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. 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.