     percent of freshmen in 4-year institutions enroll in at least 
     1 remedial course.
       (8) Business and higher education consistently report that 
     students are leaving high school unprepared for the demands 
     of college and the workplace. According to a survey of the 
     National Association of Manufacturers, more than 80 percent 
     of manufacturing companies are experiencing a shortage of 
     qualified workers. More than two-thirds of manufacturing 
     companies said that businesses train employees to raise basic 
     skills, a sure sign that a high school education is deficient 
     even for the few jobs that require nothing further. Forty 
     percent of employers considered graduates deficient in their 
     overall preparation for the workplace.
       (9) For decades, Federal funding has largely been spent on 
     grades Pre-K to 6 and higher education, with dramatically 
     less given the middle and high school grades. While children 
     in their early years must build a strong foundation for 
     learning, research also clearly demonstrates the need to 
     continue the investment at each stage of the education 
     process or risk losing much of the benefit of the early 
     effort.
       (10) The United States has made some progress in education 
     outcomes in the early years of education and in higher 
     education, but has seen decline in the middle and high school 
     years. In terms of demonstrating return on investment, where 
     Federal educational commitment has been made, positive 
     outcomes have resulted.
       (11) Only 8 percent of title I of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.) 
     participants are high school students, leaving millions of 
     title I-eligible, high school students in low-performing 
     schools without the focused support, external assistance, and 
     resources for improvement that title I was created to 
     provide. Because title I funds serve as the trigger for 
     school improvement requirements in the Elementary and 
     Secondary Education Act of 1965, this also means that most 
     low-income, low-performing high schools are not required to 
     (or supported to) implement school improvement activities.
       (12) While the Elementary and Secondary Education Act of 
     1965 (20 U.S.C. 6301 et seq.) includes a strong focus on 
     identifying low-performing schools, America still needs a 
     comprehensive strategy to support and improve chronically 
     low-performing schools and districts. School improvement 
     strategies should be tailored based on a variety of 
     indicators and data, so that educators can create and 
     implement successful school improvement strategies to address 
     the needs of the individual schools.
       (13) Most districts and State educational agencies do not 
     necessarily have the capacity or infrastructure to guide, 
     support, and fund school improvement strategies where they 
     are needed, but good models for turning around low-performing 
     high schools do exist. Federal support should be used to 
     build this capacity based on evidence from successful high 
     schools.
       (14) If the Nation is to maintain and increase its 
     competitiveness in the global economy, it must invest in a 
     systemic approach to improving its high schools so that every 
     child graduates prepared for success.

     SEC. 102. PURPOSES.

       The purposes of this title are to--
       (1) improve high school student academic achievement and 
     graduation rates;
       (2) help States develop a high school improvement system to 
     deliver support and technical assistance to high-priority 
     high schools;
       (3) ensure students graduate from high school with the 
     education and skills necessary to compete in a global 
     economy; and
       (4) help build the capacity to develop and implement 
     research-based, sustainable, and replicable high school 
     improvement models and interventions for high-priority high 
     schools that engage the whole community.

     SEC. 103. DEFINITIONS.

       In this title:
       (1) Adequate yearly progress.--The term ``adequate yearly 
     progress'' has the meaning given the term in section 
     1111(b)(2)(B) of the Elementary and Secondary Education Act 
     of 1965 (20 U.S.C. 6311(b)(2)(B)).

[[Page S4845]]

       (2) Averaged freshmen graduation rate.--The term ``averaged 
     freshmen graduation rate'' means the estimate of the 
     percentage of high school students who graduate on time by 
     dividing the number of graduates with regular diplomas by the 
     estimated size of the incoming freshman class 4 years 
     earlier, expressed as a percentage, as calculated and 
     reported by the National Center for Education Statistics.
       (3) Low-income local educational agency.--The term ``low-
     income local educational agency'' means a local educational 
     agency in which not less than 15 percent of the students 
     served by such agency are from families with incomes below 
     the poverty line.
       (4) Middle grades.--The term ``middle grades'' means grades 
     6 through 8.
       (5) Poverty line.--The term ``poverty line'' means the 
     poverty line described in section 673 of the Community 
     Services Block Grant Act (42 U.S.C. 9902), applicable to a 
     family of the size involved.
       (6) Technical assistance provider.--The term ``technical 
     assistance provider'' means a nonprofit entity with a proven 
     track record of significantly improving student achievement 
     and outcomes in high-priority high schools.

     SEC. 104. GRANTS AUTHORIZED.

       The Secretary is authorized to make grants to State 
     educational agencies with applications approved under section 
     109 to establish or expand a differentiated high school 
     improvement system that can improve student achievement and 
     graduation rates, and effectively target resources and 
     technical assistance to high-priority high schools.

     SEC. 105. ALLOTMENT TO STATES.

       (a) In General.--The Secretary shall make grants to State 
     educational agencies with applications approved under section 
     109 to enable the States to carry out the activities 
     specified in section 110. Each grant shall consist of the 
     allotment determined for a State under subsection (b)(2).
       (b) Determination of Allotments.--
       (1) Reservation of funds.--From the total amount 
     appropriated for this Act, the Secretary shall reserve--
       (A) 4 percent to--
       (i) evaluate activities authorized under this title, 
     including supporting large-scale randomized studies of 
     planned variations in school time, such as length of school 
     day, week, and year, teacher effectiveness, class size, 
     teacher training, performance or placement incentives, and 
     other major school improvement inputs, in order to determine 
     the most effective strategies for improving student 
     achievement and outcomes for students attending high-priority 
     high schools; and
       (ii) disseminate findings of such evaluations;
       (B) 2 percent to provide technical assistance and ongoing 
     regional training programs--
       (i) to build the capacity of State educational agencies and 
     local educational agencies to provide technical assistance to 
     improve high-priority high schools;
       (ii) to develop the capacity of State educational agencies 
     to effectively manage a differentiated high school 
     improvement system and analyze the capacity of local 
     educational agencies and high schools to effectively 
     implement proven high school reform strategies; and
       (iii) to develop, in middle schools served by a local 
     educational agency whose students go on to attend high 
     schools identified by the local educational agency as in need 
     of whole school reforms or replacement, middle grade early 
     indicator warning systems consisting of factors used to 
     identify students who are struggling academically and have 
     poor attendance records or have been suspended in or before 
     the middle grades or are likely to struggle in high school or 
     to not graduate and provide supports to get such students 
     back on track; and
       (C) 2 percent to enter into contracts with or provide 
     grants to technical assistance providers to build their 
     capacity to serve more high schools and to support the 
     development or enhancement of research-based whole secondary 
     school reform or new secondary school models.
       (2) State allotment.--From the total amount appropriated 
     under section 114 for a fiscal year and not reserved under 
     paragraph (1), the Secretary shall make allotments as 
     follows:
       (A) Low-income local educational agencies.--From such 
     amount, the Secretary shall allot to each State an amount 
     that bears the same ratio to 50 percent of the sums being 
     allotted as the percentage of students enrolled in schools 
     served by low-income local educational agencies in the State 
     bears to the total of such percentages for all the States.
       (B) Lowest calculation.--From such amount, the Secretary 
     shall allot to each State within the lowest one-third 
     averaged freshman graduation rate an amount that bears the 
     same ratio to 25 percent of the sums being alloted as the 
     number of students enrolled in high schools in the State 
     bears to the total of such students in all of such States 
     within the lowest one-third averaged freshman graduation 
     rate.
       (C) Middle calculation.--From such amount, the Secretary 
     shall allot to each State within the middle one-third 
     averaged freshman graduation rate an amount that bears the 
     same ratio to 15 percent of the sums being alloted as the 
     number of students enrolled in high schools in the State 
     bears to the total of such students in all of such States 
     within the middle one-third averaged freshman graduation 
     rate.
       (D) Highest calculation.--From such amount, the Secretary 
     shall allot to each State within the highest one-third 
     averaged freshman graduation rate an amount that bears the 
     same ratio to 10 percent of the sums being alloted as the 
     number of students enrolled in high schools in the State 
     bears to the total of such students in all of such States 
     within the highest one-third averaged freshman graduation 
     rate.
       (3) Reallotment.--If any State does not apply for an 
     allotment under this subsection for any fiscal year, the 
     Secretary shall reallot the amount of the allotment to the 
     remaining States in accordance with this subsection.
       (4) Matching funds.--A State educational agency that 
     receives a grant under this title shall provide matching 
     funds, from non-Federal sources, in an amount equal to 25 
     percent of the amount of grant funds provided to the State 
     under this title (which may be provided in cash or in-kind, 
     but not more than 10 percent of the amount of grant funds may 
     be provided in-kind) to carry out the activities supported by 
     the grant. In-kind contributions shall be directed toward 
     supporting State educational agency technical assistance 
     efforts or the operation of the State's differentiated high 
     school improvement system.

