One approach to identifying effective schools defines effectiveness in terms of student achievement in reading, mathematics, and language usage. Exceptional school achievement is indicated by performance above or below the level expected if students were merely to maintain their previous rate of growth. Regression analysis is used to compute prediction equations by grade level and skill area, independent of school identification. Resulting equations are used to compute scores for comparing gains over expectation for students within schools. This approach has several advantages. It controls for systematic influences governing student composition, provides all schools with an opportunity to demonstrate success, is sensitive to differences in resource management, and concurs with practitioners' views of effective schools. Grade equivalent scores were studied for Dallas (Texas) students in grades 2 to 11, on the Iowa Tests of Basic Skills, California Tests of Basic Skills-Espanol, or Tests of Achievement and Proficiency. Four statistical methods for ranking schools were developed and correlated with school demographic variables, teacher characterisitcs, and previous achievement. These procedures, along with student and teacher attendance data, are used to award stipends to teachers in the highest-ranking Dallas schools. (GDC)