Students in the Merrimack Valley School District may have one more alternative to dropping out of school next year if voters approve a new public charter school.

School officials have studied the idea of a partnership between the district and a charter school for more than a year and will put the issue before residents at the school district meeting March 8. The school would aim to reduce dropout rates among at-risk high school students who do not work well in a traditional classroom setting.

"Many of these kids who are dropouts are actually very bright," Superintendent Michael Martin said.

The school already has an alternative education program that helps those students get back on track and complete coursework. Still, 12.9 percent of students will drop out by their senior year at Merrimack Valley, according to 2005-06 rates from the state Department of Education. Although the number is just above the state average of 12.2 percent, Martin said it is still too high.

The charter school could be funded in its first year with grant money from the state and would be housed rent-free at the old Washington Street School in Penacook.

The state Board of Education must approve the charter school application, and the state must approve grant money for start-up costs, Martin said. Although the law does not require voter approval to open a charter school, Martin said the district wanted the community to be part of the discussion.

"If we don't pass those three 'tests,' we are not prepared to go forward," he said.

A district committee - made up of board members, school administrators and education consultants - has visited a similar charter school in Exeter that works closely with the Exeter Region Cooperative School District. The committee has also prepared a written proposal and application for the grant, which has not yet been submitted, Martin said.

If the grant is approved, the district could receive $300,000 from the state to plan curriculum. Because that planning depends on grant money, officials do not yet know which types of classes may be offered at the new school.

The one thing officials are certain about is the way they intend to measure student success. The charter school would be the first in the state to follow new guidelines that assess students based on their demonstrated abilities, not on the amount of time they spend in the classroom.

Adopted by the Board of Education in 2005, the new standards allow for "real world learning" and promote education experiences outside the classroom, such as internships, travel and community service.

For example, a student might receive credit for singing with her church choir instead of taking chorus classes at school. Another student may master Spanish on a summer trip to Madrid and receive foreign language credit without sitting in a Spanish class.

The classroom alternatives must be approved by school officials, but if students can show that they have mastered the subject, they are eligible for high school credit. All schools will be required to offer the alternatives for every high school course by the 2008-09 school year.

"Our hope would be that the charter school would work almost like a pilot situation, because you could do it on a smaller scale and use that as a model for traditional high schools," Assistant Superintendent Chris Barry said.

Both Barry and Martin stressed that the charter school will remain independent under the oversight of a board of trustees, leaving many of the details of the school's operation up in the air. Barry said the district envisions a school with approximately 20 to 40 students - fewer in the first year -but the final numbers are still uncertain. The district may contract with the school to send students there, but Martin could not say how much the school may have to pay.

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