     SEC. 106. SECRETARIAL PEER REVIEW AND APPROVAL.

       (a) In General.--The Secretary shall--
       (1) establish a peer-review process to assist in the review 
     and approval of State plans;
       (2) appoint individuals to the peer-review process who are 
     educators and experts in educational standards, assessments, 
     accountability, high school improvement, dropout prevention, 
     and other educational needs of high school students;
       (3) approve a State plan submitted under this title not 
     later than 120 days after the date of the submission of the 
     plan unless the Secretary determines that the plan does not 
     meet the requirements of this title;
       (4) if the Secretary determines that the State plan does 
     not meet the requirements of this title, immediately notify 
     the State of such determination and the reasons for such 
     determination;
       (5) not decline to approve a State's plan before--
       (A) offering the State an opportunity to revise the State's 
     plan;
       (B) providing the State with technical assistance in order 
     to submit a successful application; and
       (C) providing a hearing to the State; and
       (6) have the authority to disapprove a State plan for not 
     meeting the requirements of this title.
       (b) State Revisions.--A State plan shall be revised by the 
     State educational agency if required to do so by the 
     Secretary to satisfy the requirements of this title.
       (c) Accuracy.--In approving a State plan, the Secretary 
     shall ensure that--
       (1) the process the State educational agency proposes for 
     differentiating school improvement actions under section 
     109(b)(4) will assign high schools to each category in such a 
     way that accurately identifies schools and leads to the 
     implementation of the interventions necessary to meet student 
     needs; and
       (2) the minimum expected growth targets proposed by the 
     State educational agency under section 109(b)(2)(B) are 
     meaningful, achievable, and demonstrate continuous and 
     substantial progress.

     SEC. 107. TECHNICAL ASSISTANCE.

       If the Secretary determines that a State does not have the 
     capacity to carry out high school improvement activities, the 
     Secretary shall offer technical assistance to carry out such 
     activities to States directly or through contracts with 
     technical assistance providers.

     SEC. 108. DIFFERENTIATED HIGH SCHOOL IMPROVEMENT SYSTEM.

       (a) In General.--A State educational agency that receives a 
     grant under this title shall use such funds to establish or 
     expand differentiated high school improvement systems.
       (b) System Requirements.--The systems described in 
     subsection (a) shall be designed to do the following:
       (1) Identify high-priority high schools.--The system shall 
     be designed to identify high-priority high schools within the 
     State.
       (2) Differentiate school improvement actions.--The system 
     shall be designed to differentiate school improvement actions 
     based on the amount and type of supports necessary to improve 
     student achievement and graduation rates in high schools 
     within the State.
       (3) Locally driven improvement plans.--The system shall be 
     designed to provide resources to support evidence-based 
     activities chosen by local school improvement teams and based 
     on school performance data.
       (4) Target funds.--The system shall be designed to target 
     resources and support to those high-priority high schools 
     within the State.
       (5) Recognize progress.--The system shall be designed to 
     ensure that high schools making progress on school 
     performance indicators continue to implement effective school 
     improvement strategies identified in their current school 
     improvement plan.
       (6) Demonstrate commitment.--The system shall be designed 
     to ensure that high-priority high schools making progress on 
     school performance indicators continue to

[[Page S4846]]

     have the resources and supports necessary to continue 
     improving high school graduation rates and student 
     achievement.
       (7) Build capacity.--The system shall be designed to build 
     the capacity of the State educational agencies and local 
     educational agencies to assist in improving student 
     achievement and graduation rates in high-priority high 
     schools.

     SEC. 109. STATE APPLICATION TO DEVELOP DIFFERENTIATED HIGH 
                   SCHOOL IMPROVEMENT SYSTEMS.

       (a) In General.--
       (1) In general.--For a State to be eligible to receive a 
     grant under this title, the State educational agency shall 
     submit an application to the Secretary at such time, in such 
     manner, and containing such information as the Secretary may 
     reasonably require.
       (2) Revised application.--The State educational agency 
     shall submit a revised application every 5 years based on an 
     evaluation of the activities conducted under this title.
       (b) Contents.--Each application submitted under this 
     section shall include the following:
       (1) School improvement process.--The State educational 
     agency shall describe how the State educational agency will 
     use funds authorized under this title to establish or expand 
     a high school improvement system described in sections 108 
     and 110.
       (2) School performance indicators.--
       (A) In general.--The State educational agency shall define 
     a set of comprehensive school performance indicators that 
     shall be used, in addition to the indicators used to 
     determine adequate yearly progress, to analyze school 
     performance, determine the amount and type of support the 
     school needs, and guide the school improvement process, such 
     as--
       (i) student attendance rates;
       (ii) earned on-time promotion rates from grade to grade;
       (iii) percent of students who have on-time credit 
     accumulation at the end of each grade;
       (iv) percent of students failing a core, credit-bearing 
     mathematics, reading or language arts, or science course, or 
     failing 2 or more of any course;
       (v) percent of students taking a college preparatory 
     curriculum, which may include percent of students taking 
     Advanced Placement, International Baccalaureate courses, or 
     college courses taken for dual credit;
       (vi) teacher quality and attendance measures;
       (vii) student rates of college enrollment, persistence, and 
     attainment; and
       (viii) additional indicators proposed by the State 
     educational agency and approved by the Secretary as part of 
     the peer-review process described in section 110.
       (B) Expected growth.--The State educational agency shall 
     define a minimum percent of expected annual growth for each 
     school performance indicator that demonstrates continuous and 
     substantial progress.
       (3) Capacity evaluations.--
       (A) State educational agency and local educational agency 
     capacity.--The State educational agency shall describe how it 
     will evaluate and ensure that the State educational agency 
     and local educational agency have sufficient capacity to 
     improve high-priority high schools.
       (B) High school capacity and needs assessment.--The State 
     educational agency shall describe how it will ensure that 
     each high school that does not make adequate yearly progress 
     for 2 consecutive years will undergo a capacity and needs 
     assessment as described in section 111(e) and use such 
     information to assist in determining the amount of the 
     subgrant awarded under section 110(f).
       (4) Differentiated school improvement.--The State 
     educational agency shall describe how data from the school 
     performance indicators described in paragraph (2) and 
     indicators used to determine adequate yearly progress will be 
     used by local educational agencies as criteria for placing 
     high schools that do not make adequate yearly progress for 2 
     consecutive years into 1 of the following school improvement 
     categories:
       (A) Schools needing targeted interventions.--High schools 
     whose school performance indicators demonstrate a need for 
     targeted interventions to improve student outcomes and make 
     adequate yearly progress.
       (B) Schools needing whole school reforms.--High schools 
     whose school performance indicators demonstrate a need for 
     comprehensive schoolwide reform to improve student outcomes 
     and make adequate yearly progress.
       (C) Schools needing replacement.--High schools whose school 
     performance indicators demonstrate a need for replacement, as 
     described in section 112(d).
       (D) Special rule.--States may propose systems of 
     differentiation aligned with their existing State 
     accountability systems that include additional categories.
       (E) Rule of construction.--Notwithstanding any other 
     provision of law, for purposes of this title, a high school 
     shall be designated as a school in need of whole school 
     reform or as a school in need of replacement in the case that 
     such high school has--
       (i) a graduation rate of 60 percent or less; or
       (ii) achievement levels below the initial baseline for 
     measuring the percentage of students meeting or exceeding the 
     State's proficient level of academic achievement in either 
     mathematics or English or language arts in accordance with 
     section 1111(b)(2)(E) of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 6311(b)(2)(E)).
       (5) State review of local educational agency plans.--The 
     State educational agency shall describe the following:
       (A) Review local educational agency plans.--The State 
     educational agency shall describe how it will collect and 
     review high school improvement plans of local educational 
     agencies using the peer-review process described in section 
     110(b) submitted by local educational agencies in accordance 
     with section 111(e).
       (B) Allocation of subgrants.--The State educational agency 
     shall describe how it will award subgrants to local 
     educational agencies using the peer-review process described 
     in section 110(b) in accordance with section 110(f).
       (C) Monitoring of school improvement plans.--The State 
     educational agency shall describe how it will review and 
     monitor the implementation of high school improvement plans 
     of high schools that do not meet the expected growth targets 
     set in accordance with paragraph (2)(B) and defined in the 
     school improvement plan described in section 111(d).
       (D) Provide technical assistance.--
       (i) In general.--The State educational agency shall 
     describe how it will provide technical assistance to local 
     educational agencies and high schools that need support to 
     implement high school improvement plans described in section 
     111(d) and improve graduation rates and student achievement, 
     including through the use of technical assistance providers, 
     where appropriate.
       (ii) School improvement teams.--The State educational 
     agency shall describe how it will assist school improvement 
     teams described in section 111(b), when needed, including how 
     it will--

