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SB 1777

SB 1777 - This act authorizes a low-performing school district to enter into a contract for the establishment of a "Public School Transformation Campus". If a school district is determined to be in the bottom five percent of scores on the Annual Performance Report (APR) or has a recent APR score consistent with an accreditation status of provisionally accredited or unaccredited, such district may contract with the governing body of a charter school that satisfies certain performance and financial criteria or another entity approved by the State Board of Education to operate a struggling school as a "transformation campus". A school district that enters into such a contract shall be exempt from certain state interventions that would normally apply to struggling schools or districts, such as the School Turnaround Act, special administrative boards, the lapse of an unaccredited district, or the transfer of students out of an unaccredited district. Before entering into a transformation contract, a district shall notify the Commissioner of Education of its intent to pursue the contract. The State Board of Education shall promulgate rules concerning how and when this notification shall occur, including certain information provided in the act. The Commissioner shall notify the district within 60 days of receiving all required information whether the proposed contract is approved or rejected. The Department of Elementary and Secondary Education (DESE) shall encourage approved entities to enter into such contracts with school districts. For accountability purposes during the first two years of a transformation, the transformation campus shall be evaluated with an alternate performance status and shall be publicly identified as a transformation campus. Following the first two years of transformation, the State Board of Education shall assign all performance ratings received by other public schools within the district to the transformation campus. DESE may provide, through state and federal funds where allowable, financial incentives to support transformations under this act. OLIVIA SHANNON

2026 Regular Session

Bottom 5% districts can transfer operation of a designated school to an eligible external operator via a performance-based contract to create a Public School Transformation Campus.

Second Read and Referred S Education Committee
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Bill Summary · SB 1777

Overview

SB 1777 would establish a mechanism for certain underperforming Missouri school districts to partner with a charter school governing body or another approved entity to operate a designated “Public School Transformation Campus.” Districts meeting criteria related to low performance could enter into a performance-based contract to have a transformation campus run by an approved operator. The bill provides exemptions from some state interventions, sets notification and approval processes, outlines accountability during the initial years, and allows for financial incentives to support transformation efforts.

Purpose and intent

  • Create a pathway for bottom-performing districts to improve outcomes by transferring operation of a designated school to an external, high-performing operator.
  • Provide regulatory flexibility and targeted exemptions to facilitate transformation without triggering certain standard state interventions.

Key provisions

  • Definitions:
    • “Charter school” is limited to charter schools under chapter 160 that meet specific criteria (not previously revoked charter, three-year average APR score indicative of accreditation without provision, and no significant findings on prior year audits).
    • “School district” refers to districts in the bottom five percent of APR scores or with recent APR consistent with provisionally accredited or unaccredited status.
  • Eligible operators:
    • The governing body of a charter school meeting the above criteria.
    • A nonprofit education management organization or other entity approved by the State Board of Education (SBE).
  • Transformation contracts:
    • Districts may enter into a performance-based contract with an eligible operator to operate a designated public school as a “Public School Transformation Campus,” subject to SBE approval.
  • Exemptions:
    • Contracting district may be exempt from specified state interventions and interventions typically applicable to struggling schools/districts, including the School Turnaround Act, special administrative boards, lapse of accreditation, or student transfers out of a district.
  • Notification and approval:
    • Districts must notify the Commissioner of Education of intent to pursue a transformation contract.
    • SBE will establish procedures and timelines for notification; the Commissioner must approve or reject the proposed contract within 60 days after receiving all required information.
    • DESE is charged with encouraging approved entities to enter into such contracts.
  • Accountability during transformation:
    • The first two years: the transformation campus receives an alternate performance status, is publicly identified as a transformation campus, and is exempt from sanctions for not meeting standard academic metrics.
    • After two years: the district’s other public schools’ performance ratings are assigned to the transformation campus for accountability purposes.
  • Funding and incentives:
    • DESE may provide financial incentives using state and federal funds where allowable to support transformations.
  • Implementation and rulemaking:
    • SBE will promulgate rules to implement the section.
    • Any rules adopted after August 28, 2026, will be subject to Chapter 536 review and reform provisions; the section is nonseverable with respect to rulemaking authority.

Who is affected

  • Bottom-performing school districts (bottom five percent of APR or with provisionally accredited/unaccredited status) become eligible to pursue transformation contracts.
  • Eligible operators:
    • Charter school governing bodies meeting defined criteria or other approved nonprofit EMOs/entities.
  • Students and schools within the affected districts:
    • A designated public school within the district could become a Public School Transformation Campus.
  • State agencies:
    • DESE and SBE, which oversee notification, approval, accountability, and rulemaking.
  • Potentially affected employees and stakeholders within the transformation campus and district, who may experience changes in governance and operations.

Timeline and procedural aspects

  • Notification: District must notify the Commissioner before entering a transformation contract; SBE sets notification procedures and timing.
  • Approval timeline: Commissioner must decide within 60 days after receiving complete information.
  • Initial accountability: During the first two years, transformation campuses receive an alternate performance status and are exempt from standard sanctions.
  • Post-two-year accountability: All performance ratings from the district’s other public schools are assigned to the transformation campus.
  • Rulemaking: SBE to promulgate implementing rules; enforceable after statutory compliance; nonseverability provisions tied to rulemaking standards.

Potential impacts to monitor

  • Effectiveness of transformation campuses on student outcomes and district performance.
  • Financial implications of exemptions and potential incentives.
  • Administrative burden on districts and operators to coordinate and monitor performance.
  • Clarity and consistency of accountability measures during and after the two-year transition period.

If you’d like, I can add a section comparing this approach to other Missouri school turnaround mechanisms or provide a brief impact assessment based on similar programs.

Compiled from official sources — confirm details with the bill’s official record.

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