DES MOINES -- Given the opportunity to test a pay-for-performance system for teachers, all but two Iowa school districts said, "No thanks."

The Iowa Department of Education announced Tuesday that MOC-Floyd Valley and Mount Pleasant were the only two applicants out of 364 districts in the state, and thus the only two selected in a competitive grant process.

The state offered up to 10 grants to study alternative pay systems. The offer yielded the two applicants for a pay system based on student performance. A third district, Cedar Rapids applied and was selected to study a different system, known as "career ladder," which allows new incentives for teachers that take on additional leadership roles.

The districts asked for a combined $177,000 in state money to spend next year planning how to revise their pay systems. That's much less than the $1 million the Legislature provided.

Jeff Berger, legislative liaison for the education department, said the lack of applicants doesn't necessarily indicate a lack of interest in new pay systems. He said districts were probably reluctant to enter into the complicated process of setting up a system to grade teachers.

"You have to be careful about the system treating everybody equally and giving everybody equal access," Berger said.

At MOC-Floyd Valley High School, located in Orange City, Principal Russ Adams said he is excited his district will get to look at new ways to pay teachers.

"If we can develop a system where we can continue to stretch and grow and do more for our students, and there's a way to provide more compensation for teachers who do that, then that's what we were hoping for," he said.

Adams said the teachers' union in his school has been a partner in the process.

"There's a high level of trust," he said.

The unspent money from the grant program will go back to the Legislature to spend as it sees fit.

Dan Gearino can be reached at 515-243-0138 and dan.gearino@lee.net.