Teacher Incentive Fund

To support programs that develop and implement performance-based teacher and principal compensation systems in high-need schools that must include gains in student academic achievement as well as classroom evaluations conducted multiple times during each school year, among other factors.

The compensation
systems may also provide educators with incentives to take on additional responsibilities and leadership roles.
Examples of Funded Projects

Among the grants awarded in 2006 were the following: $34 million over 5 years to the South Carolina Department of Education, which has been working with the Teacher Advancement Program (TAP) to implement a performance-based compensation system to address problems with recruitment and retion in 23 high-need schools in 6 districts.

The project has the potential to affect more than 60,000 children and 5,000 teachers and principals.

Strategies include higher and varied teacher bonuses, the introduction of principal and assistant principal bonuses, raising the value-added percentage in performance pay from 50 percent to 60 percent, and using tests to give K-3 teachers an individual value-added score.

$6.8 million to the Eagle County (CO) School District, which, in the 5 years before receiving the grant, had already invested over $4.5 million (not including performance awards) to implement a performance-based compensation system for techers and principals.

The TIF grant is allowing the district to expand the program and improve the quality of Master and Mentor teachers through increased salary augmentations and training.

The project affects 13 high-need schools.

$1.1 million over 5 years to the Edward W.

Brooke Charter School, a charter school for students in kindergarten through grade 8 in Boston, Massachusetts.

The school is using its grant to offer teachers and principals annual bonuses tied to student performance during the previous academic school year.

The compensation plan also offers differentiated base salaries for teachers who have proven expertise in high-need subject areas, such as mathematics and science.

In addition, the school also will use TIF funds as a rention tool by awarding incentives only to teachers who commit to returning to the school the following year.

Agency - Department of Education

The Department of Education ensures equal access to education and promotes educational excellence through coordination, management and accountability in Federal education programs. The Department works to supplement and complement educational efforts on all levels, encouraging increased involvement by the public, parents and students.

Program Accomplishments

The Department oversees 34 grants awarded in 2006, provides technical assistance to grantees, and has begun an evaluation of the program.

Uses and Use Restrictions

Successful applicants must use these funds to carry out the activities described in their approved applications.

Grantees may use the funds to develop and implement performance based compensation systems, including incentives to take on individual responsibilities and leadership roles.

Eligibility Requirements

Applicant Eligibility

Eligible applicants are local educational agencies (LEAs), including charter schools that are LEAs in their State, State educational agencies (SEAs), or partnerships of (1) an LEA, an SEA, or both, and (2) at least one non-profit organization.

The fiscal agent must be the SEA or LEA.

Beneficiary Eligibility

State educational agencies, local educational agencies, non-profit organizations, and students, teachers and/or principals benefit from the program.



Aplication and Award Process

Preapplication Coordination

This program is excluded coverage under E.O.


Application Procedures

Applications must prepare and submit applications in accordance with the notice published in the Federal Register. By the due date, eligible applicants must submit to the U.S. Department of Education, Application Control Center, a complete application that addresses the purposes of the program, the selection criteria, the competitive priority (if applicable) included in the application notice, and includes all required assurances and signatures. Required assurances and certifications include: Assurances for Non- Construction programs (SF 422B); Certification regarding Lobbying, Disbarment; Suspension and other Responsibility Matter, and Drug-Free Workplace Requirements (ED Form 80-00013); Disclosure of Lobbying Activities (SF LLL) (if applicable); Response to Notice to All Applicants (Section 427, GEPA). Applications should also include a Cover Page (SF 424); the required Budget Form (ED Form 524); an itemized budget and other budget information; a project abstract; and a program narrative that includes responses to selection criteria. Applicants are encouraged to submit (1) original and (2) copies of the application.

Award Procedures

If an applicant is successful, the Department of Education notifies the applicant's U.S. Representative and U.S. Senators and will send the successful applicant a Grant Award Notification (GAN). The Department of Education may also notify the successful applicant informally.


Contact the Office of Elementary and Secondary Education at TIF@ed.gov for application deadlines and information.


Elementary and Secondary Education Act, Title V, Part D, Subpart 1.

Range of Approval/Disapproval Time

The range of approval/disapproval time is approximately 60 to 120 days following the application deadline.




Applicants may apply for a project period of up to five years. Renewals are subject to the availability of funds and a grantee's satisfactory progress.

Assistance Considerations

Formula and Matching Requirements

Each applicant must demonstrate a significant investment in, and ensure the sustainability of, its project by committing to pay for an increasing share of the project, for each year of the grant, with State, local, or other non- Federal funds. The applicant will annually increase its share of the project. In the final year of the grant, the grantee must ensure that at least 75 percent of the compensation costs are not paid by the grant.

Length and Time Phasing of Assistance

Applicants may apply for a project period of up to five years. Renewals are subject to the availability of funds and a grantee's satisfactory progress.

Post Assistance Requirements


Annual performance reports must be submitted during each yearly budget period in order to receive continuation awards.

Final performance reports and the final evaluation report must be submitted after the end of the grant period.


In accordance with the Education Department General Administrative Regulations (EDGAR) in 34 CFR 80 and OMB Circular A-133, Nonfederal entities that expend $300,000 ($500,000 for fiscal years ending after December 31, 2003) or more in a year in Federal awards shall have a single or program-specific audit conducted for that year in accordance with the provisions of this part.


In accordance with the General Education Provisions Act and The Education Department General Administrative Regulations (EDGAR), certain records must be retained for three years.

Financial Information

Account Identification



(Grants) FY 07 $200,000; FY 08 est $97,270,000; and FY 09 est $102,730,000.

Range and Average of Financial Assistance

Estimated range of awards: $239,000 to $10,366,000. Average award is $3,305,000.

Regulations, Guidelines, and Literature

Education Department General Administrative Regulations (EDGAR), Parts 74, 75, 77, 79, 80, 81, 81, 82, 84, 85, 97, 98, and 99. Contact the program office for additional information.

Information Contacts

Regional or Local Office


Headquarters Office

Office of Elementary and Secondary Education, Department of Education, 400 Maryland Ave., S.W., Washington, DC 20202. Contact: April Lee, E-mail: april.lee@ed.gov; Telephone: (202) 401-2266.

Criteria for Selecting Proposals

The selection criteria will be included in the full application package and published in the Federal Register notice. Contact the program office for more information.

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