1. 0 The School District of Philadelphia Charter School Renewals School Reform Commission Overview December 16, 2011

2. 1 The School District of Philadelphia Charter Renewal Process: Pennsylvania Charter Law Pennsylvania Charter School Law directs local school boards to conduct reviews of charter schools prior to granting five-year renewals. Options Five (5) Year Renewal One (1) Year Renewal** Non- Renewal Five (5) Year Renewal with performance targets* Renewal Review * Permitted for charter schools in Corrective Action; see Charter School Law, Section 17-1729A(6). * *Permitted if additional academic data is required; see Charter School Law, Section 17-1720A(b)(1).

3. 2 The School District of Philadelphia Charter Schools Complete Application SchoolWorks Renewal Site Visits CSO Reviews Applications Renewal Kick-Off Meeting Prep for Renewal Site Visits 11/15: Applications Due 12/15: District receives Renewal Site Visit Reports 12/20: SPI Scores distributed to Charter Schools CSO creates renewal reports/recommendations 1/18: Renewal Update 3/21: SRC Vote Charter Renewal Process: 2011-2012 Renewal Timeline Note: Charter School Modification deliverables align to the renewal tasks/deadlines. 2/15: Preliminary Rec. sent to SRC 2/15: Charter Schools receive a copy of the Renewal Report 12/16: Renewal Update 1/11 : Charters provide feedback on SPI 2/24: Charters submit feedback on Renewal Report Appeal SPI

4. 3 The School District of Philadelphia Data and materials collected/reviewed by renewal evaluation team. Facilitate a renewal kick-off meeting to acquaint charter school leaders with the process. Act as a team member on the quality school reviews visits conducted by SchoolWorks consultants. Collect and review all data submitted with the renewal application. Analyze all data inputs to form a renewal recommendation. Prepare renewal report with final recommendations. Submit report to Charter School Operators to solicit responses to the renewal report. Present renewal report and the responses to the report to the SRC. Charter Renewal Process: Role of the Charter School Office

5. 4 The School District of Philadelphia Charter Renewal Process: Comprehensive Framework Staff conducts a comprehensive review of four domains. 1.Academic Performance: Analyze the charter school’s academic performance including the PSSA results, absolute and growth- based student performance measures. 2.Financial Health: Assess the fiscal stability and ongoing financial viability. 3.Governance/Compliance: Examine the charter school’s adherence to statutory requirements and board governance. 4. Customer Satisfaction: Measure the results of school surveys, parent complaint logs, teacher and student retention rates.

6. 5 The School District of Philadelphia Comprehensive Review: Four Domains Charter Renewal Process: Comprehensive Framework SDP Financial Audit SDP Enrollment Audit Independent Audits Renewal Application Annual Report Renewal Site Visit Financial Health PDE Special Ed Audit Renewal Site Visit PDE Annual Report Renewal Application PDE Reports Governance & Compliance PSSA Results PVAAS Data PDE Assessment Reports Renewal Application Annual Report Renewal Site Visit Academic Performance SDP Survey Results Student Retention Rates Teacher Retention Rates Complaint Logs Renewal Application Customer Satisfaction

7. 6 The School District of Philadelphia Charter Renewal Process: Sample- Assessment Summary SchoolDomain Assessment Charter School A  Academic Performance  Financial Health ▲Governance & Compliance Customer Satisfaction Charter School B Academic Performance ▲ Financial Health ▲ Governance & Compliance Customer Satisfaction Charter School C Academic Performance Financial Health Governance & Compliance Customer Satisfaction Charter School D Academic Performance Financial Health ▲Governance & Compliance Customer Satisfaction Charter School E Academic Performance Financial Health Governance & Compliance Customer Satisfaction Acceptable ▲ Minor Deficiencies  Major Deficiencies

8. 7 The School District of Philadelphia Charter School A: High-Level Summary- Sample Academic Performance   School is in its fourth year of Corrective Action II.  Low levels of proficiency in both Reading and Math.  Little growth in academic performance over time.  Consistently lags District school and Charter School average PSSA scores as well as State targets  Small decreases in % of students scoring Below Basic. Financial Health   School has maintained negative fund, negative net income and negative net working capital balances during the charter term. Governance & Compliance ▲  No major areas of concern, although some issues around truancy reporting and regular evaluation of staff are of note. Customer Satisfaction  School is generally a safe environment.  Parents/guardians speak positively about the quality of the learning environment.

