This is how backwards education in California is.

[a completely inoffensive name]

I don't think you are being tested to see if you can graduate, this is just a side effect. My guess is that it is the school that is being tested.

Nope, that has already been the goal of the extensive series of tests called "Star" testing which everyone from 6th-11th grade have to partake in.
http://en.wikipedia.org/wiki/Standar..._and_Reporting