       (I) support and provide resources and training to school 
     improvement teams;
       (II) allocate staff to participate on school improvement 
     teams;
       (III) provide technical assistance to the school 
     improvement teams; and
       (IV) ensure that the school improvement teams have access 
     to technical assistance providers when needed.

       (6) Demonstration of commitment.--The State educational 
     agency shall demonstrate how it will provide ongoing support 
     to high schools that need targeted interventions, whole 
     school reforms and replacement, and are making progress on 
     school performance indicators, to ensure continued 
     improvement, including the availability of funds from non-
     Federal sources.
       (7) Middle grade early indicator warning system.--The State 
     educational agency shall demonstrate how it will work with 
     local educational agencies with low graduation rates to 
     develop middle grade early indicator warning systems 
     consisting of factors used to identify students who are 
     struggling academically and have poor attendance records or 
     have been suspended in or before the middle grades or are 
     likely to struggle in high school or to not graduate and, 
     where appropriate, provide supports to get such students back 
     on track.
       (8) Evaluation of success.--The State educational agency 
     shall describe how, every 5 years, it will evaluate how the 
     activities assisted under this title have been successful in 
     improving student achievement and outcomes of the cohort of 
     students that entered 9th grade 4 years earlier.

     SEC. 110. STATE EDUCATIONAL AGENCY USE OF FUNDS.

       (a) In General.--A State educational agency that receives a 
     grant under section 105--
       (1) may reserve not more than 10 percent of the grant funds 
     to carry out the activities under this title; and
       (2) shall use not less than 90 percent of the grant funds 
     to make subgrants to local educational agencies in accordance 
     with subsection (b).
       (b) State Educational Agency Peer Review.--A State 
     educational agency that receives a grant under this title 
     shall review applications submitted under section 111 and 
     make awards in accordance with subsection (f) with the 
     assistance and advice of a panel who are educators and 
     experts in--
       (1) educational standards, assessments, and accountability;
       (2) high school improvement;
       (3) dropout prevention; and
       (4) other educational needs of high school students.
       (c) Accuracy.--The State educational agency, in 
     consultation with the panel described in subsection (b), 
     shall ensure the local educational agency has designated the 
     school improvement category described in section 109(b)(4) 
     for each high school served by the local educational agency 
     that did not make adequate yearly progress for 2 consecutive 
     years in such a way that accurately identifies schools and 
     leads to the implementation of the interventions necessary to 
     meet student needs.
       (d) Opportunity To Revise.--If the State educational 
     agency, in consultation with the panel described in 
     subsection (b), determines that the local educational 
     agency's application does not meet the requirements of this 
     title, the State educational agency shall immediately notify 
     the local educational agency of such determination and the 
     reasons for such determination, and offer--
       (1) the local educational agency an opportunity to revise 
     the application; and
       (2) technical assistance to the local educational agency to 
     revise the application.

[[Page S4847]]

       (e) Technical Assistance.--The State educational agency 
     shall provide technical assistance to a local educational 
     agency requesting such assistance in preparing the 
     application and needs assessment required under section 111.
       (f) Award of Subgrants to Local Educational Agencies.--
       (1) In general.--A State educational agency that receives a 
     grant under this title shall award subgrants to local 
     educational agencies with applications approved on the basis 
     of--
       (A) the quality of the plan to improve student graduation 
     rates and student achievement in high schools that have not 
     made adequate yearly progress for 2 consecutive years; and
       (B) the capacity of the local educational agency to 
     implement the plan.
       (2) Amount.--A subgrant under this section shall be awarded 
     in an amount that is based on--
       (A) the number and size of high schools served by the local 
     educational agency needing--
       (i) targeted interventions;
       (ii) whole school reforms; and
       (iii) replacement;
       (B) the types of reforms or interventions proposed;
       (C) the resources available to the high schools to 
     implement the reforms or interventions proposed; and
       (D) the resources available to the local educational agency 
     to implement the reforms or interventions proposed.
       (3) Priority.--The State educational agency shall first 
     award subgrants to local educational agencies serving high 
     schools needing whole school reforms and replacement. The 
     State educational agency shall award remaining subgrant funds 
     to local educational agencies serving high schools needing 
     targeted interventions.
       (g) Authority To Intervene.--If the State educational 
     agency determines that a local educational agency does not 
     have the capacity to implement high school improvement 
     activities described in the school improvement plan, the 
     State educational agency may intervene to implement the high 
     school improvement plans or enter into contracts with 
     technical assistance providers to assist local educational 
     agencies with the implementation of high school improvement 
     plans.
       (h) Implementation of State Educational Agency 
     Application.--The State educational agency shall use funds 
     under this title to carry out the activities included in the 
     application described in section 109.
       (i) Supplement, Not Supplant.--A State educational agency 
     that receives a grant under this title shall use the grant 
     funds to supplement, and not supplant, Federal and non-
     Federal funds available to high schools.

     SEC. 111. LOCAL EDUCATIONAL AGENCY IMPLEMENTATION OF SCHOOL 
                   IMPROVEMENT SYSTEM.

