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Incentive Pay / Bonus Programs

All initiatives taken from the 2005 State of the State Address of each state's Governor. Proposals include incentives aimed at both teacher retention and improving student achievement.

Incentive / Bonus Programs
Alabama : 2005 Governor's Initiatives Proposal: Pay an incentive bonus to teachers in high need schools or subject areas, and develop other ways to retain these teachers.

Status: The education budget, HB 248, enrolled on 05/16/05 over the Governor's veto, appropriated $725,000 for teacher incentive pay. However, eligibility requirements and disbursement levels have yet to be determined. This issue was not one of contention.

Minnesota : 2005 Governor's Initiatives Proposal: Restore and increase stipend to teachers of AP/IB courses based on students passing examinations.

Status: The enrolled budget, HF 141, signed into law on 07/14/05, includes $86 million in grants for local school districts to implement Q-Comp, the alternative compensation system for teachers which rewards additional responsibilities, student performance, and specific skill development. Additionally, the budget includes $7.4 million to encourage students to take AP/IB courses.

South Carolina : 2005 Governor's Initiatives Proposal: Offer national board certified teachers an additional annual stipend of $3,500 to teach in high-need areas or subjects.

Status: The budget, H 3716, changed the current stipend system to include this proposal. Under previous law, national board certified teachers received the additional stipend regardless of where they taught.

Texas : 2005 Governor's Initiatives Proposal: Offer $7,500 bonuses for teachers who improve achievement gains in schools with high at-risk populations.

Status: As of 07/26/05, the School Finance Reform Act, HB 2, has yet to be approved by both houses of the legislature, despite two special session. The act would have appropriated as much as $50 million to an incentive program for at-risk schools. Bonuses would be awarded to schools, at least 75% of which must be used for additional teacher compensation, including individual teacher bonuses of no less than $3,000.


Information for Indiana, Kansas, and Missouri may be incomplete.

Information from Delaware, Indiana, Kansas, Maine, Missouri, New Hampshire, and Vermont has not been confirmed by the Governor's Office.


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