Legislature enacts receivership model

On Board Online • April 6, 2015

By Paul Heiser
Senior Research Analyst

Schools that have struggled to raise student achievement for years face the prospect of being taken over and restructured by an outside entity such as a charter school operator or nonprofit organization under the enacted state budget plan.

Under the new receivership plan, any public school that is among the lowest achieving five percent in the state ("priority schools") for at least three consecutive years will be designated as "failing." These schools will be allowed to continue operating for two years with a locally developed intervention plan, and their superintendents will have the powers of a receiver, including the authority to override decisions of the board (except as relates to the employment of the superintendent).

Public schools that have been deemed priority schools for 10 years or more will be designated as "persistently failing." These schools may continue to operate for one year with a locally developed intervention plan, and their superintendents will have the powers of a receiver, including the authority to override the decisions of the board. The budget allocates $75 million to support implementation of turnaround plans for persistently failing schools.

In both the case of "failing" and "persistently failing" schools, improvement plans must have measurable benchmarks for improvement, such as student attendance, graduation and dropout rates. Each school's progress will be reviewed at the end of the one- or two-year period, at which time the school may remain in operation with the superintendent acting as the receiver, be removed from designation or have a third-party receiver appointed.

After 2016-17, schools that are newly designated as failing are immediately eligible for receivership.

"While certainly not ideal, the 'receivership' proposal at least now provides local school leaders with the opportunity to improve academic results before resorting to a dramatic, third-party takeover," said NYSSBA Executive Director Timothy Kremer. "Under the revised receivership plan, the lowest performing schools can now get an infusion of resources and some management help to improve performance."

Receivers, who may be individuals, non-profits or other school districts, may be selected by the school districts in which the schools are located, subject to the approval of the education commissioner. Failure to appoint a receiver within 60 days will result in an appointment by the State Education Department.

Receivers will have all operational and managerial authority over their schools. They will be empowered to supersede the board and superintendent as their decisions relate to the school intervention plan and to alter the district budget to support the intervention plan. They also will be charged with converting schools to 'community schools' to provide expanded health, mental health and other services to students and their families.

Areas in which receivers may - but are not required to - make changes include reviewing and updating curriculum, offering or expanding enrichment programs and reallocating budgets. NYSSBA is studying the law and how it will interact with existing state law.