Annual Measurable Objectives (AMOs) are state established performance targets that assess the progress of student subgroups, schools, and each LEA.
In order to calculate AMOs for any indicator, the following variables must first be established:
Baseline Year 
The year serving as the starting point for calculating AMOs 
Target Year 
The year by which each school is expected to reduce by half its percent of students that are not meeting the measure 
Goal 
The expected percentage of students meeting the measure 
Overall Needed Reduction 
The total reduction of students not meeting the measure needed to achieve the goal 
Step 1. 
Determine the difference between the baseline and target year. Divide the difference by 2, for a reduction by half. This results in the Overall Needed Reduction to the Target Year. 

Overall Needed Reduction 
= 
Goal − Baseline Year Measure 2 

Step 2. 
Divide the Overall Needed Reduction by the number of years between the baseline Year and the Target Year to calculate the Needed Gain Per Year 

Needed Gain Per Year 
= 
Overall Needed Reduction Number of years between baseline year and target year 

Step 3. 
Add the Baseline Year and the Needed Gain per Year to determine the AMO for Year 1. 

AMO Year 1 = Baseline Year Measure + Needed Gain per Year 

Step 4. 
Add the Needed Gain Per Year to the AMO for Year 1 to determine the AMO for Year 2. Repeat Step 4 until AMOs are calculated for each year between the Baseline Year and the Target Year.

NOTE: When a baseline is established after 20102011 the performance goals are calculated 6 years out from the baseline and the graduation goals are calculated 9 years out. New schools and subgroups are assigned either the Local Education Agency (LEA) level AMO or State level AMO (lowest of the two) for their 1st year baseline.
Achievement
How are the Achievement AMO targets calculated?
AMOs for Reading, Mathematics, and Science are set in annual equal increments toward a 50% reduction in the percentage of students in the “all students” group who are not proficient by 2017. The goal for Achievement is 100 percent proficiency. Proficiency rates from assessments administered in the 2010–2011 school year are used for the baseline year.
Achievement AMOs are calculated using the AMO Calculation by dividing the number of advanced and proficient students by the total number of students eligible to take the assessments. If the school's baseline Proficiency Percent for any content is extraordinarily high (90 percent or higher), then the Local Education Agency (LEA) level AMO or State level AMO (lowest of the two) will be substituted for the School AMO.
Gap Reduction
How are the Gap Reduction AMO targets calculated?
Gap Reduction represents a decrease in the difference between the highestachieving subgroup and the lowestachieving subgroup by content area.
Reading, Mathematics, and Science Gap Reduction
AMOs for Reading, Mathematics, and Science Gap Reduction are set in annual equal reductions toward a 50% reduction in the difference between the highestachieving subgroup and the lowestachieving subgroup by 2017. The goal for Reading, Mathematics, and Science Gap Reduction is 0 percent difference between the highest and lowest performing subgroups.
FiveYear Adjusted Cohort Graduation Rate Gap Reduction
AMOs for FiveYear Adjusted Cohort Graduation Rate Gap Reduction are set in annual equal reductions toward a 50% reduction in the difference between the highestachieving subgroup and the lowestachieving subgroup by 2020. The goal for Graduation Rate Gap Reduction is 5 percent difference between the highest and lowest performing subgroups.
FourYear Adjusted Cohort Dropout Rate Gap Reduction
AMOs for FourYear Adjusted Cohort Dropout Rate Gap Reduction are set in annual equal reductions toward a 50% reduction in the difference between the highestachieving subgroup and the lowestachieving subgroup by 2020. The goal for Dropout Rate Gap Reduction is 5 percent difference between the highest and lowest performing subgroups.
Gap Reduction AMOs are determined by calculating Proficiency Rates for all subgroups within a school for each content area. The highest and lowest performing subgroups for the baseline school year are determined. The difference between the highest and lowest subgroups is the Overall Needed Reduction which can be used in the calculation above to determine the AMO targets.
The targets are calculated separately by content within a school. When a school's baseline target for any of the contents is extraordinarily low (5 percent or less), then the LEA level AMO or State level AMO (highest of the two) will be substituted for the School group.
For Gap Reduction, larger values indicate less desirable performance. In order to provide continuity in comparisons between measures, the complement is used in calculating gap reduction. The complement is 1 minus the current year’s gap.
Growth
How are the Growth AMO targets calculated?
The Growth targets are on a trajectory toward 2017, the time by which each individual school is expected to reduce by half its percent of students not showing Growth. Targets are calculated for both Mathematics and English/Language Arts. For the baseline year a Growth Rate is calculated by comparing a student's performance in the current year and prior year and then dividing the sum of all students whose performance was equal to or better than the previous year by the total number of students. When a school's baseline target for either content is extraordinarily high (in this case 95 percent or higher), then the LEA level target or State level target (lowest of the two) will be used. The goal for the Growth Rate is 100 percent.
Calculation:
All Students Base Yr + (((1  ((1  All Students Base Yr) / 2))  All Students Base Yr) / 6)
College and CareerReadiness
How are the College and CareerReadiness AMO targets calculated?
The College and CareerReadiness targets are calculated for the 5Year Adjusted Cohort Graduation Rate and College and Career Preparation (CCP). The 5Year Adjusted Cohort Graduation Rate targets are on a trajectory toward 2020, the time by which each individual school is expected to reduce its rate of nongraduating students by half. The CCP targets are on a trajectory toward 2017, the time by which each individual school is expected to reduce its percent of students that are not completing the CCP goals by half. CCP is a measurement of a student's success in one of the following areas: Advance Placement (AP) orInternational Baccalaureate (IB), Career and Technology Education (CTE) Concentrators, and College Enrollment within 16 months of high school graduation. When a school's baseline target is extraordinarily high (90 percent or higher for the 5Year Adjusted Cohort Graduation Rate and 95 percent or higher for CCP), then the LEA level target or State level target (lowest of the two) will be used. The goal for the 5Year Adjusted Cohort Graduation Rate is 95 percent; the goal for CCP is 100 percent.
Calculations:
5Year Adjusted Cohort Graduation Rate:
All Students Base Yr + (((.95  ((.95  All Students Base Yr) / 2))  All Students Base Yr) / 9)
CCP:
All Students Base Yr + (((1  ((1  All Students Base Yr) / 2))  All Students Base Yr) / 6)