II 113th CONGRESS 1st Session S. 940 IN THE SENATE OF THE UNITED STATES May 14, 2013 Mr. Udall of New Mexico 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.

1. Short title; table of contents (a) Short title This Act may be cited as the Graduation Promise Act of 2013 . (b) Table of Contents The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. Sec. 2. Definitions. TITLE I—High school improvement and dropout reduction fund Sec. 101. Purposes. Sec. 102. Definitions. Sec. 103. Grants authorized. Sec. 104. Secretarial peer review and approval. Sec. 105. State plan to develop differentiated high school improvement system. Sec. 106. Use of grant funds. Sec. 107. Statewide differentiated high school improvement system . Sec. 108. Subgrants to local educational agencies. Sec. 109. Local educational agency implementation of school improvement system. Sec. 110. School improvement activities. Sec. 111. Evaluation and reporting. Sec. 112. Authorization of appropriations. TITLE II—Development of effective school models Sec. 201. Purposes. Sec. 202. Definitions. Sec. 203. Grants authorized. Sec. 204. Application. Sec. 205. Secretarial peer review and approval. Sec. 206. Use of funds. Sec. 207. Evaluation and reporting. Sec. 208. Authorization of appropriations. 2. Definitions In this Act: (1) In general The terms distance learning , educational service agency , highly qualified , local educational agency , outlying area , 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 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) ), as clarified in section 200.19(b)(1) of title 34, Code of Federal Regulations. (3) High school The term high school means a secondary school in which the— (A) entering grade of the school is not lower than grade 7; 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. (4) Industry-recognized credential The term industry-recognized credential means a credential— (A) that is sought or accepted by employers within the industry or sector involved as a recognized, preferred, or required credential for recruitment, screening, hiring, retention, or advancement purposes; (B) that, where appropriate, is endorsed by a nationally recognized trade association or organization representing a significant part of the industry or sector; and (C) earned from a program determined by the State grantee to be a program of high quality. (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, and the Commonwealth of Puerto Rico. I High school improvement and dropout reduction fund 101. Purposes The purposes of this title are to— (1) improve high school student academic achievement and graduation rates and prepare all students for postsecondary education and the workforce; (2) help States and local educational agencies develop high school improvement systems to deliver support and technical assistance to high schools identified for whole school reform or replacement, as described in clause (ii) and (iii) of section 105(b)(2)(B); (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 that are for high schools in whole school reform and replacement and that engage the whole community. 102. Definitions In this title: (1) Annual measurable growth The term annual measurable growth means a rate of annual growth determined by a State educational agency that is approved by the Secretary. (2) External partner The term external partner means an entity— (A) that is an organization such as a nonprofit organization, community-based organization, local education fund, service organization, educational service agency, or institution of higher education; and (B) that has demonstrated expertise and effectiveness in providing targeted support such as data analysis, professional development, or provision of nonacademic support and integrated student services to local educational agencies, schools, or students that leads to improved teaching, learning, and outcomes for students, including for those students who are failing to make sufficient progress to graduate in the standard amount of years or who have dropped out of high school. (3) Low-income local educational agency The term low-income local educational agency means a local educational agency— (A) that serves not fewer than 10,000 children from families with incomes below the poverty line; or (B) for which not less than 20 percent of the children served by the agency are from families with incomes below the poverty line. (4) Middle grades The term middle grades means any of grades 5 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) Secondary school reform partner The term secondary school reform partner means an organization, such as a school reform organization, community-based organization, local education fund, educational service agency, or institution of higher education, with expertise in analyzing school performance data and a track record of success in improving student achievement and graduation rates in low-performing high schools. 103. Grants authorized (a) In general The Secretary is authorized to make grants, through allotments under subsection (b), to State educational agencies with approved State plans that will— (1) improve student achievement and graduation rates; (2) effectively target resources and technical assistance to high schools in whole school reform or replacement, as described in clause (ii) or (iii) of section 105(b)(2)(B); and (3) ensure coordination with other Federal programs, where applicable, including programs authorized under the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.), the Individuals with Disabilities Education Act (20 U.S.C. 1401 et seq.), and the Carl D. Perkins Career and Technical Education Act of 2006 ( 20 U.S.C. 2301 et seq. ). (b) Determination of allotments (1) Reservation of funds From the total amount appropriated under section 112, the Secretary shall reserve not more than— (A) the lesser of 3 percent or $50,000,000, to— (i) provide technical assistance and ongoing regional training programs that are equitably distributed— (I) among the different geographic regions of the United States; and (II) among State and local educational agencies serving urban and rural areas; (ii) evaluate activities authorized under this title in order to determine the most effective strategies for improving student achievement and outcomes for students attending high schools identified for targeted intervention, whole school reform, or replacement under section 105(b)(2); and (iii) disseminate the findings of such evaluations; (B) the lesser of 4 percent or $75,000,000, to build the capacity of secondary school reform partners and external partners to provide services under this Act that benefit high schools and support the development or enhancement of research-based whole secondary school reform or new secondary school models, of which not less than 35 percent of such reserved funds shall be awarded, on a competitive basis, to secondary school reform partners or external partners that will provide services under this Act that benefit high schools designated with a school locale code of Fringe Rural (41), Distant Rural (42), or Remote Rural (43), as determined by the Secretary; (C) 2 percent to the Secretary of the Interior, to enable the Secretary to carry out the purposes of this Act for schools operated or funded by the Bureau of Indian Education of the Department of