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Texas Payroll/Personnel Resource

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General Provisions
Salary Supplementation

Background

Employees classified under the Position Classification Act or in an exempt position funded by the General Appropriations Act (GAA) may not receive additional money unless specific authority exists for a salary supplement.

Reporting and Use of Funds When Authority Exists

If specific authority exists, a state agency (defined as a board, commission, department, institution, office or other agency in the executive branch of state government that is created by the constitution or a statute of this state, including an institution of higher education, the Supreme Court of Texas, the Texas Court of Criminal Appeals, a court of appeals, or other agency in the judicial branch) must report the amount of the supplement and the funding source (other than appropriated funds) to the Texas Comptroller of Public Accounts, State Auditor’s office and Secretary of State before paying the supplement.

The following entities may use institutional funds to pay a supplement to the president or chancellor of an institution, center, program or system:

  • General academic institutions
  • Health centers
  • Health science centers
  • Medical education programs

Texas State Technical College (TSTC)

Texas State Technical College (TSTC) may supplement the pay of its chancellor from private sources.

Agency Responsibility

State agencies and institutions of higher education must use the electronic Salary Supplementation Report form to report the following information before Sept. 15 of each fiscal year, to be processed with September payrolls. Note: A separate electronic report form must be submitted for each applicable officer or employee. Each form requires:

  • Name
  • Title
  • Base salary*
  • Supplement amount
  • Supplement sources

*Institutions of higher education should include benefit replacement pay as part of the base salary.

A copy of the electronic report form is automatically sent to the State Auditor’s office.

After submitting the electronic form, users are able to print a copy. Agencies and institutions must print a hard copy of each form submitted and mail it to the secretary of state’s office using either of the addresses below:

  • Secretary of State
    Statutory Documentation Section
    P.O. Box 13550
    Austin, Texas 78711-3550

    or

    Interagency Mail:
    Rudder Building
    1019 Brazos Street, Room 214

After reports are submitted, any change to the information during the fiscal year must be reported (using the electronic report form) before the 15th of the month in which the change becomes effective.

Note: If no officer or employee of your agency or institution receives a reportable salary supplement, do not submit the report form.

Sources

Texas Government Code, Sections 658.001(2), 659.020; General Appropriations Act, Article IX, Section 3.02; Article III, Special Provisions Relating Only to State Agencies of Higher Education, Section 5, Riders 2-3; Article III, Special Provisions Relating Only to Components of Texas State Technical College, Rider 9.