House Bill 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 adjustments will be based on either three percent of the previous year's allotment or the inflation rate as determined by the Consumer Price Index, whichever is lesser. 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. The adjustments will apply to the calculations of tax revenue and funding levels for school districts, ensuring that the funding remains adequate in light of inflationary pressures. The act is set to take effect on September 1, 2025.

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