Researchers used school district data and an attitudinal survey to assess an incentive pay plan for teachers instituted by the Houston (Texas) Independent School District for the school years 1979-81. Called the Second Mile Plan (SMP), the scheme aimed to improve student academic achievement and teacher attendance, lessen teacher turnover, fill teaching vacancies, and provide extended instructional programs. The SMP rewarded teachers in seven areas, including student gains on standardized achievement tests, teaching assignment location, certification in critical curriculum areas, professional development, attendance, extended instructional time, and recruitment of other teachers into the district. Data on teacher pay show the incentive stipends added $6.5 million to total teacher salaries in 1979-80, or about 6 percent of average teacher salary. In 1980-81 stipends added $4.5 million. The data further show that for both years teacher attendance and student test scores improved and teacher turnover and vacancies decreased. Extended programs were added in 1979-80 but this part of the SMP was dropped in 1980-81. Random-sample surveys of district teachers indicate, however, that neither recipients nor nonrecipients of stipends felt the SMP influenced them to work harder, come to work every day, or develop themselves professionally. (Author/RW)