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It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1.  16 V.S.A. § 4011 is amended to read:


(a)  Annually, the general assembly shall appropriate funds to pay for statewide education spending and a portion of a base education payment for each adult diploma student and student or client in the adult education and literacy program.

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(f)  Annually, the commissioner shall pay to a department or agency which provides:

(1)  an adult diploma program, an amount equal to 26 percent of the base education payment for each student who completed the diagnostic portion of the program, based on an average of the previous two years; and

(2)  adult education and literacy services, an amount equal to 20 percent of the base education payment for each client who is 16 to 20 years of age, inclusive, and who has gained at least one skill level pursuant to state or federal standards.  The calculation of “client” shall be based on an average of the previous two years, according to information submitted to the commissioner on or before September 15 of the year of calculation.  For each client 16 to 20 years of age, information submitted shall include the name, address, and dates of attendance at all Vermont public secondary schools attended and whether the client has gained a skill level.

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Sec. 2.  16 V.S.A. § 1049a is added to read:


(a)  In this section:

(1)  “Graduation education plan” means a written plan leading to a high school diploma for a person who is 16 to 22 years of age, has not received a high school diploma, and is not enrolled in a public school.  The plan shall define the scope and rigor of services necessary for the student to attain a high school diploma, and may describe educational services to be provided by a public high school, an approved independent high school, an approved provider, or a combination of these. 

(2)  “Approved provider” means an agency approved by the commissioner to provide educational services which may be counted for credit toward a high school diploma.

(b)  The commissioner shall assign a student who wishes to work on a graduation education plan to a high school district which shall be the district of residence whenever possible.  Upon assignment, the school district shall work with an agency which has entered into contract with the department of education to provide adult education services in Vermont and the student to develop a graduation education plan.  The school district shall award a high school diploma upon successful completion of the plan.

(c)  The commissioner shall reimburse, and net cash payments where possible, a town school district, city school district, union school district, unified union school district, incorporated school district, or member school district of an interstate school district which has agreed to a graduation education plan in an amount:

(1)  established by the commissioner for development of the graduation education plan and for other educational services typically provided by the district or an approved independent school pursuant to the plan, such as counseling, health services, participation in co-curricular activities, and participation in academic or other courses; and

(2)  negotiated by the commissioner and the agency which has entered into contract with the department of education to provide adult education services in Vermont, with the approved provider, for services and outcomes purchased from the approved provider on behalf of the student pursuant to the graduation education plan.

(d)  On or before January 30 of each year, beginning in 2008, the commissioner shall report to the senate and house committees on education on the number of students participating in a graduation education plan, the number completing a plan, and the amount paid.  The commissioner shall present the information by school district, approved independent school and approved provider.


During school year 2006–2007, negotiations conducted pursuant to 16 V.S.A. § 1049a(c)(2) may include an initial payment which shall be reconciled through the reimbursement process.


In fiscal year 2007, the amount of $1 million is appropriated from the education fund to the commissioner of education to pay for reimbursements made pursuant to Secs. 2 and 3 of this act.

Approved:  May 23, 2006

Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont