(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 
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; 
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(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; 
(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 
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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; 
(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 
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will award subgrants to local educational agen-
cies consistent with section 109. 
(C) MONITORING
OF
SCHOOL
IMPROVE-
MENT
PLANS.—The State educational agency 
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, 
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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 
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. 
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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; 
(2) differentiate school improvement actions 
under section 106(b)(2) based on the amount and 
type of supports necessary to improve student 
achievement and graduation rates in high schools 
within the State; 
(3) provide resources to support the evidence- 
based activities that school improvement teams 
choose, based on school performance data, to carry 
out under section 111; 
(4) target resources and support to those high 
schools in the State that are identified for whole 
school reform and replacement; 
(5) ensure that each high school identified for 
targeted intervention, whole school reform, or re-
placement that is making progress on the State’s 
school performance indicators described in section 
106(b)(3) continues to implement effective school 
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improvement strategies identified in the high 
school’s school improvement plan; 
(6) ensure that high schools identified for whole 
school reform or replacement making progress on 
the State’s school performance indicators have the 
resources and supports necessary to improve high 
school graduation rates and student achievement; 
(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-
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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. 
(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— 
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(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 
(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 
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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-
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). 
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(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 
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. 
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(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. 
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 
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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-
cy that is assigned to one of the school improve-
ment categories described in section 106(b)(2). 
(B) MEMBERS.— 
(i) 
MANDATORY
MEMBERS.—The 
school improvement team for a high school 
shall include— 
(I) the principal of the high 
school; 
(II) at least 2 teachers from the 
high school representing different 
grade levels or disciplines; and 
(III) local educational agency 
staff. 
(ii) 
ADDITIONAL
MEMBERS.—The 
school improvement team for a high school 
shall include at least one of the following: 
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