Here's a detail that some of you are missing: In my state, we offer several DIFFERENT high school diplomas.
The majority of our graduates earn a plain old academic diploma.
Some of them have followed a college prep pathway, and they're ready to head into a four-year college. Others have followed a military prep diploma, others have followed a tech-prep diploma. Along with their parents, students CHOOSE the pathway they're going to follow, and they can change it during their four years in high school. Some students begin in a college-prep pathway, yet because they fail certain classes, they end up dropping down to a lower pathway.
Some of our students receive an NC Scholar seal on their diplomas, indicating that they've followed a more rigorous course of study, and they've earned a higher GPA over their high school years.
Exceptional Children (some states still use the term Special Education) in a self-contained classroom earn an Occupational Diploma. They are not held to the same requirements as their college-bound classmates. They do not take end-of-course tests or competency tests along the way. They are required to complete a rather large number of work hours (at "jobs" like cleaning a local business, folding clothes for Goodwill, etc.). Their diploma requirements are set up for their ability level and are designed to help them learn skills that will help them in jobs that they can manage as adults. And -- in the end -- they receive a diploma, but it is NOT THE SAME DIPLOMA that the afore-mentioned grade-grubbers will receive. People don't realize this because we award so few of these diplomas. Last year my school didn't award a single one; this year I think we'll award two.
Then there's the Certificate of Completion, which means you were there but didn't achieve anything at all.
Note:
I think we're all talking about self-contained Exceptional Children. That is, the ones who obviously are different from their classmates, who obviously need extra help, and who spend their whole day in a classroom with other students like themselves. It's important to note that these students are a small minority of our Exceptional Children. In my school of 1700, we have 25-30 self-contained students; only two of the seven high schools in my county have self-contained classrooms.
The majority of our Exceptional Children are "mainstreamed" all day long in regular classrooms, and they are meeting the same requirements as the rest of the student body -- often they have one pull-out class each day for extra help, sometimes they receive extra help from the teacher in small ways, and sometimes they don't require any help whatsoever.
Also, these oh-so-exclusive NHS students might like to remember that if they're taking honors /AP classes, THEY TOO are labeled Exceptional Children. Exceptional can mean either high or low. It can mean a student with average intelligence who is hearing-impaired. A fairly large number of our students are labeled Exceptional.
As to the situation in question . . .
In real life, I wouldn't touch it with a ten-foot pole. There's no winning this one because of the "special snowflake" or "but we're the beautiful people" syndrome, the ones who can ONLY see how this affects their own child.
In the anonimity of the internet, understanding that GPA and class rank are two different concepts, I'd suggest that a two-fold strategy would be fair:
1. Any student who earns a certain GPA should be allowed to graduate with honors, regardless of the classes they take. Those students deserve to wear an honors cord over their cap/gown and be recognized in the graduation program. This doesn't affect other students in any way. Well, it doesn't affect other students in any way other than bruised feelings, which the grade-grubbers should just get over -- someone else's success does not equate to your lack of success, and many of these "but what about me?" students need to toughen up.
2. Students who are not working towards academic diplomas should not be ranked along with their class -- and this really means the students in the self-contained classes. They aren't completing the same requirements, and their work hours are not equivalent to Chemistry class, so it doesn't make sense to compare them to their classmates in this way. They are not going to compete for scholarships and college applications, so class rank is really not important to them.