Photo credit: Midland ISD

What happened: Midland ISD is beginning a multi-year redesign of how it pays teachers and principals, moving toward a system that allows educators to earn more based on performance, not just years on the job, and could improve retention and recruitment.

Unlike the standard system, which primarily pays teachers based on years of experience and educational background, the new pay system factors in improved student outcomes and educator performance. This plan provides high-performing educators with a path to earn more in the classroom rather than leave for administrative positions.

The big picture: MISD has used teacher and principal incentive pay programs for several years, but this compensation model goes beyond simply adding bonuses to existing salaries. The Texas Education Agency defines strategic compensation as a districtwide pay system tied to educator effectiveness, staffing needs, and student outcomes rather than one based primarily on experience.

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MISD says it is one of only 28 Texas school districts adopting this approach, and the only district in Education Service Center Region 18 to do so. District leaders also said about 60 MISD teachers already earn more than $100,000 annually under the district’s current pay system.

Go deeper: The district announced the phased rollout on May 11, beginning with campus principals. The district said principals will enter the system first because they will help test evaluation consistency and provide feedback before teachers enter the model. The district acknowledged that they are still refining the plan’s exact metrics and pay formulas.

The district projects teachers will begin transitioning the following year, with full implementation by the 2029-30 school year. MISD said it will provide held-harmless protections during the initial rollout to ensure no current employee sees a pay cut during the transition. After those protections expire, the district would fully pay every educator under the new framework.

Zoom out: Texas created the Teacher Incentive Allotment (TIA) in 2019, which provides districts with additional state funding for teachers who earn performance designations such as Recognized, Exemplary, or Master through approved district evaluations. MISD recently awarded more than $3.8 million in TIA payouts to 387 teachers, roughly a quarter of MISD’s full-time teachers.

House Bill 2, signed into law in 2025, expanded the program by adding a new “Acknowledged” designation and created an “Enhanced” designation for districts that build a full strategic compensation model, increasing the amount of TIA funding those districts can receive by 10%.

What they’re saying: “We are taking a thoughtful, phased approach to enhancing compensation in our district,” Superintendent Stephanie Howard said. “This work is about recognizing impact, supporting growth, and creating opportunities.”

“I fully support MISD’s strategic compensation plan,” Board President Josh Guinn said. “Performance-based pay is standard in most businesses, and I’m glad to see MISD leading the way by implementing it in our schools. This initiative rewards impact and excellence, helping attract and retain highly effective educators who drive student success.”

“I fully support this model,” Trustee Matt Friez said. “I want to reward excellence and treat outstanding teachers and principals like the professionals that they are. Thank you to Dr. Howard and her team for putting this together.”

The bottom line: Critics of performance-based educator pay, often teacher unions, have argued that measuring educator effectiveness can be difficult and sometimes subjective. The Houston Federation of Teachers sued Houston ISD over its decision to distribute certain state-funded raises based on performance rather than experience.

Supporters, like the Texas Public Policy Foundation, say that merit-based pay improves teacher retention and recruitment while prioritizing students’ and their education versus teacher seniority.