Louisiana House Bill HB666

Louisiana 2013 Regular Session

• Introduced: 4/8/13
• Refer: 4/8/13

Caption

Requires certain payments from minimum foundation program formula funds to the Teachers Retirement System of Louisiana (OR SEE FISC NOTE LF EX)

Impact

If passed, the bill would require the State Board of Elementary and Secondary Education to allocate funds from the MFP directly to the TRSL. Specifically, the TRSL would invoice the Department of Education annually for 90% of the mid-year amortization payment. This action would effectively reduce the funds available for education-related expenses once this payment is made, which could lead to challenges in covering other necessary costs within school districts. However, the remaining MFP funds would continue to be distributed according to established legislative formulas.

Summary

House Bill 666 aims to address the funding for the Teachers Retirement System of Louisiana (TRSL) by reallocating a portion of the minimum foundation program (MFP) funds to cover the annual payment for the initial unfunded accrued liability (IUAL) owed by employers utilizing these funds. This approach seeks to streamline how education funding is utilized, directly impacting the financial responsibilities of school districts and their ability to adequately fund teacher retirement obligations.

Sentiment

The sentiment surrounding HB 666 appears mixed. Proponents believe that ensuring the retirement system receives necessary funding is crucial for supporting educators and maintaining the integrity of public education in Louisiana. However, opponents express concern that directing MFP funds away from school boards could lead to financial strain on local educational institutions, potentially negatively affecting educational quality and operations.

Contention

Notable points of contention center around the potential implications of diverting MFP funds to TRSL. Critics highlight that this could diminish the financial resources available to schools and limit their ability to respond to local needs. There is apprehension that the bill prioritizes the retirement system over the immediate educational needs of students and teachers, a conflict that underscores the broader tension in funding priorities within Louisiana's public education system.