In 1998, the demand for educators in Alaska reached an all-time high. The shortage was most critical for music, math, and special education teachers, as well as for counselors. Filling positions in rural areas is especially difficult. An early retirement incentive program has caused a drain on Alaska's pool of teachers. Factors that inhibit Alaska's ability to attract quality educators are a decrease in the base teacher's salary, more difficult and costly certification procedures, and an increase in the time it takes to receive a teaching certificate. Several rural districts offer scholarship programs to encourage local students to pursue teaching degrees, and Alaska Teacher Placement (ATP) makes special efforts to attract Alaskan students to rural teaching. ATP was created to address the teacher shortage and works with all 53 school districts to register prospective teachers and match their placements to specific cultural settings. ATP conducts job fairs and provides career counseling and assistance in resume writing, interviewing, and other job-seeking skills, for education majors. Alaska's beginning teacher salaries are the highest in the nation. After adjustment to the cost-of-living index, Alaska's salaries still rank among the top 15 in the United States. Sixteen data tables and figures compare the state demand to the supply of University of Alaska graduates and ATP registrants and provide details on Alaska's hiring and placement of educators in the 1990s, types of special educators employed and needed, cost of living, and ATP program effectiveness. Appendices present districts in each region, salaries by district, salary rankings, administrator salaries by region, a summary of selected items, and cost-of-living indices. (TD)