the Interior; and (D) one-half of 1 percent to award assistance under this title to the outlying areas according to their respective needs for assistance under this title. (2) State allotment From the total amount appropriated under section 112 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 graduation rate calculation From such amount, the Secretary shall allot to each State for which the graduation rate is within the lowest one-third of the graduation rates for all States, an amount that bears the same ratio to 25 percent of the sums being allotted as the number of students enrolled in high schools in the State bears to the total of such students in all of such States with the lowest one-third graduation rates. (C) Middle graduation rate calculation From such amount, the Secretary shall allot to each State for which the graduation rate is within the middle one-third of the graduation rates for all States, an amount that bears the same ratio to 15 percent of the sums being allotted 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 graduation rates. (D) Highest graduation rate calculation From such amount, the Secretary shall allot to each State for which the graduation rate is within the highest one-third of the graduation rates for all States, an amount that bears the same ratio to 10 percent of the sums being allotted 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 graduation rates. (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) Using first-year data In calculating allotments under this subsection for the second and each subsequent year of the grant period, the Secretary shall use the data relating to low-income local educational agencies and graduation rates used for the first year of the grant period. (5) Hold harmless Notwithstanding any other provision of this subsection but subject to paragraph (6), no State shall receive an allotment under this section for a fiscal year in an amount that is less than the amount the State received under this section for the first fiscal year of the grant period. (6) Ratable reduction If the amount appropriated in a fiscal year is not sufficient to pay the minimum allotments to all eligible institutions under paragraph (5), the amount of the minimum allotment to each such eligible institution shall be ratably reduced. (c) 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. (d) Matching funds (1) In general A State educational agency that receives a grant under this section 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 to carry out the activities supported by the grant. Such matching funds may be provided in cash or in-kind, except that— (A) not more than 10 percent of the amount of grant funds may be provided through in-kind contributions; and (B) any in-kind contributions shall be directed toward supporting the State educational agency's technical assistance efforts or the operation of the State’s differentiated high school improvement system under section 105. (2) Waiver The Secretary may waive the requirements under paragraph (1). 104. 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, academic needs of English language learners, 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) if the Secretary determines that the State does not have the capacity to carry out the school improvement activities described in sections 105(b)(2) and 107, offer technical assistance to carry out such activities for States directly or through contracts with secondary school reform partners; (6) not deny 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 plan; and (C) providing the State an opportunity for a hearing or accepting input from the State; and (7) have the authority to deny a State plan for not meeting the requirements of this title. (b) 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 sections 105(b)(2) and 107, which process will assign high schools to each of the school improvement categories described in section 105(b)(2) in such a way that accurately identifies the high school and leads to the implementation of the interventions necessary to meet the needs of the students attending the high school; and (2) the annual growth targets proposed by the State educational agency under section 105(b)(3)(D) are meaningful and achievable, and demonstrate continuous and substantial progress. 105. State plan to develop differentiated high school improvement system (a) In general For a State to be eligible to receive a grant under this title, the State educational agency shall submit a plan to the Secretary at such time, in such manner, and containing such information as the Secretary may reasonably require. (b) Contents Each plan 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 statewide differentiated high school improvement system described in section 107. (2) Statewide differentiated high school improvement (A) Process of differentiation The State educational agency shall describe a data-driven process for categorizing high schools into the categories described in subparagraph (B) using— (i) the indicators used to determine annual measurable growth; and (ii) data from the school performance indicators described in paragraph (3). (B) Differentiated high school improvement categories The State educational agency shall describe how local educational agencies will use the process established under subparagraph (A) to categorize the high schools in the State that do not make annual measurable growth for 2 consecutive years into one of the following school improvement categories: (i) Schools needing targeted interventions High schools whose performance on the school performance indicators described in paragraph (3) demonstrate a need for targeted interventions described in section 110(b) to improve student outcomes and make annual measurable growth. (ii) Schools needing whole school reforms High schools whose performance on the school performance indicators demonstrate a need for comprehensive schoolwide reform described in section 110(c) to improve student outcomes and make annual measurable growth. (iii) Schools needing replacement High schools whose school performance indicators demonstrate a need for replacement, as described in section 110(d). (C) Special rule A State educational agency may propose in the plan under this section additional levels of differentiation within a particular school improvement category described in subparagraph (B) to further target and prioritize school needs and to align differentiation with the State's existing State accountability systems. (D) Demonstration of development The State shall demonstrate how the State plan was developed in consultation with a representative group of local educational agencies. (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 substantial improvement in accordance with the annual growth targets described in paragraph (3)(D) and consistent with the requirements described in section 110. (F) Automatic designation The process of categorization proposed by the State educational 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 (A) In general The State educational agency shall define, in consultation with representatives from urban and rural local educational agencies in the State, a comprehensive set of school performance indicators that— (i) shall be used, in addition to the indicators used to determine annual