[Download this fact sheet as a pdf.]
Last month, lawmakers approved a package of funding increases that included pay raises for teachers (HB 1023xx), school support staff (HB 1026xx), and state workers (HB 1024xx), along with additional money for school operations and increases in the flexible benefit allowance for school employees (HB 3705). They have also passed a number of measures that generate new tax revenues (HB 1010xx, HB 1011xx, and HB 3375) to pay for the additional funding. There has been considerable debate as to whether the new revenue fully funds the new spending commitments. Here’s what you should know:
The revenue measures are projected to generate a total of $530.7M in new revenue that is available for the Legislature to appropriate in FY 2019, which begins July 1, 2018. That is about $13M shy of the total cost of the new spending obligations in FY 2019, which is Year 1 of the plan.
Some legislators are sharing a fact sheet that shows new revenues as totaling $573 million, which is $29 million more than the total cost of the new spending obligations. The $573 million figure is the annualized amount once the new revenues have been in place for a full year. It is not the Year 1 amount.
It would appear that the funding plan creates a $29 million surplus in Year 2 (FY 2020). However, the money generated by the $1 per-pack increase in the cigarette tax - $145 million - will be shifted from supporting the education funding plan in year 1 to the Health Care Enhancement Fund to be used for health care services beginning in Year 2. Therefore, to keep the increases for education and state employees fully funded in Year 2, that $145 million in tobacco money must be replaced with new revenue. There is now a $116 M shortfall in Year 2.
The funding approved by lawmakers for education is just a start and doesn’t come close to fully funding education. There is widespread agreement that lawmakers must do more to fund our schools and provide teachers and other employees a fair and competitive salary.
Since 2008, state aid funding has been cut by $179 million, which has led to fewer teachers, counselors, librarians, and teacher aides; larger class sizes; fewer courses and programs; and outdated textbooks, among other effects. The $50 million in new funding that has already been approved makes up less than one-third of the amount that has been cut since 2008 without accounting for increased enrollment and higher costs.
For more information and resources visit www.okpolicy.org/walkout.
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