ferentiation with the State’s existing State ac-
countability systems. 
(D) 
DEMONSTRATION
OF
DEVELOP-
MENT.—The State shall demonstrate how the 
State plan was developed in consultation with a 
representative group of local educational agen-
cies. 
(E) 
CONTINUOUS
IMPROVEMENT.—The 
State educational agency shall describe how the 
State educational agency will evaluate annually 
the progress of high schools to ensure that each 
high school is making continuous and substan-
tial improvement in accordance with the annual 
growth targets described in paragraph (3)(D) 
and consistent with the requirements described 
in section 111. 
(F) AUTOMATIC DESIGNATION.—The proc-
ess of categorization proposed by the State edu-
cational agency shall ensure that a high school 
shall be automatically identified as a school in 
need of whole school reform or as a school in 
need of replacement, if the high school has a 
graduation rate of 50 percent or less in the 
most recent year for which data are available. 
(3) SCHOOL PERFORMANCE INDICATORS.— 
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(A) IN GENERAL.—The State educational 
agency shall define, in consultation with rep-
resentatives from urban and rural local edu-
cational agencies in the State, a comprehensive 
set of school performance indicators that— 
(i) shall be used, in addition to the in-
dicators used to determine adequate yearly 
progress, to— 
(I) analyze the performance of 
high schools in the State; 
(II) determine the amount, inten-
sity, and type of support each high 
school needs; and 
(III) guide the school improve-
ment process; 
(ii) demonstrate whether a high school 
is making substantial and continuous 
progress toward the goal of graduating all 
of the school’s students prepared for suc-
cess in higher education and careers; and 
(iii)(I) 
directly 
measure 
student 
achievement and advancement in high 
school; or 
(II) have been demonstrated by re-
search to have a direct impact on high 
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school student achievement and advance-
ment. 
(B) CATEGORIES.— 
(i) IN GENERAL.—The comprehensive 
set of school performance indicators re-
quired by subparagraph (A) shall include 
indicators of— 
(I) high school student engage-
ment and effort; 
(II) student advancement; 
(III) educator quality; and 
(IV) academic learning. 
(ii) INDICATORS
OF
HIGH
SCHOOL 
STUDENT
ENGAGEMENT
AND
EFFORT.— 
With respect to high school student en-
gagement and effort, the indicators— 
(I) shall include student attend-
ance rates; and 
(II) may include— 
(aa) the percentage of stu-
dent suspensions and expulsions; 
(bb) surveys of high school 
student engagement and effort; 
or 
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(cc) other indicators of stu-
dent engagement proposed by the 
State educational agency and ap-
proved by the Secretary as part 
of the peer review process de-
scribed in section 105(a). 
(iii) INDICATORS
OF
STUDENT
AD-
VANCEMENT.—With respect to student 
achievement, the indicators— 
(I) shall include— 
(aa)(AA) student-earned on- 
time promotion rates from grade 
to grade for all grades in the 
high school; or 
(BB) the percentage of stu-
dents who have on-time credit ac-
cumulation at the end of each 
grade; and 
(bb) the percentage of stu-
dents— 
(AA) failing a core, 
credit-bearing, English lan-
guage arts, mathematics, or 
science course; or 
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(BB) failing 2 or more 
courses of any type; and 
(II) may include— 
(aa) measures of enrollment, 
retention, persistence, and degree 
attainment in two-year and four- 
year institutions of higher edu-
cation; 
(bb) measures of the em-
ployment success of students who 
graduated from the high school; 
or 
(cc) other indicators of stu-
dent advancement proposed by 
the State educational agency and 
approved by the Secretary as 
part of the peer review process 
described in section 105(a). 
(iv) INDICATORS OF EDUCATOR QUAL-
ITY.—With respect to educator quality, the 
indicators— 
(I) shall include— 
(aa) measures of teacher at-
tendance, vacancies, and turn-
over; and 
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(bb) the percentage of highly 
qualified teachers by grade level; 
and 
(II) may include other indicators 
of educator quality proposed by the 
State educational agency and ap-
proved by the Secretary as part of the 
peer review process described in sec-
tion 105(a). 
