FY26 Employee Supplement FAQ

One-Time Supplement Distribution (Effective March 2026)

Who is eligible to receive a supplement?
Full-time employees, as well as part-time employees with daily assignment expectations supporting transportation and safety that are receiving a March paycheck, were actively employed as of January 15, 2026 (the Governor’s announcement date), and have demonstrated commitment to complete their assigned work calendar as of March 9, 2026 (the Board Award Date).

Contracted persons meeting the date qualification outlined above and serving in one of the following position categories are eligible to receive a tiered supplement:

• Contracted, international teaching staff whose service terms stipulate receipt of any supplemental pay awarded to HCS teachers
• Contracted school resource officers

What is the purpose of the supplement?
The purpose of the supplement announced by the Governor is to support teachers and support staff positions outlined in the quality basic education (QBE) formula and related grants. On March 9, 2026, the Board of Education voted to extend the one-time supplement to eligible HCS employees and a tiered supplement to eligible contracted staff.

How much is the supplement?
Eligible employees will receive a supplement in consideration of their work schedule up to an amount of $2,000. Eligible contracted staff will receive a tiered supplement.

How much funding will Henry County Schools receive from the State for supplements?
Official guidance of FY26 funding from the State is pending, but is expected before month end. Using past experience of funded positions, HCS anticipates the State funding will be based on formula earned K-12 positions (such as teachers, counselors, principals), as well as, QBE grant aligned positions (such as bus drivers, nurses, and school nutrition workers).

It is estimated Henry County Schools will receive $7.6 million from the state to fund formula earned K-12 positions and the identified QBE grant positions. State funding is not based on HCS employment records and local funds will be required to cover the difference of earned vs employed staff counts for the positions outlined by the state.

How much supplemental pay in total is being disbursed by Henry County Schools to eligible employees?
The total disbursement associated with the recommendation approved by the Board is $12.1 million, which exceeds the estimated funding from the State, which will partially cover staffing categories identified within the QBE formula. Use of general fund reserves totaling $4.5 million will be required to extend the supplement to all staff fulfilling roles included in the State’s formula and to extend the supplement to the additional staff identified locally.

Are Bus Drivers eligible for a supplement?
Yes, bus drivers are treated as full-time employees for benefit eligibility and therefore are eligible for the supplement.

Are Bus Monitors and Campus Security Monitors eligible for a supplement?
Bus monitors and campus security monitors with daily report expectations to an assigned site or route are eligible for a $2,000 supplement, adjusted for their documented work schedule.

Are Hourly/Temporary employees eligible for a supplement?
No. Current fiscal conditions limit the district’s ability to extend the supplement beyond the eligible positions identified.

Are substitute teachers/nutrition/transportation staff eligible for a supplement?
No. Current fiscal conditions limit the district’s ability to extend the supplement beyond the eligible positions identified.

Are Active Retirees working 49% eligible for a supplement?
Yes, however, active retirees are restricted by TRS rules to 49% of the supplement amount and would receive $980 ($2,000 x 49%).

When will I receive the supplement?
Employees will receive the supplement as an addition to their regular March pay on Tuesday, March 31, 2026. Timelines for disbursements for eligible contracted staff may vary and will be delivered via the service providers payroll processes.  

Will taxes be taken out of the supplement amount?
Yes. Per IRS Publication 15 (Circular E), supplements paid concurrent with an employee’s wages are taxed at an individual’s filing status and W-4/G-4 withholdings on file.  Additionally, Social Security tax in the amount of 6.2% and Medicare tax in the amount of 1.45% are also required deductions.

Will my usual 6% TRS contribution be deducted from the supplement amount?
No, TRS has determined that this income is not normal, earnable compensation based on state law so both the employee and employer deductions are not applicable.