Honorable Tom Craddick, Speaker of the House, House of Representatives
FROM:
John S. O'Brien, Deputy Director, Legislative Budget Board
IN RE:
HB2 by Grusendorf (Relating to public education, public school finance matters, and the imposition of a state ad valorem tax; imposing criminal penalties. ), As Passed 2nd House
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, and add an increase in pay for these personnel of up to $3,500 by 2007, contingent on the passage and the effective date of H.B. 3. Additional amounts would be available for incentive payments. If the full increases are granted, they would still be less than an overall annual 4 percent increase for eligible personnel from 2004. 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.