HLS 243ES-7 ENGROSSED 2024 Third Extraordinary Session HOUSE BILL NO. 5 BY REPRESENTATIVE BACALA AND SENATOR EDMONDS TEACHERS/SALARY: Requires school systems to provide a salary increase for teachers and other school employees using savings attributable to the state's payment of certain unfunded accrued liability of the Teachers' Retirement System of Louisiana (Item #2) 1 AN ACT 2To enact R.S. 17:418.1, relative to the compensation of teachers and other school 3 employees; to require public school systems to provide a salary increase to certain 4 personnel; to provide relative to the amount of the increase; to provide relative to 5 related benefits; to provide for a funding mechanism; to provide for definitions; to 6 provide for effectiveness; and to provide for related matters. 7Be it enacted by the Legislature of Louisiana: 8 Section 1. R.S. 17:418.1 is hereby enacted to read as follows: 9 §418.1. Salary increase; teachers and other school employees 10 A.(1) Each public school system shall provide a permanent salary increase, 11 plus any related benefits, of at least two thousand dollars for certificated personnel 12 and at least one thousand dollars for noncertificated personnel that shall be applied 13 beginning with the 2025-2026 school year. Each public school system shall fund the 14 increase and related benefits using the net savings realized by the system from the 15 reduction in its employer contribution rate for the 2025-2026 Fiscal Year attributable 16 to the state's payment of certain unfunded accrued liability of the Teachers' 17 Retirement System of Louisiana as provided in the Act that originated as House Bill 18 No. 7 of the 2024 Third Extraordinary Session of the Legislature. Page 1 of 3 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 243ES-7 ENGROSSED HB NO. 5 1 (2) If the amount of net savings realized by a school system is insufficient 2 to fully fund the salary increases in the amounts specified in this Subsection, plus 3 any related benefits, the remaining amount necessary to fully fund such salary 4 increases and benefits shall be provided for in the minimum foundation program 5 formula. 6 B. For purposes of this Section: 7 (1) "Personnel" means persons employed in the positions for which an 8 across-the-board pay raise was proposed in the Fiscal Year 2023-2024 minimum 9 foundation program formula for that fiscal year and for which a stipend was provided 10 for Fiscal Year 2024-2025 in Act No. 4 of the 2024 Regular Session of the 11 Legislature. 12 (2) "Public school system" means any city, parish, or other local public 13 school board, any charter school, or any other elementary or secondary school 14 governing authority that participates in the Teachers' Retirement System of 15 Louisiana. 16 Section 2. This Act shall take effect and become operative if and when the proposed 17amendment of Article VII of the Constitution of Louisiana contained in the Act which 18originated as House Bill No. 7 of this 2024 Third Extraordinary Session of the Legislature 19is adopted at a statewide election and becomes effective. DIGEST The digest printed below was prepared by House Legislative Services. It constitutes no part of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)] HB 5 Engrossed 2024 Third Extraordinary Session Bacala Abstract: Requires school systems to provide a salary increase using savings attributable to the state's payment of certain unfunded accrued liability of the Teachers' Retirement System of La. Proposed law requires each public school system to provide a salary increase, plus any related benefits, of at least $2,000 for certificated personnel and at least $1,000 for noncertificated personnel that shall be applied beginning with the 2025-2026 school year. Requires each school system to fund the increase and related benefits using the net savings realized by the system from the reduction in its employer contribution rate for FY 2025-2026 attributable to the state's payment of certain unfunded accrued liability of the Teachers' Page 2 of 3 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 243ES-7 ENGROSSED HB NO. 5 Retirement System of La. (TRSL) as provided in proposed constitutional amendment (House Bill No. 7 of this 2024 3ES). Proposed law provides that if the amount of the net savings realized by a school system is insufficient to fully fund the salary increases in the amounts specified in proposed law, plus related benefits, the remaining amount necessary to fully fund such salary increases and benefits shall be provided for in the minimum foundation program (MFP) formula. Proposed law provides that for proposed law purposes: (1)"Personnel" means persons employed in the positions for which an across-the-board pay raise was proposed in the FY 2023-2024 MFP formula for that fiscal year and for which a stipend was provided for FY 2024-2025 in Act No. 4 of the 2024 RS. (2)"Public school system" means any city, parish, or other local public school board, any charter school, or any other elementary or secondary school governing authority that participates in TRSL. Effective if and when the proposed amendment of Article VII of the Constitution of La. contained in the Act which originated as House Bill No. 7 of this 2024 3ES of the Legislature is adopted at a statewide election and becomes effective. (Adds R.S. 17:418.1) Summary of Amendments Adopted by House The Committee Amendments Proposed by House Committee on Education to the original bill: 1. Specify further with respect to positions to which proposed law applies. 2. Relative to school systems not realizing sufficient savings to fully fund salary increases and benefits, provide that remaining funding shall be provided for in the MFP formula. Page 3 of 3 CODING: Words in struck through type are deletions from existing law; words underscored are additions.