measurable growth, to— (I) analyze the performance of high schools in the State; (II) determine the amount, intensity, and type of support each high school needs; and (III) guide the school improvement 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 success in higher education and careers; and (iii) (I) directly measure student achievement and advancement in high school; or (II) have been demonstrated by research to have a direct impact on high school student achievement and advancement. (B) Categories (i) In general The comprehensive set of school performance indicators required by subparagraph (A) shall include indicators of— (I) high school student engagement and effort; (II) student advancement; (III) educator effectiveness; and (IV) academic learning. (ii) Indicators of high school student engagement and effort With respect to high school student engagement and effort, the indicators— (I) shall include student attendance rates; and (II) may include— (aa) the percentage of student suspensions and expulsions; (bb) surveys of high school student engagement and effort; or (cc) other indicators of student engagement proposed by the State educational agency and approved by the Secretary as part of the peer review process described in section 104(a). (iii) Indicators of student advancement 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 students who have on-time credit accumulation at the end of each grade; and (bb) the percentage of students— (AA) failing a core, credit-bearing, English language arts, mathematics, or science course; or (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 education; (bb) measures of the employment success of students who graduated from the high school; or (cc) other indicators of student advancement proposed by the State educational agency and approved by the Secretary as part of the peer review process described in section 104(a). (iv) Indicators of educator effectiveness With respect to educator effectiveness, the indicators— (I) shall include— (aa) measures of teacher attendance, vacancies, and turnover; and (bb) the percentage of highly qualified teachers by grade level; and (II) may include— (aa) student performance and growth, observations, and portfolio review; and (bb) other indicators of educator effectiveness proposed by the State educational agency and approved by the Secretary as part of the peer review process described in section 104(a). (v) Indicators of academic learning With respect to academic learning, the indicators— (I) shall include— (aa) the percentage of students taking a college-preparatory curriculum, which may include the percentage of students taking Advanced Placement courses, International Baccalaureate courses, or postsecondary courses for dual credit; (bb) the percentage of students reaching proficiency on the State academic assessments in reading and mathematics required under section 1111 of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 6311 ), disaggregated by the categories of students identified in section 1111(b)(2)(C)(v) of such Act (20 U.S.C. 1111(b)(2)(C)(v)); (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 (dd) the percentage of students who earn a postsecondary credential while enrolled in secondary school (including an industry-recognized credential); and (II) may also include— (aa) student achievement on college entrance and placement examinations such as the ACT or SAT, or Advanced Placement or International Baccalaureate examinations; or (bb) other indicators of academic learning proposed by the State educational agency and approved by the Secretary as part of the peer-review process described in section 104(a). (C) Demonstration of capacity to collect and report indicators The State educational agency shall demonstrate its capacity to collect, report, and use the indicators defined and used to meet the requirements of subparagraph (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 percentage of expected annual growth for each school performance indicator; and (ii) demonstrate continuous and substantial progress toward the State-defined goal and making annual measurable growth. (4) Demonstration of capacity to support system The State educational agency shall demonstrate capacity to support the statewide differentiated high school improvement system, which shall include, at a minimum, the following: (A) System alignment (i) Alignment with accountability system The State shall demonstrate an alignment of the State accountability system described in section 1111(b)(2) of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 6311(b)(2) ) with other accountability systems approved by the Secretary under such section 1111. (ii) Additional requirements The State educational agency shall demonstrate, if the State's statewide differentiated high school improvement system includes additional requirements not required under section 107, how such additional requirements will lead to improved student achievement and graduation rates and system alignment. (iii) Strengthening and aligning policies The State educational agency shall demonstrate how the State educational agency will strengthen and align policies affecting— (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 address the education needs of high school students who are off-track or who have dropped out. (B) Data systems The State educational agency shall demonstrate the State educational agency's use and support of a statewide longitudinal data system, including demonstrating— (i) that such system exists, or is being developed, and includes the elements described in section 6401(e)(2)(D) of the America COMPETES Act (20 U.S.C. 9871(e)(2)(D)); (ii) a commitment to the maintenance and growth of such system; (iii) State policies that ensure the protection of personally identifiable information in such system and authorize such system to collect, share, and link data from multiple systems for the purposes of evaluations 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, postsecondary education, workforce, social services and other critical State agency data systems in order to achieve interoperability with systems in other States. (C) Capacity and technical assistance The State educational agency shall demonstrate how it will support the statewide differentiated high school improvement system, including— (i) a description of the statewide system of support, including regional support services and how schools identified under this Act and the local educational agencies that serve such schools can utilize such supports to improve teaching, learning, and student outcomes; (ii) a description of how the State educational agency will review, support, monitor, and provide technical support for local educational agency plans in accordance with paragraph (5); (iii) a description of the State educational agency staffing structure that is designed to— (I) carry out the activities described in clause (ii); (II) assist local educational agency school improvement teams described in section 109(b)(2), including supporting local educational agencies and school officials in developing and implementing school improvement plans, including through the provision of resources, training and technical assistance; and (III) coordinate services across other State agencies to streamline and improve support provided to schools