The House Appropriations Committee provides funding and includes language within the Appropriation Act to support salary increases for state employees and “state supported local employees”.
Compensation actions can include an across board salary increase, one-time employee bonuses, and specific targeted salary increases to address selected positions and/or agencies.
Budget Overview
Funding for employee salaries are imbedded in the budgets of individual agencies, and the source of funds (general fund or nongeneral fund) used to pay employees are determined by their agency based on the specifics of the job.
Salary increases for all state employees are authorized in the Appropriation Act. The cost for the general fund portion of the raise is provided in the budget as a lump sum and then distributed to the agencies by the Department of Planning and Budget.
In Chapter 725, salary related actions included an additional $222.6 million in FY 2027 and $491.3 million GF in FY 2028 to provide a 3.5% salary increase in each year of the biennium for state employees and state supported local employees. The House Appropriations Committee has tried in recent years to increase state employee compensation to help offset record inflation over the past several years.
Any adopted budget with an increase only includes the general fund share of the cost for a raise or bonus. Raises or bonuses for employees with salaries supported by nongeneral funds are managed directly by their employers and represent a little over half of the cost of across the broad pay increases for state employees.
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