NOTE: §10.17 eff. upon ratification of the const. amend. proposed by Acts 2025, No. 222.

§10.17. Payment of State Retirement Debt

            Section 10.17.(A)(1) Notwithstanding any other provision of this constitution to the contrary, no later than May 31, 2026, the state treasurer shall transfer to the Teachers' Retirement System of Louisiana the liquidated fair market value of each of the following:

            (a) The Education Excellence Fund.

            (b) The Louisiana Education Quality Trust Fund.

            (c) The Louisiana Quality Education Support Fund.

            (2) The Teachers' Retirement System of Louisiana shall apply monies received pursuant to Subparagraph (1) of this Paragraph to its oldest outstanding positive amortization base. After liquidation of such base, any remaining monies shall be applied to the next-oldest outstanding positive amortization base, until all such monies have been applied. If application of monies pursuant to the provisions of this Subparagraph are insufficient to fully liquidate an amortization base, after application of such monies the net remaining liability of such amortization base shall be reamortized with annual level-dollar payments calculated in the same manner as other system amortization payments and over the remainder of the amortization period originally established for that base.

            (B)(1) Any net savings attributable to the payments made pursuant to Paragraph (A) of this Section shall be used by each public school system that participates in the Teachers' Retirement System of Louisiana to provide a permanent salary increase, plus any related benefits, of two thousand two hundred fifty dollars for certificated personnel and one thousand one hundred twenty-five dollars for noncertificated personnel, as provided by law.

            (2)(a) Notwithstanding any provision of this constitution or law to the contrary, the minimum foundation program formula effective for the 2026-2027 school year shall include both of the following:

            (i) A permanent salary increase and related benefits for public school system personnel whose employers do not participate in the Teachers' Retirement System of Louisiana equivalent to the permanent salary increase and related benefits provided pursuant to the provisions of Subparagraph (1) of this Paragraph.

            (ii) A calculation of the total amount necessary to complete funding of the permanent salary increase and related benefits granted pursuant to Subparagraph (1) of this Paragraph for each public school system that participates in the Teachers' Retirement System of Louisiana that did not realize net savings for the 2026-2027 school year attributable to the payments made pursuant to Paragraph (A) of this Section sufficient to fund such permanent salary increase and related benefits.

            (b)(i) Until the legislature approves a formula pursuant to Article VIII, Section 13 of this Constitution that includes the funding and permanent salary increase and related benefits required pursuant to Subsubparagraph (a) of this Subparagraph, they are deemed part of the formula most recently adopted by the State Board of Elementary and Secondary Education and approved by the legislature.

            (ii) The provisions of this Subparagraph shall not be construed to infringe on the authority granted to the State Board of Elementary and Secondary Education pursuant to Article VIII, Sections 3(A) and 13(B) of this Constitution and shall cease to apply when a new minimum foundation program formula that includes the funding and permanent salary increase required pursuant to Subsubparagraph (a) of this Subparagraph is adopted by the State Board of Elementary and Secondary Education or its successor and is approved by the legislature in conformity with the provisions of Article VIII, Section 13(B).

            (c) Funding amounts required pursuant to the provisions of Item (a)(ii) of this Subparagraph shall be maintained for each public school system at the level established for that system for the 2026-2027 school year until a new minimum foundation program formula that includes the funding and permanent salary increase required pursuant to Subsubparagraph (a) of this Subparagraph is adopted by the State Board of Elementary and Secondary Education or its successor and is approved by the legislature in conformity with the provisions of Article VIII, Section 13(B).

            (3) For the purposes of this Paragraph, the following terms shall have the following meanings, unless the context clearly indicates otherwise:

            (a) "Personnel" shall mean persons employed in the positions for which an across-the-board pay raise was proposed in the Fiscal Year 2023-2024 minimum foundation program formula for that fiscal year and for which a stipend was provided for Fiscal Year 2024-2025 in Act No. 4 of the 2024 Regular Session of the Legislature.

            (b) "Public school system" shall mean any city, parish, or other local public school board; charter school; and any other elementary or secondary school governing authority.

            Acts 2025, No. 222, §1, eff. See Act.