702 KAR 3:310. Differentiated compensation

Link to law: http://www.lrc.ky.gov/kar/702/003/310.htm
Published: 2015

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KAR 3:310. Differentiated compensation.



157.075, 157.320, 157.390, 161.1211


AUTHORITY: KRS 157.075(2)(b)


FUNCTION, AND CONFORMITY: KRS 157.075(2)(b) requires the Kentucky Board of

Education to define the factors that may be included in a local district

differentiated compensation plan and procedures for the development and

approval of a plan. In addition, KRS 157.075(3)(d) requires the Kentucky Board

of Education to establish criteria for the awarding of grants to promote

development of local district differentiated compensation plans. KRS

157.075(2)(a) requires that plans have one (1) or more of the following

purposes: to recruit and retain teachers in critical shortage areas; to help

reduce the number of emergency certified teachers employed in the district; to

provide incentives to recruit and retain highly skilled teachers to serve in

difficult assignments and hard-to-fill positions; to provide career advancement

opportunities for classroom teachers who voluntarily wish to participate; or to

reward teachers for increasing their skills, knowledge, and instructional

leadership within the district or school. This administrative regulation

establishes the factors that may be included in a plan and specifies the maximum

size of a grant, the application and selection process, the obligation of the

local board of education and the evaluation and data requirements.


      Section 1. Factors

that May be Included in a Differentiated Compensation Plan. A local board of

education may adopt a differentiated compensation plan to accomplish the

purposes established in KRS 157.075 to address identified district needs. The

plan shall include one (1) or more of the following factors:

      (1) Individual


      (2) Individual


      (3) Knowledge,

which may include:

      (a) A major or

minor in the teaching area or an advanced degree in the subject taught;

      (b) Completion of

a district-recognized professional development program;

      (c) Dual

certification; or

      (d) National Board

for Professional Teaching Certification;

      (4) School-based


      (5) Multiple

measures of student performance, which may include portfolios of student work;

      (6) Assignment to

a specific school or type of school, or to teach a certain subject area, or

group of students, or to diversify the staffing of the school; or

      (7) Credit for

professional nonteaching experience or military service.


      Section 2.

Procedures for Development and Approval of a Differentiated Compensation Plan.

(1) Prior to adopting a proposal to implement a differentiated compensation

plan, a local board of education shall establish a planning committee if an

employee evaluation component is included and requires any modification to the

district’s evaluation plan for all employees. The committee shall include at

least the following members:

      (a) The

superintendent or a designee;

      (b) A

representative of the local board of education;

      (c) An

instructional supervisor;

      (d) The district

finance officer;

      (e) A principal;

      (f) A teacher;

      (g) A parent; and

      (h) Other members

identified by the local board.

      (2) The planning

committee shall develop or review the differentiated compensation proposal and

provide feedback to the superintendent.

      (3) Prior to

adopting a proposal to implement a differentiated compensation plan, a local

board of education shall provide an opportunity for all potentially affected

employees to respond in writing or at a public hearing. Written notice to

employees that the board plans to consider a differentiated compensation

proposal matter shall occur at least thirty (30) days before final action is


      (4) To be

approved, a differentiated compensation plan shall address the following


      (a) Employee

participation in any career advancement initiative shall be voluntary;

      (b) Each certified

employee of a like group who elects to participate in the differentiated

compensation plan shall be treated in a similar manner. This may include

applicants for a certain type of position, teachers assigned to a certain

school or group of schools or certain grade level, or teachers who maintain a

certain certificate;

      (c) Any

compensation earned under a differentiated compensation plan shall be in

addition to the amount the employee is paid under the district single salary

schedule and shall be coded separately in the district’s accounting system;

      (d) Any evaluation

of performance to be rewarded shall be measurable and the measurement method

shall be valid based on a systematic plan to collect data by the district; and

      (e) The local

board shall annually review the plan and make revisions if necessary.

      (5) Upon adoption

of a differentiated compensation plan, the local board shall submit the board

minutes and the proposal to the commissioner of education for consideration of



      Section 3.

Differentiated Compensation Grant Program. (1) The purpose of a grant shall be

to provide resources to local districts to plan and implement a differentiated

compensation plan. These grants may be for up to $200,000 each fiscal year. The

local board of education shall be required to make a substantial financial

contribution and have a clear methodology for evaluation of the program. The

local district shall advise each program participant in writing of the

conditions under which the individual’s differentiated compensation may be

discontinued. Second year funding shall be contingent upon evaluation, meeting

all agreements, timelines, and reporting requirements included in the first

year’s plan and the availability of funds.

      (2) The Department

of Education shall solicit grant proposals through a request for proposals. The

proposal shall include the following components:

      (a) The purpose of

the plan, rationale and expected results. The application shall describe how

the plan promotes the district’s goals and needs and include data to support

the need. If the proposal includes a classroom mentor, teaching partner, or

professional development leader, a district may also apply for Professional

Development Leadership and Mentor Funds as established in KRS 157.390 and 704

KAR 3:500 as part of the proposal if funds are available. In order to qualify

for these funds, the proposal shall include a project designed to improve

instruction for all students in a school in the focus core area, designate a position

eligible for additional compensation up to $10,000, provide for the

individual’s professional development, and evaluate the results;

      (b) The number of

students affected and the impact on those students;

      (c) The number of

staff potentially affected;

      (d) Implementation

plan and timeline;

      (e) A proposed

budget and district’s capacity to fully implement the plan; and

      (f) An evaluation

of the effectiveness of the plan.

      (3) The

commissioner of education shall appoint a panel of educators knowledgeable

about finance and evaluation to review all applications for funding based on

the following criteria:

      (a) Description of

the rationale;

      (b) Effectiveness

of the model;

      (c) Level of

commitment of the local board and the district;

      (d) The district’s

capacity to fully implement the plan;

      (e) Quality of the

plan to evaluate results of the project; and

      (f) Efficiency and

effectiveness of the budget.

                (4) After consideration of the

criteria established in subsection (3) of this section, the purpose of the compensation

plan may be considered so as to provide comprehensive information about different

types of differentiated compensation plans. (29 Ky.R. 1436; Am. 1840; 2093;

eff. 2-3-03.)