I've got an idea - how about offer teachers enough pay such that there would actually be competition for their positions rather than forcing rules that make being a teacher even more crappy than it already is?
I think your idea is much too standardizing. I mean, if I were a teacher and I had a brilliant student in my class who was also a troublemaker, poor influence on other students, didn't do homework, I'd fail him even if he scored perfectly on this exam. And I wouldnt be willing to write a hundred letters to justify each grade. Being a teacher isn't JUST about teaching material, especially in the younger grades. I mean, really - consider how many qualified teachers actually want to teach K-12. Then consider how far schools need to go in order to get willing teachers (read: low standards). Then consider how many would be teaching if suddenly their already low pay also requires heavy competition (just because you're distributing it differently doesn't mean there's more total). And this is completely ignoring the humongous beurocracy and overhead cost required in this auditing system. Also, you'd have to consider that certain cities have better funded schools because of local property tax. The bottom line is, the problem isn't solved and you have less people willing to be teachers. Redistribution of measly funds doesn't benefit anyone.