scores (such as by using multivariate, lon-
gitudinal analyses); and 
‘‘(iii) to protect against inappropriate 
testing practices or improprieties in test 
administration; 
‘‘(B) includes a way to acknowledge the ex-
istence of influences on student growth, such as 
pull-out programs for support beyond standard 
delivery of instruction, so that affected teachers 
do not receive an unfair advantage; and 
‘‘(C) has the capacity to assign various 
proportions of student growth to multiple teach-
ers when the classroom reality, such as team 
teaching 
and 
departmentalized 
instruction, 
makes such type of instruction an issue. 
‘‘Subpart 1—Distribution 
‘‘SEC. 2501. PREMIUM PAY; LOAN REPAYMENT. 
‘‘(a) GRANTS.—The Secretary shall make grants to 
local educational agencies to provide higher salaries to ex-
emplary, highly qualified principals and exemplary, highly 
qualified teachers with at least 3 years of experience, in-
cluding teachers certified by the National Board for Pro-
fessional Teaching Standards, if the principal or teacher 
agrees to serve full-time for a period of 4 consecutive 
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school years at a public high-need elementary school or 
a public high-need secondary school. 
‘‘(b) USE OF FUNDS.—A local educational agency 
that receives a grant under this section may use funds 
made available through the grant— 
‘‘(1) to provide to exemplary, highly qualified 
principals up to $15,000 as an annual bonus for 
each of 4 consecutive school years if the principal 
commits to work full-time for such period in a public 
high-need elementary school or a public high-need 
secondary school; and 
‘‘(2) to provide to exemplary, highly qualified 
teachers— 
‘‘(A) up to $10,000 as an annual bonus for 
each of 4 consecutive school years if the teacher 
commits to work full-time for such period in a 
public high-need elementary school or a public 
high-need secondary school; or 
‘‘(B) up to $12,500 as an annual bonus 
for each of 4 consecutive school years if the 
teacher commits to work full-time for such pe-
riod teaching a subject for which there is a doc-
umented shortage of teachers in a public high- 
need elementary school or a public high-need 
secondary school. 
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‘‘(c) TIMING
OF PAYMENT.—A local educational 
agency providing an annual bonus to a principal or teacher 
under subsection (b) shall pay the bonus on completion 
of the service requirement by the principal or teacher for 
the applicable year. 
‘‘(d) GRANT PERIOD.—The Secretary shall make 
grants under this section in yearly installments for a total 
period of 4 years. 
‘‘(e) OBSERVATION, FEEDBACK, 
AND
EVALUA-
TION.—The Secretary may make a grant to a local edu-
cational agency under this section only if the State in 
which the agency is located or the agency has in place 
or proposes a plan, developed on a collaborative basis with 
the local teacher organization, to develop a system in 
which principals and, if available, master teachers rate 
teachers as exemplary. Such a system shall be— 
‘‘(1) based on strong learning gains for stu-
dents; 
‘‘(2) based on classroom observation and feed-
back at least four times annually; 
‘‘(3) conducted by multiple sources, including 
master teachers and principals; and 
‘‘(4) evaluated against research-validated ru-
brics that use planning, instructional, and learning 
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environment standards to measure teaching perform-
ance. 
‘‘(f) APPLICATION REQUIREMENTS.—To seek a grant 
under this section, a local educational agency shall submit 
an application at such time, in such manner, and con-
taining such information as the Secretary reasonably re-
quires. At a minimum, the application shall include the 
following: 
‘‘(1) A description of the agency’s proposed new 
teacher hiring timeline, including interim goals for 
any phase-in period. 
‘‘(2) An assurance that the agency will— 
‘‘(A) pay matching funds for the program 
carried out with the grant, which matching 
funds may be derived from funds received under 
other provisions of this title; 
‘‘(B) commit to making the program sus-
tainable over time; 
‘‘(C) create incentives to bring a critical 
mass of exemplary, highly qualified teachers to 
each school whose teachers will receive assist-
ance under this section; 
‘‘(D) improve the school’s working condi-
tions through activities that may include but 
are not limited to— 
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‘‘(i) reducing class size; 
‘‘(ii) ensuring availability of classroom 
materials, textbooks, and other supplies; 
‘‘(iii) improving or modernizing facili-
ties; and 
‘‘(iv) upgrading safety; and 
‘‘(E) accelerate the timeline for hiring new 
teachers in order to minimize the withdrawal of 
high-quality teacher applicants and secure the 
best new teacher talent for their hardest-to- 
staff schools. 
‘‘(3) An assurance that, in identifying exem-
plary teachers, the system described in paragraph 
(1) will take into consideration— 
‘‘(A) growth of the teacher’s students on 
any tests required by the State educational 
agency; 
‘‘(B) value-added student achievement 
gains if such teacher is in a State that uses 
value-added longitudinal data system; 
‘‘(C) National Board for Professional 
Teaching Standards certification; and 
‘‘(D) evidence of teaching skill documented 
in performance-based assessments. 
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‘‘(g) HIRING HIGHLY QUALIFIED TEACHERS EARLY 
AND IN A TIMELY MANNER.— 
‘‘(1) IN GENERAL.—In addition to the require-
ments of subsection (f), an application under such 
subsection shall include a description of the steps 
the local educational agency will take to enable all 
or a subset of the agency’s schools to hire new high-
ly qualified teachers early and in a timely manner, 
including— 
‘‘(A) requiring a clear and early notifica-
tion date for retiring teachers that is no later 
than March 15 each year; 
‘‘(B) providing schools with their staffing 
allocations no later than April of the preceding 
school year; 
‘‘(C) enabling schools to consider external 
candidates at the same time as internal can-
didates for available positions; 
‘‘(D) moving up the teacher transfer pe-
riod to April and not requiring schools to hire 
transferring or ‘excessed’ teachers from other 
schools without selection and consent; and 
‘‘(E) establishing and implementing a new 
principal accountability framework to ensure 
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that principals with increased hiring authority 
are improving teacher quality. 
