I think the idea of giving students cash incentives for performance is not so bazaar. For years teachers have been giving students positive reinforcement such as stickers, colorful pencils and pizza parties based on their performance. What is so wrong for the schools to put aside in the budget money to be allotted to students for when there performance academically or behaviourally exceeds expectations. Take a look at this article that deals with this issue.
http://www.washingtonpost.com/wp-dyn/content/article/2008/11/01/AR2008110101989.html
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