Ariz. Admin. Code § R7-5-403 - Minimum Operational Performance Expectations

A. The Board shall assess a charter holder's achievement of the minimum operational performance expectations using the indicators of operational performance specified in the Operational Performance Framework. To avoid duplicative reporting burdens, the Board shall use data collected from a variety of sources that reflect on the charter holder's compliance with the charter contract, other contractual agreements with the Board, federal and state law, and this Chapter.

1. The Operational Framework includes three indicators, or categories, used to evaluate the charter holder's performance and compliance:

a. Indicator 1: The fidelity to which a charter holder implements its academic program,

b. Indicator 2: Measures of the charter holder's ability to adhere to financial and operational reporting and compliance requirements, and

c. Indicator 3: Additional obligations, evaluating whether the charter holder complies with all other applicable operational obligations addressed in law, rule regulation and the charter contract.

1.2. The Board may assess a charter holder's achievement of the minimum operational performance expectations at any time.

2.3. The Board shall assess a charter holder's achievement of the minimum operational performance expectations:

a. When considering the following submitted by the charter holder:

i. An application for a new charter;

ii. An application to transfer a charter school from an existing charter contract to a separate charter contract;

iii. A request to change the legal status of the charter holder;

iv. A request to change the entity that holds the charter; or

v. A request to change program of instruction including methods of instruction, criteria for promotion, or graduation requirements;

b. When considering an expansion request submitted by the charter holder to:

i. Add a new charter school to an existing charter,

ii. Add one or more grade levels to a charter,

iii. Increase the number of students the charter holder may serve,

iv. Add an Arizona Online Instruction program, or

v. Replicate an existing charter;

c. During the five-year-interval review required under A.R.S. § 15-183(I);

d. When considering an application for charter renewal submitted by the charter holder;

e. Upon receipt of information that a charter school operated by the charter holder failed to meet the minimum academic performance expectations for three consecutive years; and

f. Upon receipt of information that a charter school operated by the charter holder has been assigned a letter grade of "F" by the Department.

B. The Board shall annually assign a charter holder an overall operational performance rating based on the measures specified in the Operational Performance Framework, which reflect the degree to which the charter holder achieved the minimum operational performance expectations. The Board shall make each charter holder's operational performance dashboard publicly available on the Board's website.

1. For each of the indicators, the Operational Framework provides a number of measures by which to evaluate charter holders. The measures take the form of a question about each charter holder's performance.

a. Indicator 1 includes the following measures:

i. Does the delivery of the education program and operation reflect the essential terms of the educational program as described in the charter contract?

ii. Does the charter holder adhere to applicable education requirements defined in state and federal law?

b. Indicator 2 includes the following measures:

i. Do the charter holder's annual audit reporting packages reflect sound operations?

ii. Is the charter holder administering student admission and attendance appropriately?

iii. Is the charter holder maintaining a safe environment consistent with state and local requirements?

iv. Is the charter holder transparent in its operations?

v. Is the charter holder complying with its obligations to the board?

vi. Is the charter holder complying with reporting requirements of other entities to which the charter is accountable?

c. Indicator 3 includes the following measure: Is the charter holder complying with all other obligations?

2. A school under a charter holder will be given one of the following ratings for each measure provided under an indicator:

a. "Meets Standard" if the charter holder demonstrates compliance with all metrics under a measure during the evaluation period;

b. "Does Not Meet Standard" if the charter holder has not been in compliance with the metrics at any point during the evaluation period and the charter holder has either:

i. Brought the school into compliance; or

ii. Demonstrated sufficient progress towards compliance, as determined by the board

c. "Falls Far Below Standard" if the charter holder has failed to meet the metrics at any point during the evaluation period and:

i. Has not demonstrated remedies that have resulted in compliance or prompt and sufficient progress toward compliance; or

ii. Regardless of whether or not the charter has demonstrated remedies that have resulted in compliance or prompt and sufficient progress toward compliance, the noncompliance was material or significant to the operation of the school.

C. The Board shall determine a charter holder meets the minimum operational performance standard if the charter holder receives no measure rated "falls far below standard" and no more than five measures rated "does not meet standard" for the evaluated year.

D. The Board shall determine a charter holder meets the minimum operational performance expectations if the charter holder receives an overall rating of "meets the Board's operational performance standard" in both of the two most recent years for which an overall rating was calculated and has no measure rated "falls far below standard" in the current year.

E. The Board shall determine a charter holder does not meet the minimum operational performance expectations if the charter holder receives an overall rating of "does not meet the Board's operational performance standard" in at least one of the two most recent years for which an overall rating was calculated or has at least one measure rated "falls far below standard" in the current year.

F. If the Board determines a charter holder does not meet the minimum operational performance expectations, the Board shall consider charter oversight under Article 6.

G. If a charter holder meets the eligibility requirements set forth in subsection F below, the charter holder may submit to the Board an expansion request to:

1. Add a new charter school to an existing charter;

2. Add one or more grade levels to a charter;

3. Increase the number of students the charter holder may serve;

4. Add an Arizona Online Instruction program;

5. Replicate an existing charter;

6. Transfer an existing charter school to its own charter; or

7. Transfer an existing charter school or charter contract from the current charter holder to an existing charter holder with a different financial performance dashboard.

H. A charter holder is operationally eligible to submit an expansion request if the charter holder is in compliance with the eligibility requirements adopted by the Board and published in the Operational Performance Frameworks on the Board's website.

Notes

Ariz. Admin. Code § R7-5-403

New section made by final rulemaking at 23 A.A.R. 693, effective 5/6/2017. Amended by final exempt rulemaking at 26 A.A.R. 3245, effective 11/20/2020. Amended by final exempt rulemaking at 31 A.A.R. 793, effective 1/7/2025.