In this document, we suggest an alternative proposal concerning incentive use in the upcoming data collection of the 1999 Survey of Program Dynamics (SPD). The original proposal referred to in this document was an attachment to a letter addressed to you from Chester E. Bowie, Chief of Demographic Surveys Division, dated February 5, 1999. The revised proposal reflects our understanding of the outcome of the discussion we had with you and Katherine Wallman on the use of incentives in the 1999 SPD. An overview of the changes from the original proposal is given in the following table. The detailed revised proposal is given below.