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HARRISBURG, PA (July 12, 2026) — Pennsylvania State Education Association President Aaron Chapin commended a bipartisan group of state lawmakers and Gov. Josh Shapiro for agreeing to a FY 2026-27 budget that increases key investments in public education and includes a long-overdue cost-of-living adjustment for more than 34,000 retired educators and support staff who have not received an increase in their pensions for nearly 25 years.
“This state budget reflects a remarkable commitment to K-12 public education in Pennsylvania and reminds us how important it is to elect pro-public education leaders,” Chapin said. “The budget continues a multiyear plan to improve school funding adequacy and equity, helping more students in more communities reach their full potential. It also invests more in the Student Teacher Support Program, ensuring that nearly every student teacher eligible for a stipend will receive one in the coming school year.
“Just as importantly, policymakers are on track to restore the promise of a secure retirement to more than 34,000 retired educators and public servants who have not gotten a raise in their pensions for close to 25 years. For too long, these dedicated Pennsylvanians, many now in their 80s and 90s, have struggled to make ends meet amid the skyrocketing costs of housing, gas, groceries, and medicine. Now, after decades of waiting, they will finally receive the modest increases they deserve.”
Adequacy Funding
The FY 2026-27 budget includes a $565 million increase in adequacy and equity funding that is part of the multiyear effort to close the adequacy gap in response to the 2023 Commonwealth Court ruling.
“We have seen what our public schools have been able to achieve over the past two years with targeted adequacy funding,” Chapin said. “More schools are reducing class sizes, investing in STEM teachers, and expanding math and literacy coaching, among other things. With more funding coming from the state, public schools are able to allocate resources to addressing much-needed repairs to aging school buildings. We are pleased to see policymakers building on this progress.”
Student Teacher Stipend
The FY 2026-27 budget includes a $10 million increase for student teacher stipends, bringing total funding to $40 million for FY 2026–27, which means more than 700 more student teachers and their cooperating teachers will receive stipends.
“This increase in funding for student teacher stipends is tremendous progress and will ensure many more student teachers and their cooperating teachers are paid for the work they do,” Chapin said. “Student teacher stipends have been a win-win for Pennsylvania ever since the launch of the program two years ago. Stipends are helping our student teachers make ends meet and, in return, those receiving stipends agree to work as teachers at schools here in Pennsylvania for at least three years after graduation.”
Pre-Act 9 COLA
Along with passage of the budget, policymakers passed a COLA for educators, school support staff, and other public servants who retired before Act 9 of 2001 boosted pensions for subsequent retirees.
“We thank the lawmakers who came together to adopt a COLA for pre-Act 9 retirees, restoring the promise of a secure retirement to these dedicated public servants,” Chapin said. “This has been a top priority for PSEA for years, and we appreciate the hard work of policymakers from both parties who finally made it happen.”
Chapin is a Stroudsburg Area middle school teacher and president of PSEA. An affiliate of the National Education Association, PSEA represents about 177,000 active and retired educators and school employees, aspiring educators, higher education staff, and healthcare workers in Pennsylvania.