The largest districts in Houston received $25 million last school year—the greatest amount to date—from a state program aimed at increasing the pay of highly regarded teachers, however some districts are reaping greater benefits than others.
The funding was given to the 20 largest schools in the area as part of the Teacher Incentive Allotment, a program established by Texas lawmakers in 2019 to support school districts that implement teacher rating systems that have been approved by the state. The program provided over $300 million in support to Texas schools in 2023–2024, which was about twice as much as the previous school year.
The Teacher Incentive Allotment is used by a number of districts in the Houston region, while others will join in the upcoming years and some do not intend to participate.
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According to the system, the state gives districts with authorized rating systems funding depending on the proportion of economically disadvantaged pupils attending each rated teacher’s school and the number of teachers who receive a score at one of three levels: acknowledged, exemplary, or master. Teachers at remote schools who are well regarded are also given preference. For their district, each rated instructor might bring in between $3,000 and $32,000.
At least 90% of the funds must be utilized for teacher compensation at the school where the teacher works, even though the money does not always flow straight to the highly regarded educators. How the funds are distributed among teachers is up to the districts.
The program’s proponents claim that it enhances teacher retention and gives teachers substantial salary increases. However, the system’s detractors contend that it depends too heavily on student test results and administrators’ assessments of the subjects. By providing a less competitive compensation, districts that choose not to implement a rating system also run the danger of lagging behind other Texas districts.
Across the region
The district with the highest revenue in the Houston area was Aldine ISD, which is the sixth largest in the area. The local district with the second-highest revenue was Spring ISD, which is the thirteenth largest. The Teacher Incentive Allotment was implemented early in both districts.
The three largest local districts—Houston, Cy-Fair, and Katy ISDs—have not yet begun receiving state funding, although their bids to join have been accepted for the upcoming years. Applications from the ISDs of Pearland, Pasadena, Galena Park, and Alvin have also been approved by state officials.
Of the 20 largest districts in the area, four have not yet filed approved applications: Lamar CISD, Clear Creek, Fort Bend, and Spring Branch ISDs.
The number of rated teachers and the amount generated by the main districts in the area are shown here. Because they employed teachers who had previously received ratings in other districts and are still producing state cash under the scheme, several districts that do not take part in the Teacher Incentive Allotment nonetheless receive a small sum of money.
The state story
Since its launch in 2019–20, the program has grown significantly, which was anticipated by its designers as more districts created grading systems. Districts may need years to finish the process.
In 2023–2024, the state gave districts $292 million for the Teacher Incentive Allotment, a sixfold increase over the initial year.
In 2023–2024, just 25,000 teachers—a tiny portion of Texas’s approximately 375,000 teachers—generated funding through their ratings. According to state figures, teachers received $23.4 billion in base salary last school year, of which the roughly $300 million total is a very small portion.
Why it matters
According to state education experts, the program has resulted in some beneficial developments, like keeping teachers in the classroom and putting money into their pockets.
According to an annual report by the Texas Education Agency, the percentage of teachers graded under the system who remained in their position at their district was 89 percent in 2023–2024, compared to 80 percent of all instructors.
The Texas State Teachers Association and the Texas American Federation of Teachers, two of the biggest teachers’ organizations in the state, are against the initiative. They contend that it promotes a pay-for-performance system that places an excessive emphasis on standardized examinations and is unfair to all teachers, particularly those teaching non-core courses like the arts and career technical education.
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