OKPOLICY.ORG
Senator Adam Pugh, R-Edmond — with the support of Senate President Pro Tem Lonnie Paxton, R-Tuttle — made an interesting proposal for increasing common school funding by $254 million next year . Pugh is a candidate for State Superintendent.
The plan sets a $200 million cap on earmarked revenue for the Teachers’ Retirement System (TRS). Based on current law, TRS is projected to receive $454 million next year in revenue, which is taken “off the top” before it reaches the general revenue fund. The $200 million cap would enable $254 million to go to the general revenue fund for legislative appropriation.
Pugh’s plan designates the allocation of $254 million for the following purposes:
- A $2,500 across-the-board teacher pay raise ($117 million);
- Strong Readers Act, SB 1778 ($50 million);
- Increase school funding formula ($29.8 million);
- Increase Private School Tax Credit ($25 million);
- Literacy coaches through the HEROES program, SB 1338 ($10 million);
- Math coaches and curriculum, SB 1360 ($10 million);
- Expansion of Dolly Parton Imagination Program to all 77 counties ($5 million);
- NextEd funding to increase higher ed scholarships for qualified teacher candidates ($4.5 million, SB 1546); and
- Individualized reading materials for all first graders ($2.7 million).
Senate Democratic leaders dislike the plan because it simply reallocates existing education funds rather than adding new money, and it boosts subsidies for families sending children to private schools, 92 percent of whom were already attending private schools before the tax credit became law .
My guess is House leadership will go along with capping the TRS funding at some level but have a difference of opinion on how the money should be spent. When it comes to teacher support, there is always a tension between supporting current teachers and supporting near-retired or retired teachers.
According to Bellwether Education Partners , the Oklahoma TRS ranks 15th in the country overall. It ranks 13th in benefits for teachers who stay fewer than 10 years, 17th for teachers who stay for more than 10 years but do not stay until retirement, and 30th for teachers who stay for their entire career. TRS ranks 4th in the country for taxpayer benefit, meaning taxpayers are best served by retirement plans that have low debt cost, a normal cost that balances costs and benefits, strong investment returns, and that have been managed responsibly with adequate state contributions.
In the meantime, according to Public School Review , Oklahoma ranks 49th in the country in expenditures per pupil for public schools at $10,960. Our neighbor Kansas ranks 24th at $17,200; Colorado 28th at $15,793; Texas 34th at $14,129; New Mexico 35th at $14,127; Missouri 37th at $13,989; and Arkansas 39th at $13,047.
Although comparisons can be difficult, according to World Population Review , Oklahoma ranks 35th in average teacher pay at $61,330. Colorado ranks 20th at $68,562; New Mexico 21st at $68,440; Texas 31st at $62,463; Arkansas 41st at $58,337; Kansas 44th at $58,146; and Missouri 49th at $55,132.
Considering these comparisons, it seems capping support for TRS to support current education programs is a rational choice in a state that has limited its revenue with tax cuts to the point where it must look around for pockets of existing funds to make any progress. TRS will still be subsidized $200 million per year above teacher and school district contributions.
The most negative aspect of the Senate plan is compounding the mistake of giving $250 million per year to the parents of 36,921 students who have chosen to send their children to private schools, while nearly 700,000 students attend public schools across the state . The Senate plan would add another $25 million of support to private school parents.
The remainder of the funding proposals sure seem thoughtful and positive. We’ll have to see what the House proposes.
