In response to recommendations by a task force on teaching and teacher education, the state of Wisconsin established the Teacher Incentives Pilot Program. The goal of the program is to plan, develop, and administer a series of pilot projects which model different types of incentives designed to attract, prepare, and retain competent teachers. These include: (1) incentives and innovations for training new teachers and for staff development; (2) incentives for retaining teachers in their profession through the development of career ladder structures; (3) incentives for retaining teachers through monetary and nonmonetary awards; and (4) combinations which link the three levels of incentives. Three principles direct the thrust of the pilot program: (1) communication and cooperation among the different systems of education (teacher preparation institutions, K-12 school systems, the state education agency responsible for teacher education, employment, and continued professional development); (2) joint planning and action at the local school district level (teachers, administrators, school board and other community members); and (3) assessment and evaluation of individual and institutional educational outcomes. (JD)