Provides for charter schools to pay a proportionate share of the local school district's of Teachers' Retirement System UAL payment. (6/30/16) (OR INCREASE SG RV See Note)
Impact
With the enactment of SB 147, charter schools will now be held accountable for contributing towards the retirement benefits of their employees, similar to traditional public schools. This policy change could have significant implications on the financial landscape of charter schools, as it potentially reduces the funding that they receive for operational expenses. By imposing this requirement, the bill aims to ensure that all educational institutions contributing to the state’s retirement system support its long-term financial health and comply with equal funding obligations.
Summary
Senate Bill 147, introduced by Senator Gatti, addresses the funding model for charter schools in Louisiana by requiring them to contribute to the unfunded accrued liability (UAL) of the Teachers' Retirement System (TRSL). The bill establishes a formula to calculate the proportion of funding allocated to charter schools that will go towards covering this liability. Under the bill, TRSL will compute the UAL contributions for public school districts every year, and charter schools will have an equivalent amount withheld from their per-pupil funding to remit to the retirement system.
Sentiment
The sentiment surrounding SB 147 appears to be mixed. Proponents believe that requiring charter schools to contribute to TRSL is a step towards fiscal fairness, ensuring all schools adhere to similar funding rules. On the other hand, critics argue that this additional financial burden could detract from the operational budget of charter schools, impacting their ability to serve students effectively. The discussions also touch on concerns about maintaining educational equity between traditional public schools and charter schools.
Contention
Notable points of contention within the discussions include concerns over the financial implications for charter schools, which often operate with tighter budgets than traditional public schools. Opponents of the bill argue that such financial constraints could lead to reduced educational resources or program offerings at charter schools, while proponents maintain that all educational institutions must contribute to the retirement system for fairness and sustainability. This debate encapsulates broader tensions around funding equity in the education sector.
Provides relative to the payment of unfunded accrued liabilities of the Teachers' Retirement System of La. from minimum foundation program funds allocated to charter schools (OR INCREASE SG RV See Note)
Provides with respect to the payment of UAL and other retirement obligations from MFP to determine state-funded per pupil allocation for charter schools, course providers, and scholarship schools (OR SEE FISC NOTE GF EX)
Provides relative to the payment of accrued liabilities of retirement systems and other retirement obligations from minimum foundation program funds allocated to charter schools (OR DECREASE FC LF EX)
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 (EN INCREASE GF EX See Note)
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) (EN GF EX See Note)