With only two weeks remaining in the 2007 session, Oklahoma lawmakers are trying to negotiate a final budget agreement so they can finish their work for the year.

But a dispute over teacher pay raises is standing in the way, according to Sequoyah County legislators.

If House and Senate members cannot settle their difference with Gov. Brad Henry over the nearly $7 billion state budget by May 25, they will be forced to come back for a special session to appropriate money for the 2008 fiscal year that begins July 1.

Rep. Ed Cannaday (D- Porum), a member of the General Conference Committee on Appropriations, said the main priority of the governor and House Democrats is to boost Oklahoma teacher salaries to the regional average within the next two years.

Last year, the Legislature appropriated enough money to give Oklahoma teachers an average pay increase of $3,000. Even so, state teachers still receive about $2,000 less than the regional average, Cannaday said.

Lawmakers have already built into the 2008 budget enough money to provide a $600 raise, but Henry and most House Democrats want to boost that amount to at least $1,000. Most Republican lawmakers and Senate Democrats are opposed to the higher figure.

Cannaday said one reason for the impasse is that House Republican leaders, including Education Committee Chairman Tad Jones (R- Claremore), do not want teachers in federal programs to receive the full raise.

Jones believes some educators, such as special education teachers, do not deserve the full raise because a portion of their salary comes from federal funds, Cannaday said.

"As a school administrator, I will not agree to pay some teachers at one level and others at another," Cannaday, a former high school principal, said. "I believe that is morally wrong because these educators fulfill the same requirements."

The budget dispute is clouding the outlook for a tax cut bill (SB 861) approved by the Legislature this week and sent to Henry for his signature. The governor has until midnight Monday to sign or veto the measure, and it appears the tax cut might become a bargaining chip in the broader budget negotiations.

The tax relief package would reduce the state income tax rate to 5.25 percent, provide a statewide three-day back-to-school sales tax holiday, eliminate state franchise tax on most small business, and create a tax credit for stay-at-home parents.

State Treasurer Scott Meacham, the governor's budget negotiator, noted that Henry had already signed bills over the past two years providing the biggest tax cuts in state history. Before the governor can commit to more tax cuts, he wants to fulfill funding pledges made to state agencies, Meacham said.

Cannaday and Rep. Glen "Bud" Smithson (D-Sallisaw) both voted against the tax cut bill because they said other programs needed to be funded first. Lawmakers said the cut would cost the state $62.3 million, and some are worried it could reduce money already promised in other areas.

Smithson said he is for tax cuts when there are enough surplus funds available to finance them, but right now he is holding out for Oklahoma teachers.

"We have promised the teachers we will bring their salary up to the regional average by next year," Smithson said. "It is crucial we take care of at least $1,000 this year."

Ricki Jo Agent is studying journalism and public relations at the University of Oklahoma, and assists with the page program for the Oklahoma Senate. She is a native of Sallisaw.