[Congressional Record Volume 157, Number 50 (Thursday, April 7, 2011)]
[Senate]
[Pages S2277-S2281]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. HARKIN:
  S. 767. A bill to improve the calculation of, the reporting of, and 
the accountability for, secondary school graduation rates; to the 
Committee on Health, Education, Labor, and Pensions.
  Mr. HARKIN. Mr. President, in today's rapidly changing, global 
knowledge-based economy, making sure that all students graduate from 
high school is more important than ever. A high school diploma opens 
the doors to postsecondary education and workforce development 
programs, which lead to jobs that pay family-sustaining wages. The 
bottom line is that a high school diploma is no longer an option--it is 
an essential education credential that all Americans need to have in 
order to successfully compete in the workforce. Yet, for far too many, 
a high school diploma is still out of reach. According to researchers 
at Johns Hopkins University, one out of every three students who enters 
the ninth grade fails to graduate from high school within 4 years. An 
estimated 12 million students will drop out of school during the next 
decade, costing the Nation more than $3 trillion in forgone revenues 
and increased social service costs.
  When Congress passed the No Child Left Behind Act in 2001, we 
required that accountability determinations for high schools include 
graduation rates. However, the law did not require States to use a 
common formula for calculating graduation rates nor did it set 
graduation rate goals for high schools. As a result, states created 
different calculations that have led to inconsistent and inaccurate 
reporting of

[[Page S2278]]

graduation rates. Without transparency, we cannot know the full extent 
of our Nation's dropout crisis, hold schools accountable, or design 
effective solutions.
  That is why I am pleased to introduce the Every Student Counts Act, 
which my colleague Rep. Bobby Scott will introduce in the House today. 
This legislation will ensure the accurate calculation and reporting of 
high school graduation rates, and will hold States, districts, and 
schools accountable for ensuring that all students graduate with a high 
school diploma.
  The Every Student Counts Act builds upon steps taken by all 50 States 
and the Department of Education to ensure more accurate calculations of 
and reporting of high school graduation rates.
  Four years into the implementation of the No Child Left Behind Act, 
State leaders recognized the need for consistent graduation rate 
calculations and governors from all 50 States joined together in 2005 
to call for a uniform graduation rate across the States. This 
leadership from the States was crucial in calling attention to the 
problem of inaccurate graduation rate calculations and formed the basis 
for action. In 2008, the U.S. Department of Education built on the 
governors' laudable work and issued regulations that require states to 
use a single, accurate graduation rate calculation and to set 
graduation rate goals and annual growth targets.

  The 2008 regulations were an important step in the right direction, 
but they need to be improved and codified so that states, districts, 
and schools no longer have to rely solely on regulations that could be 
reversed. The Every Student Counts Act codifies key pieces of the 
regulations while making improvements where necessary. Specifically, 
this act sets a uniform graduation rate goal of 90 percent and requires 
schools that do not meet this goal to improve their graduation rate 
annually by three percentage points. Additionally, this act builds upon 
the States' and the Department of Education's graduation rate 
calculation work by giving credit to schools for students who graduate 
in more than 4 years through a cumulative graduation rate calculation, 
while maintaining the expectation that all students graduate within 4 
years.
  This legislation will bring transparency and accountability to 
schools across the Nation to help them provide all students with the 
high school diploma they need to have a chance to succeed in 
postsecondary education and the global economy.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 767

