Schools that fail to meet AYP for two consecutive years are designated as “needs improvement,” and the first consequence is that schools must offer students the choice to transfer to either another school within the district meeting AYP or a charter school. If all schools in the district are in “needs improvement” status, school districts must pay for and provide transportation to new schools. Priority is given to low-income and at-risk students.
After three consecutive years of failing to meet AYP, in addition to school transfer options, schools must also provide supplemental services, such as tutoring or extra educational services, and develop a school improvement plan. If schools cannot afford to provide transfer options, supplemental services are required. Schools have one year to develop a school improvement plan and one year to implement it, if the school fails to meet AYP for another year.
When schools fail to meet AYP for four consecutive years, the school district must implement corrective action defined by NCLB. The district must either replace staff, implement new curriculum, decrease management authority, restructure or extend the school day or year, or seek outside expert help. These corrective actions must be in addition to the school transfer options, supplementary services and improvement plan.
After five years of failure to meet AYP, schools are required to make plans to restructure the school, and at six years, the school must take steps to implement the plan. Districts required to prepare a restructuring plan must either reopen as a charter school, replace most or all staff, enter into a contract with a management company, turn over school operations to the state or restructure school governance. Schools have two years to restructure before final action is taken. It isn't until a school has been failing for five consecutive years that restructuring plans are designed, and not until six consecutive years until these plans are implemented. If restructuring fails after six consecutive years, districts then face the possibility of complete school closure.