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This report is part of a larger PPIC effort to outline a flexible and reliable cost model for elementary and secondary public education in California. Because teacher salaries make up about 40 percent of a typical district budget, they are a critical input in this model. These salaries vary substantially and along several dimensions, and a useful cost model must consider both the patterns of that variation and its key sources. This essay contributes to that effort by examining differences in teacher salary schedules across the state. After considering the general characteristics of these schedules, it outlines various sources of cost differences for teachers. (In School Finance and California's Master Plan for Education, edited by Jon Sonstelie and Peter Richardson (81-101). Public Policy Institute of California.)