H.B. No. 351 proposes an annual adjustment to the basic allotment under the Foundation School Program to account for inflation. The bill amends Section 48.051 of the Education Code, increasing the basic allotment from $6,160 to $7,160 per student in average daily attendance, with adjustments beginning in the 2026-2027 school year. The new language specifies that the allotment will be adjusted annually by the lesser of three percent of the previous year's allotment or the inflation rate based on the Consumer Price Index. Additionally, if the inflation rate is negative, it will be considered as zero for the purposes of this adjustment.

The bill also modifies Section 48.202(a-1) to ensure that the guaranteed level of state and local funds per weighted student reflects the new basic allotment of $7,160. This adjustment is crucial for maintaining equitable funding across school districts, particularly as it relates to tax efforts and revenue generation. The act is set to take effect on September 1, 2025, ensuring that the adjustments align with the upcoming school year.

Statutes affected:
Introduced: Education Code 48.051 (Education Code 48)