State employees are the "true example of public servants," Missouri Gov. Mike Parson said Monday before signing off on one of the largest pay raises in recent memory.
"Every day in every walk of life, you're helping somebody. We're trying to get them through a system, and we're trying to make sure their lives are a little better," Parson told a sea of state workers watching the bill signing from open walkways of the Harry S Truman State Office Building. "I'll tell you, I'm a firm believer that we're doing that every day with your help, and we're going to continue to do more."
Parson signed an 8.7 percent pay raise for state workers into law Monday. The bill also includes a $2 per hour increase to the state's shift differential -- an extra bump in pay for those working outside normal business hours -- for congregate care staff within the Department of Social Services, Department of Corrections, Department of Mental Health and Missouri Veterans Commission.
The pay raise becomes effective March 1, and state employees can expect to see higher wages on their next paycheck.
State workers filed into the walkways and lobbies of the Truman Building to watch the governor sign the bill. Parson said it was probably the largest crowd he's had for a bill signing.
Rep. Dave Griffith, R-Jefferson City, said it was impressive to see state employees show up to the bill signing. He took it as a sign of their appreciation.
"For a lot of us, we're happy to see this pass," Griffith said. "All of the employees I've talked to would have been happy with 5 percent, but to get 8.7 percent on top of what they got last year? That's just huge."
Sen. Mike Bernskoetter, R-Jefferson City, said it's the largest state employee pay raise he's been involved with since getting elected 13 years ago.
"This is very cool: very cool for state employees, very cool for the district I represent," Bernskoetter said. "Just a great day for state employees."
Parson told reporters after the event that he wanted to highlight the state workforce and "make sure they get to share this moment," adding he has several planned stops to ceremonially sign the pay raise with employees around the state.
"It's just a good day to highlight who we are in state government," he said.
The governor thanked members of the General Assembly for sharing his vision. He said a significant pay raise was in the works for nearly five years and it was among his top priorities this year.
The state Senate passed the measure by a vote of 29-4 with little discussion Wednesday, sending it to the governor's desk ahead of his suggested March 1 deadline. The bill was approved in the House by a vote of 151-2 after its handler removed the raise for elected officials, such as the governor and members of the General Assembly.
The bill gives state employees an extra 10 cents on mileage rates, for a total of 65 cents per mile, and increases the monthly expense accounts of lawmakers.
Rep. Rudy Veit, R-Wardsville, said he was excited Monday because about 14,000 Cole County residents are getting a pay raise. Veit said the raise was entirely reasonable, particularly the increase in the shift differential for employees working nights and weekends.
"We're never going to keep employees if we don't have a good retirement system, a good work environment and pay them enough that they can at least make ends meet without undue stress," Veit said.
The pay raise was touted as a tool to combat extreme staff turnover within state agencies and is the second of its kind within two years.
Last year, lawmakers approved an emergency supplemental bill with a 5.5 percent raise and $15 minimum wage for state employees.
Staff turnover was exceeding 30 percent across state government before last year's pay raise, state budget director Dan Haug said, and dropped to about 27 percent by the end of 2022. There are more than 7,000 positions open across state government, Haug said. The Missouri Department of Health and Senior Services, for example, had 240 vacant positions and a turnover rate of 24 percent as last week.
Asked if the pay raise he signed was enough, Parson said, "We hope so."
"We've got to be able to retain (state employees), and I think this is a good start," he continued. "I think we're headed down that road, and you'll see that (proposed pay raises) get more and more about retaining employees."
Bernskoetter said whether the raise was enough depends on the position in state government, but he's not interested in setting a standard that would force private businesses to compete with the state for employees.
Veit said he would like to see additional pay raises implemented in steps.
"This is only the beginning," Veit said. "With inflation, this pay increase has to become part of our normal cycle in budgeting. I think with the way we have inflation now, we're going to have to give a cost of living raise every year or we're going to slide back to the worse position we were at, and we're going to lose qualified, good employees."
Including the raise signed Monday, state employee wages have increased 20 percent since Parson took office in 2018.
In addition to the pay raise, HB 14 includes $20 million for school safety upgrades, $275 million for the State Emergency Management Agency, $24 million for the State Retirement Contributions Fund and more than $600,000 for the Department of Agriculture's black vulture mitigation efforts.
The bill totals $627 million and is the first of two supplemental appropriation bills this session.
Julie Smith/News Tribune photo: Amid the backdrop of hundreds of state employees, Rep. Dave Griffith, right, and Sen. Mike Bernskoetter, visit Monday, Feb. 27, 2023, while waiting for Gov. Mike Parson to arrive in the Truman State Office Building to sign HB 14, the bill that provides for a raise for state employees. Both are Republican legislators from Jefferson City who represent numerous state employees and lobbied on behalf of the spending.
Julie Smith/News Tribune photo: Gov. Mike Parson is surrounded by smiles and offers one himself as he enters the second floor landing where he will soon sign HB 14, a bill that will provide a pay raise for thousands of state employees. Hundreds of those employees filled the atrium of the Harry S Truman State Office Building Monday, Feb. 27, 2023, to sign the legislation.
Julie Smith/News Tribune photo: Gov. Mike Parson is flanked by legislators and department directors as he looks up to the hundreds of state employees gathered in the atrium of the Harry S Truman State Office Building as he prepares to sign HB 14, the bill delivering pay raises for those very employees.
Julie Smith/News Tribune photo: Gov. Mike Parson is flanked by legislators and department directors as he looks up to the hundreds of state employees gathered in the atrium of the Harry S. Truman State Office Building as he prepares to sign HB 14, the bill delivering pay raises for those very employees.
Julie Smith/News Tribune photo: Hundreds of state employees filled the atrium of the Harry S. Truman State Office Building as Gov. Mike Parson visited to sign HB 14, the bill providing for state employee pay raise.
Julie Smith/News Tribune photo: Hundreds of state employees filled the atrium of the Harry S. Truman State Office Building as Gov. Mike Parson visited to sign HB 14, the bill providing for state employee pay raise.HB 14: Appropriation Bill
Sponsor: Rep. Cody Smith, R-Carthage