We have similar math requirements in Michigan also. What I'm seeing is that things are done to make it work for those students somehow. For example, homework is graded for completeness rather than correctness. As long as problems are attempted, they get full credit. The way grades are weighted, homework counts higher than tests so a student who fails every exam but "does" the homework passes and the student graduates. If they don't meet certain graduation rates, the district is at risk of being taken over by the state so they aren't letting kids NOT graduate.
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