INDIANAPOLIS (AP/WTHR) - Indiana’s governor has outlined to state legislators how to free up tens of millions of dollars toward boosting teacher pay but he doesn’t want them to act on it until next year.
Republican Gov. Eric Holcomb told lawmakers in Tuesday night's State of the State speech that he wanted to tap into the state’s $2.3 billion in cash reserves in the 2021 legislative session to make a $250 million early payment into a state teacher pension fund. Holcomb and Republican legislative leaders have resisted calls from teachers unions and Democrats for immediate action to improve the state’s lagging teacher pay.
Holcomb says the new payment will free up $50 million in annual state funding to redirect into teacher raises. Add that to $65 million already going into teacher raises each year and Indiana could see more than $100 million in annual pay increases.