Review of eight performance contracting programs, the effects of the programs on instruction, and the advantages and problems associated with their management and accountability. The cities in which the programs were monitored represented geographically different areas of the United States: Gilroy, California; Texarkana, Arkansas; Gary, Indiana; Grand Rapids, Michigan; and Norfolk, Virginia. The effects of performance contracting were measured in terms of instruction, student learning, program cost, and program management. Students in performance contracting classrooms seemed to be more self-reliant, more mature, and more interested in learning than students in regular classrooms. Although the contractual arrangement introduces new problems in assignment of authority and responsibility, it has the advantages of being a helpful agent for change and providing emphasis on accountability. This paper comprises the notes for a talk prepared for the American Educational Research Association-American Association of School Administrators' Conference on Performance Contracting held in Washington, D.C., December 9-10, 1971. 16 pp.