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The
Charter Contract
 Once the Commissioner approves your charter proposal, your Board of
Directors will negotiate a contract with your sponsor. The contract
authorizes the Board of Directors to operate a school, and specifies
the outcomes the school will achieve. Care should be taken in drafting
the contract, in terms of student performance and other measures of
school achievement, as this is the document against which the school
will be measured. Sponsors look to whether a school has met the terms
of the contract for the purpose of determining whether to continue sponsorship
after the stated term.
The basic requirements for the contract between the charter
school board and the sponsor are set forth in the charter school law
(Minn. Stats 124D.10, Subd. 6). The law covers the form, the timing
and the content of the contract. The contract must be (1) in writing,
(2) signed by the sponsor and the charter school board, and (3) completed
within 90 days of the date of charter approval. The initial contract
may last up to three (3) years. If a school fails to negotiate a contract
with its sponsor, the school may not open. Developers should note that
the 90-day requirement was enacted to protect schools, forcing sponsors
to commit to charter sponsorship within a reasonable amount of time.
Minnesota Statute 124D.10, Subd. 6 specifically provides:
The sponsor's authorization for a charter school must be in the form
of a written contract signed by the sponsor and the board of directors
of the charter school. The contract for a charter school must be completed
within 90 days of the commissioner's approval of the sponsor's proposed
authorization. The contract for a charter school must be in writing
and contain at least the following:
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A description of a program that carries out one or more of
the purposes in subdivision 1; [the six purposes are: to improve
pupil learning; increase learning opportunities for pupils;
encourage the use of different and innovative teaching methods;
require the measurement of learning outcomes and create different
and innovative forms of measuring outcomes; establish new forms
of accountability for schools; and create new professional opportunities
for teachers];
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Specific outcomes pupils are to achieve under subdivision
10 [Pupil Performance]
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Admission policies and procedures;
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Management and administration of the school;
-
Requirements and procedures for program and financial audits;
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How the school will comply with subdivisions 8, 13, 16, and
23 [these are, respectively, state and local requirements, length
of school year; transportation; and causes for non-renewal or
termination of charter school contract]
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Assumption of liability by the charter school;
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Types and amounts of insurance coverage to be obtained by
the charter school;
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The term of the contract, which may be up to three years;
and
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If the board of directors or the operators of the charter
school provide special instruction and services for children
with a disability under sections 125A.03 to 125A.24, and 125A.65,
a description of the financial parameters within which the charter
school will operate to provide the special instruction and services
to children with a disability.
The contract must contain at least the elements stated in the
law. It may also contain other provisions agreed to by the sponsor and
charter school board. The contract for sponsorship should not contain
terms relating to the provision of specific services (e.g., professional
development), whether to be provided by the sponsor or a third party.
Those activities should be covered by separate contracts.
The contract should give the school some flexibility to make changes
as the new school is established. Moving from theory to practice does
not always happen as anticipated, and the contract should be flexible
enough so that it does not have to be amended in order for the school
to make changes to refine and improve its program.
Typically, the charter developer, rather than the sponsor, does the
initial drafting of the contract. The charter sponsor will then have
the document reviewed by legal counsel. Although schools typically draft
the initial contract, you do not have to start from scratch. Many organizations
that sponsor multiple schools have developed contracts of their own
(in most cases based on the state's model contract), which they use
as a starting point for their schools. In addition, you may be able
to get sample contracts from MDE's charter school office.
The heart of the contract is the section on pupil outcomes. The law
requires that a charter school must "design its programs to at least
meet the outcomes adopted by the state board of education for public
school students." (Minn. Stats 124D.10, Subd. 10) The contract should
clearly identify student outcomes and how success in achieving those
outcomes will be measured and evaluated. In addition, the contract might
include provisions relating to the sponsor's evaluation of the school's
effectiveness in attaining pupil outcomes and the steps the school will
be expected to take if pupil outcomes are not being met.
A school's objectives should be clear, specific and measurable in quantifiable
and meaningful ways. Common measures include standardized test scores,
attendance figures, and graduation rates, although other measures may
be used as well. In setting up performance indicators, charter operators
must agree to enough specifics to satisfy the sponsor and MDE, without
over promising or committing to outcomes that are not relevant to their
student population. This often repeated phrase is good advice: better
to under promise and over deliver than to over promise and under deliver.
(For more guidance regarding assessment and accountability, see  What Should We Do: A Guide to Assessment and Accountability 1.19 Mb, (Center
for School Change), which includes examples of specific academic goals
and ways of measuring progress, and the appropriate section of this
handbook.)
A signed contract must be submitted to MDE within 90 days of charter
approval. In practice, charter developers usually submit a final "draft"
for MDE's review before the 90-day deadline. MDE staff then review the
contract to make sure it includes all required elements. After receiving
comments from MDE, the school and sponsor make any necessary revisions,
sign the contract and send a copy to MDE, together with the following
five (5) attachments:
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Documentation of the school's organizational structure, identifying
the school as a nonprofit corporation (i.e., articles of incorporation)
or a cooperative;
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Documentation providing evidence of the Commissioner of Education's
action approving the charter school (you will receive a letter
from MDE to this effect);
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The sponsor's Letter of Intent to Form a Charter School (discussed
above);
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The school's By-Laws; and
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A certificate of insurance or equivalent document providing
evidence that the school has liability insurance meeting the minimum
requirements and liability amounts of M.S. chapter 466.
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