Poor performance = more money. We always get more of whatever we reward. IMO, the only way out of the trap is a voucher system and a relaxation of accreditation standards (as to help avoid the pitfall of regulatory capture by currently established agents).
The only indicator which matters (unfortunately, a lagging indicator) is post-education placement (career, trades, college, university, etc). It will be messy at first, but the long-term result will be stable and optimally-performing because valuation of each school and teacher will be based upon a rational metric, not upon some arbitrary correlative standard which can be corrupted or gamed.
If the state governments wanted to provide any service in this regard, I think it would be reasonable for them to compile 1, 5, and 10 year bulk placement statistics (including unemployment information if available) for each school and teacher receiving voucher funds.
This is my sister’s last year teaching in Tucson - she’s tired of the whole routine. I asked her what it took in TUSD to hold a failing kid back a grade.
She replied, “If he can eat and get bigger, he’ll move up a grade!”