‘‘(2) RULE
OF
CONSTRUCTION.—Nothing in 
this subsection shall be construed to alter or other-
wise affect the rights, remedies, and procedures af-
forded school or district employees under Federal, 
State, or local laws (including applicable regulations 
or court orders) or under the terms of collective bar-
gaining agreements, memoranda of understanding, 
or other agreements between such employees and 
their employers. 
‘‘(h) PRIORITY.—In providing higher salaries to prin-
cipals and teachers under this section, a local educational 
agency shall give priority to principals and teachers at 
schools identified under section 1116 for school improve-
ment, corrective action, or restructuring. 
‘‘(i) DEFINITIONS.—In this section: 
‘‘(1) The term ‘high-need’ means, with respect 
to an elementary school or a secondary school, a 
school that serves an eligible school attendance area 
in which not less than 65 percent of the children are 
from low-income families, based on the number of 
children eligible for free and reduced priced lunches 
under the Richard B. Russell National School Lunch 
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Act, or in which not less than 65 percent of the chil-
dren enrolled are from such families. 
‘‘(2) The term ‘documented shortage of teach-
ers’— 
‘‘(A) means a shortage of teachers docu-
mented in the needs assessment submitted 
under section 2122 by the local educational 
agency involved or some other official dem-
onstration of shortage by the local educational 
agency; and 
‘‘(B) may include such a shortage in math, 
science, a foreign language, special education, 
bilingual education, or reading. 
‘‘(3) The term ‘exemplary, highly qualified prin-
cipal’ means a principal who— 
‘‘(A) demonstrates a belief that every stu-
dent can achieve at high levels; 
‘‘(B) demonstrates an ability to drive sub-
stantial gains in academic achievement for all 
students while closing the achievement gap for 
those farthest from meeting standards; 
‘‘(C) uses data to drive instructional im-
provement; 
‘‘(D) provides ongoing support and devel-
opment for teachers; and 
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‘‘(E) builds a positive school community, 
treating every student with respect and rein-
forcing high expectations for all. 
‘‘(4) The term ‘exemplary, highly qualified 
teacher’ means a highly qualified teacher who is 
rated as exemplary pursuant to a system described 
in subsection (e). 
‘‘(j) AUTHORIZATION
OF
APPROPRIATIONS.—To 
carry out this section, there are authorized to be appro-
priated $2,200,000,000 for fiscal year 2008 and such 
sums as may be necessary for each of the 5 succeeding 
fiscal years. 
‘‘SEC. 2502. CAREER LADDERS FOR TEACHERS PROGRAM. 
‘‘(a) GRANTS.—The Secretary may make grants to 
local educational agencies to establish and implement a 
Career Ladders for Teachers Program in which the agen-
cy— 
‘‘(1) augments the salary of teachers in high- 
need elementary schools and secondary schools to 
correspond to the increasing responsibilities and 
leadership roles assumed by the teachers as they 
take on new professional roles (such as serving on 
school leadership teams, serving as instructional 
coaches, and serving in hybrid roles), including by— 
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‘‘(A) providing up to $10,000 as an annual 
augmentation to master teachers (including 
teachers serving as master teachers as part of 
a state-of-the-art teacher induction program 
under section 2511); and 
‘‘(B) providing up to $5,000 as an annual 
augmentation to mentor teachers (including 
teachers serving as mentor teachers as part of 
a state-of-the-art teacher induction program 
under section 2511); 
‘‘(2) provides up to $4,000 as an annual bonus 
to all career teachers, master teachers, and mentor 
teachers in high-need elementary schools and sec-
ondary schools based on a combination of— 
‘‘(A) at least 3 classroom evaluations over 
the course of the year; and 
‘‘(B) the performance of the teacher’s stu-
dents as determined by— 
‘‘(i) student growth on any test that is 
required by the State educational agency 
or local educational agency and is adminis-
tered to the teacher’s students; and 
‘‘(ii) in States or local educational 
agencies with value-added longitudinal 
data systems, whole-school value-added 
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student achievement gains and classroom- 
level 
value-added 
student 
achievement 
gains; or 
‘‘(3) provides up to $4,000 as an annual bonus 
to principals in elementary schools and secondary 
schools based on the performance of the school’s stu-
dents, taking into consideration whole-school value- 
added student achievement gains in States that have 
value-added longitudinal data systems and in which 
information on whole-school value-added student 
achievement gains is available. 
‘‘(b) DEMONSTRATED LEVEL OF PROFICIENCY.— 
‘‘(1) REQUIREMENT.—A local educational agen-
cy may not use a grant to augment a teacher’s sal-
ary through a performance bonus under subsection 
(a)(2) unless the teacher demonstrates an increased 
level of proficiency as demonstrated through— 
‘‘(A) in States without value-added longitu-
dinal data systems, multiple annual evaluations 
described in paragraph (2); and 
‘‘(B) in States with value-added longitu-
dinal 
data 
systems, 
value-added 
student 
achievement gains. 
‘‘(2) EVALUATIONS.—An evaluation described 
in this paragraph shall— 
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