       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 ``Every Student Counts Act''.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) In order for the United States to retain a competitive 
     edge in the world economy, it is essential that youth in the 
     United States be prepared for the jobs of today and for the 
     jobs of the future. Such jobs increasingly require 
     postsecondary education, and according to a 2008 Department 
     of Labor report, almost 90 percent of the fastest growing and 
     best paying jobs require some postsecondary education.
       (2) Individuals without a regular secondary school diploma 
     experience higher rates of unemployment, incarceration, 
     poverty, and receipt of public assistance than individuals 
     with a regular secondary school diploma.
       (3) According to the 2009 Center for Public Education 
     report ``Better late than never? Examining late high school 
     graduates'', on-time graduation with a regular secondary 
     school diploma leads to the best outcomes for students, but 
     students who graduate late with a regular secondary school 
     diploma are still more likely to earn an associate or a 
     baccalaureate degree, to be employed full-time, and to obtain 
     a job with retirement benefits and health insurance than are 
     either students who drop out of secondary school or students 
     who receive a GED.
       (4) About 1,300,000 secondary school students, which is 
     approximately \1/3\ of all secondary school students in the 
     United States, fail to graduate with their peers every year. 
     According to the Department of Education, the United States 
     secondary school graduation rate is only 75 percent.
       (5) The graduation rates for historically disadvantaged 
     minority groups are far lower than that of their White peers. 
     Little more than half of all African-American and Hispanic 
     students finish secondary school on time with a regular 
     secondary school diploma, while more than \3/4\ of White 
     students finish secondary school on time with a regular 
     secondary school diploma.
       (6) Nearly 2,000 secondary schools (about 12 percent of all 
     secondary schools in the United States) produce about half of 
     the Nation's secondary school dropouts. In these schools, the 
     number of seniors is routinely 60 percent or less than the 
     number of freshmen 3 years earlier. While 34 percent of the 
     Nation's African-American students and nearly 28 percent of 
     Latino students attend these ``dropout factories'', only 16 
     percent of White students do.
       (7) The average gap between State-reported graduation rates 
     and independently-reported graduation rates is approximately 
     11 percent.
       (8) In 2005, all 50 of the Nation's Governors signed the 
     National Governors Association's Graduation Rate Compact, 
     pledging to use a common, accurate graduation rate.
       (9) In 2008, the Secretary of Education released final 
     regulations that also require States to report a common 
     graduation rate calculation. However, since the Department of 
     Education did not specify in the regulations what graduation 
     rate goals and growth targets are appropriate and how States 
     should include 4-year rates and extended year rates in 
     calculating adequate yearly progress, it is necessary to 
     clarify these goals, targets and rates in order to create a 
     meaningful Federal accountability system for secondary 
     schools.
       (10) State-set targets to make adequate yearly progress 
     under the Secretary of Education's 2008 regulations are 
     numerous in type and varied in aggressiveness. Twenty-eight 
     States have set a graduation rate goal of less than 90 
     percent. At least 8 States have set status targets that do 
     not take into consideration progress toward the State-set 
     goal. Furthermore, only 2 of the 9 States that include 
     extended year rates in measures of adequate yearly progress 
     do so in a way that places a priority on graduating students 
     within 4 years.
       (11) The most accurate graduation rate calculations rely on 
     high-quality longitudinal data systems that track individual 
     student data from the time a student enters kindergarten 
     through the time such student finishes 12th grade. Forty-
     eight States plan to have data systems that will provide 
     secondary school data that will allow such States to use the 
     graduation rate formula specified in the Department of 
     Education's 2008 final regulations not later than the 2011-
     2012 school year.
       (12) An accountability system with meaningful graduation 
     rate goals--
       (A) holds schools, school districts, and States responsible 
     for both student achievement and outcomes; and
       (B) ensures that low-performing students are not 
     unnecessarily held back or encouraged to leave school without 
     a diploma.
       (13) Prior to the 2008 regulations, the amendments to the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     6301 et seq.) made by the No Child Left Behind Act of 2001 
     (Public Law 107-110) did not require consistent calculations, 
     meaningful goals, or disaggregation of graduation rates. 
     Without clear guidance from the Department of Education, most 
     secondary schools can continue to make adequate yearly 
     progress by making as little as 0.1 percent improvement or 
     less in secondary school graduation rates each year and can 
     do so with a consistent, or even growing, secondary school 
     graduation gap among subgroups of students.

     SEC. 3. PURPOSES.

       The purposes of this Act are--
       (1) to require consistent calculations and reporting of 
     secondary school graduation rates across schools, school 
     districts, and States;
       (2) to provide educators with critical information about 
     student progress toward secondary school graduation; and
       (3) to ensure meaningful accountability for the improvement 
     of secondary school graduation rates for all students, 
     particularly for poor and minority students.

     SEC. 4. SECONDARY SCHOOL GRADUATION RATES.

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

     ``SEC. 1111A. SECONDARY SCHOOL GRADUATION RATES.

