Missouri Gov. Mike Parson is recommending a $15 minimum wage for all state employees, as well as a 5.5 percent cost of living adjustment.
In an announcement Monday, Parson said the $91 million recommendation will be included in his budget proposal, which will be introduced at the start of the next legislative session in January.
In addition to a $15 minimum wage and 5.5 percent cost of living adjustment, the recommendation includes wage increases to address compression between pay grades following the new $15 minimum base.
According to the announcement, Parson wants the Legislature to fund the raises early so they can take effect Feb. 1, 2022, which is less than a month into the session.
"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 (in) the nation," Parson said in a news release. "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."
For several years, Missouri has been among the worst in pay for state employees.
Parson said veterans home care attendants, residential aides for vulnerable children and state highway workers are among the lowest paid workers in the state.
Executive agencies, including the Missouri Department of Social Services and Missouri Department of Transportation, have requested salary boosts for multiple years.
Parson has recommended smaller cost of living adjustments in previous years, but the increases weren't enough to move Missouri away from being last in the nation for state employee pay.
Last year, the Legislature approved a 2 percent cost of living adjustment for state employees, which will begin Jan. 1, 2022.
Parson's proposed 5.5 percent cost of living adjustment is based on average increases in four areas: the Midwest consumer price index, employment cost index, world at work salary budget increases and personal income.
If the new proposal is approved early in the session, all state employees could be looking at a 7.5 percent total cost of living adjustment in 2022, plus increased starting wages and increases for employees affected by wage compression.
In total, Parson's wage increase proposal would cost $91 million, $52 million of which would come from general revenue.
Parson's solution to addressing workforce shortages and low wages among state agencies doesn't stop there.
The governor's fiscal year 2023 pay plan proposal will include another 5.5 percent cost of living adjustment, totaling $218 million - $123 million of which would come from general revenue.
However, the proposed $15 minimum wage and first 5.5 percent cost of living adjustment will require the General Assembly's approval.
House Budget Chairman Rep. Cody Smith, R-Carthage, said he recognizes the urgency to address state workforce needs and supports moving the legislation early.
"This will ensure that the state is able to retain talented employees who will continue providing essential services to the citizens of our state," Smith said in the governor's news release.
Following House approval, the budget legislation would travel to the Senate.
Senate Appropriations Chairman Dan Hegeman, R-Cosby, said the governor's proposal would benefit and bolster the state government workforce.
"Despite regular pay increases, Missouri's state employees continue to rank among the lowest paid in the country," Hegeman said. "This pay plan proposal will raise the minimum base pay, reduce pay compression, and ensure Missouri is able to recruit and retain talented and dedicated public servants."
With support from House and Senate leaders, Parson is hopeful to make progress recruiting and retaining state employees.
"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," he said.