JEFFERSON CITY — Missouri’s low-paid state workforce is in line for another pay bump, Republican Gov. Mike Parson says.
After pushing to get raises inserted in the current state budget, Parson told reporters Wednesday that he will do so again in January when he outlines his proposed spending plan to the Legislature.
“We’ve got to fill positions just like everyone else,” Parson said.
The governor’s comments came after he signed an income tax cut that will lower the state’s individual rate to 4.95% next year and then, if revenues grow at a certain pace, the rate will further drop to 4.5% in the coming years.
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Parson signaled the $1 billion reduction in revenue from the tax cut will not get in the way of him seeking to increase the pay of state workers.
State government has been hemorrhaging employees despite last spring’s approval of 7.5% raises as part of an effort to fill vacant positions and retain existing workers.
The raises, including setting a minimum $15 an hour base for entry level positions, cost a total of about $228 million.
As of July 15, there were more than 7,500 vacant jobs in a state government that has more than 50,000 positions. The unfilled positions have forced some agencies to cap access to state services, ranging from mental health treatment to child welfare services.
At the same time, private sector employers are adjusting to a post-pandemic world by boosting wages. In Jefferson City, Hitachi ABB, which operates an electrical transformer factory, is paying up to $25 an hour.
In Fulton, where there are multiple state facilities including a mental hospital, the state is competing for workers against a Dollar General warehouse.
“We’ve got to compete with the private market,” Parson said.
The pay issue has been a top concern for Parson since he took office in 2018.
A November 2021 survey of state employees found that only 14% felt the state provided attractive incentives to “high performing employees.”
“‘Underpaid’ was teammates’ second most frequently used word to describe the State of Missouri government,” the survey noted.
“We’ve got to do better on that,” Parson said.
State agencies are in the process of making their budget requests for the fiscal year begin next July to the governor’s office.
For now, the agencies are being told to discuss any special pay plan requests with the budget and planning division office, according to cabinet documents obtained by the Post-Dispatch.
The agencies also have become more aggressive in trying to lure job applicants.
The Missouri Department of Conservation, for example, features a link to open jobs on its website.
The Office of Administration recently held a hiring event for its sprawling and dated information technology division, which has received $126 million for upgrades.
The Missouri Department of Corrections has taken to social media to find workers.
A recent Twitter post shows an opening for a recreation coordinator at the Bowling Green prison. The pay is $35,111 annually.
On Oct. 25, the Department of Mental Health is holding a hiring event focused on recruiting workers to the state mental hospital in Fulton, which has been forced to close 25 beds due to staffing shortages.