       (a) Differentiate High Schools.--A local educational agency 
     that applies for a subgrant under this title shall designate 
     the category of high school improvement, as described in 
     section 109(b)(4), using data from the school performance 
     indicators as criteria, as prescribed by the State 
     educational agency, for each high school served by such 
     agency that does not make adequate yearly progress for 2 
     consecutive years.
       (b) School Improvement Teams.--
       (1) In general.--To be eligible to receive a subgrant under 
     this title, a local educational agency shall convene a school 
     improvement team for each high school served by such agency 
     that does not make adequate yearly progress for 2 consecutive 
     years and is assigned to 1 of the school improvement 
     categories defined in section 109(b)(4), which--
       (A) shall include--
       (i) the building principal;
       (ii) teachers representing different grade levels or 
     disciplines;
       (iii) local educational agency staff;
       (iv) parents, including parents of students who have low 
     graduation rates;
       (v) community representatives, including representatives of 
     nonprofit organizations serving young people and the business 
     community; and
       (vi) pupil service representatives; and
       (B) may include--
       (i) technical assistance providers, where appropriate; and
       (ii) State educational agency staff when requested by the 
     local educational agency or assigned by the State educational 
     agency.
       (2) Collaboration.--A local educational agency shall ensure 
     collaboration--
       (A) of school improvement teams with personnel of middle 
     schools served by the local educational agency whose students 
     go on to attend high schools that are designated as in need 
     of targeted assistance, whole school reform, or replacement, 
     where appropriate; and
       (B) between school improvement teams working at different 
     high schools served by the local educational agency, to the 
     extent appropriate.
       (c) Develop Student Indicators.--To be eligible to receive 
     a subgrant under this title, a local educational agency shall 
     develop a set of indicators to determine the number and 
     percent of students who begin high school at high risk for 
     not graduating high school with a regular diploma and 
     describe how the school improvement team will use such 
     indicators to determine the type and intensity of supports 
     each student needs. Such indicators shall include the number 
     and percent of 9th grade students who--
       (1) in the 8th grade--
       (A) failed a credit-bearing mathematics or reading or 
     language arts course, or 2 or more of any course;
       (B) attended school less than 90 percent of the required 
     time; and
       (C) received an out-of-school suspension;
       (2) repeat the 9th grade;
       (3) enter the 9th grade over the average age; or
       (4) have experienced interrupted formal education.
       (d) Develop High School Improvement Plans.--The school 
     improvement team convened under subsection (b) shall use data 
     from the school performance indicators, the student 
     indicators, measures used to determine adequate yearly 
     progress, the capacity and needs assessment described in 
     subsection (e), and other relevant data and knowledge of the 
     school to develop a multiyear school improvement plan for 
     each school. Such plan shall--
       (1) identify annual benchmarks for school performance 
     indicators that meet or exceed the minimum percentage of 
     expected growth defined by the State educational agency in 
     section 109(b)(2)(B);
       (2) define the evidence-based academic and nonacademic 
     interventions and resources necessary to meet annual 
     benchmarks and make adequate yearly progress;
       (3) identify the roles of the State educational agency, the 
     local educational agency, the school, and technical 
     assistance providers and service providers, as appropriate, 
     in providing identified interventions and resources necessary 
     to meet annual benchmarks and make adequate yearly progress;
       (4) provide for the involvement of business and community 
     organizations and other entities, including parents and 
     institutions of higher education, in the activities to be 
     assisted under this title; and
       (5) describe and direct the use of--
       (A) any additional funding to be provided by the State 
     educational agency, the local educational agency, or other 
     sources; and
       (B) technical assistance providers, where appropriate.
       (e) High School Capacity and Needs Assessment.--
       (1) In general.--To be eligible to receive a subgrant under 
     this title, a local educational agency shall submit, with the 
     application described in subsection (f), to the State 
     educational agency a capacity and needs assessment for each 
     high school served by such agency that does not make adequate 
     yearly progress for 2 consecutive years.
       (2) Assessment.--The assessment under paragraph (1) shall 
     be conducted by a school improvement team described in 
     subsection (b) and the local educational agency and shall 
     include--
       (A) a description and analysis of the school's capacity to 
     implement needed school improvement activities identified in 
     the school improvement plan, including an analysis of--
       (i) the number, experience, training level, 
     responsibilities, and stability of existing administrative, 
     instructional, and noninstructional staff for each high 
     school to be assisted;
       (ii) a review of the budget, including how Federal, State, 
     and local funds are currently being spent for instruction and 
     operations at the school level for staff salaries, 
     instructional materials, professional development, and 
     student support services to establish the extent to which 
     existing resources need to and can be reallocated to support 
     the needed school improvement activities; and
       (iii) additional resources and staff necessary to implement 
     the needed school improvement activities described in section 
     112; and
       (B) an analysis of the local educational agency's capacity 
     to provide technical assistance, additional staff, and 
     resources to implement the school improvement plan to improve 
     high school performance.
       (3) Requirements.--The information provided in the capacity 
     and needs assessment in coordination with the school 
     improvement plan shall be used to determine the level and 
     direct the use of--
       (A) funds requested by the local educational agency for 
     each high school to be assisted under this title;
       (B) any additional funding to be provided by the State 
     educational agency, the local educational agency, or other 
     sources; and
       (C) technical assistance providers, where appropriate.
       (f) Application.--
       (1) In general.--To be eligible to receive a subgrant under 
     this title, a local educational agency--
       (A) shall submit an application to the State educational 
     agency at such time, in such manner, and containing such 
     information as the State educational agency may reasonably 
     require; and
       (B) may request technical assistance from the State 
     educational agency in preparing the application and the 
     capacity and needs assessment required under this section.
       (2) Contents.--Each application submitted under this 
     section shall use data from the capacity and needs assessment 
     required in subsection (e) and shall include the following:
       (A) A description of how the local educational agency used 
     data from the school performance indicators as criteria to 
     designate the school improvement category described in 
     section 109(b)(4) for each high school served by such agency 
     that did not make adequate yearly progress for 2 consecutive 
     years.
       (B) An identification of each high school served by the 
     local educational agency that

[[Page S4848]]

     did not make adequate yearly progress for 2 consecutive years 
     and the designation of the school improvement category for 
     each such school, as described in section 109(b)(4).
       (C) A description of the activities to be carried out by 
     the local educational agency under this title and a 
     description of how the activities will be research-based and 
     an explanation of why the activities are expected to improve 
     student achievement and increase graduation rates.
       (D) An assurance that the local educational agency will use 
     funds authorized under this title and received from the State 
     educational agency first to meet the needs of high schools 
     served by the local educational agency that need whole school 
     reforms or high schools served by the local educational 
     agency that need replacement.
       (E) A description of how the local educational agency will 
     provide for the involvement of parents, business and 
     community organizations, including institutions of higher 
     education, in the activities to be assisted under this title, 
     and the resources such entities will make available to assist 
     in such activities.
       (F) An assurance that the local educational agency shall 
     provide ongoing support and resources to high schools that 
     need whole school reforms and that need replacement, and are 
     making progress on school performance indicators, to ensure 
     continued improvement.
       (G) A description of how the local educational agency will 
     increase its capacity to improve high schools with low 
     student achievement and graduation rates.
       (H) A description of the options that will be provided to 
     high school students served by the local educational agency, 
     such as--
       (i) programs for credit recovery for overage or under-
     credited students; and
       (ii) secondary-postsecondary learning opportunities, 
     including dual enrollment programs and early college high 
     schools.
       (g) Implement High School Improvement Plans.--The local 
     educational agency shall use funds to ensure the 
     implementation of school improvement plans.
       (h) Ensure Continuous High School Improvement.--
       (1) In general.--The local educational agency shall ensure 
     the continuous improvement of high schools by evaluating the 
     progress of high schools in making the continuous and 
     substantial progress as defined in the school improvement 
     plan in accordance with the minimum expected growth set by 
     the State educational agency in section 109(b)(2)(B) and 
     determining whether the high school is on track or not on 
     track as provided in paragraphs (2) and (3).
       (2) On track.--Each high school that is meeting the annual 
     benchmarks as defined in the school improvement plan shall 
     continue to implement school improvement activities in 
     accordance with the school improvement plan.
       (3) Not on track.--For each high school that is not meeting 
     the annual benchmarks as defined in the school improvement 
     plan, the local educational agency shall--
       (A) after 1 year, review the school improvement plan, and 
     develop and implement a new plan, as appropriate;
       (B) after 2 years, redesignate the school into a different 
     school improvement category, as described in section 
     109(b)(4), either--
       (i) as a school in need of whole school reform; or
       (ii) as a school in need of replacement; and
       (C) develop and submit to the State educational agency for 
     review a new school improvement plan, as appropriate.
       (i) Targeted Interventions for Feeder Middle Schools.--A 
     local educational agency that receives a subgrant under this 
     title, consistent with subsection (f)(2)(D), may use funds 
     to--
       (1) implement research- and evidence-based interventions to 
     improve middle schools served by such agency whose students 
     go on to attend high schools served by the local educational 
     agency that need whole school reforms or high schools served 
     by the local educational agency that need replacement; and
       (2) establish an early indicator warning system consisting 
     of factors used to identify students who are struggling 
     academically and have poor attendance records or have been 
     suspended in or before the middle grades or are likely to 
     struggle in high school or to not graduate and provide 
     supports to get such students back on track.
       (j) Supplement, Not Supplant.--A local educational agency 
     that receives a subgrant under this title shall use the 
     subgrant funds to supplement, and not supplant, Federal and 
     non-Federal funds available for high schools.
       (k) Matching Funds.--
       (1) In general.--A local educational agency receiving a 
     grant under this title shall provide matching funds, from 
     non-Federal sources, in an amount equal to not less than 15 
     percent of the total subgrant award for the local educational 
     agency, which may be provided in cash or in-kind, to provide 
     technical assistance to high schools served by the local 
     educational agency in developing their high school 
     improvement plans, conducting the capacity and needs 
     assessment, and in implementing and monitoring the 
     implementation of the high school improvement plans.
       (2) Waiver.--The Secretary may waive all or part of the 
     matching requirement described in paragraph (1) for any 
     fiscal year for a local educational agency if the Secretary 
     determines that applying the matching requirement to such 
     local educational agency would result in serious hardship or 
     an inability to carry out the authorized activities described 
     in section 110.

