This report presents findings stemming from the first-year evaluation of the Governor's Educator Excellence Grant (GEEG) program, one of several statewide performance incentive programs in Texas. In the fall of 2006, the GEEG program made available non-competitive, three-year grants to 99 schools ranging from $60,000 to $220,000 per year. Grants were distributed to schools that were rated as high performing campuses in addition to having high proportions of economically disadvantaged students. More specifically, this report provides an overview of GEEG programs in 99 schools; the strategies used by schools to reward the performance of teachers and staff; and the apparent impact on schools' organizational dynamics, teachers' attitudes, and teachers' professional practice. Overall findings about GEEG programs seem to abate the traditional critiques raised against performance incentive programs. Specifically, performance incentive programs appear to be having an encouraging impact on schools' organizational dynamics, teachers' perceptions of performance incentives, and teachers' instructional practice. Nonetheless, it is too soon to conclude that these outcomes are attributable to the inception of GEEG. Additionally, there is still much to be learned about the quality of schools' program designs and the impact of program characteristics on outcomes of teacher behavior, school culture, teacher workforce trends, and student achievement. (Contains 9 figures, 48 tables and 50 footnotes.) [For "Governor's Educator Excellence Grant (GEEG) Program: Year One Evaluation Report. Policy Evaluation Report. Executive Summary," see ED538361.]