Merit Pay For Principals  

Establishes a merit pay program under which principals are
awarded additional pay if their school improves in measurable
areas of performance.

THE SENATE                              S.B. NO.           2159
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  The legislature finds that there is a need to
 2 improve student performance in several measurable areas.
 3 Standardized test scores, attendance rates, and grade-to-grade
 4 promotion rates are three dimensions of student performance and
 5 participation that can be quantified and utilized toward the end
 6 of judging and improving the quality of lower education.
 7      The legislature further finds that incentives similar to
 8 those in business that reward exemplary performance are an
 9 effective means of motivating change and improvement in schools.
10 As current levels of performance vary widely, such incentives
11 must be based on improvement rather than on one established
12 degree of achievement.  Furthermore, research indicates that
13 principals of schools are in the best position to effect positive
14 changes in the accomplishments of a given school.
15      Therefore, the purpose of this Act is to establish a merit
16 pay system that augments the existing pay scale of school
17 principals, based on improvement in standardized test scores,
18 attendance rates, and grade-to-grade promotion rates, as well as
19 any other appropriate measurable indicators of student
20 performance.

Page 2                                                     
                                     S.B. NO.           2159

 1      SECTION 2.  Chapter 302A, Hawaii Revised Statutes, is
 2 amended by adding a new section to be appropriately designated
 3 and to read as follows:
 4      "302A-       Merit pay for principals.  (a) Notwithstanding
 5 any other law to the contrary The department of education shall
 6 establish a merit pay system for school principals to encourage
 7 improvement in school performance.
 8      (b)  The merit pay system shall award school principals for
 9 improvement that their schools achieve in measurable areas of
10 performance, including but not limited to standardized test
11 scores, attendance rates, and grade-to-grade promotion rates.
12      (c)  School principals shall be awarded additional pay as an
13 additional percentage of the base monthly salary or, as a lump
14 sum award at the end of the semester or school year or, in
15 another form as deemed appropriate by the department of
16 education."
17      SECTION 3.  New statutory material is underscored.
18      SECTION 4.  This Act shall take effect upon its approval.
20                       INTRODUCED BY:  ___________________________