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TX HB351

TX HB351
Relating to an annual adjustment to the basic allotment under the Foundation School Program to reflect inflation.


summary

Introduced
11/12/2024
In Committee
02/28/2025
Crossed Over
Passed
Dead
06/02/2025

Introduced Session

89th Legislature Regular Session

Bill Summary

AN ACT relating to an annual adjustment to the basic allotment under the Foundation School Program to reflect inflation.

AI Summary

This bill modifies the Texas Education Code to increase the basic allotment for school districts and establish an annual inflation adjustment mechanism. Specifically, the bill raises the basic allotment from $6,160 to $7,160 per student and introduces a new provision that allows for an annual increase starting in the 2026-2027 school year. The annual adjustment will be the lesser of either 3% of the previous year's allotment or the inflation rate as determined by the Consumer Price Index (CPI) published by the Bureau of Labor Statistics. If the inflation rate is negative, it will be treated as zero. The legislature retains the ability to provide a lesser amount through the General Appropriations Act, but this amount must be at least equal to the previous year's allotment. These changes are designed to help school districts keep pace with rising costs and provide more stable funding by automatically adjusting the basic allotment for inflation, ensuring that educational funding more closely reflects economic realities. The bill will take effect on September 1, 2025.

Committee Categories

Education

Sponsors (1)

Last Action

Referred to Public Education (on 02/28/2025)

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