       ``(a) Definitions.--In this section:
       ``(1) Adjusted cohort; entering cohort; transferred into; 
     transferred out.--
       ``(A) Adjusted cohort.--Subject to subparagraphs (D)(ii) 
     through (G), the term `adjusted cohort' means the difference 
     of--
       ``(i) the sum of--

       ``(I) the entering cohort; plus
       ``(II) any students that transferred into the cohort in any 
     of grades 9 through 12; minus

       ``(ii) any students that are removed from the cohort as 
     described in subparagraph (E).
       ``(B) Entering cohort.--The term `entering cohort' means 
     the number of first-time 9th graders enrolled in the 
     secondary school 1 month after the start of the secondary 
     school's academic year.
       ``(C) Transferred into.--The term `transferred into' when 
     used with respect to a secondary school student, means a 
     student who--
       ``(i) was a first-time 9th grader during the same school 
     year as the entering cohort; and

[[Page S2279]]

       ``(ii) enrolls after the entering cohort is calculated as 
     described in subparagraph (B).
       ``(D) Transferred out.--
       ``(i) In general.--The term `transferred out' when used 
     with respect to a secondary school student, means a student 
     who the secondary school or local educational agency has 
     confirmed has transferred--

       ``(I) to another school from which the student is expected 
     to receive a regular secondary school diploma; or
       ``(II) to another educational program from which the 
     student is expected to receive a regular secondary school 
     diploma.

       ``(ii) Confirmation requirements.--

       ``(I) Documentation required.--The confirmation of a 
     student's transfer to another school or educational program 
     described in clause (i) requires documentation from the 
     receiving school or program that the student enrolled in the 
     receiving school or program.
       ``(II) Lack of confirmation.--A student who was enrolled, 
     but for whom there is no confirmation of the student having 
     transferred out, shall remain in the cohort as a nongraduate 
     for reporting and accountability purposes under this section.

       ``(iii) Programs not providing credit.--A student enrolled 
     in a GED or other alternative educational program that does 
     not issue or provide credit toward the issuance of a regular 
     secondary school diploma shall not be considered transferred 
     out.
       ``(E) Cohort removal.--To remove a student from a cohort, a 
     school or local educational agency shall require 
     documentation to confirm that the student has transferred 
     out, emigrated to another country, or is deceased.
       ``(F) Treatment of other leavers and withdrawals.--A 
     student who was retained in a grade, enrolled in a GED 
     program, aged-out of a secondary school or secondary school 
     program, or left secondary school for any other reason, 
     including expulsion, shall not be considered transferred out, 
     and shall remain in the adjusted cohort.
       ``(G) Special rule.--For those secondary schools that start 
     after grade 9, the entering cohort shall be calculated 1 
     month after the start of the secondary school's academic year 
     in the earliest secondary school grade at the secondary 
     school.
       ``(2) Alternative educational setting.--The term 
     `alternative educational setting' means--
       ``(A) a secondary school or secondary school educational 
     program that--
       ``(i) is designed for students who are under-credited or 
     have dropped out of secondary school; and
       ``(ii) awards a regular secondary school diploma; or
       ``(B) a secondary school or secondary school educational 
     program designed to issue a regular secondary school diploma 
     concurrently with a postsecondary degree or not more than 2 
     years of postsecondary education credit.
       ``(3) Cumulative graduation rate.--The term `cumulative 
     graduation rate' means, for each school year, the percent 
     obtained by calculating the product of--
       ``(A) the result of--
       ``(i) the sum of--

       ``(I) the number of students who--

       ``(aa) form the adjusted cohort; and
       ``(bb) graduate in 4 years or less with a regular secondary 
     school diploma (which shall not include a GED or other 
     certificate of completion or alternative to a diploma except 
     as provided in paragraph (6)(B)); plus

       ``(II) the number of additional students from previous 
     cohorts who graduate in more than 4 years with a regular 
     secondary school diploma (which shall not include a GED or 
     other certificate of completion or alternative to a diploma 
     except as provided in paragraph (6)(B)); divided by

       ``(ii) the sum of--

       ``(I) the number of students who form the adjusted cohort 
     for that year's graduating class; plus
       ``(II) the number of additional student graduates described 
     in clause (i)(II); multiplied by

       ``(B) 100.
       ``(4) 4-year adjusted cohort graduation rate.--The term `4-
     year adjusted cohort graduation rate' means the percent 
     obtained by calculating the product of--
       ``(A) the result of--
       ``(i) the number of students who--

       ``(I) formed the adjusted cohort 4 years earlier; and
       ``(II) graduate in 4 years or less with a regular secondary 
     school diploma (which shall not include a GED or other 
     certificate of completion or alternative to a diploma except 
     as provided in paragraph (6)(B)); divided by

