READ FIRST TIME 02/25/11.   

     AN ACT Relating to establishing the pay for actual student success dropout prevention program; amending RCW 28A.175.035; adding new sections to chapter 28A.175 RCW; adding a new section to chapter 28A.300 RCW; and creating new sections.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

     *NEW SECTION.  Sec. 1   (1) The legislature finds that:
     (a) Providing students with the opportunity to graduate from high school with the knowledge and skills to be successful in today's world is now clearly part of Washington's definition of a basic education. Some students will only achieve this objective with supplemental interventions, support, and counseling;
     (b) Dropout prevention is a fundamental strategy for strengthening society, building the economy, reducing crime, reducing government spending, and increasing individual freedom and opportunity;
     (c) There are known and proven strategies to reduce the dropout rate, including ones that are successful for high-risk and troubled students. For example, the opportunity internship program, the jobs for America's graduates program, the building bridges program, and individualized student support services provided by the college success foundation have all had a measurable impact on helping at-risk students be successful in school. In addition, the Everett school district successfully increased its extended graduation rate from fifty-three percent in 2003 to ninety percent in 2010 by tracking the progress toward graduation of each student and assigning success coordinators to ensure students pursued all possible avenues to complete and make up credits. The Renton school district, through a combination of leadership, community partnerships and resources, and high expectations for all students, has increased its graduation rate to ninety percent, with ninety-six percent of graduating seniors in 2010 meeting proficiency on the state high school assessments. However, these types of models have never been brought to scale; and
     (d) For every dropout prevented, the chances of that person committing a crime are reduced by twenty percent, and that person stands to increase his or her lifetime earnings by three hundred thousand dollars in today's dollars. In addition, for every dropout prevented, taxpayers save an estimated ten thousand five hundred dollars per year for each year of the individual's life between the ages of twenty and sixty-five.
     (2) Therefore, the state should use a dual strategy of making front-end investments in proven programs in order to expand them into an effective dropout prevention and intervention system, while simultaneously recognizing and rewarding actual success in reducing the dropout rate by investing a portion of the savings generated from each prevented dropout in the public schools.
     (3) The legislature recognizes that the current fiscal climate in the state is a likely contributing factor to an increase in dropout rates. Reductions in state funding for schools are often felt first in student support services, counseling, supplemental instruction and tutoring, and increased class size, all of which affect struggling students. A poor economy negatively affects families through unemployment, uncertainty, and reduced public services, and students bring these stresses with them to school. If allowed to go unaddressed, these economic and fiscal circumstances are likely to slow or reverse progress on improving high school completion rates. Therefore, a concentrated effort at improvement is required at this time.
     *Sec. 1 was vetoed. See message at end of chapter.

NEW SECTION.  Sec. 2   A new section is added to chapter 28A.175 RCW to read as follows:
     (1) The pay for actual student success (PASS) program is created under this section and sections 3 through 8 of this act to invest in proven dropout prevention and intervention programs as provided in section 3 of this act and provide a financial award for high schools that demonstrate improvement in the dropout prevention indicators established under section 4 of this act. The legislature finds that increased accumulation of credits and reductions in incidents of student discipline lead to improved graduation rates.
     (2) The office of the superintendent of public instruction, the workforce training and education coordinating board, the building bridges working group, the higher education coordinating board, and the college scholarship organization under section 3(4) of this act shall collaborate to assure that the programs under section 3 of this act operate systematically and are expanded to include as many additional students and schools as possible.

NEW SECTION.  Sec. 3   A new section is added to chapter 28A.175 RCW to read as follows:
     Subject to funds appropriated for this purpose, funds shall be allocated as specified in the omnibus appropriations act to support the PASS program through the following programs:
     (1) The opportunity internship program under RCW 28C.18.160 through 28C.18.168;
     (2) The jobs for America's graduates program administered through the office of the superintendent of public instruction;
     (3) The building bridges program under RCW 28A.175.025, to be used to expand programs that have been implemented by building bridges partnerships and determined by the building bridges work group to be successful in reducing dropout rates, or to replicate such programs in new partnerships; and
     (4) Individualized student support services provided by a college scholarship organization with expertise in managing scholarships for low-income, high potential students and foster care youth under contract with the higher education coordinating board, including but not limited to college and career advising, counseling, tutoring, community mentor programs, and leadership development.