9. 8 The School District of Philadelphia Charter School C: High-Level Summary- Sample Academic Performance Consistently meets or exceeds state performance targets and District and charter averages in Math.  Exceeded state performance targets and District and charter averages in Reading in last three years.  Strong gains in Reading and Math proficiency levels over the past 5 years.  Good decreases in % of students scoring Below Basic. Financial Health  Good financial ratios and metrics. Governance & Compliance  No major areas of concern. Customer Satisfaction  School is a safe environment with a positive school climate.  Parents/guardians routinely speak positively about the quality of the learning environment.

10. 9 The School District of Philadelphia Charter Renewal Process: Sample of Staff Recommendations SchoolRenewal Recommendation Charter School A  Non-Renewal – based on unacceptable academic performance Charter School B 5-Year Renewal Charter School B 5-Year Renewal Charter School D 5-Year Renewal Charter School E 5-Year Renewal

11. 10 The School District of Philadelphia Charter Renewal Process: 2011-2012 Renewal Cohort Twenty-five charter schools have charter agreements that are set to expire this year. The twenty-five charter schools are: 1Alliance for Progress*14Mastery-Pickett 2Arise Academy15Multi-Cultural Academy 3Belmont Elementary16Philadelphia Electrical and Tech* 4Belmont Academy17Planet Abacus 5Boys Latin*18Preparatory 6Eastern University19Sankofa Freedom Academy 7First Philadelphia*20Southwest Leadership Academy* 8Franklin Towne Elementary*21Tacony Academy 9Green Woods22Truebright Science Academy** 10Hope Charter School23West Oak Lane 11Imhotep Institute*24Wissahickon* 12KIPP West Philadelphia*25World Communications 13Laboratory *Represents schools that have submitted a Letter of Intent to apply for an expansion. ** School that has submitted a letter of intent, but is not eligible to expand.

12. 11 The School District of Philadelphia Charter Modification : 2011-2012 Third Year of Charter Cohort Nine charter schools are in the third year of the current charter term. Seven of the schools are eligible to apply for expansion. 1Ad Prima Charter School 2 Franklin Towne Charter High School* 3 Global Leadership Academy Charter School* 4 Khepera Charter School* 5 Mariana Bracetti Academy Charter School** 6 New Foundations Charter School * 7 New Media Technology Charter School 8 Nueva Esperanza Academy Charter High School** 9 Philadelphia Performing Arts Charter School * *Represents schools that have submitted a Letter of Intent to apply for an expansion. ** School that has submitted a letter of intent, but is not eligible to expand.

13. 12 The School District of Philadelphia Financial Scenarios: 2011-2012 Renewal & Modification Cohort Scenario One: The SRC does not act on the pending modification requests. DRAFT- PENDING APPROVAL FROM THE DISTRICT’S CHIEF FINANCIAL OFFICER As a result of previous SRC actions, a number of charter schools eligible to apply for expansion (i.e., renewal schools and third year in the current charter term) have received conditional approval to increase student enrollment. The liability for this growth is captured in the body of this analysis. No further SRC action is assumed in this scenario. Renewal and Third Year in the Current Charter Term Charter Schools FY2011-12FY2012-13FY2013-14FY2014-15FY2015-16FY2016-17Total Year-Over-Year Student Increase 1,321 520 150 50 100 2,141 Year-Over-Year Financial Impact to SDP $12,327,380 $5,097,798 $1,357,248 $473,776 $945,468 $20,201,670 Cumulative Student (Increase) 19,814 21,135 21,655 21,805 21,855 21,955 Cumulative Financial Impact $201,682,743 $187,162,176 $206,094,490 $205,705,172 $207,087,395 $207,577,598

