“Race to the Top” Legislation 2009

Notes On Charter School Provisions

Enrolled Senate Bill 981
PRESENTED TO THE GOVERNOR 12/28/2009 @ 3:12 PM

Document: LSB No.: S05255’09 (S-1) CR-1

Page number references in [ ]

Contents

1. Expanded Powers for Superintendent of Public Instruction ................................................1

2. New Charter School Categories...........................................................................................1
a. Category 1: 10 high schools of excellence; § 552(1) [38]...................................................2
b. Category 2: Two “cyber schools” of excellence. § 552(2) [38] ..........................................2
c. Category 3: High quality “conversion” schools of excellence............................................3
3. Encouraging Charter High Schools and “Matriculation Agreements” ................................6
4. Closing “Bad” Or Underperforming Schools ......................................................................7
5. New Category: “Alternative School Serving a Special Student Population.” .....................8
6. Strengthening Charter School Student Performance ...........................................................8
7. Correct Defect In Urban High School Academy Part 6c [22] .............................................8
8. Non-Charter School Provisions in SB 981 ..........................................................................8

1. Expanded Powers for Superintendent of Public Instruction

As part of the “Race to the Top” legislation, the Legislature has given the State Superintendent
of Public Instruction (“Superintendent”) significant new direct powers in the process of
authorizing and closing charter schools, including:

• Approval of the issuance of a charter for a schools of excellence by determining

whether it is “modeled after a high-performing school or program.” [38]

• Determination whether a charter schools meets the conversion standards.

• Determining where the high quality districts are that are prohibited from having schools
of excellence. [38]

• Determining lowest achieving 5% of schools subject to closure.

2. New Charter School Categories

Notes On Charter School Provisions – Enrolled Senate Bill 981
Page 2 of 9

SB 981 creates three new limited classes of high performing charter schools (“public school
academies”) called Schools of Excellence:

a. Category 1: 10 high schools of excellence; § 552(1) [38]

o All 10 contracts must be issued within 5 years, by January 1, 2015.

o The first five contracts must be for high schools, i.e., “offer 1 or more of high
school grades 9 to 12.”.

o In addition to authorizing body approval, the superintendent must approve the

contract and determine that the “proposed school of excellence is modeled after
a high performing school or program.”

o The high schools of excellence can only be in so-called “high need” areas.
Specifically, they cannot be in good school districts with a 3-year average
graduation rate over 75%.

b. Category 2: Two “cyber schools” of excellence. § 552(2) [38]

o A “cyber school” [37] is a school that provides full-time instruction to pupils

through online learning or otherwise on a computer or other technology, which
instruction and learning may be remote from a school facility. A cyber school is
completely exempt from the single site requirement applicable to other charter
schools.

O Only two cyber schools are permitted in the entire state. Several competing
cyber school operators may compete for the limited opportunities.

O The cyber schools must meet the following conditions [39]:

Be available for enrollment to all pupils in this state.

Offer all of grades K to 12.

Demonstrate experience in serving urban and at-risk student populations

through an educational model involving a significant cyber component.

O Cyber school enrollment limit: [39] “initial enrollment” must not exceed 400
pupils per school. After the first year of operation, a cyber school may expand
student enrollment to exceed 400 pupils by adding one pupil for each pupil it
enrolls who is a dropout” from a public school (as identified in the Michigan
Student Data System maintained by the Center for Educational Performance
and Information) up to a total that shall not exceed 1,000 pupils. Accordingly,
only 2,000 students throughout the state will be permitted to enroll in cyber
schools; this may well create greater demands foe other forms of cyber and
distance learning in public and charter schools.
Notes On Charter School Provisions – Enrolled Senate Bill 981
Page 3 of 9

o Special cyber school contract requirements in new § 553a [54]:

Allows full-time instruction through online learning.

Learning may be remote from a “school facility,” i.e., the single site
requirement does not apply.

A certificated teacher must be responsible for:

• Improving learning by planned instruction.

