Honorable Florence Shapiro, Chair, Senate Committee on Education
FROM:
John S. O'Brien, Deputy Director, Legislative Budget Board
IN RE:
HB2 by Grusendorf (Relating to public education and public school finance matters.), As Engrossed
The bill would make changes relating to public education and public school finance. It would make changes to the minimum salary schedule applicable to public school teachers and certain other personnel, along with an additional $100 per month adjustment, and add an increase in pay of the lesser of $3,000 or 44 percent of a district's increase in maintenance and operations revenue over the 2004-05 level. If all districts paid the full amount of the increase ($4,000) in Fiscal Year 2006, this group would still only receive a total increase of 11 percent above their pay in FY 2004, and they make up less than two thirds of the TRS payroll. Since an annual 4 percent pay raise is part of the actuarial assumptions, the bill is estimated to not have a significant actuarial impact on the Teacher Retirement System relative to the 2004 actuarial valuation.