(v) INDICATORS OF ACADEMIC LEARN-
ING.—With respect to academic learning, 
the indicators— 
(I) shall include— 
(aa) the percentage of stu-
dents 
taking 
a 
college-pre-
paratory curriculum, which may 
include the percentage of stu-
dents taking Advanced Placement 
courses, 
International 
Bacca-
laureate 
courses, 
or 
postsec-
ondary courses for dual credit; 
(bb) the percentage of stu-
dents reaching proficiency on the 
State academic assessments in 
reading and mathematics re-
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quired under section 1111 of the 
Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 
6311), disaggregated by the cat-
egories of students identified in 
section 1111(b)(2)(C)(v) of such 
Act (20 U.S.C. 1111(b)(2)(C)(v); 
and 
(cc) 
student 
success 
on 
State or local educational agency 
end-of-course 
examinations 
or 
performance-based 
assessments 
with standardized scoring rubrics 
aligned to State standards, where 
such assessments are available; 
and 
(II) may also include— 
(aa) student achievement on 
college entrance and placement 
examinations such as the ACT or 
SAT, or Advanced Placement ex-
aminations; or 
(bb) other indicators of aca-
demic learning proposed by the 
State educational agency and ap-
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proved by the Secretary as part 
of the peer-review process de-
scribed in section 105(a). 
(C) DEMONSTRATION
OF
CAPACITY
TO 
COLLECT AND REPORT INDICATORS.—The State 
educational agency shall demonstrate its capac-
ity to collect, report, and use the indicators de-
fined and used to meet the requirements of sub-
paragraph (A), including through the use of a 
statewide longitudinal data system. 
(D) ANNUAL
GROWTH
TARGETS.—The 
State educational agency shall set State annual 
growth targets that— 
(i) include a goal and a minimum per-
centage of expected annual growth for each 
school performance indicator; and 
(ii) demonstrate continuous and sub-
stantial progress toward the State-defined 
goal and making adequate yearly progress. 
(4) DEMONSTRATION OF CAPACITY TO SUPPORT 
SYSTEM.—The State educational agency shall dem-
onstrate capacity to support the statewide differen-
tiated high school improvement system, which shall 
include, at a minimum, the following: 
(A) SYSTEM ALIGNMENT.— 
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(i) 
ALIGNMENT
WITH
ACCOUNT-
ABILITY
SYSTEM.—The State shall dem-
onstrate an alignment of the State ac-
countability system described in section 
1111(b)(2) of the Elementary and Sec-
ondary Education Act of 1965 (20 U.S.C. 
6311(b)(2)) and the school improvement 
system under section 1116(b) of such Act 
(20 U.S.C. 6316(b)) with the statewide 
differentiated high school system described 
in section 108. 
(ii) ADDITIONAL
REQUIREMENTS.— 
The State educational agency shall dem-
onstrate, if the State’s statewide differen-
tiated high school improvement system in-
cludes additional requirements not required 
under section 108, how such additional re-
quirements will lead to improved student 
achievement and graduation rates and sys-
tem alignment. 
(iii) STRENGTHENING AND ALIGNING 
POLICIES.—The State educational agency 
shall demonstrate how the State edu-
cational agency will strengthen and align 
policies affecting— 
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(I) interventions in schools in 
whole school reform or replacement 
under clause (ii) or (iii) of paragraph 
(2)(B); 
(II) new school development; and 
(III) implementation of effective 
school improvement activities that ad-
dress the education needs of high 
school students who are off-track or 
who have dropped out. 
(B) DATA
SYSTEMS.—The State edu-
cational agency shall demonstrate the State 
educational agency’s use and support of a state-
wide longitudinal data system, including dem-
onstrating— 
(i) that such system exists, or is being 
developed, and includes the elements de-
scribed in section 6401(e)(2)(D) of the 
America COMPETES Act (20 U.S.C. 
9871(e)(2)(D)) and any additional ele-
ments described in section 14005(d)(3) of 
the American Recovery and Reinvestment 
Act of 2009 (Public Law 111–5; 123 Stat. 
283); 
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(ii) a commitment to the maintenance 
and growth of such system; 
(iii) State policies that ensure the pro-
tection of personally identifiable informa-
tion in such system and authorize such 
system to collect, share, and link data from 
multiple systems for the purposes of eval-
uations and continuous improvement; 
(iv) governance structures to guide 
the collection, sharing and use of the data 
in such system; and 
(v) that such system includes linkages 
between kindergarten through grade 12 
data systems with early learning, postsec-
ondary education, workforce, social services 
and other critical State agency data sys-
tems in order to achieve interoperability 
with systems in other States. 
