OKLAHOMA CITY (OBV) — Senate leaders outlined Tuesday a $254 million education plan funded by redirecting existing state dollars tied to the Teachers’ Retirement System, unveiling the proposal during a Capitol press conference focused on boosting teacher pay and classroom performance without increasing overall spending.
The plan would cap annual state contributions to TRS at $200 million beginning in FY2027, with projected excess funding redirected toward pay raises, reading programs and other initiatives. Lawmakers emphasized repeatedly that TRS assets — now above $25 billion after two decades of supplemental appropriations — would not be touched.
“This plan protects the retirement system while allowing us to meet urgent needs in our classrooms today,” Senate Education Chairman Adam Pugh said. “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.”
The $254 million package includes a $2,500 increase to the state minimum teacher salary schedule; $50 million for the Reading Sufficiency Act; $29.8 million in formula funding; $10 million for literacy coaches; and $10 million for math coaches. Senators said the plan also supports a previously filed expansion of the parental choice tax credit.
During the Q&A, senators fielded questions about who receives the pay raise, whether the House had been briefed and how the proposal affects potential pension cost-of-living adjustments.
— When asked whether the $2,500 raise applies to all districts, Pugh said it raises the minimum schedule but does not apply to off‑formula districts already paying above the minimum.
— On House reaction, Pugh said he met with his House counterpart and “he received my report,” adding that broader budget talks were scheduled for later in the day.
— Asked about whether the plan limits future COLAs, Senate Appropriations Chairman Chuck Hall said it does not, noting the proposal “really eliminates no option for COLAs” and that TRS will continue receiving an additional $200 million above employer and employee contributions.
Leaders also addressed concerns about redirecting funds while expanding the parental choice tax credit. Pugh said the TRS cap reflects “right‑sizing” after decades of supplemental investments and that senators “represent all parents, all families, and all kids.”
Senate Pro Tem Lonnie Paxton closed the event by framing the plan as part of broader constituent priorities around education and affordability, saying lawmakers will continue negotiations with the House, governor and education department as session progresses.
Editor’s note: This story was updated to reflect incorrect attribution.
