Under the 1999 law, students at public schools that earn a failing grade from the state in two out of four years were eligible for vouchers to attend private schools.Notice that the subordinate clause (marked in bold) modifies the word "schools" and not the word "students." In other words, under the program kids could transfer if their schools were failing--not if the kids themselves were flunking out of school.
(I am tempted to ask if you are a public school graduate, but will politely refrain.)
Dang, I made a mistake. So sorry. You don't have to be so crappy about it.
I was tempted to ask if the poster was a public school employee.