MARIETTA - Marietta school board member Tom Cheater shook his head in disapproval after hearing why Marietta City Schools is ineligible to apply for federal Race to the Top funding.

To be eligible, a school must have a graduation rate of 60 percent or less, and Marietta High School has a graduation rate of 83.7 percent, said Dr. Debra Pickett, assistant superintendent of curriculum and instruction.

Eligibility for lower grades is based on achieving adequate yearly progress based on the state's Criterion Referenced Competency Tests, Pickett said.

"We do not have what are considered to be failing schools," Pickett said.

Board member Jill Mutimer, who was clearly not being serious, said Marietta might as well become a "needs improvement" system in order to qualify for the funding.

"It's money for failing," Cheater said, adding, "No good deed goes unpunished."

The board received an explanation on why Marietta is not eligible for the funding during its retreat at the Marietta Conference Center on Friday.

Part of the American Recovery and Reinvestment Act of 2009 and the centerpiece of President Obama's education agenda, Race to the Top offers states more than $4 billion in education funding. The funding is available in the form of competitive grants to encourage and reward states that create conditions for education innovation and reform. But the money comes with a number of federal strings, prompting Roger Hines of Acworth, a Republican candidate for state school superintendent, to denounce it as the federalization of education.

Earlier this month, 23 local school districts signed on to partner with the state in applying for the funding. These districts include Atlanta, Ben Hill, Bibb, Burke, Carrolton, Chatham, Cherokee, Clayton, DeKalb, Dougherty, Gainesville, Gwinnett, Hall, Henry, Jones, Meriwether, Muscogee, Rabun, Richmond, Rockdale, Spalding, Valdosta and White.

Forty states and the District of Columbia submitted Race to the Top applications. The winners are expected to be announced in April.