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offered substantial year-end bonuses to teachers based on student improvement on standardized exams. The primary focus of this evaluation is the impact of the program on student achievement. We also assess the program’s impact on teacher perceptions, attitudes, and behaviors. Supporters of merit pay in education argue that it encourages teachers to be more innovative, to work harder, and to be more satisfied with their salaries. Supporters believe these changes will result in improved student achievement. Opponents argue that such programs increase negative competition among teachers, negatively affect the school environment, and encourage teachers to neglect low-performing students. Opponents fear that these disadvantages will lead to declining student achievement. Despite the passionate arguments made by supporters and opponents, little is known about the actual impacts of merit pay programs on students or teachers because rigorous evaluations are rare. To determine whether the ACPP led to improvements in student achievement, we analyzed student data from standardized tests for students in all Little Rock elementar