identified as needing targeted intervention, whole school reform, or replacement under paragraph (2)(B); (iv) a description of how the State educational agency will develop and identify 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 educational agencies with high numbers of schools in whole school reform and replacement and such schools will be prioritized and targeted with support. (D) Increasing local capacity for improvement 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 comprehensive support for schools identified as needing targeted intervention, whole school reform, or replacement under paragraph (2)(B), including how the State educational agency will— (i) target resources, including resources from additional funding sources, to improve teacher and school leader quality or effectiveness in such schools including using data for decisionmaking; (ii) leverage resources from other funding sources, such as school improvement funds, technology and data funds, and professional development funds; (iii) provide local educational agencies with support in finding and utilizing secondary school reform partners and other external partners; (iv) increase access to State and regional technical assistance services; (v) ensure an equitable distribution of teachers and school leaders with a demonstrated record of improving student achievement and graduation rates among the schools in the State that are identified for targeted intervention, whole school reform, or replacement under paragraph (2)(B), particularly those schools in whole school reform or replacement, as compared to schools not identified under paragraph (2)(B); (vi) ensure that local educational agencies in the State have adequate resources to serve schools; (vii) support the development of effective school leaders for high schools identified for targeted intervention, whole school reform, or replacement under paragraph (2)(B); (viii) assist local educational agencies in developing early warning indicator systems described in section 109(b)(6)(A); and (ix) assist local educational agencies in developing education options as described in section 109(b)(6)(B). (5) State review of local educational agency plans (A) Review local educational agency plans The State educational agency shall describe how the State educational agency will collect and review high school improvement plans described in section 109(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 differentiation within a particular school improvement category described in paragraph (2)(B) that are aligned with the State accountability system under section 1111(b)(2) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6311(b)(2)); (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, assessments, and accountability; (II) high school improvement; (III) dropout prevention, intervention, 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 105(b)(2) for each high school served by the local educational agency that did not make annual measurable growth for 2 consecutive years in such a way that accurately identifies the high school and leads to the implementation of the interventions necessary to meet student needs; (vi) how the State will provide local educational agencies the opportunity to revise high school improvement plans, including, if the State educational agency, in consultation with the peer review panel described 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 determination and the reasons for such determination; and (II) offering the local educational agency an opportunity to revise the plan, and technical assistance for revising 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 agencies consistent with section 108. (C) Monitoring of school improvement 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 defined in the school improvement plan described in section 109(b)(4). (D) Providing technical assistance The State educational agency shall describe 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 109(b)(4) and improve graduation rates and student achievement, including through the use of secondary school reform partners, where appropriate. (6) Evaluation of success The State educational agency shall describe how, every 5 years, the State educational agency will evaluate how the activities assisted under this title have been successful in improving student achievement and outcomes of the cohort of students whose year of entry into high school was 4 years before the evaluation, including measurement of the State educational agency’s effectiveness in carrying out the activities described in the application under this subsection. 106. 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 105; and (B) to establish or expand a statewide differentiated high school improvement system described in section 107; and (2) shall use not less than 90 percent of the grant funds to make subgrants to local educational agencies in accordance with section 108. 107. Statewide differentiated high school improvement 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 targeted intervention, whole school reform, or replacement, as described in section 105(b)(2)(B), within the State; (2) differentiate school improvement actions under section 105(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 110; (4) target resources and support to those high schools in the State that are identified for whole school reform or replacement; (5) ensure that each high school identified for targeted intervention, whole school reform, or replacement that is making progress on the State's school performance indicators described in section 105(b)(3) continues to implement effective school 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 achievement. 108. 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 identified for targeted intervention under section 105(b)(2), award subgrants to, on a competitive basis, local educational agencies serving high schools identified as needing whole school reform and replacement; and (B) ensure that each subgrant awarded to a local educational agency provides funding adequate 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 remaining 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 annual measurable growth for 2 consecutive years; (B) the capacity of the local educational agency to implement the plan; and (C) the need of the local educational agency, based on student high school graduation rates and the percentage of students from families 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 109(b)(1), of how the local educational agency will carry out activities described in section 110 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 109(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 nongovernmental organizations to streamline and improve support provided to schools identified for a school improvement category described in section 105(b)(2); (C) a description of the policies and procedures the local educational agency shall implement to ensure the distribution and assignment of high-quality teachers and leaders in a manner 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 identified for whole school reform or replacement under clause (ii) or (iii) of section 105(b)(2); (E) an assurance that the local educational agency shall provide ongoing support and resources to high