Describes the most innovative and most publicized performance contract, under which Behavioral Research Laboratories is to run the entire curriculum of the inner-city black Banneker School for three years, plus a fourth for transition. Payments to the contractor depend on the reading and mathematics achievement of the students. The Banneker Contracted Curriculum Center has fewer licensed teachers than ordinary schools but has 20 aides, 20-minute modules, many more materials, and flexible groupings around materials used. First-year achievement compared favorably with other remedial programs and performance contracts. The authors estimate that Gary could run similar programs for 5 percent above present schooling costs. Controversies with the teachers union and with state education authorities over curriculum, materials, and personnel are described. Contracts are appended.
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