Two competing pressures--downsized budgets and rising policy interest--have left the future of performance-based teacher compensation uncertain. A dicey fiscal climate and research that has shown limited impact have led some states and districts to scale back, abandon, or change their fledgling merit-pay programs, causing observers to wonder what the next few years will hold for compensation systems that link teacher pay to student achievement. While increasing attention has gravitated toward the evaluation and compensation practices for teachers, specifically in shifting from traditional salary models tied to experience and education levels to merit-pay systems that factor in a teacher's impact on student achievement, some say the interest in performance pay could be faddish and short-lived. The journal "Education Next" reported last spring that only 500 out of 14,000 districts had merit-pay programs. Two of the largest programs in the country were also dismantled this summer. The author reports on how financial woes and unsuccessful results lead some to cut programs, though other states and districts are moving forward.