The State of California sets minimum requirements for high school graduation. These include completion of certain coursework with a passing grade (Ds or above) and passing of CAHSEE, the California High School Exit Exam.
The graduation requirements are set forth in the Education Code Section 51225.3. Here is a quick summary from the California Department of Education.
Here is a useful FAQ from the CDE.
As a result, the PAUSD graduation requirements incorporate these minimums, while going beyond them.
Any alternative graduation path for a student in PAUSD needs to conform to the State minimum standards, although it is possible to obtain state waivers to certain requirements. More on this later.
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