• Diagnosing the pupil’s learning needs.

• Assessing learning, assigning grades, and determining

advancement.

• Reporting outcomes to administrators and parents or legal

guardians.

A requirement that the cyber school will make educational services

available to pupils for a minimum of at least 1,098 hours during a school
year and will ensure that each pupil participates in the educational
program for at least 1,098 hours during a school year. [55] [NOTE:
Senate Bill 926 amends the State School Aid Act (MCL 388.1606 et al.)
to make complementary amendments including specifying that a
student's participation in a cyber school's educational program is
considered regular daily attendance for the purpose of state school aid
reimbursement, and exempts the cyber schools from the state's minimum
number of days and hours of instruction, and the minimum attendance
requirements.]

If a certificated teacher is responsible, permit “any other adult”

(specifically, a non-certificated adult) assisting with the oversight of a
pupil during the pupil’s participation in the cyber school’s education
program. [55]

For cyber schools only waive any rule that would require a pupil’s
physical presence or attendance in a classroom.

At the end of a cyber school’s second full school year of operations,

require the authorizing body to report to the superintendent and the
legislature detailing the operation of the cyber school, providing
statistics of pupil participation and academic performance, and making
recommendations for any further statutory or rule change related to
cyber schools and online learning in this state.

c. Category 3: High quality “conversion” schools of excellence.

Notes On Charter School Provisions – Enrolled Senate Bill 981
Page 4 of 9

Under § 552(3) [39] a group of the existing part 6a charter schools are permitted to
“convert” from a regular charters to school of excellence charters if they meet the stringent
restrictions of § 552(4) [40]. The bill creates a qualitative standard for eligibility for
conversion, not a numerical limit. The more high quality 6a charter schools there are, the
more there will be eligible to convert. A low performing charter school that improves and
meets the higher standard is able to convert.

o In § 552(4)(A) [40], an existing K-8 charter school must meet one of the
following:

On average over a 3-year period, at least 90% of the pupils enrolled in

the charter school achieved a score of proficient or better on the MEAP
mathematics and reading tests.

On average over a 3-year period, at least 70% of the pupils enrolled

achieved a score of proficient or better on the MEAP mathematics and
reading tests and at least 50% of the pupils enrolled in the public school
academy met the income eligibility criteria for the federal free or
reduced-price lunch program.

o An existing charter high school [41] must meet all 3 of the following
requirements: have at least 80% of the school's pupils graduate from high school
or are determined by the department to be on track to graduate, have at least an
80% average attendance, and have at least an 80% postsecondary enrollment
rate (as determined by the department).

o In addition, the following requirements [39] must be met:

The charter school board must choose to convert.

The authorizing body must approve.

The charter school retains the same site and the same corporate entity
but becomes school of excellence at the start of the next school year.

The school ceases to have a part 6a charter at a date determined by the

authorizing body.

The conversion to a school of excellence charter does not impair any

agreement, mortgage, loan, bond, note or other instrument of
indebtedness, or any other agreement entered into by charter school
while it was operating under part 6a.

o Only for conversion schools of excellence chartered by university boards and

subject to the 150-charter school cap, under § 502a(e) special rules apply [12]:

For the 12 months after conversion, the original authorizing body is the
only authorizing body that may issue a new contract to fill the
Notes On Charter School Provisions – Enrolled Senate Bill 981
Page 5 of 9

availability for a new part 6a charter under section 502(d) that is created
by the conversion.

The university authorizing body may (but is not required to) give first
priority to a person or entity applying for a contract that has operated an
educational management company meeting the new conversion
requirements of § 552(4) [40].

A replacement charter may not be located in a school district that has a

graduation rate of over 75.5%, on average for the most recent 3 years.
[13]

• A contract for a school of excellence must include transparency provisions, including:

O Making information concerning the charter school operation and management

available to the public and to the authorizing body in the same manner as is
required by state law for school districts.

