Gov. Asa Hutchinson has authorized state agencies in the executive branch to use 5% of their total payroll costs for merit raises for employees in the fiscal year that ends June 30, citing the rising costs of living.
Nearly 22,400 state employees are eligible for the merit raises that are projected to cost state agencies a total of $54.6 milllion, including $21.8 milllion in state general revenue, Alex Johnston, a spokeswoman for the state Deparment of Transformation and Shared Services. said Friday
The average salary for these employees is about $48,000 a year, she said.
In February, Hutchinson authorized 2% cost-of-living raises for employees at state agencies in the executive branch.
Hutchinson said in a letter dated Thursday to state employees that he wants to express his sincere gratitude to the each of them for their dedication, perseverance and diligence. Arkansas has benefited from low unemployment numbers and a growing economy, despite numerous national and international crises that have affected nearly all aspects of American life, he said.
“As our state and nation recover from economic losses resulting from the COVID-19 pandemic and return to a sense of normalcy, new challenges have emerged, namely that of inflation,” the Republican governor wrote. “As supply chains struggle to keep up with rising demand, the price of gas and energy has increased exponentially. Current inflation rates are the highest the nation has seen since 1981, putting immense strain on everyday families and individuals.”
Hutchinson said he has authorized merit raises for state employees at an average of 5% for fiscal 2022.
“It is my hope that this announcement will allow state employees to continue their steadfast service to neighbors, communities, and fellow Arkansans,” the governor wrote in his letter to state employees.
State Department of Transformation and Shared Services Secretary Amy Fecher said in a letter dated Thursday to the state’s Cabinet secretaries that Gov. Hutchinson has determined the state’s fiscal status is strong enough to support state employee merit raises for fiscal 2022.
“Departments are allowed a maximum allocation of 5.0% of total employee payroll for performance increases,” she said.
The merit raises will be reflected in state employees’ pay received, starting July 1, Fecher said.
John Bridges, executive director of the Arkansas State Employees Association, said Friday in a written statement that “This is great news!”
“State employees certainly have earned their Performance Pay as they have worked steadfast during the pandemic without an interruption in services to the citizens and guests of Arkansas,” he said.
“We would like to thank the Governor for recognizing their hard work and for increasing their pay during these inflationary times,” Bridges added.