(C) CAPACITY
AND
TECHNICAL
ASSIST-
ANCE.—The State educational agency shall 
demonstrate how it will support the statewide 
differentiated high school improvement system, 
including— 
(i) a description of the statewide sys-
tem of support, including regional support 
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services and how schools identified under 
this Act can utilize such supports to im-
prove teaching, learning, and student out-
comes; 
(ii) a description of how the State 
educational agency will review, support, 
monitor, and provide technical support for 
local educational agency plans in accord-
ance with paragraph (5); 
(iii) a description of the State edu-
cational agency staffing structure that is 
designed to— 
(I) carry out the activities de-
scribed in clause (ii); 
(II) assist local educational agen-
cy school improvement teams de-
scribed in section 110(b)(2), including 
supporting local educational agencies 
and school officials in developing and 
implementing 
school 
improvement 
plans, including though the provision 
of resources, training and technical 
assistance; and 
(III) coordinate services across 
other State agencies to streamline and 
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improve support provided to schools 
identified as needing targeted inter-
vention, whole school reform, or re-
placement under paragraph (2)(B); 
(iv) a description of how the State 
educational agency will develop and iden-
tify school improvement planning tools for 
use by the local educational agencies and 
schools, such as needs assessments; and 
(v) a description of how the State 
educational agency will ensure local edu-
cational agencies with high numbers of 
schools in whole school reform and replace-
ment and such schools will be prioritized 
and targeted with support. 
(D) INCREASING LOCAL CAPACITY FOR IM-
PROVEMENT.—The State educational agency 
shall demonstrate how the State educational 
agency will align its resources and policies to 
increase State and local capacity to ensure com-
prehensive support for schools identified as 
needing targeted intervention, whole school re-
form, or replacement under paragraph (2)(B), 
including how the State educational agency 
will— 
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(i) target resources, including re-
sources from additional funding sources, to 
improve teacher and principal effectiveness 
in such schools including using data for de-
cision-making; 
(ii) leverage resources from other 
funding sources, such as school improve-
ment funds, technology and data funds, 
and professional development funds; 
(iii) provide local educational agencies 
with support in finding and utilizing sec-
ondary school reform partners and other 
external partners; 
(iv) increase access to State and re-
gional technical assistance services; 
(v) ensure an equitable distribution of 
teachers and principals with a dem-
onstrated record of improving student 
achievement and graduation rates among 
the schools in the State that are identified 
for targeted intervention, whole school re-
form, or replacement under paragraph 
(2)(B), particularly those schools in whole 
school reform or replacement, as compared 
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to schools not identified under paragraph 
(2)(B); 
(vi) ensure access to substantially 
equal educational funding (for each stu-
dent in the State), such as through ad-
dressing per pupil expenditures or inter- 
district funding disparities; 
(vii) support the development of effec-
tive school leaders for high schools identi-
fied for targeted intervention, whole school 
reform, or replacement under paragraph 
(2)(B); 
(viii) assist local educational agencies 
in developing early warning indicator sys-
tems described in section 110(b)(6)(A); 
and 
(ix) assist local educational agencies 
in developing education options as de-
scribed in section 110(b)(6)(B). 
(5) STATE
REVIEW
OF
LOCAL
EDUCATIONAL 
AGENCY PLANS.— 
(A) REVIEW LOCAL EDUCATIONAL AGENCY 
PLANS.—The State educational agency shall de-
scribe how the State educational agency will 
collect and review high school improvement 
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plans described in section 110(b)(4), including 
a description of— 
(i) how the State educational agency 
will measure and ensure local educational 
agencies have the capacity to carry out 
such high school improvement plans; 
(ii) how a local educational agency 
may propose additional levels of differen-
tiation within a particular school improve-
ment category described in paragraph 
(2)(B) that are aligned with the State ac-
countability 
system 
under 
section 
1111(b)(2) of the Elementary and Sec-
ondary Education Act of 1965 (20 U.S.C. 
6311(b)(2)) and the local educational 
agency’s school improvement system under 
section 1116(b) of such Act (20 U.S.C. 
6136(b)) existing as of the time of the 
plan; 
(iii) how the State educational agency 
will allow consortia of local educational 
agencies, particularly those in rural areas, 
to collaborate to develop and implement 
school improvement plans; 
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(iv) how the State educational agency 
will review plans with the assistance and 
advice of a peer review panel that includes 
educators and individuals who are experts 
in— 
(I) educational standards, assess-
ments, and accountability; 
(II) high school improvement; 
(III) dropout prevention, inter-
vention, and recovery; 
(IV) parental involvement; and 
(V) other educational needs of 
high school students; 
(v) how the State, in consultation with 
the peer review panel, shall ensure the 
local educational agency has identified the 
school improvement category described in 
section 106(b)(2) 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 ac-
curately identifies the high school and 
leads to the implementation of the inter-
ventions necessary to meet student needs; 
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(vi) how the State will provide local 
educational agencies the opportunity to re-
vise high school improvement plans, includ-
ing, if the State educational agency, in 
consultation with the peer review panel de-
scribed in clause (iv), determines that the 
local educational agency’s plan does not 
meet the requirements of this title— 
(I) immediately notifying the 
local educational agency of such deter-
mination and the reasons for such de-
termination; and 
(II) offering the local educational 
agency an opportunity to revise the 
plan, and technical assistance for re-
vising the plan; and 
(vii) how the State will make the 
school improvement plans available to the 
public. 
