Using nationally representative samples for public school teachers and principals, the authors inquired into whether principal background and school processes are related to teacher job satisfaction. Employing hierarchical linear modeling (HLM), the authors were able to control for background characteristics at both the teacher and school levels. They found that 17% of the total variance in teacher job satisfaction is between schools, a statistically significant amount that indicates schools can make a difference in teacher job satisfaction. The authors found that school processes--particularly career and working conditions, staff collegiality, administrative support, and to a lesser extent, positive student behavior and teacher empowerment--are positively associated with teacher job satisfaction. Although two principal background variables--the experience of being a department head or an athletic coach/director--are statistically significant, the authors found the block of school process variables explains far more variance than the block of principal background variables. Based on the findings, the authors discussed issues such as the complexity of the phenomenon of teacher job satisfaction, the role of school process versus principal background, and monetary versus cultural factors. (Contains 7 notes, 5 tables, and 1 figure.)