Finding Funding for Performance Pay: From Federal Funds to District Operating Budget Reallocation

DMC suggests these three approaches to find funding for pay-for-performance programs within the context of your school district's expenditures:

  1. Reallocation of funding within the future compensation structure (in other words, the P4P program is not simply additive)
  2. Reallocation from outside the compensation structure (typically from lower value-add programs and services)
  3. Systemic reduction in overall cost due to district performance gains

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