An "anonymous donor" in Little Rock, AK, did what teachers' unions and billions of dollars apparently can't: paid teachers to teach.

Karen Carter, the school's principal, felt that her teachers' efforts were producing progress at Meadowcliff, especially with a new reading program she'd instituted. But she needed a more precise test to measure individual student progress; she also wanted a way to reward her teachers for their effort. She went to the Public Education Foundation of Little Rock. The Foundation had no money for her, and the Little Rock system's budget was a nonstarter. So the foundation produced a private, anonymous donor, which made union approval unnecessary.

Together this small group worked out the program's details. The Stanford test results would be the basis for the bonuses. For each student in a teacher's charge whose Stanford score rose up to 4% over the year, the teacher got $100; 5% to 9%--$200; 10% to 14%--$300; and more than 15%--$400. This straight-line pay-for-performance formula awarded teachers objectively in a way that squares with popular notions of fairness and skirts fears of subjective judgment. In most merit-based lines of work, say baseball, it's called getting paid for "putting numbers on the board."

Still, it required a leap of faith. "I will tell you the truth," said Karen Carter. "We thought one student would improve more than 15%." The tests and financial incentives, however, turned out to be a powerful combination. The August test gave the teachers a detailed analysis of individual student strengths and weaknesses. From this, they tailored instruction for each student. It paid off on every level.

Twelve teachers received performance bonuses ranging from $1,800 to $8,600. The rest of the school's staff also shared in the bonus pool. That included the cafeteria ladies, who started eating with the students rather than in a nearby lounge, and the custodian, whom the students saw taking books out of Carter's Corner, the "library" outside the principal's office. Total cost: $134,800. The tests cost about $10,000.

I think giving teachers merit-based bonuses would do far more good for our children than the modern dogma of class size reduction.



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