This bill establishes two new funds within the state treasury: the target teacher salary supplement fund and the community-based providers methodology supplement fund. The target teacher salary supplement fund is designed to facilitate increases in the target teacher salary as outlined in existing law, with the Department of Education responsible for its administration. Similarly, the community-based providers methodology supplement fund aims to increase payment rates for community-based providers, with the Department of Human Services overseeing its management. Both funds will receive specified moneys and will require budget requests as part of the annual budget submission process. Additionally, any interest accrued in these funds will remain within them, and expenditures must be budgeted through the general appropriation bill.

The bill also amends existing law regarding the budget reserve fund and the transfer of unobligated cash balances. It specifies that the transfer of prior year unobligated cash must occur according to new guidelines, including the allocation of remaining balances to the newly created funds and the general revenue placement fund. The previous requirement for transferring unobligated cash to the general revenue replacement fund has been repealed. Overall, this legislation aims to enhance funding for education and community-based services while ensuring proper management of state finances.

Statutes affected:
Introduced, 02/02/2026: 4-7-31, 4-7-32, 4-7-39