     SEC. 112. SCHOOL IMPROVEMENT ACTIVITIES.

       (a) In General.--Each school improvement team convened as 
     described in section 111 shall ensure that the school 
     improvement activities developed under the school improvement 
     plan are implemented.
       (b) Targeted Interventions.--A high school or local 
     educational agency, as determined by the school improvement 
     team, shall implement research-based targeted interventions, 
     using data from the school performance and student indicators 
     and capacity evaluations for schools identified for such 
     interventions pursuant to section 111. The targeted 
     interventions shall be designed, at a minimum, to address the 
     specific problems identified by the indicators.
       (c) Whole School Reforms.--The local educational agency or 
     State educational agency, with technical assistance from 
     technical assistance providers, as determined by the school 
     improvement team, shall implement research-based whole school 
     reforms, using data from the school performance indicators 
     (as described in section 109(b)(2)) and capacity evaluations 
     (as described in section 109(b)(3)), to schools designated as 
     needing whole school reform pursuant to section 111. Such 
     reforms--
       (1) shall address the comprehensive aspects of high school 
     reform, such as--
       (A) attendance;
       (B) student engagement, behavior, and effort;
       (C) academic success; and
       (D) teacher and administrator skill and collaboration;
       (2) shall address resource allocation, including--
       (A) student supports;
       (B) teacher and staff support;
       (C) materials and equipment;
       (D) time for collaboration; and
       (E) the use of data;
       (3) shall be designed to address--
       (A) the multiple layers of school improvement demonstrated 
     by research and best practice;
       (B) schoolwide needs;
       (C) students who need targeted assistance; and
       (D) students who need intensive interventions;
       (4) shall include activities that serve to--
       (A) personalize the school experience, increase student 
     engagement, attendance, and effort, and enable schools to 
     provide the level and intensity of student support needed, by 
     creating constructs, such as--
       (i) smaller schools or smaller units within schools with 
     their own leadership, such as 9th grade transition programs 
     or academies, and upper grade programs or academies, 
     including career academies;
       (ii) thematic small-learning communities;
       (iii) teams of teachers who work exclusively with small 
     groups of students; or
       (iv) using extended periods, such as block scheduling, to 
     reduce the number of students for whom teachers are 
     responsible and the number of courses students are taking at 
     any one time;
       (B) improve curriculum and instruction, such as--
       (i) implementing a college- and work-ready curriculum for 
     all students;
       (ii) adopting well-designed curriculum and instructional 
     materials aligned to high academic standards for all 
     students, including students with diverse learning needs;
       (iii) offering extended learning opportunities, both in 
     school and through after-school and summer programs;
       (iv) emphasizing intensive core academic preparation and 
     college and work-ready skills development;
       (v) increasing rigor through advanced placement courses, 
     international baccalaureate courses, dual enrollment, and 
     early college high schools opportunities;
       (vi) creating contextual learning opportunities aligned 
     with college and work readiness, such as through a high-
     quality career and technical education (as defined in section 
     3 of the Carl D. Perkins Career and Technical Education Act 
     of 2006 (20 U.S.C. 2302)) option for upper grades;
       (vii) collecting and using comprehensive data, including 
     formative assessments;
       (viii) offering mentoring and tutoring; and
       (ix) implementing pedagogies that actively engage students 
     in the learning process;
       (C) increase teacher and principal effectiveness through 
     activities such as--
       (i) providing teacher and administrator supports and 
     research-based, ongoing professional development tied to 
     needs identified in the school improvement plan;
       (ii) providing regular opportunities for teachers of core 
     academic subjects to--

       (I) meet together in both subject area and 
     interdisciplinary groups;
       (II) review student achievement data; and
       (III) plan instruction;

       (iii) implementing a schoolwide literacy or mathematics 
     plan that may include hiring literacy or mathematics coaches; 
     and
       (iv) developing administrator learning networks and 
     supports;
       (D) increase student supports, such as--
       (i) student advisories;
       (ii) 9th grade transition programs;
       (iii) credit completion recovery programs;
       (iv) additional counselors, social workers, and mental and 
     behavioral health service providers;
       (v) student advocates;

[[Page S4849]]

       (vi) strengthening involvement of parents in the academic 
     life of students;
       (vii) school-family-community partnerships;
       (viii) wraparound social services;
       (ix) before and after school programs; or
       (x) additional supports for students with diverse learning 
     needs, including students with disabilities and English 
     language learners;
       (E) improve middle schools within a local educational 
     agency whose students go on to attend such high schools and 
     establish an early indicator warning system consisting of 
     factors used to identify students who are struggling 
     academically and have poor attendance records or have been 
     suspended in or before the middle grades or are likely to 
     struggle in high school or not to graduate and provide 
     supports to get them back on track; and
       (F) provide the local educational agency or high school 
     with flexible budget and hiring authority where needed to 
     implement improvements; and
       (5) may include other activities designed to address whole 
     school needs, such as implementing a comprehensive reform 
     model.
       (d) Replacement.--The local educational agency or the State 
     educational agency, with assistance from technical assistance 
     providers, shall replace high schools, using data from the 
     school performance indicators and high school capacity and 
     needs assessment (described in paragraphs (2) and (3) of 
     section 109(b), respectively) designated as needing 
     replacement pursuant to section 111. Replacement shall be 
     implemented--
       (1) by replacing such schools with 1 or more new small 
     schools using effective school models with evidence of 
     success with students with similar academic challenges and 
     outcomes to those attending the school being replaced;
       (2) by reopening such schools after combining the 
     assignment of a new administrative team that has the 
     authority to select a new teaching staff with the use of 
     research-based strategies through--
       (A) the implementation of a whole school reform model with 
     evidence of success with students with similar academic 
     outcomes to those attending the school being replaced; and
       (B) increasing learning time;
       (3) by closing such schools and reassigning the students to 
     high schools that have made adequate yearly progress for the 
     past 2 years; or
       (4) by otherwise replacing such schools.

     SEC. 113. EVALUATION AND REPORTING.

