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BONU$ TALK MERITS PRINCIPALS’ LOOK

The city and school principals are closer than ever to a contract deal that officials say might include something previously unheard of in the Board of Education — merit pay.

“This is a real innovation,” said a source close to the heated-up negotiations.

In the last few days, Mayor Giuliani has proposed paying bonuses to principals who get “excellent” ratings.

But the principals union cautioned yesterday that it has not yet studied the proposal — and criticized news leaks that it said could “alarm or confuse” members.

Assemblyman Steven Sanders (D-Manhattan), who has served as a go-between in the talks, said the union is “intrigued” by the bonus offer, but wants details from City Hall.

“The union has not agreed to that,” said Sanders, chairman of the Assembly Education Committee, of the merit pay.

That offer mirrors incentives given teachers.

Those who work in 40 failing schools taken over by Chancellor Rudy Crew got a 15 percent pay hike this year.

Under a tentative agreement yet to be inked, the principals would get a whopping 33 percent raise in exchange for working 12 months a year and giving up tenure — a historic change.

They would work under three-year contracts with superintendents, and could be removed or demoted each year if they fail to perform. An appeals process would take 60 days.