Excellence in Education Incentive Act of 1987

Excellence in Education Incentive Act of 1987 - Authorizes the Secretary of Education to make grants to local educational agencies (LEAs) for education excellence incentives.

Authorizes appropriations for such grants for FY 1989 through 1992.

Limits the amount of any such grant to an LEA for an elementary school or for a secondary school.

Directs the Secretary to select, on the basis of specified criteria, one elementary school and one secondary school of excellence for each congressional district and make an incentive grant to the LEA having authority over that elementary or secondary school. Makes the selection criteria: (1) for elementary schools, improvements in academic performance and attendance; and (2) for secondary schools, improvements in academic performance and attendance, plus decrease in the student dropout rate. Gives academic performance twice as much weight as the other criteria. Directs the Secretary to establish a list of recognized national standardized tests for academic performance determinations.

Requires each LEA awarded such a grant to use: (1) 25 percent for academic programs and activities, academic supplies and equipment, or repair of academic facilities; and (2) 75 percent for merit bonuses for full-time teachers and the principal. Limits the minimum and maximum amount of such bonuses. Permits such grants to be used for bonuses only when the appropriation does not exceed a specified amount.

Sets forth grant application requirements. (Authorizes the Secretary to enter into agreements with State educational agencies for the processing of such applications.) Requires an LEA applying for such a grant to establish an educational excellence merit board. Requires such boards to establish procedures, including specified criteria, for the selection of the principal and teachers who shall be paid merit bonuses.