Category Archives: Education

Teacher Pay Raise Plan

Plan Overview

The Legislature passed the LARGEST teacher pay raise plan in Oklahoma history

  • Gov. Fallin has already signed it

Moves Oklahoma to NUMBER 2 in the REGION for teacher pay

  • Moves Oklahoma from 48th Nationally to 34th (12th when factoring cost of living adjustments)
  • Oklahoma is already FIRST in the REGION for Benefits

 

The Teacher Pay Raise is ALREADY FUNDED

The Legislature already passed (and Governor signed) the FY-2019 education budget

  • The budget was a 19.74 percent INCREASE (more than $480 million) over the FY-2018 education budget
  • Included funding for:
    • Teacher Pay Raises = $353.5 million
    • Support Staff Pay Raises = $52 million
    • Textbooks = $33 million
    • Flex Benefits = $24.6 million

The plan adjusts the statutory minimum salary schedule

  • The state is on the hook for the raises every year

Every teacher will receive a minimum $5,000 pay increase on AUGUST 1

  • Raises will be based on experience and education level
  • A teacher with 25 years of experience and a doctorate degree will receive a nearly $8,400 raise
  • 15-18 percent increases on average
  • $6,100 average pay increase

AVERAGE NET PAY

 

Funding Mechanisms for Teacher Pay Raise Plan

House Bill 1010XX

  • Raises $405 MILLION Annually
  • Tobacco Tax
    • Adds 50 mills/cigarette tax ($1.00/pack) on cigarettes
    • Adds 50 mills/cigar tax on little cigars
  • Gross Production Tax
    • Increases GPT on all wells from 2 percent to 5 percent
  • Motor Fuel and Diesel Tax
    • Increases tax on gasoline .03 cents/gallon and diesel .06 cents/gallon
  • Hotel/Motel Lodging Tax
    • Adds a $5 per room lodging tax on rented rooms
    • HOUSE REPEALED (Senate would not pass HB1010 with lodging tax)
    • DOES NOT AFFECT TEACHER PAY RAISES
      • Those have already been funded with passage of education budget
    • IT DOES create a $32 million shortfall that must be addressed
    • MULTIPLE OPTIONS available to replace that $32 million
      • Chairman Wallace expects a surplus from FY-2018 growth revenue
      • REVOLVING FUNDS
      • 51 VOTE measures
    •  Still TWO MONTHS of session left to craft a budget for remaining agencies

House Bill 1011XX

  • Raises $84 million annually
  • Places cap on itemized deductions (exempts charitable and medical expenses)

 

THE STATE IS NOT TAXING TEACHERS TO PAY FOR THEIR OWN RAISE

  • The average teacher will see a NET increase in pay of nearly $400/month
  • The average driver will pay approximately $1/month extra in fuel costs
  • Motor Fuel Tax (.03 cents/gallon)
  • FY-2019 = tax will raise $52 million DIVIDED by 2.6 million drivers = $20/year or $1.06/month
  • And ODOT estimates up to 40 percent of motor fuel purchased by out-of-state drivers