MN SF1302

Creates a school grading system assigning letter grades (A through F) based on 50% standardized assessment scores, 25% student learning gains in reading and mathematics, 15% lowest quartile reading gains, and 10% lowest quartile mathematics gains.

Establishes a school recognition program providing annual performance-based awards to schools earning an "A" grade, improving at least one letter grade, or maintaining improved grades from two years prior.

Distributes school recognition awards based on student enrollment and allows schools to use funds for nonrecurring staff bonuses, educational equipment and materials, or temporary personnel through joint staff decision or principal determination if no agreement by November 1.

Modifies school report cards to include the school improvement rating, district grade, school grade, student academic performance, student growth percentages, school safety and engagement, rigorous coursework, student-to-teacher ratios, staff characteristics, enrollment demographics, mobility, and extracurricular activities.

Requires the Department of Education to report by February 1, 2012, on fiscal mandates that could be waived for high-performing schools (earning "A" or improving more than one grade annually) to provide greater financial flexibility.