       ``(ii) the number of students who formed the adjusted 
     cohort for that year's graduating class 4 years earlier; 
     multiplied by
       ``(B) 100.
       ``(5) On-track student.--The term `on-track student' means 
     a student who--
       ``(A) has accumulated the number of credits necessary to be 
     promoted to the next grade, in accordance with State and 
     local educational agency policies;
       ``(B) has a 90 percent or higher school attendance rate;
       ``(C) has failed not more than 1 semester in English or 
     language arts, mathematics, science, or social studies; and
       ``(D) has failed not more than any 2 credit-bearing 
     courses.
       ``(6) Regular secondary school diploma.--
       ``(A) In general.--The term `regular secondary school 
     diploma' means the standard secondary school diploma awarded 
     to the preponderance of students in the State that is fully 
     aligned with State standards, or a higher diploma. Such term 
     shall not include GEDs, certificates of attendance, or any 
     lesser diploma award.
       ``(B) Special rule.--For a student who has a significant 
     cognitive disability and is assessed using an alternate 
     assessment aligned to an alternate achievement standard, 
     receipt of a regular secondary school diploma or a State-
     defined alternate diploma aligned with completion of the 
     student's right to a free and appropriate public education 
     under the Individuals with Disabilities Education Act shall 
     be counted as graduating with a regular secondary school 
     diploma for the purposes of this section, except that not 
     more than 1 percent of students served by the State or local 
     educational agency, as appropriate, shall be counted as 
     graduates with a regular secondary school diploma under this 
     subparagraph.
       ``(7) Under-credited student.--The term `under-credited 
     student' means a secondary school student who is a year or 
     more behind in the expected accumulation of credits or 
     courses toward an on-time graduation as determined by the 
     relevant local educational agency's and State educational 
     agency's secondary school graduation requirements for an on-
     time graduation.
       ``(b) Calculating and Reporting Accurate Graduation 
     Rates.--
       ``(1) Calculating graduation rates.--Not later than school 
     year 2011-2012, and every school year thereafter, each State 
     educational agency and local educational agency that is 
     assisted under this part shall calculate, using a statewide 
     longitudinal data system with individual student identifiers 
     for each school served by the State or local educational 
     agency, as the case may be--
       ``(A) the 4-year adjusted cohort graduation rate; and
       ``(B) the cumulative graduation rate.
       ``(2) Calculation at school, lea, and state levels; 
     disaggregation and cross tabulation.--The 4-year adjusted 
     cohort graduation rate and the cumulative graduation rate 
     shall be calculated at the school, local educational agency, 
     and State levels in the aggregate and disaggregated and cross 
     tabulated by race, ethnicity, gender, disability status, 
     migrant status, English proficiency, and status as 
     economically disadvantaged, and made public, except that such 
     disaggregation or cross tabulation shall not be required in a 
     case in which the number of students in a subgroup is 
     insufficient to yield statistically reliable information or 
     the results would reveal personally identifiable information 
     about an individual student.
       ``(3) Statewide exit codes.--Not later than 1 year after 
     the enactment of the Every Student Counts Act, each State 
     that receives funds under this subpart shall--
       ``(A) design a statewide exit code system, in consultation 
     with local educational agencies;
       ``(B) require all local educational agencies to use the 
     statewide exit code system; and
       ``(C) provide technical assistance and support to local 
     educational agencies to assist such agencies with the 
     implementation of the statewide exit code system.
       ``(4) Reporting graduation rates.--Subject to paragraph 
     (5), not later than school year 2011-2012, and every school 
     year thereafter, each State that is assisted under this part 
     shall ensure that the State, all local educational agencies 
     in the State, and all secondary schools in the State report 
     annually, as part of the State and local educational agency 
     report cards required under section 1111(h), each of the 
     following:
       ``(A) 4-year adjusted cohort graduation rate.--The 4-year 
     adjusted cohort graduation rate, in the aggregate and 
     disaggregated by each of the subgroups described in paragraph 
     (2).
       ``(B) 4-year adjusted cohort size and 4-year graduates.--
     The final number of students in the 4-year adjusted cohort 
     and the total number of 4-year graduates in the aggregate and 
     disaggregated by each of the subgroups described in paragraph 
     (2).
       ``(C) Cumulative graduation rate.--The cumulative 
     graduation rate, in the aggregate and disaggregated by each 
     of the subgroups described in paragraph (2).
       ``(D) Number and percentage of students graduating in more 
     than 4 years.--The number and percentage of secondary school 
     students graduating in more than 4 years with a regular 
     secondary school diploma as described in subsection 
     (a)(3)(A)(i)(II), disaggregated by the number of years it 
     took the students to graduate and by each of the subgroups 
     described in paragraph (2).
       ``(E) Number and percentage of students removed from 
     cohort.--The number and percentage of secondary school 
     students who have been removed from the 4-year adjusted 
     cohort by exit code (as described in subsection (b)(3)), in 
     the aggregate and disaggregated by each of the subgroups 
     described in paragraph (2).
       ``(F) Number and percentage of continuing students.--The 
     number and percentage of students from each previous adjusted 
     cohort that began 4 years or more earlier who have not 
     graduated from and are still enrolled in secondary school.
       ``(5) Use of interim graduation rate.--In the case of a 
     State that does not have an individual student identifier 
     longitudinal data system, with respect to each graduation 
     rate calculation or reporting requirement under this section, 
     the State and local educational

