New Jersey Education Commissioner Bret Schundler is expected to lay out plans for tying teachers' pay to how well their students perform.
Merit pay is likely to be one of the biggest in several major changes Schundler and Gov. Chris Christie plan to make to the state's public education system.
Schundler says it's a key to improving the state's schools. And he says making the change could help the state win a $400 million federal grant.
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But the New Jersey Education Association doesn't want to adopt the pay changes.
The administration also wants to take away free lifetime health insurance for educators and use publicly funded scholarships to send low-income students in some areas to private schools.