Your question about the report card is a great one. It is one that many teachers and districts who are implementing reading workshop are finding very challenging to answer.
In my district, teachers in grades K-3 do not give letter grades. We give N (needs improvement), P (progressing), or S (secure). We also indicate if a child is reading below, on, or above grade level. We then score them in the following categories:
-Reads independently for an appropriate length of time
-Comprehends narrative text
-Comprehends informational text
-Applies proper reading comprehension strategies
-Reads and comprehends a variety of genres
-Reads, understands, and uses new vocabulary
-Uses decoding strategies as needed
-Reads with fluency and expression
Students receive an N, P, or S in each of these categories. I do wish that there was also a category for reading response, but there is not. I usually add that in the personal comment section. I am just thankful that I am not required to give letter grades!
Teachers in grades 4-5, however, must give letter grades. Since our entire district has just recently adopted the reading workshop framework, teachers are quickly finding that letter grades do not work well. Those teachers are having to create lots of rubrics (based on both efort and achievement) when coming up with letter grades that somehow match their students' reading performance, but they are certainly finding it very challenging. It is my hope that even the 4th and 5th grade report cards in our district will change soon to more closely reflect the philosophy of a true reading workshop.
Since you are required to give grades in your district, you will certainly have to create a scoring system for reading tasks and probably require your students to do more written work than is usually done in a reading workshop setting so that you have something to use when determining a letter grade.
In terms of having to use the basal text, that seems to be a popular concern amongst teachers across the country. You will find a variety of responses I have given to other teachers if you read the comments on any of my blog posts related to reading workshop. However, I would suggest using the main stories in the basal as mentor texts/read aloud texts since they are likley not at the "just right" level for every reader in your classroom. You can then take the lessons that you are supposed to be teacing in the basal and turn them into shorter "mini-lessons" that follow the reading workshop framework. Instead of having students practice the skills and strategies you are teaching them with the texts from the basal, they can instead apply the skills to their independent reading in self-selected texts at their "just-right" level.
I hope I have been if some help to you. I know that the required use of a basal can really hamper a teacher's ability to run an authentic reading workshop.
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