This report discusses factors affecting California's ability to compete for and keep quality teachers. It describes the qualifications of California's current teacher workforce and how they are compensated and discusses research and informed opinions on the influence of money and other factors on teachers' employment decisions. The report discusses measuring teacher quality in different ways; evaluating teacher subject matter knowledge; the competitiveness of teacher salaries; national salary comparisons (which present conflicting data); making comparisons among occupations; teacher salaries in California vary by district size, urbanization, and region; a vast assortment of benefits complete the compensation picture; making ends meet on a teacher's salary in California; conclusions from these comparisons (e.g., California teacher salaries are supplemented by a relatively generous benefit package, and less qualified teachers are concentrated in certain areas); whether money matters; Connecticut's experiences endorses the value of raising salaries; differential pay may address the teacher distribution issue; pay for performance (a controversial option); salary options, which have mixed potential for affecting educational quality; other factors affecting teacher employment decisions (e.g., beginning teacher support and working conditions); and what attracts quality teachers. (SM)