More Florida high schools are earning A's and B's while only 39 percent of 10th-graders are reading at or above proficiency levels on the state's FCAT exam, Department of Education records show.

Some 78 percent of high schools scored either an A or B grade in 2011, up from 71 percent last year. A-rated schools receive financial awards from the state of up to $150,000 per campus.

Yet high school students' academic competence is flat or falling. The 39 percent of students reading at or above Level 3 "proficiency" was the same as it was in 2010.

Though math scores were better -- 71 percent of 10th-graders were "proficient" -- that was down 2 points from 2010.

The 2011 high school grades were boosted by a new formula that factors in more than scores on the Florida Comprehensive Assessment Test. Graduation rates, as well as participation and performance in advanced-placement courses, now count toward a school's grade.

The FCAT writing battery, where 90 percent of students score at or above the "proficient" level, helps pad the scores.

"Reading and math scores may not improve. In fact, they can decline, but a school can still improve its score by achieving growth in the other benchmarks," said Jason Caros, president of the Florida Council of the Social Studies.

Amid indications of campus grade inflation, the state Board of Education last month voted to raise the "cut scores" that determine which pupils are passing and which are failing. It was the first time in a decade that the state approved tougher standards.

The state expects that many more students will be required to take remedial lessons as a result of the higher score requirement, which first applies to the class of 2014. The new system will kick in with exams taken this coming spring.

Amber Winkler, a senior researcher for the Thomas B. Fordham Institute, said, "Florida should be lauded for raising its cut scores. Too many states are content to rest on their laurels, but Florida keeps raising the bar.

"Raising expectations now becomes even more important since Florida plans to implement new Common Core standards in 2015 -- which will require even more of students. There has to be continued pressure on the system to improve," Winkler said.

Meantime, the state Board of Education took another step to thin the herd of A-rated schools.

Currently, a school must earn 525 points or more (on an 800-point scale) to earn an A grade. A final level hasn't been determined yet, but beginning in 2012-2013, if, for example, 75 percent of Florida’s high schools earn an A, an "automatic trigger" would raise the minimum threshold to 560 points the next year.

Jaryn Emhof, spokeswoman at Jeb Bush's education-reform think tank, Foundation for Florida's Future, hailed the state's moves.

"The foundation has said standards need to be raised across the board," Emhof said.

Caros, a high school social studies instructor in Volusia County, says poor reading skills at middle schools and high schools are "a byproduct of the failure to teach core knowledge" in early grades.

"Much of the reading elementary students engage in at school is fiction. While fiction is certainly important, a 2006 Stanford University study found that Florida’s failure to emphasize 'the acquisition of appropriate knowledge at each grade level' made comprehension of nonfiction texts very difficult for middle and high school students," Caros writes in a forthcoming issue of the Journal of the James Madison Institute.

Citing one example, Caros asks: "Why would it be bad for someone to meet their Waterloo?"

"Without broad background knowledge, readers will find it difficult to make sense of the many historical and literary allusions that appear in readings," Caros says in his article, "Why Johnny Can't Understand What He Reads."