Charter Contract and Performance Framework

OutcomesAppreciation for how the related

parts make a whole◦Contract, Frameworks, Monitoring,

RenewalDevelop a collaborative approach

to the development of the frameworks◦How should we proceed?

The Charter Contract: PresentApplication and Written

Agreement◦Blueprint for the school; proposed

plan◦Audience – parents and students,

community, sponsor, funders, teachers/recruiting tool

◦Treating the application as the charter (1/2) has implications on application review Example - Curriculum: to be developed, if

a proposal yes but if charter then no.Fails to define MATERIALITY

The Charter Contract: ProposedMateriality: something is material

if it is relevant and significant to the outcome.

For school and sponsor – the relevant outcome is a renewal decision.

Is the contract term material? Hinges on whether it would be relevant and significant to the sponsor in making a renewal decision.

The Charter Contract: ProposedThe embodiment of the

autonomy for accountability bargain

Clearly articulates the rights and responsibilities of both parties◦School autonomy◦Expected outcomes◦Measures for evaluating success or

failure◦Performance consequences and

other material terms

External AuthoritySchools and sponsors operate under

the shadow of laws and regulations.Multi-layered legal framework that

includes federal, state, local codes and policies

Contract needs to explicitly identify the state law and regulation with which the school is expected to comply (alt. exempted from)

Material Terms: CategoriesRecitalsEstablishment of SchoolOperation of SchoolSchool Financial MattersPersonnelCharter Term, Renewal and

RevocationOperation of the ContractSponsor Policies

Sponsor Policies (Examples)Performance FrameworksPre-Opening ProceduresFinancial and Attendance

ReportingScope of Independent AuditComprehensive EMO Contract

Req.School Intervention ProtocolRenewal Decision Making

ProtocolSchool Closure Protocol

Consideration in Contract DevelopmentMeans and EndsShifting from how to whatFundamental tension – most

efforts (Title programs, IDEA, civil rights) focus on procedure

Contract must balance◦Each additional requirement

constrains flexibility and autonomy.◦New regulation vs potential cost

Consideration in Contract DevelopmentWhen to stop

◦Test whether a term warrants inclusion Material? Typical that material changes require

amendment Change facility – yes Eliminate science focus at a Math and

Science Academy – yes Change textbooks in 6th grade math – no

Sponsor Policies: Performance FrameworksContract is a COMPLIANCE

documentPerformance Frameworks – Heart

of the Contract

Performance ManagementEstablish

Expectations: Set performance expectations

attached to the contract

Monitor Performance:

Conduct interim reviews through multiple courses

Intervene (if Necessary):

Inform and require remedy of

unsatisfactory performance

Decide Renewal:

Assess overall performance in

relation to established

expectations

What is a Performance FrameworkContractualExpectations for performance

and complianceEnforced through monitoring,

evaluating, and intervention and decision-making

Autonomy

Accountability

Performance Framework: Development

Finalize

• Review existing practice

• Review law• Engage internal

stakeholders• Engage leadership

Adapt and Test

• Determine policy changes, if necessary

• Engage external stakeholders

Generic

Frameworks

AcademicFinancialOrganizationalCorresponding guidance

Review of Existing PracticesHeavy on compliance (how)

◦Compliance may be performance◦Or accepted as a proxy

Materializes in APA◦Vast majority of 36 items are

operational◦Next, financial◦Finally, academic

DisconnectedMeaningful?

Performance Framework Sections

Academic• Is the

academic program a success?

Financial• Is the

school financially viable?

Organizational

• Is the organization effective and well-run?

Academic Framework

Academic Framework

Student Achieveme

nt

Student Growth

(Progress over time)

State and Federal

Accountability

Post secondary and Career Readiness

Mission-Specific Goals

Framework ComponentsComponent Definition ExampleIndicators General categories

of performanceStudent Achievement

Measures General means to evaluate an aspect of an indicator

Proficiency on State Assessments

Metrics Method of quantifying a measure

Percentage of students achieving proficiency on specific exams

Target Threshold that signifies “meeting the standard” for a specific measure

70 % of students achieve proficiency on state assessment

Rating Labels to categorize charter performance

Exceeds StandardMeet StandardDoes Not Meet StandardFalls Far Below Standard

Academic FrameworkPurpose: determine whether schools are

academically successful and effectivePrimary Source(s):

◦ State Accountability system◦ Publicly available information

Action Steps: identify schools that are candidates for◦ Replication/Expansion◦ Intervention◦ Renewal/Nonrenewal◦ Closure

Transparency: make summary data available to the public

Academic PF ConsiderationsWeightingsAggregate or notMust ensure a multidimensional

view of performanceDemands on resources – more

testing, more dataNo reversion to process, focus on

outcomes

Financial Framework

Financial Framework

Sustainability Near Term

Framework ComponentsComponent Definition ExampleIndicators General categories

of performanceNear Term

Measures General means to evaluate an aspect of an indicator

Current Ratio

Metrics Method of quantifying a measure

Current Assets over current liabilities

Target Threshold that signifies “meeting the standard” for a specific measure

Current ratio is greater than 1.1

Rating Labels to categorize charter performance

Meet StandardDoes Not Meet StandardFalls Far Below Standard

Financial FrameworkPurpose: assess financial health and

viabilityPrimary source(s): independent financial

auditsAction steps: Analysis of more current

(unaudited) financial data to:◦Assess potential problems prior to emergency◦Anticipate financial failure and remedy

Transparency: Appropriate use of public funds and viable for continued investment

Organizational Framework

Organizational

Framework

Education Program

Governance and

Reporting

Financial Management and

OversightStudent

and Employee

s

School Environm

ent

Additional Obligatio

ns

Framework ComponentsComponent Definition ExampleIndicators General categories

of performanceGovernance and Reporting

Measures General means to evaluate an aspect of an indicator

Is the school complying with governance requirements?

Metrics Method of quantifying a measure

Board Bylaws

Target Threshold that signifies “meeting the standard” for a specific measure

Materially complies with compliance expectations related to board bylaws

Rating Labels to categorize charter performance

Meet StandardDoes Not Meet StandardFalls Far Below Standard

Organizational FrameworkPurpose: ensure compliance with legal

obligationsPrimary Source(s): self-reported, 3rd

party monitoring, sponsor monitoring (e.g., school visits)

Action Steps: staged intervention including notification, follow up investigation, demand for remedy, etc.

Transparency: Parameters for appropriate autonomy and protecting students’ and the public’s interest

Framework GuidancePurpose: Provide authorizers with guidance necessary to develop and implement a quality Performance Framework that is aligned with the Principles and StandardsContent◦Definition◦Methodology◦ Implementation guidance (information

sources)◦Follow up guidance (intervention)

Next StepsInitial thoughts

◦PF Committee Charge – collaborate on the development

of the PF, bring technical capacity or access to, identification of critical questions, make general recommendations

◦Charter Contract Committee Provide “just in time” feedback to

consultant and Authority staff in the development of the model contract.