Louisiana House Bill HR224

Louisiana 2018 Regular Session

• Introduced: 5/15/18
• Refer: 5/15/18

Caption

Directs BESE to explain how the MFP is calculated to fund the unfunded accrued liability of state retirement systems

Impact

The passage of HR224 would play a significant role in shaping the funding mechanisms for educational institutions in Louisiana. It aims to enhance transparency around how funds are appropriated for retirement systems and ensure that all educational entities, especially charter schools, are adequately accounted for in the funding structure. The resolution underscores the need for equitable consideration in determining the financial obligations that come from local and state funding sources to meet pension liabilities.

Summary

House Resolution 224 (HR224) aims to direct the State Board of Elementary and Secondary Education (BESE) to clarify how the Minimum Foundation Program (MFP) formula is designed to ensure funding for the unfunded accrued liability of state retirement systems. The resolution emphasizes the constitutional requirements for maintaining the actuarial soundness of these retirement systems and addressing longstanding unfunded liabilities arising since June 1988. By requesting detail on the MFP's structure, HR224 seeks to illuminate the financial responsibilities allocated to different educational entities, including charter schools that do not participate in standard retirement schemes.

Sentiment

The sentiment surrounding HR224 appears to be generally supportive within legislative circles, given its focus on establishing clarity and accountability in funding state obligations. However, stakeholders might have differing opinions, particularly among charter schools regarding their inclusion in pension discussions, with concerns that tailored approaches may be necessary to accommodate their unique funding situations. The need for comprehensive understanding may lead to mixed reactions depending on how benefits and liabilities are perceived across various educational sectors.

Contention

Notable points of contention stemming from HR224 could arise over the methodologies used in the MFP calculations, particularly whether they appropriately address the needs of charter schools compared to traditional public schools. As the resolution calls for explanations that detail current funding structures, it may spark debate over the effectiveness of the existing formula and whether it merits reform to more accurately reflect the diverse educational landscape of Louisiana. This dialogue has potential implications for future funding decisions and legislative actions affecting retirement contributions across the board.