Louisiana teachers are a step closer to a salary boost in the wake of Governor Jeff Landry’s tax reform special session that wrapped-up last week. As reported by Louisiana Public Radio, House Bill 5, approved by the Louisiana Senate 39-0, requires public school systems to increase teacher pay by $2,000, and $1,000 for support staff. Funding comes from the use of expected savings from House Bill 7, also approved by the Senate last week [Friday, July 22].
As spelled out in HB7, the amendment would unlock several education trust funds so the money can be used to pay down nearly $2 billion in debt related to the state’s teacher retirement fund. By doing that, schools will have less to contribute to that cost and will be required to spend those savings on salaries instead.
Both bills are part of Landry’s tax package, the heart of which passed Friday. Legislators approved a flat 3% individual income tax rate, and a flat 5.5% corporate income tax rate. Lawmakers raised the state sales tax to 5% to compensate for the loss of revenue from the tax cuts. In 2030, state sales tax will drop to 4.75%.
