Districts would direct eligible school money to teacher salaries

Districts would use eligible interest from four school funds to add to teacher salary money. This applies to interest from the teachers', incidental, capital projects, and debt service funds. Interest already committed under other state laws is excluded. The interest must add to, not replace, other money used for teacher salaries. This requirement would begin in the 2027-28 school year and continue in later school years.

Districts would transfer undesignated capital-project fund balances above ten percent to the teachers' fund for teacher salaries. This applies to undesignated balances in a district's capital projects fund. The transfer applies to undesignated balances above the ten-percent cap. The transferred money must add to, not replace, other money used for teacher salaries. The cap and transfer would begin in the 2027-28 school year; transfers occur at the beginning of the fiscal year.