This bill establishes a teacher minimum salary budget adjustment for school budget years starting July 1, 2025. It allows school districts to receive a budget adjustment if their actual costs to meet minimum teacher salary requirements exceed their total teacher salary supplement district cost. The adjustment is limited to the additional amount necessary to comply with minimum salary requirements for teacher leadership positions and other contracted teachers, as well as to prevent salary compaction due to negotiated contract terms.

To receive the budget adjustment, a school district's board of directors must adopt a resolution and notify the school budget review committee annually, starting no earlier than November 1. The bill also stipulates that any supplemental amount generated from this adjustment will be classified as miscellaneous income and will not be included in the district's cost calculations. The provisions of this bill take effect immediately upon enactment.