NEW SECTION.  Sec. 4   A new section is added to chapter 28A.175 RCW to read as follows:
     (1) The office of the superintendent of public instruction, in consultation with the state board of education, must:
     (a) Calculate the annual extended graduation rate for each high school, which is the rate at which a class of students enters high school as freshmen and graduates with a high school diploma, including students who receive a high school diploma after the year they were expected to graduate. The office may statistically adjust the rate for student demographics in the high school, including the number of students eligible for free and reduced price meals, special education and English language learner students, students of various racial and ethnic backgrounds, and student mobility;
     (b) Annually calculate the proportion of students at grade level for each high school, which shall be measured by the number of credits a student has accumulated at the end of each school year compared to the total number required for graduation. For the purposes of this subsection (1)(b), the office shall adopt a standard definition of "at grade level" for each high school grade;
     (c) Annually calculate the proportion of students in each high school who are suspended or expelled from school, as reported by the high school. In-school suspensions shall not be included in the calculation. Improvement on the indicator under this subsection (1)(c) shall be measured by a reduction in the number of students suspended or expelled from school; and
     (d) Beginning with the 2012-13 school year, annually measure student attendance in each high school as provided under section 10 of this act.
     (2) The office of the superintendent of public instruction may add dropout prevention indicators to the list of indicators under subsection (1) of this section, such as student grades, state assessment mastery, or student retention.
     (3) To the maximum extent possible, the office of the superintendent of public instruction shall rely on data collected through the comprehensive education data and research system to calculate the dropout prevention indicators under this section and shall minimize additional data collection from schools and school districts unless necessary to meet the requirements of this section.
     (4) The office of the superintendent of public instruction shall develop a metric for measuring the performance of each high school on the indicators under subsection (1) of this section that assigns points for each indicator and results in a single numeric dropout prevention score for each high school. The office shall weight the extended graduation rate indicator within the metric so that a high school does not qualify for an award under section 5 of this act without an increase in its extended graduation rate. The metric used through the 2012-13 school year shall include the indicators in subsection (1)(a) through (c) of this section and shall measure improvement against the 2010-11 school year as the baseline year. Beginning in the 2013-14 school year, the metric shall also include the indicator in subsection (1)(d) of this section, with improvement in this indicator measured against the 2012-13 school year as the baseline year. The office may establish a minimum level of improvement in a high school's dropout prevention score for the high school to qualify for a PASS program award under section 5 of this act.

