Learning Curve: See how much money Houston districts get from Teacher Incentive Allotment

A state program designed to boost salaries of highly rated teachers delivered $25 million to Houston’s largest districts last school year, the highest total to date, though some districts are benefiting more than others.

The region’s 20 largest districts received the money as part of the Teacher Incentive Allotment, an initiative created by Texas legislators in 2019 to provide funding to school districts that adopt state-approved teacher rating systems. Texas districts received nearly $300 million in funding in 2023-24 through the program, roughly double the amount from the prior school year.

Several Houston-area districts participate in the Teacher Incentive Allotment, while several others will join in the coming years and a few don’t plan to take part.

Under the system, the state awards money to districts with approved rating systems money based on the number of teachers scoring at one of three levels — recognized, exemplary or master — and the share of economically disadvantaged students attending each rated teacher’s school. Highly rated teachers working at rural schools also get a bump. Each rated teacher can generate $3,000 to $32,000 for their district.

While the money doesn’t automatically go directly to the highly rated teachers, at least 90 percent of the funding must be used on teacher compensation at the school where the teacher works. Districts can decide how to divide the money among their teachers.

Supporters of the program say it provides significant pay increases to teachers and improves retention of top educators. Critics of the system, however, argue it relies too much on student test scores and subject evaluations by school administrators. Districts that don’t adopt a rating system also risk falling behind other Texas districts by offering a less competitive salary.

Across the region

Aldine ISD, the sixth-largest district in the Houston area, generated the most money in the region. Spring ISD, the 13th-largest local district, garnered the second-most money. Both districts were early adopters of the Teacher Incentive Allotment.

Houston, Cy-Fair and Katy ISDs, the three biggest local districts, haven’t started receiving state money but have had applications approved to join in the coming years. State officials also have accepted applications from Alvin, Galena Park, Pasadena and Pearland ISDs.

Four of the region’s 20 largest districts — Clear Creek, Fort Bend and Spring Branch ISDs and Lamar CISD — have not submitted approved applications.

Here’s how much the area’s largest districts have generated and the number of rated teachers. Some districts that don’t participate in the Teacher Incentive Allotment still receive a small amount of money because they hired teachers who were previously rated in other districts and continue to generate state funds under the system.

The state story

The program has seen significant growth since its inception in 2019-20, a development that its creators expected as more districts developed rating systems. The process can take years for districts to complete.

The state sent $292 million to districts for the Teacher Incentive Allotment in 2023-24, a sixfold increase from the first year.

About 25,000 teachers generated funding through their rating in 2023-24, a small fraction of Texas’ roughly 375,000 teachers. The nearly $300 million total is also a tiny slice of the $23.4 billion in base pay that teachers received last school year, according to state data.

Why it matters

State education leaders have argued the program has produced some positive changes, putting money into teachers’ pockets and keeping them in the classroom. 

The share of teachers rated under the system who stayed in their role at their district reached 89 percent in 2023-24, compared to 80 percent of all other teachers, according to an annual report by the Texas Education Agency.

Two of the state’s largest teachers unions, the Texas American Federation of Teachers and Texas State Teachers Association, oppose the program. They have argued it’s not fair to all teachers, including those in non-core subjects like the arts and career technical education, and pushes a pay-for-performance system that overvalues standardized tests.

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