Some States, Districts Abandoning Performance Pay

Merit Pay Loses Luster As Budgets Shrink

Two competing pressures--decreased finances and rising policy interest--have left the future of performance-based teacher compensation uncertain.

A dicey fiscal climate and research that has shown limited impact have led some states and districts to scale back, abandon, or change their fledgling merit-pay programs, causing observers to wonder what the next few years will hold for compensation systems that link teacher pay to student achievement.

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