This seems problematic.
Students' success isn't entirely up to the school. Some areas genuinely need more resources than others.
This system punishes areas that need more resources with by removing resources, likely causing a downward spiral.
A generation of kids is left with poor education before the schools eventually close, and then who wants to start a school in an area that has historically struggled when funding depends on them succeeding?
Based on happenings in other states, when public schools close the schools that take their place are from well funded groups who care more about spreading ideologies than running successful or profitable schools.