       (a) Local Educational Agency Reporting.--On an annual 
     basis, each local educational agency receiving funds under 
     this title shall report to the State educational agency and 
     to the public on--
       (1) the designated category of school improvement for each 
     high school served by the local educational agency under this 
     title;
       (2) the school performance indicators (as described in 
     section 109(b)(2)) for each school served under this title, 
     in the aggregate and disaggregated by the subgroups described 
     in section 1111(b)(2)(C)(v)(II) of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 
     6311(b)(2)(C)(v)(II));
       (3) progress in meeting the benchmarks for each high school 
     served pursuant to this title; and
       (4) the use of funds by the local educational agency and 
     each such school.
       (b) State Educational Agency Reporting.--On an annual 
     basis, each State educational agency receiving funds under 
     this title shall report to the Secretary and to the public 
     on--
       (1) the school performance indicators (as described in 
     section 109(b)(2)), in the aggregate and disaggregated by the 
     subgroups described in section 1111(b)(2)(C)(v)(II) of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     6311(b)(2)(C)(v)(II));
       (2) progress in meeting the benchmarks for each high school 
     served pursuant to this title;
       (3) the high schools that have changed school improvement 
     categories in accordance with section 111(h); and
       (4) the use of funds by each local educational agency and 
     each school served with such funds.
       (c) Report to Congress.--Every 2 years, the Secretary shall 
     report to Congress and to the public--
       (1) a summary of the State reports; and
       (2) on the use of funds by each State under this title.

     SEC. 114. AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated to carry out the 
     activities authorized under this title, $2,400,000,000 for 
     fiscal year 2008 and each of the 4 succeeding fiscal years.

            TITLE II--DEVELOPMENT OF EFFECTIVE SCHOOL MODELS

     SEC. 201. FINDINGS AND PURPOSES.

       (a) Findings.--The Senate finds the following:
       (1) With close to a third of our Nation's high school 
     students failing to graduate in 4 years, and another third 
     graduating without the skills and knowledge needed to succeed 
     in college or the workplace, new models of high school are 
     clearly needed, especially for struggling students who are 
     not on track to a high school diploma.
       (2) Researchers have identified leading indicators that, 
     taken together, are as much as 85 percent predictive of which 
     9th graders will not graduate from high school 4 years later.
       (3) In the 2000 high schools nationwide with estimated 4-
     year graduation rates of 60 percent or lower, 80 percent of 
     the 9th graders are significantly behind in skills or 
     credits. By a conservative estimate, this adds up to not 
     fewer than 500,000 students who are not on track to 
     graduation.
       (4) Poor outcomes for struggling students are endemic in 
     cities, towns, and rural areas across the country. Graduation 
     rates for students who are not on-track to an on-time 
     graduation in ninth grade are as low as 20 percent.
       (5) Schools designed to accelerate students' learning and 
     get them on track to a college-ready diploma make a 
     difference. The Early College High School Initiative has 
     started 130 schools serving approximately 16,000 students in 
     23 States. Early results indicate that in the first programs 
     to graduate students, over 95 percent earned a high school 
     diploma, over 57 percent earned an associate's degree, and 
     over 80 percent were accepted at a 4-year college
       (6) Most States and districts have limited capacity to 
     expand and spread proven practices and models for improving 
     graduation rates within a high standards environment.
       (7) The Nation's young people understand the value of 
     education and will persist, often against considerable odds, 
     to further their education. From 1980 to 2002, a period of 
     time with no discernible increase in the country's graduation 
     rates, the percentage of 10th graders aspiring to a 
     bachelor's degree or higher increased from 40 percent to 80 
     percent, with the largest increase among low-income youth.
       (8) Young people who fall behind and drop out of high 
     school often report that they regret leaving and wish they 
     had been encouraged and supported to work harder while they 
     were in school. Many persevere despite a lack of school 
     options or pathways designed to help them succeed. Close to 
     60 percent of dropouts eventually earn a high school 
     credential--in most cases a GED certificate. Almost half of 
     these students--44 percent--later enroll in 2-year or 4-year 
     colleges, but despite their efforts fewer than 10 percent 
     earn a postsecondary degree.
       (b) Purposes.--The purposes of this title are--
       (1) to facilitate the development and implementation of 
     effective secondary school models for struggling students and 
     dropouts; and
       (2) to build the capacity of State educational agencies, 
     local educational agencies, nonprofit organizations, and 
     institutions of higher education to implement effective 
     secondary school models for struggling students and dropouts.

     SEC. 202. DEFINITIONS.

       In this title:
       (1) Dropout.--The term ``dropout'' means an individual 
     who--
       (A) is not older than 21;
       (B)(i) is not attending any school; or
       (ii) prior to attending a school based on an effective 
     school model, was not attending any school; and
       (C) has not received a secondary school regular diploma or 
     its recognized equivalent.
       (2) Effective school model.--The term ``effective school 
     model'' means--
       (A) an existing secondary school model with demonstrated 
     effectiveness in improving student academic achievement and 
     outcomes for struggling students or dropouts; or
       (B) a proposed new secondary school model design that is 
     based on research-based organizational and instructional 
     practices for improving student academic achievement and 
     outcomes for struggling students or dropouts.
       (3) Eligible entity.--The term ``eligible entity'' means--
       (A) a local educational agency, nonprofit organization, or 
     institution of higher education--
       (i) that proposes to enhance or expand an existing 
     effective school model for struggling students or dropouts; 
     or
       (ii) that has a track record of serving struggling students 
     or dropouts and proposes to develop a new effective school 
     model for struggling students or dropouts; or
       (B) a partnership involving 2 or more entities described in 
     subparagraph (A).
       (4) Struggling student.--The term ``struggling student''--
       (A) means a high school-aged student who is not making 
     sufficient progress toward graduating from secondary school 
     with a regular diploma in the standard number of years; and
       (B) includes a student who--
       (i) has been retained in grade level;
       (ii) is under-credited, defined as a high school student 
     who lacks either the necessary credits or courses, as 
     determined by the relevant local educational agency and State 
     educational agency, to graduate from secondary school with a 
     regular diploma in the standard number of years; or
       (iii) is a late entrant English language learner, defined 
     as a high school student who--

       (I) enters a school served by a local educational agency at 
     grade 9 or higher; and
       (II) is identified by the local educational agency as being 
     limited English proficient and as having experienced 
     interrupted formal education.

     SEC. 203. GRANTS AUTHORIZED.

       (a) In General.--The Secretary is authorized to award 
     grants, on a competitive basis, to eligible entities to 
     enable the eligible entities to develop and implement, or 
     replicate, effective school models for struggling students 
     and dropouts.

[[Page S4850]]

       (b) Period of Grant.--A grant awarded under this section 
     shall be for a period of 3 years.

     SEC. 204. APPLICATION.

       (a) In General.--Each eligible entity desiring a grant 
     under this title shall submit an application to the Secretary 
     at such time, in such manner, and containing such information 
     as the Secretary may require.
       (b) Contents.--Each application submitted under this 
     section shall include a description of--
       (1) how the eligible entity will carry out the mandatory 
     activities under section 206(a);
       (2) the research or evidence concerning the effective 
     school model that the eligible entity proposes to develop and 
     implement or replicate, including--
       (A) for an existing effective school model described in 
     section 203(2)(A), the evidence that the model has improved 
     academic outcomes for struggling students or dropouts; or
       (B) for a proposed effective school model described in 
     section 203(2)(B), the research that supports the key 
     organizational and instructional practices of the proposed 
     effective school model;
       (3) the eligible entity's school design elements and 
     principles that will be used in the effective school model, 
     including--
       (A) the academic program;
       (B) the instructional practices;
       (C) the methods of assessment; and
       (D) student supports and services, such as those provided 
     by the school or offered by other organizations and agencies 
     in the community, to support positive student academic 
     achievement and outcomes;
       (4) how the eligible entity will use student data from the 
     local educational agency or State educational agency--
       (A) to demonstrate the need for and projected benefits of 
     the effective school model; and
       (B) in the implementation of the model, in order to improve 
     academic outcomes for struggling students or dropouts;
       (5) for each school in which the eligible entity implements 
     or replicates an effective school model under this title, how 
     the eligibility entity will sustain the implementation or 
     replication of the effective school model, including the 
     financing mechanism to be used;
       (6) how the eligible entity will collect data and 
     information to assess the performance of the effective school 
     model and will make necessary adjustments to ensure 
     continuous and substantial improvement in student academic 
     achievement and outcomes; and
       (7) how the eligible entity will make the performance data 
     available to State educational agencies, local educational 
     agencies, and schools serving struggling students or 
     dropouts.

