The Oklahoma Senate has unveiled a $254 million education funding proposal that would provide a $2,500 across-the-board teacher pay raise and expand literacy, math, and school choice programs — all by redirecting a portion of dedicated funding currently flowing into the Teachers’ Retirement System (TRS). The proposal is setting the tone for what will likely become one of the session’s most significant debates.
“Focusing on the right drivers for student success — early literacy and strong teacher support — is exactly where this conversation should be. However, the long-term stability of the Oklahoma Teachers’ Retirement System cannot become collateral damage. We made a promise to teachers, and we must keep that promise.“
Daniel Tinney,
POE Govt. Affairs Director
Under the proposed plan, the state would cap its additional annual deposits into TRS at $200 million and redirect $254 million toward new education investments. Senate leaders say the approach maintains “revenue neutrality” and would not reduce the pension system’s roughly $25 billion in assets or impact current retiree benefits.
The proposal, however, has prompted concern in the House of Representatives. House leaders have expressed strong reservations about altering the state’s pension funding trajectory just as TRS has climbed back to roughly an 80 percent funded ratio — a milestone widely viewed as one of the Legislature’s most significant long-term fiscal achievements over the past two decades.
While Senate leaders argue the system would remain above that threshold under their proposal, several House members are unsure.
The Senate’s funding proposal serves as the launch point for broader budget negotiations between the chambers. Budget negotiations will unfold over the next few months, ending in mid-to-late May. As of now, no proposal has been adopted, and there is no clear consensus.
As negotiations move forward, our team will work to ensure that investments in today’s classrooms do not come at the expense of tomorrow’s retirees. We will continue to advocate for policies that strengthen student outcomes, support educators in the classroom, and uphold the financial promises made to teachers — protecting retirement security is not optional, it is a commitment that must be honored.
Please watch for upcoming member surveys covering these topics.
| Proposed Policy | Funding Cost |
|---|---|
|
Teacher Pay Raise ($2,500) |
$117 Million |
|
Strong Readers Act |
50 Million |
|
School Funding Formula |
$29.8 Million |
|
Parental Tax Credit |
$25 Million |
|
Literacy Coaches |
$10 Million |
|
Math Coaches |
$10 Million |
|
Dolly Parton Imagination Library |
$5 Million |
|
College Scholarships for Teacher Candidates |
$4.5 Million |
|
1st Grade Reading Materials |
$2.7 Million |
|
Total Cost |
$254 Million |