schools identified for whole school reform or replacement, and are making progress on the State's school performance indicators described in section 105(b)(3), to ensure continued improvement; (F) a description of how the local educational agency will increase its capacity to improve high schools with low student achievement and graduation rates; and (G) an assurance that the local educational agency will conduct the capacity and needs assessment required under subsection (b)(9) and provide the results of the assessment to the State educational agency. (3) Use of Data The local educational agency 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, including that data described in section 109(b)(1)(A). (c) Supplement, not supplant A local educational agency that receives a subgrant under this section shall use the subgrant funds to supplement, and not supplant, 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 agency, 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 109(b)(4); (B) conducting the capacity and needs assessments described in section 109(b)(9); and (C) implementing and monitoring the implementation of the high school improvement plans. (3) 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. 109. Local educational agency implementation of school improvement system (a) District-Wide high school improvement A local educational agency that receives a subgrant under section 108 shall use subgrant funds to develop, lead, and implement a district-wide approach to high school improvement that meets the requirements of subsection (b) and carry out the activities described in section 110. (b) System requirements (1) Differentiate high schools The local educational agency shall— (A) identify the category of high school improvement, as described in section 105(b)(2), using data from the school performance indicators as prescribed by the State educational agency in accordance with section 105(b), for each high school served by such agency that does not make annual measurable growth 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 agency that is assigned to one of the school improvement categories described in section 105(b)(2). (B) Members (i) Mandatory members The school improvement team for a high school shall include— (I) the school leader of the high school; (II) if applicable, at least 1 teacher from the high school representing career and technical education; (III) at least 2 teachers from the high school representing different grade levels or disciplines; (IV) local educational agency staff; (V) a school counselor from the high school; and (VI) a local representative of the business community, with preference given to a member of a school’s business advisory council, if applicable. (ii) Additional members The school improvement team for a high school shall include at least one of the following: (I) A parent of a student in the high school. (II) A community representative, such as a representative of nonprofit organizations serving young people and the business community. (III) A pupil service representative. (IV) In the case of a school in whole school reform or replacement, secondary school reform partners. (iii) Optional members The school improvement team for a high school may include State educational agency staff, if requested by the local educational agency or assigned by the State educational agency. (C) Collaboration The local educational agency shall ensure collaboration— (i) of school improvement teams with personnel of middle grades schools served by the local educational agency whose students will attend high schools that are identified for one of the categories described in section 105(b)(2), to the extent appropriate; and (ii) among or between school improvement teams at schools assigned to one of the school improvement categories and school leadership and other personnel at schools served by the local educational agency that have made annual measurable growth. (3) Use of data Consistent with the requirements of this section, the local educational agency shall use, at minimum, data on the following to inform the classification of high schools: (A) School performance indicators described in section 105(b)(3). (B) Indicators used to determine annual measurable growth. (C) Information about incoming students in the initial grade of the high school. (D) Information about the student population, including data provided through the early warning indicator system described in paragraph (6)(A). (E) The schools’ capacity and needs, as described in paragraph (9). (4) Develop high school improvement plans The school improvement team convened under paragraph (2) for each school shall use the data described in paragraph (3), and other relevant data and knowledge regarding the school, to develop a multiyear school improvement plan. Such plan shall— (A) identify the school annual growth targets for the State's school performance indicators described in section 105(b)(3) that meet or exceed the State's annual growth targets described in such section; (B) define the evidence-based academic and nonacademic interventions and resources necessary to meet the school annual growth targets and make annual measurable growth; (C) identify the roles of the State educational agency, the local educational agency, the school, and secondary school reform partners and other external partners, as appropriate, in providing such interventions and the resources necessary to meet the school annual growth targets and make annual measurable growth; (D) 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 the subgrant; and (E) describe and direct the use of— (i) any additional funding to be provided by the State educational agency, the local educational agency, or other sources to support activities carried out under this title; and (ii) in the case of a high school identified for whole school reform or replacement, secondary school reform partners and external partners. (5) Implement high school improvement The local educational agency shall use funds to— (A) engage in a planning period of not longer than 180 days to prepare to implement the school improvement plan for each high school, including preparation activities such as— (i) creating a skilled leadership team and providing professional development in best practice and successful school models that educate similar student populations; (ii) working with secondary school reform partners to identify roles and responsibilities to create a comprehensive approach and effort to implementing the school improvement plan for each school identified for targeted intervention, whole school improvement, or replacement; (iii) planning and providing professional development to high school teachers in instruction, use of data, and working in the identified schools; (iv) appropriately identifying teachers for each grade and course; (v) establishing and implementing use of the early warning indicator system described in paragraph (6)(A); and (vi) establishing a school schedule that enables the implementation of the high school improvement plan; and (B) ensure the implementation of the high school improvement plans for the high schools identified for one of the categories described in section 105(b)(2). (6) Implement district-wide activities The local educational agency shall support successful implementation of high