Merit pay plans for administrators do not work in school systems in which the governing board is elected from among lay people. In 1979, the Brewster (New York) Central School District developed an administrator merit pay plan. The goal of the plan was to implement changes and programs which would reflect the needs of the community as interpreted by the school board. For three years the plan worked well, but the board membership gradually turned over. The new members never understood the value of the merit pay plan. Merit increases were abandoned in favor of flat raises, a change which caused resentment among the administrators. Some of the stronger features of the plan are still being preserved; however, it is clear that administrator merit pay plans cannot work in school systems with board members who are unfamiliar with the internal workings and history of public schools. (DC)