House Bill 1055 Summary

• Raises teacher salaries for the 2024-2025 fiscal year with a monthly salary schedule ranging from $4,600 (entry-level) to $5,875 (30+ years experience), with additional supplements for certifications and advanced degrees; appropriates $322,709,000 in recurring funds.

• Reduces parent copayments for subsidized child care from 10% to 7% of gross family income effective July 1, 2024.

• Provides a 5% cost-of-living adjustment for eligible state employees effective July 1, 2024, and increases retention pay percentages ranging from 1.0% to 4.5% based on years of service.

• Awards $500 retention bonuses to all eligible state and local education employees, plus an additional $250 bonus for those earning $75,000 or less annually, payable in May 2024.

• Creates a small business tax credit for employers with annual receipts of $8,000,000 or less, allowing a credit equal to the lesser of $10,000 or 5% of wages paid, effective for taxable years beginning January 1, 2025; appropriates $210,009,000 in recurring and $399,685,000 in nonrecurring funds for compensation increases.