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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 1185 Introduced in Senate (IS)]

110th CONGRESS
  1st Session
                                S. 1185

     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.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             April 23, 2007

 Mr. Bingaman (for himself, Mr. Burr, and Mr. Kennedy) introduced the 
 following bill; which was read twice and referred to the Committee on 
                 Health, Education, Labor, and Pensions

_______________________________________________________________________

                                 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.

    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)).
            (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 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.
    (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 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;
                            (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.
    (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.
            (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.
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