O § 553(5)(m) [50] requires a charter school board of directors (but not the
management company) to collect, maintain, and make available to the public
certain information concerning the operation and management of the school of
excellence, including:

A copy of the contract.

A list of members of the board of directors.

Copies of policies approved by the board.

Board meeting agendas and minutes.

The approved budget and any budget amendments.

Copies of bills paid for amounts of $10,000.00.

Quarterly financial reports.

Current list of teachers and school administrators with salaries and

copies of certifications.

Evidence of compliance with criminal background and records checks.

Curriculum documents and materials.

Proof of insurance as required by the contract.

Copies of facility leases or deeds, or both, and of any equipment leases.

Notes On Charter School Provisions – Enrolled Senate Bill 981
Page 6 of 9

Copies of any management contracts or services contracts.

All health and safety reports and certificates, including fire safety,
environmental matters, asbestos inspection, boiler inspection, and food
service.

Management letters issued as part of the annual financial audit.

Other information required by the School Code.

3. Encouraging Charter High Schools and “Matriculation Agreements”

One of the underlying policy objectives of the legislation was to encourage more charter high
schools, particularly high schools managed by education management companies that
specialize in quality high schools in urban areas. The legislation also makes a major change in
enrollment options for charter school elementary pupils by giving their charter schools the
opportunity to enter into “matriculation agreements” with other schools assuring the pupil
enrollment in the high school. A summary of the high school-related sections includes:

• Under § 503(1), where an authorizing body has closed a charter school under orders of
the superintendent for being in the lowest achieving 5% for 4 years, the authorizing
body, in evaluating applicants for a replacement operator [13], may (but is not required
to) give priority to an applicant that will work toward operating all of grades 9 to 12
within 6 years after it begins operations, unless a matriculation agreement has been
reached with another public school that provides grades 9 to 12.

• Both the 2 cyber schools authorized must “offer all of grades K to 12.”

• The first 5 school of excellence must be high schools. [38]

• Every school of excellence, regardless of the grades it initially offers, must work
toward becoming a high school within 6 years or have a matriculation agreement with a
high school. [59]

• Two separate provisions related to matriculation agreements: (a) public school academy
agreements with another public school academy high schools and (b) school of
excellence agreements with any other “public school.” This is a significant change from
the existing required random selection enrollment procedures. Matriculation
agreements will help assure successful elementary charter school pupils the ability to
complete their high school education in a charter school or school of excellence. The
matriculation agreements will also assist high quality charter high schools to meet
enrollment needs with qualified students.

o Two public school academies (part 6a, part 6c, part 6e and strict discipline
academies) can enter into matriculation agreements between two academies as
follows:
Notes On Charter School Provisions – Enrolled Senate Bill 981
Page 7 of 9

§504(4) A public school academy may give enrollment

priority to…

(b) A pupil who transfers to the public school academy

from another public school academy pursuant to a
matriculation agreement between the public school
academies that provides for this enrollment priority…if…

(iii) The matriculation agreement allows any pupil

who was enrolled at any time during elementary
school in a public school academy that is party to
the matriculation agreement and who was not
expelled from the public school academy to enroll
in the public school academy giving enrollment
priority under the matriculation agreement.

o The matriculation agreement provisions for schools of excellence are slightly

different from the public school academy provisions:

§556(4) A school of excellence may give enrollment

priority to…:

(b) A pupil who transfers to the school of excellence from

another public school pursuant to a matriculation
agreement between the school of excellence and another
public school that provides for this enrollment priority….

o Under both provisions, up to 95% of the enrollment slots may be secured under
matriculation agreements. Only 5% of the slots must remain open for random
selection.

o Each public school academy, school of excellence or other public school that
enters into a matriculation agreement remains a separate and independent public
school.

