Governor Mike Parson announced he is recommending a 5.5 percent Cost of Living Adjustment (COLA) and $15 per hour minimum base pay standard for all state employees across state government on Monday, December 6.

Governor Mike Parsons says, “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. 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 everyday.”

The recommendation is scheduled to 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, with the goal of passage before February 1, 2022.

According to a news release, these salary adjustments require the General Assembly’s approval before they can go into effect.

Governor Parson says, “Veterans home care attendants, residential aids for vulnerable children, and highway workers are among the lowest paid state workers, yet they are critical to maintaining state services and increasing the quality of life for all Missourians. These pay increases are necessary for our team members who provide dedicated service to Missourians day in and day out, and we are calling on the General Assembly to help us make these critical investments in our state workforce.”

Officials say Governor 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. On January 1, 2022, state employees will receive a two percent COLA increase.

Governor Parson’s Fiscal year (FY) 2022 supplemental budget recommendation includes:
· 5.5 percent COLA 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.

The 5.5 percent COLA 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.

If Governor Parson’s FY 2022 supplemental budget is passed early by the General Assembly, state employees would receive an additional 5.5 percent COLA increase on February 1, 2022, along with increases for those making under $15 per hour and those affected by compression.