HLS 243ES-7 REENGROSSED 2024 Third Extraordinary Session HOUSE BILL NO. 5 BY REPRESENTATIVES BACALA, ADAMS, AMEDEE, BAGLEY, BAMBURG, BERAULT, BOURRIAQUE, BOYD, BRASS, BRAUD, BRYANT, BUTLER, CARLSON, CARRIER, WILFORD CARTER, CARVER, CHASSION, CHENEVERT, COATES, COX, DEVILLIER, DEWITT, DOMANGUE, EDMONSTON, EMERSON, FIRMENT, FISHER, FREIBERG, GADBERRY, GLORIOSO, GREEN, HILFERTY, HORTON, JACKSON, MIKE JOHNSON, KERNER, KNOX, LAFLEUR, LARVADAIN, LYONS, MACK, MARCELLE, MCFARLAND, MCMAHEN, MCMAKIN, MELERINE, MILLER, MYERS, OWEN, RISER, SCHAMERHORN, SCHLEGEL, SELDERS, ST. BLANC, TAYLOR, THOMAS, TURNER, VILLIO, WALTERS, WILDER, WILEY, WYBLE, AND YOUNG 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 Page 1 of 4 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 243ES-7 REENGROSSED HB NO. 5 1 reduction in its employer contribution rate for the 2025-2026 Fiscal Year attributable 2 to the state's payment of certain unfunded accrued liability of the Teachers' 3 Retirement System of Louisiana as provided in the Act that originated as House Bill 4 No. 7 of the 2024 Third Extraordinary Session of the Legislature. 5 (2) If the amount of net savings realized by a school system is insufficient 6 to fully fund the salary increases in the amounts specified in this Subsection, plus 7 any related benefits, the remaining amount necessary to fully fund such salary 8 increases and benefits shall be provided for in the minimum foundation program 9 formula. 10 (3) If the amount of net savings realized by a school system is in excess of 11 the amount needed to fully fund the salary increases in the amounts specified in this 12 Subsection, plus any related benefits, the school system shall only expend such 13 excess savings on the following: 14 (a) Instruction and school administration as defined in State Board of 15 Elementary and Secondary Education rules in accordance with the minimum 16 instructional expenditure requirement contained in the minimum foundation program 17 formula as adopted by the state board and approved by the legislature. 18 (b) School security enhancements. 19 B. For purposes of this Section: 20 (1) "Personnel" means persons employed in the positions for which an 21 across-the-board pay raise was proposed in the Fiscal Year 2023-2024 minimum 22 foundation program formula for that fiscal year and for which a stipend was provided 23 for Fiscal Year 2024-2025 in Act No. 4 of the 2024 Regular Session of the 24 Legislature. 25 (2) "Public school system" means any city, parish, or other local public 26 school board, any charter school, or any other elementary or secondary school 27 governing authority that participates in the Teachers' Retirement System of 28 Louisiana. Page 2 of 4 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 243ES-7 REENGROSSED HB NO. 5 1 Section 2. This Act shall take effect and become operative if and when the proposed 2amendment of Article VII of the Constitution of Louisiana contained in the Act which 3originated as House Bill No. 7 of this 2024 Third Extraordinary Session of the Legislature 4is 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 Reengrossed 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' 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 if the amount of net savings realized by a school system is in excess of the amount needed to fully fund the salary increases in the amounts specified in proposed law, plus any related benefits, the school system shall only expend such excess savings on the following: (1) Instruction and school administration as defined in State Bd. of Elementary and Secondary Education rules in accordance with the minimum instructional expenditure requirement contained in the MFP formula. (2) School security enhancements. 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. Page 3 of 4 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 243ES-7 REENGROSSED HB NO. 5 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. The House Floor Amendments to the engrossed bill: 1. Limit use of excess savings to purposes specified in the minimum instructional expenditure requirement in the MFP formula and to school security enhancements. Page 4 of 4 CODING: Words in struck through type are deletions from existing law; words underscored are additions.