Key features of a charter school

Sponsors

Charter schools are state-funded but are operated by a sponsor.  

A sponsor is the body approved by the Charter School Authorisation Board to operate a charter school. It must be a body corporate, corporation sole, limited partnership, institution, or a related entity that wishes to open and operate a charter school.

For converting schools, the application process could be initiated by either a school board or school community together with a prospective sponsor. A prospective sponsor would need to apply to open a new charter school.

Under the previous model, partnership schools were largely community-driven, often operated by Māori organisations, Pacific peoples’ organisations, and education trusts. Overseas, there have been businesses and private schools who sponsor and manage partnership/charter schools.

Sponsors may operate multiple schools, as they do in England under the academies model. They must have a contract for each school.

Charter school contracts

The sponsor will enter into a contract with the Charter School Agency that sets out its targets and outlines the character of its charter school. For example, the charter school may reflect the character of a cultural, religious, sporting, extension, or military community. The character may not be explicit, especially if the charter school is a converting state school.

The legislation will set out the key settings for all charter schools, while a sponsor’s contract with the Crown will specify terms for each school. The contract will cover a broad range of matters relevant to the particular school.

A sponsor is expected to have a fixed-term contract of 10 years to operate a charter school, with parties being able to extend the contract with two rights of renewal for 10 years each.

If a sponsor fails to meet its targets, its contract can be terminated, or other interventions may be used.

Performance management framework

The performance management framework is a key component of the charter school model to provide oversight and accountability alongside the flexibility for sponsors to innovate to meet their students' needs. 

The framework sets out clearly defined performance outcomes, measures and targets, as well as the methods used to track these.

Charter school sponsors will need to provide information that shows how they are meeting performance outcomes and compliance measures specified in their contracts. They will also be required to provide the Charter School Agency with an annual self-audit report that includes: 

• a report on the performance targets and outcomes of the sponsor under the contract
• a report on the sponsors compliance with contractual and legislative obligations in relation to the charter school
• annual independently audited financial statements

Please see here for more detailed information on the performance management framework.

Intervention framework

Charter school sponsors must meet their performance targets and outcomes, or they may face interventions. The Authorisation Board will apply these interventions proportionally and will consider progress over time. The interventions set in legislation are:

• require a sponsor to provide specific information or carry out a specific action
• require the Education Review Office to conduct a review of the school
• replace the sponsor
• terminate the contract

Capability

The Charter School Authorisation Board will consider the capability of the sponsor when reviewing applications. The sponsor and governing members must be fit and proper persons, as described in the legislation.

The Authorisation Board will approve applications for new and converting schools. Applications will be considered by the Board with advice from the Charter School Agency, taking into account priorities and funding availability. The Board must also seek the view of the Secretary for Education and ERO.  

The Education and Training Amendment Act 2024 includes the mandatory factors the Board must take into account, such as the focus of the proposed school, the capability of the sponsor, the level of support from the community, standard of tuition to be provided, financial and network implications for the Crown. For converting schools, there are additional criteria such as the performance of the school and the level of support from the school community, school staff, and students. 

The Authorisation Board can set conditions on the approval of a sponsor. All students currently enrolled in the state school who wish to attend the charter school must be allowed to do so, and if a state school is a designated character school, a kura kaupapa Māori, or a state integrated school, the character of the school must be maintained.  

Schools will need to provide a curriculum to tuition standards at a level at least equivalent to state schools of the same year levels. They will need to meet the achievement and performance requirements in the contract.   

The flexibility that charter schools will have around curriculum will be similar to what private schools have.   

All unregistered teachers will be required to hold a Limited Authority to Teach (LAT).

Enrolment and fees

Enrolment in a charter school is free except for international students. However, property maintenance fees may be charged:

• where charter schools are located in sponsor-owned premises, or
• a converted school was a state integrated school that had an integration agreement prior to their conversion that allowed them to charge attendance dues.

Charter schools must accept all eligible applications to enrol unless they are oversubscribed. Schools with special character may refuse enrolment applications if the parents’ do not accept the character of the school.

Property

Sponsors are responsible for ensuring that premises and equipment are suitable, safe and appropriate for education purposes. They have discretion to determine the property standards, leasing arrangements, and equipment that is right for their school, so long as it complies with relevant laws.

If a state school converts to a charter school, the Ministry will retain ownership of existing land and buildings. More information on the property funding arrangements for charter schools, as well as the property arrangements for converted state schools, will be provided when decisions have been finalised.

Sponsors who own the premises of their charter school can charge parents and caregivers "property maintenance fees" if specified in their contract.

Funding model

Charter school funding will be broadly equivalent to state school funding.

Funding will mostly be on a per-student basis and provided as cash to increase flexibility. This means, for example, that charter schools will get cash instead of staffing entitlements, enabling sponsors to source the specific skills they need.

Staff

The sponsor employs all staff and negotiates salary levels and employment conditions.  

For converting schools, staff will be transferred on terms and conditions which are no less favourable than their current employment agreement (whether individual or collective). Following conversion, charter schools may vary these terms by agreement with employees.

Sponsors must employ a minimum of 75% of certificated teachers. They may employ staff who are not teachers with a practising certificate, but they must hold a Limited Authority to Teach (LAT). LAT holders employed at charter schools will have added flexibility as they can be employed on a permanent basis and will be subject to Teaching Council disciplinary processes but not competency processes.

Complaints

Complaints about a charter school can be made to an independent reviewer (arranged by the charter school) or an Ombudsman.