MN HF638

Establishes an "A to F" grading system for public schools and districts based on student proficiency (50%) and growth (25%) on statewide reading and mathematics assessments, with additional weighting for low growth in reading (15%) and mathematics (10%).

Creates school recognition awards of $100 per enrollee for schools that receive an "A" grade, improve by at least one letter grade, or improve by two or more grades over two years; awards may fund staff bonuses, educational equipment, or temporary staffing.

Allows eligible schools to form a site team including principals, teachers, parents, and community representatives to decide award distribution, with principal discretion if no agreement is reached by November 1.

Requires the education commissioner to convene stakeholders to develop an implementation plan for the grading system and submit it to legislative committees by February 15, 2012.

Requires the commissioner to submit recommendations by February 1, 2013, identifying fiscal mandates that could be waived to provide greater financial flexibility to high-performing schools.