[[Page S2280]]

     agencies and secondary schools in the State shall temporarily 
     carry out this section by using an interim graduation rate 
     calculation that meets the following conditions:
       ``(A) Number of graduates compared to number of students.--
     The calculation shall measure or estimate the number of 
     secondary school graduates compared to the number of students 
     in the secondary school's entering grade.
       ``(B) Dropout data.--The calculation shall not use dropout 
     data.
       ``(C) Regular secondary school diploma.--The calculation 
     shall count as graduates only those students who receive a 
     regular secondary school diploma.
       ``(D) Disaggregation.--The calculation shall be 
     disaggregated by each of the subgroups described in paragraph 
     (2).
       ``(E) Annual basis and rate of growth.--The calculation 
     shall be used on an annual basis to determine a rate of 
     growth, as described in subsection (c).
       ``(F) Timeframe limitation.--The interim graduation rate 
     calculation may only be used through the end of school year 
     2012-2013.
       ``(G) Reporting use of interim graduation rate.--Each State 
     that receives assistance under this part and does not have an 
     individual student identifier longitudinal data system shall 
     describe in the State's plan submitted under section 1111 the 
     interim graduation rate used in accordance with this 
     paragraph.
       ``(6) Reporting on alternative settings.--Not later than 
     school year 2011-2012, and every school year thereafter, each 
     State educational agency and local educational agency that 
     receives assistance under this part and contains an 
     alternative education setting that establishes an alternative 
     4-year completion requirement as described in subsection 
     (c)(4)(C)(iii), shall report annually as part of the State 
     and local educational agency report cards required under 
     section 1111(h), the following:
       ``(A) The name of each alternative education setting that 
     establishes an alternative 4-year completion requirement as 
     described in subsection (c)(4)(C)(iii).
       ``(B) A description of the program provided at each setting 
     and the population served.
       ``(C) The enrollment of such settings in the aggregate and 
     disaggregated by each of the subgroups described in paragraph 
     (2), including as a percent of overall enrollment.
       ``(D) Whether the setting is a new school or setting.
       ``(E) The alternative 4-year completion requirement as 
     described in subsection (c)(4)(C)(iii).
       ``(7) Reporting percent of on-track students.--Not later 
     than school year 2011-2012, and every school year thereafter, 
     each State educational agency, local educational agency, and 
     school that receives assistance under this part shall report 
     annually, as part of the State and local educational agency 
     report cards required under section 1111(h), the percent of 
     on-track students for each secondary school grade served by 
     the State educational agency, local educational agency, and 
     school, respectively, other than the graduating grade for the 
     secondary school, in the aggregate and disaggregated by each 
     of the subgroups described in paragraph (2).
       ``(8) Reporting additional indicators.--
       ``(A) In general.--A State may report additional 
     complementary indicators of secondary school completion, such 
     as--
       ``(i) a college-ready graduation rate;
       ``(ii) a dropout rate;
       ``(iii) in-grade retention rates;
       ``(iv) percentages of students receiving GEDs, certificates 
     of completion, or alternatives to a diploma;
       ``(v) average attendance rates in the aggregate and 
     disaggregated by each of the subgroups described in paragraph 
     (2); and
       ``(vi) in the case of a State with exit examinations, 
     students who have completed course requirements but failed a 
     State examination required for secondary school graduation.
       ``(B) Definitions for indicators.--The Secretary shall 
     promulgate and publish in the Federal Register regulations 
     containing definitions for the indicators described in 
     clauses (i), (ii), and (iii) of subparagraph (A) that are 
     consistent with the definitions used by the National Center 
     for Educational Statistics, in order to ensure that the 
     indicators are comparable across schools and school districts 
     within a State.
       ``(C) Prohibition.--For purposes of reporting or 
     accountability under this section, the additional indicators 
     shall not replace the 4-year adjusted cohort graduation rate 
     or the cumulative graduation rate.
       ``(D) Rule of construction.--Nothing in this Act shall be 
     construed to prohibit a State from reporting indicators of 
     secondary school completion that are not described in 
     subparagraph (A).
       ``(9) Data anomalies.--
       ``(A) In general.--When an individual student record 
     indicates a student was enrolled in more than 1 secondary 
     school or a student record shows enrollment in a secondary 
     school but no subsequent information, such student record 
     shall be assigned to 1 adjusted cohort for the purposes of 
