House Bill No. 1770 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 per student from $6,160 to $7,500. It introduces new subsections that mandate an annual adjustment starting in the 2026-2027 school year, which will increase the allotment by either three percent of the previous year's amount or the inflation rate based on the Consumer Price Index, whichever is lesser. Additionally, if the inflation rate is negative, it will be considered as zero for the adjustment purposes.

The bill also modifies Section 48.202(a-1) to reflect the new basic allotment of $7,500, ensuring that the guaranteed level of state and local funds per weighted student is aligned with this increase. The adjustments aim to provide more financial support to school districts, ensuring that funding keeps pace with inflation and the rising costs of education. The act is set to take effect on September 1, 2025.

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