House Bill No. proposes a constitutional amendment aimed at addressing the unfunded accrued liability of the Teachers' Retirement System of Louisiana by reallocating state funds. The bill seeks to amend Article VII, Sections 10.8 and 10.17 of the Louisiana Constitution, while repealing Sections 10(F)(4)(d), 10.1, and 10.8(A)(3) and (C)(3). It specifically calls for the dissolution of the Education Excellence Fund, the Louisiana Education Quality Trust Fund, and the Louisiana Quality Education Support Fund, directing the state treasurer to transfer their liquidated fair market value to the Teachers' Retirement System by April 1, 2027. The legislation also establishes guidelines for the application of these funds to the retirement system's outstanding liabilities and outlines the allocation of any net savings from these payments for educational enhancements.

Furthermore, the bill mandates coordination between the Department of Education and the Department of Treasury to certify the amounts in the repealed funds and transfer them to the Overcollections Fund, with restrictions on expenditures to ensure funds are used for specific educational purposes, such as instructional improvements and support for at-risk students. The bill specifies that no appropriations from the repealed funds for the fiscal year 2026-2027 shall carry forward, and any relevant funds will be deposited into the state general fund instead. The proposed amendment is set to be presented to voters during the statewide election on November 3, 2026, with an effective date of January 1, 2027, aiming to streamline funding processes and bolster the financial stability of the Teachers' Retirement System.