ATLANTA — Gov. Nathan Deal’s proposed budget will include a 2 percent pay raise for Georgia teachers, but this time the money will be tucked away where it can only be spent on salaries.

About 60 percent of public schools used money for a 3 percent pay increase in last year’s budget for raises, irking the governor.

This year’s raise will cost $160 million and be included in the pay scale, where it can’t be put to other uses. Deal made the announcement in his annual State of the State address in Atlanta on Wednesday.

The governor did not, however, reveal many details about what a new school-turnaround plan might look like. Voters soundly rejected his school takeover plan for low-performing schools last November.

Deal remained tight-lipped about those efforts when talking to reporters after his speech.

“That’s still a work in progress,” he said.

Deal would only say that he would like to see the legislation focused on the state’s elementary schools, since about 70 percent of failing schools serve elementary-age children.

“That is the best time for us to stop this downward decline in public education,” he said, adding that it might require an “additional shifting of resources.”

A new plan may also free up students to transfer out of failing schools, he said.

The state released an updated list of schools considered chronically failing last week, using scores from last year’s College and Career Ready Performance Index. Schools are deemed failing when they score less than 60 three years in a row.

The list has grown to 153 schools — an increase of 26 schools. It affects nearly 89,000 students, or about 20,000 more than previously.

“It should be abundantly clear to everyone, including those in the education community who so staunchly support the status quo, that this is unacceptable,” Deal said in his speech on the floor of the state House of Representatives.

“If this pattern of escalation in the number of failing schools does not change, its devastating effects on our state will grow with each passing school year,” he added.

The growing list of low-performing schools got Rep. Dexter Sharper’s attention.

The Valdosta Democrat voted against Deal’s proposed Opportunity School District two years ago, but he said Wednesday that he’ll listen with an open mind when a new turnaround plan is presented this year.

“It seems like whatever we’re doing is not working, but I don’t think we need to aggressively take over a school system,” Sharper said, referring to Deal’s failed proposal.

The state, Sharper noted, has put an additional $2 billion toward education in the last four years, but it has not fully restored the cuts made during the economic downturn.

“We’re putting the money there and still not getting the results,” he said.

In Moultrie, news of the salary increase was celebrated, but concerns remain about the barometer used to identify failing schools.

One Colquitt County school, Cox Elementary, remains on the list after scoring a 54.7 on its most recent assessment. That score is down slightly from the year prior, when it scored 55.5.

The Colquitt County school board was one of dozens that penned resolutions opposing Deal’s proposal last year. Teacher groups poured millions of dollars into defeating the contentious measure.

Mary Beth Watson, the board’s chairwoman, said Wednesday that she hopes the Legislature tries a different approach.

She said she hopes a new plan incorporates “tried-and-true methods,” such as smaller classes, increased class time and initiatives that reduce the impact of poverty.

“I also hope that that new legislation will look for ways to work with local boards of education to achieve the common goal of increasing student achievement,” she said.

Deal’s proposed budget, which he also released Wednesday, weighs in at about $25 billion, based on projected revenue growth of nearly 4 percent.

He announced that the state’s reserves are up to $2 billion. Six years ago, the state’s rainy day fund had dwindled to $116 million.

Jill Nolin covers the Georgia Statehouse for CNHI’s newspapers and websites. Reach her at jnolin@cnhi.com.