(B) ALLOCATION
OF
SUBGRANTS.—The 
State educational agency shall describe how it 
will award subgrants to local educational agen-
cies consistent with section 109. 
(C) MONITORING
OF
SCHOOL
IMPROVE-
MENT
PLANS.—The State educational agency 
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shall describe how the State educational agency 
will review and monitor the implementation of 
high school improvement plans, including how 
the State will analyze the implementation of the 
high school improvement plans of high schools 
that do not meet the annual growth targets set 
in accordance with paragraph (3)(D) and de-
fined in the school improvement plan described 
in section 110(b)(4). 
(D) 
PROVIDING
TECHNICAL
ASSIST-
ANCE.—The State educational agency shall de-
scribe how it will provide technical assistance to 
local educational agencies and high schools that 
need support to develop and to implement high 
school improvement plans described in section 
110(b)(4) and improve graduation rates and 
student achievement, including through the use 
of secondary school reform partners, where ap-
propriate. 
(6) EVALUATION OF SUCCESS.—The State edu-
cational agency shall describe how, every 5 years, 
the State educational agency will evaluate how the 
activities assisted under this title have been success-
ful in improving student achievement and outcomes 
of the cohort of students whose year of entry into 
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high school was 4 years before the evaluation, in-
cluding measurement of the State educational agen-
cy’s effectiveness in carrying out the activities de-
scribed in the application under this subsection. 
SEC. 107. USE OF GRANT FUNDS. 
A State educational agency that receives a grant 
under this title— 
(1) shall reserve not more than 10 percent of 
the grant funds— 
(A) to carry out the activities described in 
the State plan under section 106; and 
(B) to establish or expand a statewide dif-
ferentiated high school improvement system de-
scribed in section 108; and 
(2) shall use not less than 90 percent of the 
grant funds to make subgrants to local educational 
agencies in accordance with section 109. 
SEC. 108. STATEWIDE DIFFERENTIATED HIGH SCHOOL IM-
PROVEMENT SYSTEM. 
A Statewide differentiated high school improvement 
system shall be designed by the State educational agency 
to— 
(1) use data to identify high schools for whole 
school reform or replacement, as described in clause 
(ii) or (iii) of section 106(b)(2)(B), within the State; 
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(7) build the capacity of the State educational 
agency and local educational agencies to assist in 
improving student achievement and graduation rates 
in high schools identified for whole school reform 
and replacement; and 
(8) ensure that high schools identified for whole 
school reform and replacement making progress on 
school performance indicators continue to have the 
resources and support necessary to further improve 
high school graduation rates and student achieve-
ment. 
SEC. 109. SUBGRANTS TO LOCAL EDUCATIONAL AGENCIES. 
(a) AWARD BASIS.— 
(1) PRIORITY OF WHOLE SCHOOL REFORM AND 
REPLACEMENT.—In awarding subgrants under this 
section, a State educational agency shall— 
(A) before awarding any subgrants to local 
educational agencies serving high schools identi-
fied for targeted intervention under section 
106(b)(2), award subgrants to, on a competitive 
basis, local educational agencies serving high 
schools identified as needing whole school re-
form and replacement; and 
(B) ensure that each subgrant awarded to 
a local educational agency provides funding ade-
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quate to fulfill the school improvement needs 
outlined in the local educational agency’s school 
plan, as approved by the State educational 
agency. 
(2) TARGETED
INTERVENTIONS.—If subgrant 
funds remain after the application of subsection (a), 
then the State educational agency shall award re-
maining subgrant funds to local educational agencies 
serving high schools needing targeted interventions. 
(3) COMPETITIVE BASIS.—A State educational 
agency that receives a grant under this title shall 
award subgrants, in accordance with subsections (a) 
and (b), to local educational agencies on the basis 
of— 
(A) the quality of the school improvement 
plan to improve student graduation rates and 
student achievement in high schools that have 
not made adequate yearly progress for 2 con-
secutive years; 
(B) the capacity of the local educational 
agency to implement the plan; and 
(C) the need of the local educational agen-
cy, based on student high school graduation 
rates and the percentage of students from fami-
lies with incomes below the poverty line. 
