Board hears proposal to pay principals $500 per report-card point under new incentive plan

Montgomery County Board of Education members reviewed a proposed principal incentive pay plan Dec. 11 that links bonuses to Alabama State Department of Education report-card performance.

Presenting the plan, a representative of the district’s executive director team described the core mechanics: principals would receive $500 for every point increase on their school’s state report card and an additional $1,000 for any school that achieves a perfect score of 100. For magnet schools, the district proposed an additional $500 per report-card indicator if that indicator is achieved at 100% (indicators include achievement, growth, English-language proficiency progress, college and career readiness, graduation rate and chronic absenteeism).

The plan includes eligibility rules intended to support retention: principals must serve at least 80% of the school year and return to the same principal role the following year to qualify. District staff said all awards would be verified through the Office of Assessment and Accountability and state report card data.

District budget modeling presented to the board estimated that if the plan had been in effect for the 2024–25 school year, principals combined would have earned $51,000. The district estimated a 2025–26 budget impact between $150,000 and $175,000 if participation rose; staff said an additional $51,000 would be required if every school achieved a 100 report-card score.

Supporters on the board praised the plan as a retention and accountability tool; one board member compared it to programs in other districts. Trustees asked staff for additional financial detail and next steps for approval.

The board did not adopt the policy at the meeting; staff asked trustees to review the plan and prepare for a December 2025 approval and implementation timing discussion.