14. 13 The School District of Philadelphia Financial Scenarios: 2011-2012 Renewal & Modification Cohort Scenario Two: SRC grants charter schools an expansion to enrollment and grade levels as a result of an SPI Charter-to-District ranking of 1 and 2. DRAFT- PENDING APPROVAL FROM THE DISTRICT’S CHIEF FINANCIAL OFFICER This scenario assumes that the SRC grants each charter school with an SPI ranking of 1 and 2 its entire request. The analysis also includes the liability of growth granted on a conditional basis. Renewal and Third Year in the Current Charter Term Charter Schools FY2011-12FY2012-13FY2013-14FY2014-15FY2015-16FY2016-17Total Year-Over-Year Student Increase 2,457 1,195 750 400 100 4,902 Year-Over-Year Financial Impact to SDP $23,239,394 $11,786,541 $6,786,241 $3,804,788 $945,468 $46,562,434 Cumulative Student (Increase) 19,814 22,271 23,466 24,216 24,616 24,716 Cumulative Financial Impact $201,682,743 $197,222,088 $218,450,637 $224,000,257 $228,433,771 $229,063,835

15. 14 The School District of Philadelphia Financial Scenarios: 2011-2012 Renewal & Modification Cohort Scenario Three: SRC approves all pending modification request. DRAFT- PENDING APPROVAL FROM THE DISTRICT’S CHIEF FINANCIAL OFFICER This scenario assumes that the SRC grants all charter schools 100% of its modification request. The analysis also includes the liability of growth granted on a conditional basis. Renewal and Third Year in the Current Charter Term Charter Schools FY2011-12FY2012-13FY2013-14FY2014-15FY2015-16FY2016-17Total Year-Over-Year Student Increase 3,375 2,272 1,285 940 510 8,382 Year-Over-Year Financial Impact to SDP $31,368,795 $22,135,785 $11,746,608 $8,927,816 $4,818,764 $78,997,769 Cumulative Student (Increase) 19,814 23,189 25,461 26,746 27,686 28,196 Cumulative Financial Impact $201,682,743 $205,351,488 $242,316,869 $252,317,841 $262,339,127 $266,584,284

16. 15 The School District of Philadelphia Questions ?

17. 16 The School District of Philadelphia Charter Renewal Process: Application Focus The School District of Philadelphia’s renewal application focuses on four broad areas: 1.Academic Performance: Is the educational program a success? 2.Financial Health: Does the charter school have sufficient financial resources to ensure stable educational programming? 3.Governance/Compliance: Does the charter school comply with federal and state laws and regulations? 4. Customer Satisfaction: Is the charter school meeting the needs of parents, teachers, and students?

18. 17 The School District of Philadelphia Charter Renewal Process: Criteria for Non-Renewal 1.One or more material violations of any of the conditions, standards or procedures contained in the written charter. 2.Failure to meet the requirements for student performance set forth in 22 Pa. Code Chapter 4 (replacing Chapter 5) or failure to meet any performance standard set forth in the written charter. 3.Failure to meet generally accepted standards of fiscal management or audit requirements. 4.Violations of any provisions of the Charter School Law. 5.Violation of any provision of law from which the charter school has not been exempted, including Federal laws and regulations governing children with disabilities. 6. The charter school has been convicted of fraud.

19. 18 The School District of Philadelphia Charter Renewal Process: Quality School Reviews In the fall of 2009, the School District engaged School Works, an educational consulting firm with a national reputation for evaluating school performance, to develop and implement a site visit protocol for charter schools under renewal. The Renewal Site Visit (RSV) was designed to increase the transparency and consistency of the renewal process for charter schools authorized by the School District. The purpose of the RSV is to provide information to the School District on issues that may affect the renewal of a charter and to provide guidance to charters on how they may improve their performance over time.