Bergstrom Proposes $6,000 Teacher Pay Increase Plan

Senator Michael Bergstrom is proposing a plan to pay for a $6,000 teacher pay raise over three years. His plan also includes a $2,500 state employee pay raise and a restoration of the state aid formula funding for education. The plan is to use three current bills to pay for the initial part of the plan.

“As a former teacher with close to two decades of experience in Oklahoma public school classrooms, I appreciate the frustration of our instructors,” Bergstrom said. “In the time since I took office in November 2016, one of the top priorities in my Republican Senate Caucus has been finding a way to give Oklahoma teachers a pay raise. Unfortunately, the budget hole and the constitutional requirement for 75 percent approval in both chambers have hampered our efforts. In the last several months, we have run through a special session, are still in a second special session and are nearly halfway through another regular session and there is still no pay raise. The planned teacher walkout looming in a few weeks adds yet another wrinkle to the situation.”

According to Bergstrom, three obstacles have kept the legislature from completing this task – insufficient revenue, unreasonable expectations and political maneuvering.

“My proposal deals with the first two issues. Hopefully, legislators choosing to put the best interests of the citizens of Oklahoma, our teachers and our students ahead of political desires will resolve the third,” Bergstrom said.

To pay for the raises in the first year, Bergstrom suggests using the revenue generated by three bills. Senate Bill 1086 is the Capital Gains Tax Restoration measure and is expected to generate $50 million the first year and $108 million in the following years. $23 million is expected to be generated by Senate Bill 1195, the Casino Ball and Dice bill, and Senate Bill 1030 which establishes a Medicaid Work Requirement is estimated to generate $84 million.

Bergstrom’s plan also includes tax increases which would pay for the second and third phases. The proposed tax measures are a $1.00 increase on cigarettes with an increase on cigars, chewing tobacco and e-cigarettes; Five percent gross production tax on all wells as a discount rate and all new wells, and an increase to seven percent on all wells after 36 months. Bergstrom wants each tax increase to receive a separate vote. If they don’t receive the 75 percent required for the Legislature to increase taxes, then he wants them sent to a vote of the people in November.

This is the fourth funding plan proposed in the wake of a threatened teacher walk out on April 2.

An overview of Bergstrom’s plan is below.

 

  • $6,000 Teacher Pay Raise Over Three Years
  • Restoration of State Aid Formula Funding for Education
  • $2,500 State Employee Pay Raise Over Three Years

 

PHASE 1

  • 2019 New Spending – $2,000 Teacher Pay Raise ($116 million), $1,000 State Employee Pay Raise for those making less than $50,000 ($35 million), State Aid Formula Funding Restoration, which may in part be used for school support staff raises ($115 million).
  • 2019 Total Price Tag – $266 million
  • 2019 New Revenue – Capital Gains Tax Restoration/Rader ($50 million first year/$108 million thereafter), Casino Ball & Dice/McCortney ($23 million), Zero Emissions Soft Cap at $25 million ($80 million), Medicaid Work Requirement/Brecheen ($84 million), Removal of Tax exemption on luxury items ($35 million).
  • 2019 Total New Revenue (50 percent votes) – $272 million

PHASE 2

  • 2020 New Spending – $2,000 Teacher Pay Raise ($116 million), $1,000 State Employee Pay Raise for those making less than $50,000 ($35 million),

Each of these will be dependent upon passage of the revenue measures listed below, either passed by the legislature or a vote of the people in November.

  • 2020 Total Price Tag – $266 million
  • 2020 New Revenue –  $1.00 increase on cigarette tax & increase levy on cigars, chewing tobacco, e-cigarettes ($170 million), 5 percent GPT on all wells currently at two percent, all new wells and raise all wells to seven percent after initial 36 months ($230 million)

Each of these forms of revenue require a 75 percent vote in both chambers. Each source should be voted on separately during the current legislative session. Any that do not pass should be passed on to a vote of the people in November.

  • 2020 Total New Revenue – $400 million

PHASE 3

  • 2021 New Spending – $2,000 Teacher Pay Raise ($116 million), $500 State Employee Pay Raise for those making less than $50,000 ($18 million),
  • 2021 Total Price Tag – $134 million
  • 2021 Total New Revenue Needed – $0 (Already paid for if revenue passes in 2018.)

 


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