     calculating and reporting school, local educational agency, 
     and State 4-year adjusted cohort graduation rates and 
     cumulative graduation rates under this subsection.
       ``(B) Special rule.--A student who returns to secondary 
     school after dropping out of secondary school, or receives a 
     diploma from more than 1 school or educational program served 
     by any 1 local educational agency, shall be counted--
       ``(i) only once for purposes of reporting and 
     accountability under this section; and
       ``(ii) as part of the student's original adjusted cohort.
       ``(10) Monitoring of data collection.--Each State that 
     receives assistance under this part shall conduct regular 
     audits of the data collection, use of exit codes (as 
     described in subsection (b)(3)), reporting, and calculations 
     that are carried out by local educational agencies in the 
     State. The Secretary shall assist States in their efforts to 
     develop and retain the capacity for collection, analysis, and 
     public reporting of 4-year adjusted cohort graduation rate 
     and cumulative graduation rate data.
       ``(c) School, Local Educational Agency, and State 
     Accountability.--
       ``(1) Graduation rate goal.--Each State that receives 
     assistance under this part shall--
       ``(A) seek to have all students graduate from secondary 
     school prepared for success in college and career; and
       ``(B) meet the graduation rate goal as described in this 
     subsection.
       ``(2) Graduation rate calculation.--Each State that 
     receives assistance under this part shall use aggregate and 
     disaggregated 4-year adjusted cohort graduation rates or 
     cumulative graduation rates as the additional indicator 
     described in section 1111(b)(2)(C)(vi) for the purposes of 
     determining each secondary school's and local educational 
     agency's adequate yearly progress.
       ``(3) Meeting graduation rate goal.--In order to meet the 
     graduation rate goal, a State, local educational agency, or 
     school shall demonstrate that it has a 4-year adjusted cohort 
     graduation rate or a cumulative graduation rate above 90 
     percent in the aggregate and for all subgroups described in 
     subsection (b)(2).
       ``(4) Annual measurable objectives.--The Secretary shall 
     require a State, local educational agency, or school that 
     receives assistance under this part and that has not met the 
     graduation rate goal in the aggregate or for any subgroup 
     described in subsection (b)(2) to increase the 4-year 
     adjusted cohort graduation rate or the cumulative graduation 
     rate, in the aggregate or for such subgroup, respectively, in 
     order to make adequate yearly progress under section 
     1111(b)(2), as follows:
       ``(A) Baseline for 4-year adjusted cohort and cumulative 
     graduation rates.--
       ``(i) In general.--Subject to subparagraph (B), the 4-year 
     adjusted cohort graduation rate calculated and reported in 
     accordance with this section for the first school year that 
     begins after the date of enactment of the Every Student 
     Counts Act shall serve as the baseline 4-year adjusted cohort 
     graduation rate and the cumulative graduation rate calculated 
     and reported in accordance with this section for such first 
     school year shall serve as the baseline cumulative graduation 
     rate.
       ``(ii) Annual growth.--Each school year after the baseline 
     year described in clause (i), 4-year adjusted cohort 
     graduation rates and cumulative graduation rates calculated 
     at the school, local educational agency, and State levels in 
     the aggregate and disaggregated by each subgroup described in 
     subsection (b)(2) shall be evaluated for annual growth in 
     accordance with subparagraph (C).
       ``(B) Baseline adjustment.--In the case of a State that 
     uses an interim graduation rate, after the State has 
     implemented an individual student identifier longitudinal 
     data system and can calculate the 4-year adjusted cohort 
     graduation rate and the cumulative graduation rate, but not 
     later than the 2013-2014 school year, the State shall use the 
     cumulative graduation rate as the baseline graduation rate 
     for reporting and accountability under this section.
       ``(C) Annual growth.--
       ``(i) In general.--In order for a State, local educational 
     agency, or school to make adequate yearly progress under 
     section 1111(b)(2), the State, local educational agency, or 
     school, respectively, shall demonstrate increases in the 4-
     year adjusted cohort graduation rate from the baseline 4 year 
     adjusted cohort graduation rate or increases in the 
     cumulative graduation rate from the baseline cumulative 
     graduation rate, in the aggregate and for each subgroup 
     described in subsection (b)(2), by an average of 3 percentage 
     points per school year, until the 4-year adjusted cohort 
     graduation rate or the cumulative graduation rate, in the 
     aggregate and for each such subgroup, equals or exceeds 90 
     percent.
       ``(ii) AYP not made.--A secondary school shall not be 
     considered to have made adequate yearly progress under 
     section 1111(b)(2) if--

       ``(I) the school's 4-year adjusted cohort graduation rate, 
     in the aggregate or for any subgroup described in subsection 
     (b)(2), falls below the initial baseline 4-year adjusted 
     cohort over a 4-year period; or
       ``(II) fewer than 90 percent of the students included in 
     the cumulative graduation rate, in the aggregate or for any 
     subgroup described in subsection (b)(2), are students who 
     graduate from secondary school in 4 years.

       ``(iii) Alternative 4-year completion requirement.--
     Notwithstanding clause (ii), a secondary school or secondary 
     school educational program that is an alternative education 
     setting may apply to the State for a waiver of the 
     requirement in clause (ii) that at least 90 percent of the 
     students included

[[Page S2281]]

     in the cumulative graduation rate, in the aggregate or for 
     any subgroup described in subsection (b)(2), are students who 
     graduate from secondary school in 4 years if--

       ``(I) the secondary school or educational program submits 
     to the State--

       ``(aa) a description of the secondary school or educational 
     program; and
       ``(bb) an alternative 4-year completion requirement; and

       ``(II) the State approves the use of the alternative 4-year 
     completion requirement for such purposes.

       ``(5) Delayed applicability to schools.--Paragraphs (2), 
     (3), and (4)(C) shall not apply to a secondary school until 
     the beginning of school year 2012-2013 or, in the case of a 
     State using an interim rate, shall not apply to a secondary 
     school until the first school year after such State adjusts 
     its baseline graduation rate as described in paragraph 
     (4)(B).
       ``(d) Reporting Requirement.--Not later than 90 days after 
     the date of enactment of the Every Student Counts Act, and 
     annually thereafter, each State educational agency that 
     receives assistance under this part shall submit to the 
     Secretary, and make publicly available, a report on the 
     implementation of this section. Such report shall include--
       ``(1) a description of each category, code, exit code, and 
     the corresponding definition that the State has authorized 
     for identifying, tracking, calculating, and publicly 
     reporting student status;
       ``(2) if using an interim graduation rate pursuant to 
     subsection (b)(5), a description of the efforts of the State 
     to implement the 4-year adjusted cohort graduation rate and 
     the cumulative graduation rate and the expected date of 
     implementation, which date shall be not later than the school 
     year 2013-2014; and
       ``(3) a description of waivers granted in the State under 
     subsection (c)(4)(C)(iii), which shall include--
       ``(A) the total number of waivers granted in the State 
     under subsection (c)(4)(C)(iii);
       ``(B) a description of each waiver granted;
       ``(C) the number of students who are enrolled in secondary 
     schools or secondary school education programs receiving such 
     waivers; and
       ``(D) the cumulative graduation rates of the secondary 
     schools or secondary school education programs receiving such 
     waivers.''

     SEC. 5. AYP CONFORMING AMENDMENTS.

       Section 1111(b)(2)(C) of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 6311(b)(2)(C)) is amended--
       (1) in clause (vi), by striking ``and'' after the 
     semicolon;
       (2) in clause (vii), by striking the period and inserting 
     ``; and''; and
       (3) by adding at the end the following:
       ``(viii) complies with the requirements of section 
     1111A.''.

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