Graduation and dropout rates are important indicators of K-12 education in Washington State. The Office of Superintendent of Public Instruction (OSPI) prepares an annual report that provides a review of graduation and dropout statistics for schools and districts in Washington. This report includes information for all students as well as the subcategories of students represented within the Washington State Report Card. Graduation rates are calculated using an adjusted cohort rate methodology, mandated by the U.S. Department of Education, which tracks individual students' enrollment statuses over time. Results are produced for both four- and five-year cohorts of students. The four-year graduation rate is 77.2 percent for the Class of 2012. This cohort is made up of students who entered ninth grade for the first time in 2008-09. This is an increase of 0.6 percent over the Class of 2011, which had a four-year graduation rate of 76.6 percent. The five-year adjusted cohort graduation rate, for students who entered ninth grade for the first time in 2007-08, is 78.9 percent. This is an increase of 0.7 percent over the previous year, when the five-year rate was 78.2 percent. Graduation rate patterns among subcategories of students are similar to previous years for both the four- and five-year cohorts. For the adjusted cohort four-year rate, Asian students have the highest graduation rate (84.4 percent), followed by White students (80.4 percent), students identified with Two or More Races (78.1 percent), Black students (67.1 percent), Hispanic students (66.7 percent), Pacific Islander students (64.5) and American Indian students (56.8 percent). Female students have a higher graduation rate than male students (80.7 percent compared to 73.7 percent). Certain subgroups, including special education, limited English, low-income, and migrant students have graduation rates lower than the all-student rate. Students with a 504 Plan, however, have a rate (78.1 percent) that is higher than that for all students (77.2 percent). For the adjusted five-year rate, Asian students have the highest graduation rate (86.1 percent), followed by White students (81.6 percent), students identified with Two or More Races (80.2 percent), Hispanic students (70.4 percent), Black students (68.3 percent), Pacific Islander students (66.6) and American Indian students (56.6 percent). Female students have a higher graduation rate than male students (82.0 percent compared to 75.9 percent). Certain subgroups, including special education, limited English, low-income, and migrant students have graduation rates lower than the all-student rate. Students with a 504 Plan, however, have a rate (82.3 percent) that is higher than that for all students (78.9 percent). The following appendix was prepared by the Washington State Institute for Public Policy: Estimated Benefits from Changes in Washington State's High School Graduation Rate. [Appendices A through J, which are not included in this report, are available as electronic files under "Graduation and Dropout Statistics" at http://www.k12.wa.us/DataAdmin/default.aspx.]