     SEC. 205. SECRETARIAL PEER REVIEW AND APPROVAL.

       The Secretary shall--
       (1) establish a peer-review process to assist in the review 
     and approval of applications submitted by eligible entities 
     under section 204; and
       (2) appoint individuals to the peer-review process who are 
     experts in high school reform, dropout prevention and 
     recovery, new school development for struggling students and 
     dropouts, and adolescent and academic development.

     SEC. 206. USE OF FUNDS.

       (a) Mandatory Use of Funds.--An eligible entity receiving a 
     grant under this title shall use grant funds to--
       (1) enhance and expand, or replicate, an existing effective 
     school model described in section 202(2)(A), or develop a 
     proposed effective school model described in section 
     202(2)(B), for struggling students and dropouts;
       (2) assess the progress of the implementation or 
     replication of the effective school model and make necessary 
     adjustments to ensure continuous improvement;
       (3) provide opportunities for professional development 
     associated with the continuous improvement and implementation 
     or replication of the effective school model;
       (4) collect data and information on the school model's 
     effectiveness in improving student academic achievement and 
     outcomes for struggling students and dropouts and disseminate 
     such data and information to State educational agencies, 
     local educational agencies, and schools; and
       (5) build the capacity of the eligible entity to--
       (A) sustain the implementation or replication of the 
     effective school model assisted under paragraph (1) after the 
     grant period has ended; and
       (B) replicate the effective school model.
       (b) Optional Use of Funds.--An eligible entity receiving a 
     grant under this title may use grant funds to--
       (1) identify and create partnerships needed to improve the 
     academic achievement and outcomes of the students attending a 
     school assisted under this title;
       (2) support family and community engagement in the 
     effective school model; and
       (3) carry out any additional activities that the Secretary 
     determines are within the purposes described in section 201.

     SEC. 207. EVALUATION AND REPORTING.

       (a) Contents of Report.--Each eligible entity receiving a 
     grant under this title shall annually report to the Secretary 
     on--
       (1) the data and information being gathered to assess the 
     effective school model's effectiveness in improving student 
     academic achievement and outcomes for struggling students and 
     dropouts;
       (2) the implementation status of the models, any barriers 
     to implementation, and actions taken to overcome the 
     barriers;
       (3) any professional development activities to build the 
     capacity of--
       (A) the eligible entity to sustain or replicate the 
     effective school model; or
       (B) the staff of a school assisted under this title to 
     implement or improve the effective school model;
       (4) the progress made in improving student academic 
     achievement and outcomes in the effective school models for 
     struggling students and dropouts; and
       (5) the use of grant funds by the eligible entity.
       (b) Independent Evaluations.--The Secretary shall reserve 
     not more than $5,000,000 to carry out an independent 
     evaluation of the grant program under this title and the 
     progress of the eligible entities receiving grants under this 
     title.

     SEC. 208. AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated to carry out this 
     title $60,000,000 for fiscal year 2008 and each of the 4 
     succeeding fiscal years.

                TITLE III--STRENGTHENING STATE POLICIES

     SEC. 301. FINDINGS AND PURPOSES.

       (a) Findings.--The Senate finds the following:
       (1) Frontrunner States have begun to move more aggressively 
     on the dual challenge of raising high school graduation rates 
     while also raising the standards to the level of a college 
     and work-ready diploma.
       (2) Seven States are publically reporting 4-year cohort 
     graduation rates and 20 States plan to publically report by 
     2008.
       (3) Thirteen States now require students to take a college-
     and work-ready course of study to earn a diploma, up from 
     just 3 in 2006. Another 16 States report that they plan to 
     raise requirements during 2007.
       (4) States that act aggressively to raise graduation rates 
     without conceding ground on academic proficiency are gaining 
     traction in such cutting- edge policy areas as: dual 
     enrollment to support early college high schools that lead to 
     high school diplomas and 2 years of postsecondary credit; 
     expanding high school accountability to include indicators to 
     reward schools for keeping struggling students in school and 
     on track to proficiency; the development of new secondary 
     educational options, including both small school models and 
     recovery or alternative models for struggling students and 
     dropouts.
       (5) Even frontrunner States have not yet adopted a 
     comprehensive set of policies to support high standards and 
     high graduation rates. They lack the supports and resources 
     to track implementation of the policies they have put in 
     place or to partner with districts to build further capacity 
     to carry out evidence-based practices and programming.
       (6) Past Federal educational initiatives have been 
     effective in supporting and accelerating bolder, more 
     strategic action with positive results, for example the 
     National Science Foundation State Systemic Initiative.
       (7) Supporting frontrunner States to become laboratories of 
     innovation and models for other States will accelerate the 
     number of young people graduating from high schools across 
     the Nation who are college and career ready.
       (b) Purposes.--The purposes of this title are to--
       (1) provide incentives for States to strengthen and develop 
     new State policies in order to substantially raise the 
     graduation rate in the State while ensuring rigorous 
     secondary education content standards and assessments; and
       (2) evaluate the effectiveness of such changes to the State 
     policies.

     SEC. 302. SYSTEMIC INITIATIVE TO IMPROVE HIGH SCHOOL 
                   GRADUATION RATE.

       (a) Grant Program Authorized.--The Secretary is authorized 
     to award grants, on a competitive basis, to States that meet 
     the requirements of section 303 to enable such States to 
     design and align State policies in order to act as 
     laboratories of innovation by reducing barriers and creating 
     incentives to improve outcomes for high school students.
       (b) Number of Grants; Duration.--
       (1) Number of grants.--For each of the first 3 consecutive 
     years of the grant program under this title, the Secretary 
     shall award 4 or more grants under this title, except that 
     the Secretary shall award a total of not more than 20 grants 
     under this title for all 3 such years.
       (2) Duration of grant.--Each grant awarded under this title 
     shall be for a period of 5 years.

     SEC. 303. ELIGIBLE STATE.

       To be eligible to receive a grant under this title, a State 
     shall comply with each of the following:
       (1) The State shall receive a grant under title I and carry 
     out the activities required under such title.
       (2) The State shall have implemented, or be in the process 
     of developing, a statewide longitudinal data system with 
     individual student identifiers.
       (3) The Governor of the State and any individual, entity, 
     or agency designated under section 304(a) by the Governor 
     shall regularly consult with each other and with the State 
     board of education, the State educational agency, the head of 
     the State higher education entity, the head of career and 
     technical education in the State, and other agencies as 
     appropriate, regarding carrying out the activities required 
     under this title.

[[Page S4851]]

       (4) The State shall meet any additional criteria determined 
     by the Secretary to be necessary to carry out the purposes of 
     this title.

     SEC. 304. APPLICATION.

