School districts are entitled to teacher retention allotments and must use the money to raise and maintain classroom teacher salaries under the section’s rules.
Sec. 48.158. TEACHER RETENTION ALLOTMENT. (a) In this section, "classroom teacher" has the meaning assigned by Section 5.001, except that the term also includes: (1) a person who is not required to hold a certificate issued under Subchapter B, Chapter 21, who otherwise meets the definition of a classroom teacher under Section 5.001; and (2) a person, including a person described by Subdivision (1), employed by an entity with which a school district has entered into a contract who otherwise meets the definition of a classroom teacher under Section 5.001. (b) A school district is entitled to an annual allotment for each classroom teacher who is employed by or contracts with the district for which the allotment is provided as follows: (1) if the district has 5,000 or fewer students enrolled for the school year: (A) $4,000 for each classroom teacher who has at least three but less than five years of teaching experience; and (B) $8,000 for each classroom teacher who has five or more years of teaching experience; and (2) if the district has more than 5,000 students enrolled for the school year: (A) $2,500 for each classroom teacher who has at least three but less than five years of teaching experience; and (B) $5,000 for each classroom teacher who has five or more years of teaching experience. (b-1) Instead of the allotment under Subsection (b)(2), a school district described by that subdivision is entitled to funding under Subsection (b)(1) if the school district received an allotment under Subsection (b)(1) in a previous school year. (c) For the 2025-2026 school year, a school district shall use money received under Subsection (b) to: (1) increase the salary provided to each classroom teacher for which the district is entitled to funding under Subsection (b) for that year over the salary the teacher received or would have received if the teacher was employed by or contracted with the district in the 2024-2025 school year by at least the amount received per classroom teacher under Subsection (b); or (2) if the school district is applying to be designated as an enhanced teacher incentive allotment system, increase the salaries of classroom teachers for that year based on performance. (d) Except as provided by Subsection (e), for the 2026-2027 and each subsequent school year, a school district shall use money received under Subsection (b) to maintain the salary increases for classroom teachers provided under Subsection (c). Any additional funding generated for a school district under this section may only be used for the compensation of classroom teachers who are employed by or contract with the district and who have three or more years of experience. (e) A school district that has been designated as an enhanced teacher incentive allotment system for the applicable school year may use money received under Subsection (b) to provide salaries to classroom teachers in accordance with the district's compensation plan. (f) A school district that increases classroom teacher compensation in the 2025-2026 school year to comply with Subsection (c), as added by H.B. 2, 89th Legislature, Regular Session, 2025, is providing compensation for services rendered independently of an existing employment contract applicable to that school year and is not in violation of Section 53, Article III, Texas Constitution. This subsection expires September 1, 2027. Added by Acts 2025, 89th Leg., R.S., Ch. 1065 (H.B. 2), Sec. 1.07, eff. September 1, 2025.