Just like thousands of other school districts across the country, Kentucky's Newport Independent School District faces a constant battle with tight budgets. In Kentucky, district funding is determined solely by Average Daily Attendance (ADA). The more students who attend, the more state support the school district receives.

In just one year, Newport--a district of 2,200 students--managed to increase its ADA from 93.6 percent in the 2004-2005 school year to 95.1 percent the following year. This 1.5 percent increase in attendance generated $80,000 in additional state funding for the district, the equivalent of two teacher salaries.

Behind this dramatic improvement is...

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