This document provides information about teacher candidates completing programs in Maryland institutions of higher education and the hiring needs of local school systems. The report also outlines a number of incentives and strategies for the recruitment and retention of quality teachers for Maryland public schools. The Maryland State Department of Education, pursuant to 18-703, Sharon Christa McAuliffe Memorial Teacher Education Award, identifies teaching areas of critical shortage and jurisdictions as geographic areas of projected shortages of teachers. Students in Maryland preparing to become teachers in a critical shortage area may be eligible to receive student financial assistance. This report presents four recommendations to the State Board of Education, identifying the critical shortage content areas, the geographic areas of shortage, areas of gender and diversity shortage; and critical shortages in non-classroom professional positions. This year's report includes an additional transitional role, setting the stage for changes in subsequent reports that incorporate a focus on meeting the highly qualified teacher provisions of No Child Left Behind (NCLB). The following are appended: (A) [Section 18-703] Sharon Christa McAuliffe Memorial Teacher Education Award; (B) [Section 18-708] Workforce Shortage Student Assistance Grants; (C) Quality Teacher Incentive Act 2004-2005; (D) Senate Bill 663: Retirement and Pensions--Reemployment of Retirees 2005-2006; (E) Number and Percent of Maryland Teachers Issued a Conditional Certificate Three-Year Comparison 2003-2004, 2004-2005 and 2005-2006; (F) Newly Hired Teachers with Conditional Certificates: 2005-2006; and (G) Number and Percentage of Classes Not Taught by Highly Qualified Teachers 2005-2006: (1) Kindergarten through Grade 12; (2) Percentage of Core Academic Subject Classes by School Level; and (3) Percentage of Core Academic Subject Classes by High and Low Poverty Status. (Contains 16 tables and 6 figures.) [Forthe "Maryland Teacher Staffing Report, 2005-2007," see ED492908.]