Senate Leaders Unveil Plan to Fund Teacher Pay Raise and Education Priorities Without New Spending

OKLAHOMA CITY – Senate leaders today announced a plan to fund a $254 million education investment package, including teacher pay raises and classroom initiatives, by redirecting existing state funds following the long-term stabilization of the Teachers’ Retirement System (TRS), without new spending or tax increases.

For more than two decades, the Oklahoma Legislature made historic investments to restore the financial health of the Teachers’ Retirement System, appropriating more than $7 billion since 2003. Those efforts have successfully strengthened the pension system, which now holds more than $25 billion in assets and remains financially secure.

Under the Senate plan, no funds will be removed from TRS. Instead, annual state contributions, projected to reach $454 million in Fiscal Year 2027, will be right-sized and capped at $200 million, an amount leaders say fully protects the system’s long-term stability. The remaining funds will be redirected to support teacher compensation and targeted education initiatives.

“This plan protects the retirement system while allowing us to meet urgent needs in our classrooms today,” said Senate Education Chairman Adam Pugh, R-Edmond. “After years of responsible investment, TRS is strong. Although this is not a magic bullet, this is a bold plan to improve education outcomes sooner than later. Once implemented, this plan will completely transform the education landscape in Oklahoma and improve the foundational skills that lead to a lifetime of learning and educational attainment. What we have learned from other states is the investment we make must be in high-quality, well-trained teachers. As we invest in and build our pipeline of teachers who are trained in the Science of Reading, we should expect to see the results of the Strong Readers Act reforms that the legislature is fighting for this session.”

Last year, TRS paid approximately $1.7 billion in benefits to retired educators and continues to operate from a position of financial strength.

Legislative leaders say the proposal reflects a shift in priorities after successfully stabilizing the pension system.

“The Legislature spent more than two decades investing over $7 billion in the Teachers’ Retirement System when the pension fund was at a crisis point,” said Senate Appropriations Chairman Chuck Hall, R-Perry. Now that we’ve stabilized the system, it’s time to address the state’s education crisis. In this plan, we are simply redirecting excess funding to make strategic, long-term investments in students and teachers, without increasing state spending. We're increasing our support of public schools because we know that when we invest in education, we create a brighter future for Oklahoma.”

The $254 million will go to fund the following:

• A $2,500 across-the-board teacher pay raise - $117 million,
• Reading Sufficiency Act - $50 million,
• Additional funding to the formula - $29.8 million
• Literacy coaches - $10 million
• Math coaches - $10 million

To see the full list of investments, click here.

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