JEFFERSON CITY — Gov. Mike Parson’s budget chief called on lawmakers Monday to move quickly to approve raises for state workers.
With turnover among employees at alarming levels, budget director Dan Haug argued that the 5.5% raises proposed by Parson could help bring more people into key jobs providing services to citizens.
“With the labor market we are in, we are seeing quite a bit of vacancies,†Haug said.
In addition to the raises, the proposal would set the minimum wage rate at $15 per hour for all state employees.
In Fulton, home to a state-run prison and mental health treatment facility, the state is in competition for workers with a Dollar General warehouse operation where starting pay is $17 per hour, Haug said.
People are also reading…
“Really, we’re just trying to meet the market,†Haug said. “We’ve got to try and be more competitive.â€
The call for raises for the state’s 50,000 workers is part of the debate on adding nearly $5.3 billion in spending to the state’s current budget.
The total amount of additional spending would be the second-highest midyear budget adjustment ever after $6.4 billion was approved in 2020.
The governor is pressing the Republican-led House and Senate to finalize a package of spending by Feb. 1 to show current workers that they are valued, especially as they perform their jobs during a pandemic, Haug said.
“We need to retain the people we have,†Haug said. “We’re losing good people.â€
The $91 million pay raise proposal, as well as other spending priorities, drew department directors who oversee prisons, mental health facilities, office buildings and other state services to the House Budget Committee hearing.
Without the additional pay, the administration says the lack of workers could force cuts in state services and require additional spending on temporary workers.
The current turnover rate is 26% across all departments. Haug said there are thousands of vacant jobs waiting to be filled, particularly among frontline staff who treat the disabled and mentally ill.
Among state workers earning under $30,000 annually, the turnover rate is nearly 55%, Haug said. A raise would generate $1,650 annually for an employee earning $30,000.
In some instances, a shortage of prison workers has forced employees to work double shifts.
“We’re having people work a lot of overtime,†Haug said.
“Let’s face it. We’re in competition with McDonald’s right now,†said Rep. , R-Crocker.
“This stems the tide in a big-picture way,†said Rep. , D-ºüÀêÊÓƵ.
Among the concerns voiced by lawmakers is how the raises will be paid for in the future.
Haug said with minimal growth in state revenues, the state is “confident†it will be able to fund the increases.
“Our revenues are coming in very strongly,†Haug said.
Rep. , R-Shell Knob, said well-paid state employees should not receive the same raise as low-paid workers.
“That’s nonsensical,†said Cupps, who advocated for a more targeted series of wage hikes at hard-to-fill positions.
Rep. , D-ºüÀêÊÓƵ, said the raises could help Missouri prevent talented people from leaving the state in search of higher wages.
“I think this is critical,†Aldridge said.
The overall spending plan also includes $2 billion in federal money for the Missouri Department of Elementary and Secondary Education to help local school districts and charter schools.
Commissioner of Education Margie Vandeven told the committee that the pandemic has upended school systems across the state.
The governor’s plan includes a $100 million allocation to the Office of Administration, which could then use the money to help other state agencies deal with pandemic-related expenses.
Home heating and cooling programs for low-income Missourians would receive a $93 million infusion. Efforts to expand telehealth options for Medicaid patients would receive $34 million.
Senior meal programs would get $26 million.
The legislation is .
Originally posted at 2:15 p.m. Monday, Jan. 10