H.B. No. 1770 proposes an amendment to the Education Code to implement an annual adjustment to the basic allotment under the Foundation School Program, aimed at reflecting inflation. The bill modifies Section 48.051 by increasing the basic allotment per student from $6,160 to $7,500 and introduces a new mechanism for annual adjustments starting in the 2026-2027 school year. This adjustment will be 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 amends 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 $7,500. 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 are in place for the upcoming school year.

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