Gatesville ISD board approves $146,004 one-time payout to cover teacher incentive allotment taxes

The Gatesville ISD Board of Trustees on Monday approved a one-time payout of $146,004.51 from fund balance to cover employer-side taxes and fees associated with Teacher Incentive Allotment (TIA) bonuses for 15 designated teachers.

The district’s presenter explained that the TIA program, established by the Texas Legislature through House Bill 3 in 2019, designates teachers in three tiers — recognized, exemplary and master — and requires that roughly 90% of the allotment be distributed directly to teachers while up to 10% may be spent on supporting elements. The presenter said 15 of 23 teachers in the district’s pilot cohort earned designations and that the district must pay the employer portion this school year and will be reimbursed by the state in September.

"The teacher incentive allotment was established by the Texas Legislature in 2019 through House Bill 3," the presenter stated, explaining the designation tiers and funding restrictions. District staff told trustees the $146,004.51 figure represents the total the district must disburse in June and that state reimbursement is expected at the start of the new fiscal year in September.

Board members raised questions about distribution and taxes; staff said the district will set local policy so 90% of the TIA funds go directly to teachers while the remaining 10% will be used to pay employer-side costs (TRS contributions, insurance, federal taxes) to maximize net pay to teachers. Trustees moved and approved the request to cover the June payouts from fund balance until the state reimburses the district.

Procedural next steps: staff will process the one-time payout in June and expect state reimbursement in September. No changes to district compensation policy were adopted at the meeting; the board’s action was limited to approving the temporary fund-balance transfer to enable timely payments.