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This study examines one State Education Agency’s (SEA) process for developing a letter grading system in response to legislative requirements. Development of quantitative models was informed by SEA design principles. Criterion-referenced exam scores from 2013 for 345,401 students in 1,058 schools were used for modeling. Stakeholders and SEA leaders selected a final model from 20 versions of letter grade models constructed for consideration through an iterative process of collaborative design and decision-making. This process provided SEA leaders and stakeholders with the opportunity to develop skills in using a quantitative framework to support democratic processes for decision-making, resulting in selection of a letter grading system that balanced fairness for schools with diverse populations, congruence with federal accountability, and simplicity for stakeholders.