Many communities lack clear standards for school accountability and interventions, resulting in inconsistent and subjective school interventions and management decisions. A formal performance contract makes the goals and standards for a school clear and actionable. If those goals are not met, the school could be subject to various kinds of intervention, up to and including closure. Performance contracts are individualized to each school, but are often aligned to the metrics and measures in a school performance framework.

Charter schools are one of the more familiar examples of a school operating under a performance contract, in this case the charter itself, which defines the standards and targets the school must meet in order to remain open. Among the eight cities, some systems also use performance contracts with non-charter schools.

It is important that authorizers or contract oversight teams work with schools to create performance contracts and set goals that are in the best interests of students, and closely monitor schools’ progress against their goals and obligations.

Performance contracts should establish consistent, equitable, and effective oversight for each school’s mission and program model, while at the same time advancing the system’s long-term goals for students.

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