       (a) In General.--If a State desires a grant under this 
     title, the Governor of the State, or an individual, entity, 
     or agency designated by the Governor, shall submit an 
     application to the Secretary at such time, in such manner, 
     and containing such information as the Secretary may require.
       (b) Contents.--Each application submitted under this 
     section shall include the following:
       (1) A description of the State's plan to conduct the policy 
     gap and impact analysis described in section 305(1).
       (2) A description of the State's plan for using the 
     findings of the policy gap and impact analysis to strengthen 
     the policies of the State in effect as of the date of 
     enactment of this Act.
       (3) A description of how the State will ensure that the 
     State elementary and secondary education content standards 
     and academic assessments described in section 1111(b) of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     6311(b)) are aligned to college and work readiness.
       (4) A description of how the State will ensure that all 
     students have access to a college preparatory curriculum.
       (5) A plan to ensure the statewide longitudinal student 
     data system, other statewide data systems, and data protocols 
     are designed and implemented in such a way that allows for 
     data interoperability and portability across local 
     educational agencies and among pre-kindergarten through grade 
     12 systems, institutions of higher education, and systems 
     that identify whether students enter the Armed Forces.
       (6) A plan to grant additional flexibility and autonomy to 
     schools and local educational agencies working to increase 
     the graduation rates and college readiness of secondary 
     school students.
       (7) A plan to stimulate the development of multiple 
     pathways and expanded educational options to help secondary 
     students, including struggling students and dropouts, attain 
     a secondary school diploma that prepares the student with the 
     necessary skills to succeed in higher education and work.
       (8) An assurance that the following stakeholders are 
     committed to achieving the goals and objectives set forth in 
     the grant application:
       (A) The Governor of the State.
       (B) The chief executive officer of the State higher 
     education coordinating board.
       (C) The chief State school officer.
       (D) The head of the State Board of Education.
       (E) The head of career and technical education in the 
     State.
       (F) Other agency heads, as determined appropriate by the 
     Governor and the individuals, entities, and agencies involved 
     in the consultation under section 303(3).

     SEC. 305. USE OF FUNDS.

       A State receiving a grant under this title shall carry out 
     the following:
       (1) Conduct, or enter into a contract with a third party to 
     conduct, a policy gap and impact analysis to determine how to 
     strengthen the policies of the State in order to 
     substantially raise the graduation rate in the State while 
     ensuring rigorous secondary education content standards and 
     assessments. Such analysis shall--
       (A) examine the policies of the State, and of the local 
     educational agencies within the State, affecting--
       (i) school funding;
       (ii) data capacity;
       (iii) accountability systems;
       (iv) interventions in high-priority secondary schools;
       (v) new school development; and
       (vi) the dissemination and implementation of effective 
     local school improvement activities throughout the State; and
       (B) provide recommendations regarding how the State can 
     strengthen the policies of the State to substantially raise 
     the graduation rate in the State while ensuring rigorous 
     postsecondary and work-ready academic standards, including 
     recommendations on--
       (i) innovative finance models, such as weighted student 
     funding;
       (ii) data capacity that enables longitudinal and cross-
     sectoral analysis of State education and other systems, such 
     as juvenile justice, social services, and early childhood;
       (iii) improving a differentiated system of supports, 
     sanctions, and interventions for high-priority high schools;
       (iv) the development of additional secondary educational 
     options, including both the development of small school 
     models and recovery or alternative models for struggling 
     students and dropouts;
       (v) additional accountability measures in the State 
     accountability system;
       (vi) dual student enrollment in secondary schools and 
     institutions of higher education; and
       (vii) the development of school-family-community 
     partnerships to improve student achievement.
       (2) Implement or enact--
       (A) the changes to the policies of the State recommended by 
     the policy gap and impact analysis under paragraph (1)(B); 
     and
       (B) any additional changes to the policies of the State 
     necessary to enable the State to carry out all of the plans 
     described in the application under subsection (b).
       (3) Develop a system to--
       (A) measure how the changes to the policies of the State 
     carried out under this title improve student outcomes at the 
     State and local levels; and
       (B) adjust the policies of the State accordingly in order 
     to achieve the desired policy targets and student outcomes at 
     the State and local levels.
       (4) Devote resources to ensure the sustainability of the 
     activities carried out under this title and the long-term 
     success of the secondary schools within the State.

     SEC. 306. EVALUATION AND REPORTING.

       (a) Evaluation and Report.--Not later than 180 days after 
     the date of enactment of this Act, and annually thereafter 
     for the period of the grant, each State receiving a grant 
     under this title shall--
       (1) conduct an evaluation of the State's progress regarding 
     the impact of the changes made to the policies of the State 
     in accordance with this title, on substantially raising the 
     graduation rate in the State while ensuring rigorous 
     postsecondary and work-ready academic standards, including--
       (A) a description of the specific changes made, or in the 
     process of being made, to policies as a result of the grant;
       (B) a discussion of any barriers hindering the identified 
     changes in policies, and strategies to overcome such 
     barriers;
       (C) evidence of the impact of changes to policies on 
     desired behavior and actions at the local educational agency 
     and school level;
       (D) after the first year of the grant period, a description 
     of how the results of the previous year's evaluation were 
     used to adjust policies of the State as necessary to achieve 
     the purposes of this title; and
       (E) evidence of the impact of the changes to policies in 
     accordance with this title on improving graduation rates or 
     other measures, such as percent of students who are making 
     sufficient progress toward graduating secondary school in the 
     standard number of years;
       (2) use the results of the evaluation conducted under 
     paragraph (1) to adjust the policies of the State as 
     necessary to achieve the purposes of this title; and
       (3) submit the results of the evaluation to the Secretary.
       (b) Availability.--The Secretary shall make the results of 
     each State's evaluation under subsection (a) available to 
     other States and local educational agencies.

     SEC. 307. AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated to carry out this 
     title $40,000,000 for fiscal year 2008 and the 4 succeeding 
     fiscal years.

  Mr. KENNEDY. Mr. President, while many measures are being taken at 
the Federal, State and local levels to improve student achievement in 
America, our high school students are still being left behind. High 
school students continue to lag in both math and reading. In 12th 
grade, less than a quarter of students scored proficient or better on 
the math assessment, and only 35 percent were proficient or better on 
the reading assessment.
  Furthermore, Federal funding is not currently going to the high 
schools that are in the most need. The main source of Federal funds is 
through the title I program. Yet only 8 percent of students who benefit 
from these funds are in high school. Ninety percent of high schools 
with very low graduation rates have many low-income students.
  The statistics on high school graduation rates are staggering. About 
1,000 high schools across the country only graduate half their 
students, and only about 70 percent of high school students graduate on 
time. Among African Americans and Latinos, only 55 percent graduate on 
time. It is clear that high schools need more assistance in supporting 
and retaining students.
  The continued partnership between local, State and the Federal 
Government is essential in improving secondary education in America. 
That is why the Graduation Promise Act provides the necessary funding 
to improve the capacity of low-performing high schools, decrease 
dropout rates and increase student achievement. The act speaks directly 
to the root of the problem, providing support to high schools and 
middle schools to both assist and retain students who may have fallen 
between the cracks.
  The Graduation Promise Act would make great strides in helping high 
school students achieve to their fullest potential. The act would 
provide $2.5 billion to build capacity for secondary school 
improvement, and at the same time provide States and local school 
districts with the resources to ensure high schools with the greatest 
challenges receive the support they need to implement research-based 
interventions.
  Research shows that we can identify students who are most at-risk for 
not completing high school as early as sixth grade. With early 
intervention, quality teachers, small classes, and

[[Page S4852]]

data-driven instruction we can ensure that these students make 
progress, stay in school and succeed.
  The act assists these efforts by supporting the development and 
dissemination of highly effective secondary school models for students 
most at risk of being left behind. It would also strengthen state 
improvement systems to identify, differentiate among, and target the 
level of reform and resources necessary to improve low-performing high 
schools, while ensuring transparency and accountability. Finally, the 
act would support states' continuing efforts to align State policies 
and systems to meet the goal of college and career-ready graduation for 
all students.
  Bringing our schools into the 21st century is the ultimate goal of 
this important piece of legislation. Local schools, States and the 
Federal Government must continue to work together to modernize the 
practices and models that are being used to ensure success from all of 
our high school students. Updating the system for the current times is 
a difficult process, but with the assistance of the Graduation Promise 
Act, all high school students can be given the tools necessary to 
succeed both in school and beyond.
  I thank my colleagues, Senator Bingaman and Senator Burr, for their 
good work on this initiative and their leadership on this issue. I look 
forward to working with them on this and many other important issues as 
we move forward with the reauthorization of the Elementary and 
Secondary Act. I urge my colleagues to support this legislation.
                                 ______