TEACHER INCENTIVE FUND
The Teacher Incentive Fund of the American Recovery and Reinvestment Act has available $200 million dollars. This fund supports performance-based teacher and principal compensation systems in high-need schools, primarily through school districts and consortia of school districts. Under the compensation systems in place in virtually all school districts, teacher salaries increase based on teachers collecting graduate credit for additional study, increasing number of years on the job, or moving out of the classroom into an administrative position. Such pay systems fail to take into account classroom effectiveness, the challenges that teachers face to accelerate student learning in high-poverty schools, and the shortages in those schools of instructors who teach hard-to-staff subjects like math, science, special education, and English as a second language.
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