school improvement plans and district-wide improvement through— (A) establishing an early warning indicator system to identify students who are at risk of dropping out of high school and to guide preventive and recuperative school improvement strategies, including— (i) identifying and analyzing the academic risk factors that most reliably predict dropouts, such as by using longitudinal data of past cohorts of students; (ii) identifying specific indicators of student progress and performance, such as attendance, academic performance in core courses, and credit accumulation, to guide decisionmaking; (iii) identifying or developing a mechanism for regularly collecting and analyzing data about the impact of interventions on the indicators of student progress and performance; and (iv) analyzing academic indicators to determine whether students are on track to graduate secondary school in the standard number of years; (B) providing academically rigorous education options that lead to a secondary school diploma consistent with readiness for postsecondary education and the workforce, based on an analysis of data described in paragraph (3) and other student-level data and designed to meet the students’ needs and interests, such as— (i) effective research-based dropout prevention, credit and dropout recovery, and recuperative education programs for students who are not making sufficient progress to graduate high school in the standard number of years or have dropped out of high school; (ii) providing students with post-secondary learning opportunities, such as through access to a relevant curriculum or course of study that enables a student to earn a secondary school diploma and— (I) an associate’s degree; (II) an industry-recognized credential; or (III) transferable credit toward a postsecondary degree or credential; (iii) combining rigorous academic education with career training, including training that leads to postsecondary or industry-recognized credentials, for students; (iv) increasing access to Advanced Placement or International Baccalaureate courses and examinations; (v) developing and utilizing innovative, high quality distance learning strategies to improve student academic achievement; or (vi) increasing access to work-based learning opportunities; (C) providing targeted research-based interventions for middle schools that feed into the high schools identified by the local educational agency as needing whole school reform or replacement; (D) identifying and implement strategies for pairing academic support with integrated student services and case-managed interventions for students requiring intensive supports, which may include partnership with other external partners; (E) providing technical assistance to high schools identified for 1 of the categories described in section 105(b)(2) through— (i) streamlining and prioritizing resources to organize support for schools in whole school reform or replacement, such as through identifying and developing categories or clusters of schools with similar school improvement needs; and (ii) assisting schools in identifying secondary school reform partners and other external partners; and (F) supporting the use of data to improve teaching and learning, including— (i) improving longitudinal student data systems; (ii) regularly analyzing and communicating data to educators, parents, and students that they can use; and (iii) building school leaders' and teachers' data and assessment literacy. (7) Ensure continuous high school improvement (A) In general The local educational agency shall ensure the continuous improvement of high schools by— (i) evaluating the progress of each high school in making continuous and substantial progress based on the high school's annual growth targets identified under paragraph (4) for the school; and (ii) determining the high school's progress and taking appropriate actions, as provided in subparagraphs (B) and (C). (B) On track Each high school that is meeting the school's annual growth targets identified in the high school improvement plan for the high school, shall continue to implement school improvement activities in accordance with the high school improvement plan. (C) Not on track (i) Annual review For each high school that is not meeting the high school's annual growth targets, the local educational agency shall— (I) after the first year that the high school fails to meet the high school's annual growth targets, review the high school improvement plan and develop and implement a new plan; and (II) after the high school fails to meet the high school's annual growth targets for 2 or more consecutive years, reclassify the school as a school in need of whole school reform or replacement, as appropriate based on the State educational agency's categorization system described in section 105(b)(2). (ii) Resubmission of school plan For each high school that fails to meet the high school's annual growth targets for 2 or more consecutive years, the local educational agency may develop and submit to the State educational agency for review a new school improvement plan, as the local educational agency determines appropriate. (8) Assurances The local educational agency shall ensure that high schools receiving additional students due to other high schools being replaced under subsection (c) will have sufficient capacity, resources, and funding to deliver a high quality education to all students. (9) Capacity and needs assessment (A) In general Each school improvement team described in subsection (b)(2) and the local educational agency shall conduct a high school capacity and needs assessment for the high school served by the team that includes— (i) a description and analysis of the high school’s capacity to implement the school improvement activities identified in the high school improvement plan, including an analysis of— (I) the number, experience, training level, responsibilities, and stability of existing administrative, instructional, and noninstructional staff for the high school; and (II) a review of the budget, including how Federal, State, and local funds are being spent, as of the time of the assessment, for instruction and operations at the school level for staff salaries, instructional materials, professional development, and student support services, in order to establish the extent to which existing resources need to and can be reallocated to support the needed school improvement activities; (ii) additional resources and staff necessary to implement the school improvement activities identified in the high school improvement plan; and (iii) an analysis of the local educational agency's capacity to provide technical assistance, additional staff, and resources to implement the high school improvement plan and to improve the high school's performance. (B) Assessment requirements A local educational agency shall use the information provided in the capacity and needs assessment for a high school, in coordination with the high school's school improvement plan and the understanding of the reform history of high schools, to— (i) determine the level and direct the use of— (I) the funds requested by the local educational agency for the high school under the subgrant under this section; and (II) any additional funding to be provided by the State educational agency, the local educational agency, or other sources; and (ii) to determine the number and direct the use of secondary school reform partners and external partners. (C) Technical assistance A local educational agency may request technical assistance from the State educational agency in preparing the plan and the capacity and needs assessment required under this paragraph. (c) Authority To intervene The State educational agency may intervene to develop or implement the high school improvement plans, or enter into contracts with secondary school reform partners to assist local educational agencies with the development and implementation of high school improvement plans, if the State educational agency determines that— (1) a local educational agency serving a high school in whole school reform or replacement has not submitted an application described in section 108(b); or (2) a local educational agency does not have the capacity to implement the school improvement activities described in the school improvement plan submitted under subsection (b)(4). 