what i said about your tests is that there are plenty of kids capable of acing them without knowing the material. i was one of those students. I'm a student like Jelfish said. and i was close to failing a lot of classes, except that i always aced the final exams. i was not the only student who slacked all semester and only stepped up for one exam. And i was saying that if your exam's purpose is to make sure students know the material before moving on, then it won't for a number of students like myself. and i don't think i'm so terribly small a majority. I can ace an exam without knowing the material well. like i said, i went on to calc III with rudimentary understanding of integrals and derivatives. i definetly shouldn't've have been allowed to move on, but even in your system i would be. I've recovered now, but i'd be a flaw in your system.
And again, i don't think you addressed the teacher's pay adequately. If you're paying the good teachers more, how much more can they really get? likely not a significant amount unless the poor teachers are really getting pay docks. If you're a poor teacher and getting poor pay... what'll you do? QUIT. no one's going to want to go into the teaching field either if there's already so many dissatisfied teachers. so now we have a teachers shortage. how do you get teachers back? lower standards. Your system is self defeating.