From AP - News Headlines -

Teacher Merit Pay Bill Heads to Gov. Daniels’ Desk

A bill linking teacher pay with student performance has won final legislative approval and now heads to Gov. Mitch Daniels for his signature.

The Senate voted 36-13 for the merit pay bill, which is part of Daniels' expansive education agenda. Under the bill, teachers would be evaluated annually. Only those in the top two of four categories would be eligible for certain pay raises. Local districts would create their own evaluations, but would have to include objective measures of student achievement, such as test scores.

Districts wouldn't be able to place a student for two years in a row with teachers rated in the lowest category without notifying parents.

Supporters say it's right to reward the best teachers, while opponents say teachers aren't in the profession for the money.