110. School improvement activities (a) In general The school improvement team described in section 109(b)(2) for each high school identified for a school improvement category described in section 105(b)(2) shall ensure that the school improvement activities included in the school improvement plan are implemented. (b) Targeted interventions A high school identified for targeted interventions under section 109(b)(1) or the local educational agency serving such high school, shall implement research-based targeted interventions, using data from the school performance indicators, the early warning indicator system, other student indicators, and the capacity and needs assessment for the high school. The targeted interventions shall be designed, at a minimum, to address the specific problems identified by the indicators, including the needs of students who are not making sufficient progress to graduate in the standard number of years. (c) Whole school reform The local educational agency or State educational agency, with technical assistance from secondary school reform partners, shall enable and assist each school identified as needing whole school reform pursuant to section 109(b)(1) to implement whole school reform based on scientifically valid research using the data described in section 109(b)(3). Such reform— (1) shall address the comprehensive aspects of high school reform, including— (A) schoolwide needs; (B) students who need targeted assistance; and (C) students who need intensive interventions, including those who are not making sufficient progress to graduate on time; (2) shall address schoolwide factors to improve student achievement, including— (A) setting high expectations and infusing relevance into learning for all students; (B) personalizing the high school experience; and (C) improving school climate, including student attendance and behavior; (3) shall include activities that— (A) ensure continuous improvement by— (i) ensuring the school improvement plan is supported to the extent practicable by all school staff; (ii) establishing clear— (I) goals and growth targets for implementation outcomes; and (II) school annual growth targets; and (iii) regularly evaluating implementation of and fidelity to the high school improvement plan, such as dedicating a staff member to support implementation of the school improvement plan; (B) organize the school to improve teaching and learning, including through— (i) strategic use of time, such as— (I) establishing common planning time for subject area teachers and interdisciplinary teams who share common groups of students; (II) utilizing block scheduling or redesigning the school calendar year or day to create extended learning time in core subjects; or (III) creating a flexible school period to address specific student academic needs and interests such as credit recovery, electives, or service learning; (ii) alignment of resources to improvement goals, such as through ensuring that students in their initial year in the high school are taught by teachers prepared to meet their specific learning needs; and (iii) development of effective leadership structures, supports, and clear decisionmaking processes, such as through developing distributive leadership and leadership teams; (C) improve curriculum and instruction, including through— (i) increasing access to rigorous and advanced coursework, including adoption and implementation of a college- and work-ready curriculum, and evidence-based, engaging instructional materials aligned with such a curriculum, for all students; (ii) increasing access to contextualized learning opportunities aligned with readiness for postsecondary education and the workforce, such as— (I) providing work-based, project-based, and service-learning opportunities; (II) providing a high quality, college preparatory curriculum in the context of a rigorous career and technical education core; or (III) implementing career academies or programs of study in high-demand fields leading to industry-recognized credentials or postsecondary credit; (iii) regularly collecting and using data to inform instruction, such as— (I) through use of formative assessments; (II) creating and using common grading rubrics; or (III) identifying effective instructional approaches to meet student needs; and (iv) emphasizing core skills instruction, such as literacy, across content areas; (D) provide students with academic and social support to address individual student learning needs, including through— (i) increasing personalization through learning structures that facilitate the development of student and staff relationships such as— (I) implementing grade 9 academies, career academies, or programs of study; (II) establishing teams of teachers who work exclusively with small groups of students; or (III) creating advisor positions to provide students with study, organizational, and social skills; (ii) offering extended-learning, credit recovery, mentoring, or tutoring options of sufficient scale to meet student needs; (iii) providing evidence-based accelerated learning for students with academic skill levels below grade level; (iv) coordinating and increasing access to integrated services, such as providing additional counselors, social workers, and behavior and mental health providers to deliver such services; (v) providing graduation and postsecondary planning and transition supports, including college awareness and planning; and (vi) providing up-to-date, regionally relevant workforce information; (E) increase teacher and school leader effectiveness, including through— (i) professional development activities that respond to student and schoolwide needs as identified through the data described in section 109(b)(3), such as— (I) training teachers, leaders, and administrators together with staff from high schools making annual measurable growth that serve similar populations and in such schools; and (II) establishing peer learning and coaching among teachers; and (ii) facilitating collaboration, including through professional communities across subject area and interdisciplinary groups and similar high schools; and (F) engage families and community partners, including community-based organizations, organizations assisting parent involvement, institutions of higher education, and industry, in school