This report presents findings from the second-year evaluation of the Governor's Educator Excellence Grant (GEEG) program. The GEEG program was federally- and state-funded and provided three-year grants to schools to design and implement performance pay plans from the 2005-06 to 2007-08 school years. GEEG was implemented in 99 high poverty, high performing Texas public schools. Overall, the report discusses the implementation experiences of GEEG program participants, paying close attention to the manner in which participating schools designed their performance pay plans and the program outcomes from those plans. The contents of this report addresses each of the following questions: (1) What is the national and state policy context--especially in regards to the use of performance pay programs--in which the GEEG program operates? (2) What is the nature of performance pay plans developed by GEEG participants? (3) What are the attitudes and behavior of school personnel in GEEG schools? and (4) How do GEEG participation and design features of GEEG plans influence teacher turnover and student achievement gains? Appended are: (1) Executive, Legislative, and Regulatory Division Interviewees; (2) Glossary of GEEG Taxonomy Components; (3) Fall 2007 GEEG School Personnel Survey; (4) Crosstabs for Selected Fall Survey Items; (5) Factor Analysis of Fall Survey Items; (6) Means of Factor Scores Across Selected Respondent Characteristics; (7) Results for Regression Analyses on Factors Derived from Survey Questions; (8) Technical Appendix for Teacher Turnover Analyses; (9) Technical Appendix for Student Achievement Analyses; (10) Student Achievement Analyses Tables; and (11) Percentage of Students Passing TAKS [Texas Assessment of Knowledge and Skills] in GEEG and Non-GEEG Schools. (Contains 99 tables, 19 figures, and 73 footnotes.)