NEW SECTION.  Sec. 5   A new section is added to chapter 28A.175 RCW to read as follows:
     (1)(a) Subject to funds appropriated for this purpose or otherwise available in the account established in section 7 of this act, beginning in the 2011-12 school year and each year thereafter, a high school that demonstrates improvement in its dropout prevention score compared to the baseline school year as calculated under section 4 of this act may receive a PASS program award as provided under this section. The legislature intends to recognize and reward continuous improvement by using a baseline year for calculating eligibility for PASS program awards so that a high school retains previously earned award funds from one year to the next unless its performance declines.
     (b) The office of the superintendent of public instruction must determine the amount of PASS program awards based on appropriated funds and eligible high schools. The intent of the legislature is to provide an award to each eligible high school commensurate with the degree of improvement in the high school's dropout prevention score and the size of the high school. The office must establish a minimum award amount. If funds available for PASS program awards are not sufficient to provide an award to each eligible high school, the office of the superintendent of public instruction shall establish objective criteria to prioritize awards based on eligible high schools with the greatest need for additional dropout prevention and intervention services. The office of the superintendent of public instruction shall encourage and may require a high school receiving a PASS program award to demonstrate an amount of community matching funds or an amount of in-kind community services to support dropout prevention and intervention.
     (c) Ninety percent of an award under this section must be allocated to the eligible high school to be used for dropout prevention activities in the school as specified in subsection (2) of this section. The principal of the high school shall determine the use of funds after consultation with parents and certificated and classified staff of the school.
     (d) Ten percent of an award under this section must be allocated to the school district in which the eligible high school is located to be used for dropout prevention activities as specified in subsection (2) of this section in the high school or in other schools in the district.
     (e) The office of the superintendent of public instruction may withhold distribution of award funds under this section to an otherwise eligible high school or school district if the superintendent of public instruction issues a finding that the school or school district has willfully manipulated the dropout prevention indicators under section 4 of this act, for example by expelling, suspending, transferring, or refusing to enroll students at risk of dropping out of school or at risk of low achievement.
     (2) High schools and school districts may use PASS program award funds for any programs or activities that support the development of a dropout prevention, intervention, and reengagement system as described in RCW 28A.175.074, offered directly by the school or school district or under contract with education agencies or community-based organizations, including but not limited to educational service districts, workforce development councils, and boys and girls clubs. Such programs or activities may include but are not limited to the following:
     (a) Strategies to close the achievement gap for disadvantaged students and minority students;
     (b) Use of graduation coaches as defined in section 6 of this act;
     (c) Opportunity internship activities under RCW 28C.18.164;
     (d) Dropout reengagement programs provided by community-based organizations or community and technical colleges;
     (e) Comprehensive guidance and planning programs as defined under RCW 28A.600.045, including but not limited to the navigation 101 program;
     (f) Reduced class sizes, extended school day, extended school year, and tutoring programs for students identified as at risk of dropping out of school, including instruction to assist these students in meeting graduation requirements in mathematics and science;
     (g) Outreach and counseling targeted to students identified as at risk of dropping out of school, or who have dropped out of school, to encourage them to consider learning alternatives such as preapprenticeship programs, skill centers, running start, technical high schools, and other options for completing a high school diploma;
     (h) Preapprenticeship programs or running start for the trades initiatives under RCW 49.04.190;
     (i) Mentoring programs for students;
     (j) Development and use of dropout early warning data systems;
     (k) Counseling, resource and referral services, and intervention programs to address social, behavioral, and health factors associated with dropping out of school;
     (l) Implementing programs for in-school suspension or other strategies to avoid excluding middle and high school students from the school whenever possible;
     (m) Parent engagement activities such as home visits and off-campus parent support group meetings related to dropout prevention and reengagement; and
     (n) Early learning programs for prekindergarten students.
     (3) High schools and school districts are encouraged to implement dropout prevention and reengagement strategies in a comprehensive and systematic manner, using strategic planning, school improvement plans, evaluation and feedback, and response to intervention tools.

NEW SECTION.  Sec. 6   A new section is added to chapter 28A.175 RCW to read as follows:
     For the purposes of section 5 of this act, a "graduation coach" means a staff person, working in consultation with counselors, who is assigned to identify and provide intervention services to students who have dropped out or are at risk of dropping out of school or of not graduating on time through the following activities:
     (1) Monitoring and advising on individual student progress toward graduation;
     (2) Providing student support services and case management;
     (3) Motivating students to focus on a graduation plan;
     (4) Encouraging parent and community involvement;
     (5) Connecting parents and students with appropriate school and community resources;
     (6) Securing supplemental academic services for students;
     (7) Implementing schoolwide dropout prevention programs and interventions; and
     (8) Analyzing data to identify at-risk students.

NEW SECTION.  Sec. 7   A new section is added to chapter 28A.175 RCW to read as follows:
     The high school completion account is created in the custody of the state treasurer. Revenues to the account shall consist of appropriations made by the legislature, federal funds, gifts or grants from the private sector or foundations, and other sources deposited in the account. Expenditures from the account may be used only for proven dropout prevention and intervention programs identified under section 3 of this act and to make PASS program awards under section 5 of this act. Only the superintendent of public instruction or the superintendent's designee may authorize expenditures from the account. The account is subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.

NEW SECTION.  Sec. 8   A new section is added to chapter 28A.175 RCW to read as follows:
     The office of the superintendent of public instruction must regularly inform high schools and school districts about the opportunities under section 3 of this act to receive funding to implement programs that have been proven to reduce dropout rates and increase graduation rates, as well as the opportunities under section 5 of this act for high schools to receive a financial incentive for success. Within available funds, the office shall develop systemic, ongoing strategies for identifying and disseminating successful dropout prevention and reengagement programs and strategies and for incorporating dropout prevention and reengagement into high school and school district strategic planning and improvement. The office may offer support and assistance to schools and districts through regional networks. The office shall make every effort to keep dropout prevention and reduction of the dropout rate a top priority for school directors, administrators, and teachers.

Sec. 9   RCW 28A.175.035 and 2007 c 408 s 3 are each amended to read as follows:
     (1) The office of the superintendent of public instruction shall:
     (a) Identify criteria for grants and evaluate proposals for funding in consultation with the workforce training and education coordinating board;
     (b) Develop and monitor requirements for grant recipients to:
     (i) Identify students who both fail the Washington assessment of student learning and drop out of school;
     (ii) Identify their own strengths and gaps in services provided to youth;
     (iii) Set their own local goals for program outcomes;
     (iv) Use research-based and emerging best practices that lead to positive outcomes in implementing the building bridges program; and
     (v) Coordinate an outreach campaign to bring public and private organizations together and to provide information about the building bridges program to the local community;
     (c) In setting the requirements under (b) of this subsection, encourage creativity and provide for flexibility in implementing the local building bridges program;
     (d) Identify and disseminate successful practices;
     (e) Develop requirements for grant recipients to collect and report data, including, but not limited to:
     (i) The number of and demographics of students served including, but not limited to, information regarding a student's race and ethnicity, a student's household income, a student's housing status, whether a student is a foster youth or youth involved in the juvenile justice system, whether a student is disabled, and the primary language spoken at a student's home;
     (ii) Washington assessment of student learning scores;
     (iii) Dropout rates;
     (iv) On-time graduation rates;
     (v) Extended graduation rates;
     (vi) Credentials obtained;
     (vii) Absenteeism rates;
     (viii) Truancy rates; and
     (ix) Credit retrieval;
     (f) Contract with a third party to evaluate the infrastructure and implementation of the partnership including the leveraging of outside resources that relate to the goal of the partnership. The third-party contractor shall also evaluate the performance and effectiveness of the partnerships relative to the type of entity, as identified in RCW 28A.175.045, serving as the lead agency for the partnership; and
     (g) Report to the legislature by December 1, 2008.
     (2) In performing its duties under this section, the office of the superintendent of public instruction is encouraged to consult with the work group identified in RCW 28A.175.075.
     (3) In selecting recipients for grant funds appropriated under section 3 of this act, the office of the superintendent of public instruction shall use a streamlined and expedited application and review process for those programs that have already proven to be successful in dropout prevention.

NEW SECTION.  Sec. 10   A new section is added to chapter 28A.300 RCW to read as follows:
     (1)(a) The superintendent of public instruction shall adopt rules establishing a standard definition of student absence from school. In adopting the definition, the superintendent shall review current practices in Washington school districts, definitions used in other states, and any national standards or definitions used by the national center for education statistics or other national groups. The superintendent shall also consult with the building bridges work group established under RCW 28A.175.075.
     (b) Using the definition of student absence adopted under this section, the superintendent shall establish an indicator for measuring student attendance in high schools for purposes of the PASS program under section 2 of this act.
     (2)(a) The K-12 data governance group under RCW 28A.300.507 shall establish the parameters and an implementation schedule for statewide collection through the comprehensive education and data research system of: (i) Student attendance data using the definitions of student absence adopted under this section; and (ii) student discipline data with a focus on suspensions and expulsions from school.
     (b) At a minimum, school districts must collect and submit student attendance data and student discipline data for high school students through the comprehensive education and data research system for purposes of the PASS program under section 2 of this act beginning in the 2012-13 school year.

NEW SECTION.  Sec. 11   If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 2011, in the omnibus appropriations act, this act is null and void.