Key features of a charter 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 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 up to 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

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

Charter Schools are covered by section 33 of the Education and Training Act, meaning that they must provide free enrolment and free education to any domestic student. They must not charge any fee for curriculum-related activity, such as:

subject fees
education outside the classroom
anything that occurs offsite but that is related to the curriculum
anything where there is a general expectation that students attend (for example, field trips or a school camp).

The only fee that can be charged is a property maintenance fee. However, this fee can only be charged:

if a school was previously a State-integrated school that converts to a charter school, and
when it was a State-integrated school its integration agreement allowed the proprietor to charge attendance dues.

Donations

Charter Schools with an equity index (EQI) of 432 or higher can choose to join the Ministry of Education’s school donations scheme. If a Charter School is eligible and chooses to opt in to the donations scheme, it cannot ask for donations (with the exception of overnight camps).

If a Charter School is not part of the school donations scheme it may request donations. However, it is the responsibility of the Sponsor to ensure that the school’s parent and whānau community knows that these donations are voluntary. This is the same for State schools.

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.

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. Charter school sponsors have autonomy over how their funding is spent but are expected to apply the funding in the best way possible to achieve the outcomes set out in their contract with the Charter School Agency.

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.