The state, in central Mexico, gives a further 83 new vehicles a year to be raffled among the union's 30,000 members on Teachers' Day. Mr Morales told a Mexican newspaper that he saw nothing amiss with the gifts - worth approximately US $1.5m.
"All of them are Nissan Tsurus (mid-size saloons). I don't think they're luxury models," he said.
Mr Morales said the free cars were a necessity as there were 15,000 schools in the state that had to be visited by union representatives.