4. Closing “Bad” Or Underperforming Schools

• Under § 507(2) [21], a part 6a charter school contract must be revoked and the school
closed if the superintendent determines a charter school is among the lowest achieving
5% of “all public schools in this state” for at least 4 years under the Race to the Top
federal legislation and is in year 2 of restructuring sanctions under the No Child Left
Behind Act of 2001, effective at the end of the current school year.

• If the superintendent of public instruction determines that a school of excellence that

has been operating for at least 4 years is among the lowest 5% of schools under the
Race to the Top federal legislation and is in year 2 of corrective action under the federal
No Child Left Behind Act [64], the superintendent must notify the authorizing body for
Notes On Charter School Provisions – Enrolled Senate Bill 981
Page 8 of 9

the school of excellence and the authorizing must revoke the contract of the school of
excellence and the school of excellence shall be closed, effective at the end of the
current school year. The requirement does not apply to a school of excellence that is an
“alternative school serving a special population.”

5. New Category: “Alternative School Serving a Special Student Population.”

• A potentially valuable new category of charter school is authorized in the legislation –

an “alternative school serving a special student population.” § 507(2) exempts from the
school closing requirements for being in the lowest performing 5% a “public school
academy that is an “alternative school serving a special student population.” Similarly,
561(6) exempts a “school of excellence that is an alternative school serving a special
student population.”

• Since every word of a statute must be given meaning, the new law allows an
authorizing body to identify some charter schools or schools of excellence as
“alternative schools.” These alternative schools have two distinct aspects: (a) they can
be limited to “a special student population” and (b) they are exempt from the poor
school closing provisions applicable to all other charter schools.

• Under these provisions, a charter school may still be subject to the random enrollment
provisions, but could limit those eligible to apply to those in the “special student
population.” For example, it might be possible to have a alternative charter school
specializing in non-English speaking children, gifted students or children with dyslexia.
If the alternative school also focused on part time and dual enrollment, there may be
significant opportunities to create specialized schools for unique population of students.

6. Strengthening Charter School Student Performance

• Every part 6a and part 6c charter school contract must include [78]:

the term of the contract and a description of the process and

standards for renewal of the contract at the end of the term. the
standards for renewal shall include student achievement as
measured by assessments and other objective criteria as a
significant factor in the decision of whether or not to renew the
contract.

7. Correct Defect In Urban High School Academy Part 6c [22]

Because Detroit is no longer a First Class District, part 6c authorizing urban high school
academies are difficult to organize under the Code. A change in § 522 changes the language to
a “county with a population of 1 million.”

8. Non-Charter School Provisions in SB 981

• § 1246 [68] allows alternative routes to administrator certification.

Notes On Charter School Provisions – Enrolled Senate Bill 981
Page 9 of 9

• New § 1249 [70] requires (with the involvement of teachers and school administrators)
all school boards (public schools and charter schools) to adopt and implement for all
teachers and school administrators a rigorous, transparent, and fair performance
evaluation system that does all of the following:

o Evaluates the teacher's or school administrator's job performance at least

annually while providing timely and constructive feedback.

o Establishes clear approaches to measuring student growth and provides teachers

and school administrators with relevant data on student growth.

o Evaluates a teacher's or school administrator's job performance, using multiple

rating categories that take into account data on student growth as a significant
factor. for these purposes, student growth shall be measured by national, state,
or local assessments and other objective criteria.

o Uses the evaluations, at a minimum, to do all of the following [71]:

Determine the effectiveness of teachers and school administrators while

ensuring that they are given ample opportunities for improvement.

Inform decisions regarding promotion, retention, and development of

teacher and school administrators, including providing relevant
coaching, instruction support, or professional development.

• § 1250 [71] requires that the method job assessment in determining compensation for
teachers and administrators include “a rigorous, transparent, and fair evaluation system”
using, in part, “data on student growth.”

• § 1278a changes the Algebra II requirements for a high school diploma.

Prepared: 12/30/2009 11:12 AM

Richard D. McLellan
rdmclellan@comcast.net

LAN01\210591.4
ID\RDM - 100816/0999