AZ SB1286

Amends school accountability system to replace five-tier classification system (excelling, highly performing, performing, underperforming, failing to meet academic standards) with a letter grade system (A, B, C, D, F) for both schools and school districts.

Modifies achievement profile methodology so that 50% consists of academic performance measurements and 50% consists of academic gain for all pupils, with special emphasis on the lowest-performing 25% of students.

Adds Arizona Measure of Academic Progress as a required performance indicator for grades 9-12 schools, in addition to existing test results and graduation/dropout rates.

Requires county educational service agencies to collaborate with the superintendent of public instruction on improvement plans, solutions teams, and accountability measures for schools receiving letter grades of D or F.

Implements a two-year phase-in period where schools receive both old classification designations and new letter grades to allow transition to the new system effective August 31, 2011.