Having a quality teacher in the classroom is the most powerful influence on student success. With excellent educators, adequate resources and effective support, Colorado will meet Governor Ritter's goals of decreasing drop-outs, closing the achievement gaps and increasing achievement for all students. Recruiting, hiring, retaining and supporting quality educators are the key determinates of whether Colorado can meet its educational challenges. Reforming teacher pay is a long-term, challenging process. The best results occur when policymakers and teachers work together to reform the compensation system. Few districts have been able to successfully implement and maintain alternative compensation systems. Colorado districts are among the nation's leaders in this innovation. "Alternative compensation" encompasses a multitude of strategies for paying education employees in a way that differs from the traditional single salary schedule. Most generally, it involves making determinations about which components within the compensation system support the district's goals. Historically, the single salary schedule has been utilized because it provides a transparent and predictable way to pay teachers. It is perceived as promoting equality in compensation, while rewarding knowledge and experience. Beverly Ingle stressed that where a number of districts have experimented with alternative compensation systems in the past, many have failed because there was not enough money to cover costs, plans were not based on measureable elements or rewards were perceived as subjective. Additionally, as opposed to the traditional schedule, alternative compensation carries a level of uncertainty among teachers and can create additional burdens to teacher time. For these reasons, it is crucial that any reform to teacher pay involve a high degree of education, collaboration and communication between the district and the teachers. [Funding for this paper was provided by the Rose Community Foundation.]