JEFFERSON CITY, Mo. – Gov. Mike Parson is recommending a 5.5% cost of living adjustment and $15 per hour minimum base pay standard for all state employees. Gov. Parson is recommending the wage increase to strengthen workforce recruitment and retention.
“With many positions across state government facing turnover rates anywhere from 10-100 percent and vacancy rates from 30-100 percent, it is past time for us to make these investments in our state workforce, which remains one of the lowest-paid the nation,” Governor Parson said in a press release.
The recommendation will be included in Governor Parson’s Supplemental Budget request to be introduced at the beginning of the 2022 Regular Legislative Session, which begins on January 5, 2022.
On January 1, state employees will receive a two percent cost of living adjustment. If Governor Parson’s FY 2022 supplemental budget is passed early by the General Assembly,
Governor Parson’s Fiscal year (FY) 2022 supplemental budget recommendation includes:
- 5.5 percent cost of living adjustment increase for all state employees;
- Increases to $15 per hour for any state employee making below that threshold; and
- Increases to address compression issues between pay grades after base pay increases to $15 per hour.
Gov. Parson has recommended three percent and two percent COLA increases for state employees in past budgets, yet Missouri state employees continue to be among the lowest paid in the nation.
The FY 22 supplemental budget pay plan proposal would cost $91 million, including $52 million in general revenue.
Gov. Parson’s FY 23 pay plan proposal includes a similar 5.5 percent cost of living adjustment recommendation and totals $218 million, including $123 million in GR.
“Our direct care and front line staff often make less than entry-level retail positions. These public servants have tough jobs and rarely receive the thanks they deserve, and communities all across the state rely on them every day,” said Gov. Parson.
Gov. Parson says these pay increases are necessary for our team members who provide dedicated service to Missourians day in and day out. He is calling on the General Assembly to help us make these critical investments in our state workforce.
The 5.5 percent cost of living adjustment increase is based on the average increase of four general structure adjustment economic indicators:
- Consumer Price Index for the Midwest – 6.4 percent;
- Employment Cost Index – 4.3 percent;
- World at Work Salary Budget Increases – 2.9 percent; and
- Personal Income – 8.3 percent.