This study investigated teacher recruitment and retention patterns in the District of Columbia schools, characteristics of the D.C. teaching force, incentive awards already operating in the District, financial incentives for attracting and retraining qualified teachers, and the feasibility of using the current teacher evaluation process for identifying outstanding teachers. The study also included a survey of all D.C. teachers and principals about their views of existing incentives and teaching conditions as well as their opinions of proposed incentive plans. The first section discusses concepts underlying merit pay proposals and the underlying problems and issues involved. In the second section, research on teacher incentive programs is reviewed. The third section presents the findings of the D.C. survey, and recommendations of the study task force on career development incentives and incentive awards are set forth in the final section. (JD)