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(b) APPLICATION.— 
(1) IN GENERAL.—To be eligible to receive a 
subgrant under this title, a local educational agency 
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. 
(2) CONTENTS.—Each application submitted 
under this subsection shall include— 
(A) a description, for each high school 
identified pursuant to section 110(b)(1), of how 
the local educational agency will carry out ac-
tivities described in section 111 for the high 
school; 
(B) a description of the local educational 
agency staffing structure that is designed to— 
(i) carry out the activities described in 
section 110(a); 
(ii) assist school improvement teams, 
including 
supporting 
local 
educational 
agency and school officials in developing 
and implementing high school improvement 
plans, by providing resources, training, and 
technical assistance, and through other 
means; and 
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(iii) coordinate services across other 
governmental agencies and nongovern-
mental organizations to streamline and im-
prove support provided to schools identified 
for a school improvement category de-
scribed in section 106(b)(2); 
(C) a description of the policies and proce-
dures the local educational agency shall imple-
ment to ensure the distribution and assignment 
of high-quality teachers and leaders in a man-
ner that first fulfills the needs of the schools 
identified as needing targeted intervention, 
whole school reform, or replacement; 
(D) an assurance that the local educational 
agency will use subgrant funds under this title 
first to meet the needs of high schools served 
by the local educational agency that are identi-
fied for whole school reform or replacement 
under clause (ii) or (iii) of section 106(b)(2); 
(E) an assurance that the local educational 
agency shall provide ongoing support and re-
sources to high schools identified for whole 
school reform or replacement, and are making 
progress on the State’s school performance indi-
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cators described in section 106(b)(3), to ensure 
continued improvement; 
(F) a description of how the local edu-
cational agency will increase its capacity to im-
prove high schools with low student achieve-
ment and graduation rates; and 
(G) an assurance that the local educational 
agency will conduct the capacity and needs as-
sessment required under subsection (b)(9) and 
provide the results of the assessment to the 
State educational agency and the Secretary. 
(3) USE OF DATA.—The local educational agen-
cy shall describe how data will be used, consistent 
with the requirements of this section, to inform the 
classification of high schools, and development and 
implementation of school improvement plans, includ-
ing that data described in section 110(b)(1)(A). 
(c) SUPPLEMENT, NOT SUPPLANT.—A local edu-
cational agency that receives a subgrant under this section 
shall use the subgrant funds to supplement, and not sup-
plant, other Federal and non-Federal funds available for 
high schools served by the local educational agency. 
(d) MATCHING FUNDS.— 
(1) IN GENERAL.—A local educational agency 
receiving a subgrant under this section shall provide 
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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 agen-
cy, which may be provided in cash or in-kind. 
(2) USE OF MATCHING FUNDS.—The matching 
funds shall be used to provide technical assistance to 
high schools served by the local educational agency 
in— 
(A) developing the high schools’ high 
school improvement plans described in section 
110(b)(4); 
(B) conducting the capacity and needs as-
sessments described in section 110(b)(9); and 
(C) implementing and monitoring the im-
plementation of the high school improvement 
plans. 
(3) WAIVER.—The Secretary may waive all or 
part of the matching requirement described in para-
graph (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 inabil-
ity to carry out the authorized activities described in 
section 111. 
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SEC. 110. LOCAL EDUCATIONAL AGENCY IMPLEMENTATION 
OF SCHOOL IMPROVEMENT SYSTEM. 
(a) DISTRICT-WIDE HIGH SCHOOL IMPROVEMENT.— 
A local educational agency that receives a subgrant under 
section 109 shall use subgrant funds to develop, lead, and 
implement a district-wide approach to high school im-
provement that meets the requirements of subsection (b) 
and carry out the activities described in section 111. 
(b) SYSTEM REQUIREMENTS.— 
(1) DIFFERENTIATE HIGH SCHOOLS.—The local 
educational agency shall— 
(A) identify the category of high school im-
provement, as described in section 106(b)(2), 
using data from the school performance indica-
tors as prescribed by the State educational 
agency in accordance with section 106(b), for 
each high school served by such agency that 
does not make adequate yearly progress for 2 
consecutive years; and 
(B) publicly identify such schools by school 
improvement category. 
(2) SCHOOL IMPROVEMENT TEAMS.— 
(A) IN GENERAL.—The local educational 
agency shall convene a school improvement 
team for each high school served by such agen-
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