improvement activities through evidence-based strategies; and (4) may include— (A) providing enabling policies, such as additional flexibility regarding staffing and compensation, budgeting, student credit attainment, or use of school time, that support the implementation of effective school improvement activities and educational options, including flexibility provided under section 1114(a)(3) of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 6314(a)(3) ); (B) implementing multiple school options or effective school models that address the needs of students who are not making sufficient progress to graduate in the standard number of years or have dropped out of high school, as informed by analysis of school performance indicator data described in section 105(b)(3) and early warning indicator system data described in section 109(b)(6)(A); and (C) other activities designed to address whole school needs, such as implementing a comprehensive reform model for the high school. (d) Replacement The local educational agency, in consultation with the State educational agency, secondary school reform partners, and external partners, shall replace each high school that, using data under section 109(b)(3), is identified for replacement pursuant to section 109(b)(1). The local educational agency shall ensure successful implementation of the replacement strategy through— (1) closing and reopening the schools or implementing multiple school options or effective school models that address the needs of students in the replaced schools, including students who are not making sufficient progress to graduate in the standard number of years or have dropped out of high school; (2) providing enabling policies, such as additional flexibility regarding staffing and compensation, budgeting, or use of school time; and (3) implementing activities described in subsection (c). 111. Evaluation and reporting (a) Local educational agency reporting On an annual basis, each local educational agency receiving a subgrant under section 108 shall report to the State educational agency and to the public on— (1) the identified category of school improvement for each high school in the school that failed to make annual measurable growth for the most recent 2 consecutive years; (2) the school performance indicators (as described in section 105(b)(3)) for each such high school, 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) each such high school's progress in meeting the high school's annual growth targets under section 109(b)(4)(A); and (4) the use of subgrant funds in carrying out the purposes of this title by the local educational agency and each such school. (b) State educational agency reporting On an annual basis, each State educational agency receiving a grant under this title shall prepare and submit to the Secretary, and make available to the public, a report on— (1) the school performance indicators (as described in section 105(b)(3)) for each high school served by the State educational agency that receives assistance 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)); (2) progress in meeting the annual growth targets under section 109(b)(4)(A) for each such high school; (3) the high schools in the State that have changed school improvement categories pursuant to section 109(b)(7); (4) the use of funds in carrying out the purposes of this title by each local educational agency and each school served with such funds; (5) the State definition of a new school, for purposes of whole school reform or replacement; (6) the number of schools closed for each local educational agency in the State; (7) the number of new schools for each local educational agency in the State; and (8) the new schools in the State that have made annual measurable growth. (c) Report to congress Not later than 2 years after the date of enactment of this Act, and annually thereafter, the Secretary shall prepare and submit to Congress and make available to the public— (1) a summary of the State reports under subsection (b); and (2) a report on the use of funds by each State under this title. 112. Authorization of appropriations There is authorized to be appropriated to carry out the activities authorized under this title, $2,440,000,000 for fiscal year 2014 and each of the 4 succeeding fiscal years. II Development of effective school models 201. Purposes The purposes of this title are— (1) to facilitate the development and implementation of effective secondary school models for struggling students and dropouts in order to raise secondary school graduation rates and more effectively prepare students for postsecondary education and the workforce; 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. 202. Definitions In this title: (1) Dropout The term dropout means an individual who— (A) is not older than 21; (B) is not attending any school; and (C) has not received a secondary school 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 off-track 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 off-track 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 off-track students or dropouts; or (B) a partnership involving 2 or more entities described in subparagraph (A). (4) Late entrant English language learner The term late entrant English language learner means a high school student who— (A) enters a school served by a local educational agency at grade 9 or higher; and (B) is identified by the local educational agency as being limited English proficient and as having experienced interrupted formal education. (5) 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 an undercredited student; or (iii) is a late entrant English language learner. (6) Undercredited student The term undercredited student means 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. 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 5 years. 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 202(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 202(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 career and technical education program, if applicable; (C) the instructional practices; (D) the methods of assessment; and (E) student supports and services, such as the supports and services 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 to evaluate and 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. 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. 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— (1) to identify and create partnerships needed to improve the academic achievement and outcomes of the students attending a school assisted under this title; (2) to support family and community engagement in the effective school model; and (3) to carry out any additional activities that the Secretary determines are within the purposes described in section 201. 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. (c) Report to Congress The Secretary shall submit a report to Congress— (1) on the activities carried out with grant funds under this title; and (2) that includes, for the purpose of making publicly available, effective secondary school models for struggling students and dropouts developed with grant funds under this title. 208. Authorization of appropriations There is authorized to be appropriated to carry out this title $60,000,000 for fiscal year 2014 and each of the 4 succeeding fiscal years.