Some Republicans skeptical of Missouri Gov. Parson’s pay raise plan for state workers

Missouri Gov. Mike Parson’s plan for state employee raises drew skepticism from some Republican lawmakers Monday as his administration pleaded for help in stemming the exodus of low-paid workers from prisons, highway maintenance crews, residential care facilities and state hospitals.

Parson has asked for a supplemental budget by Feb. 1 that includes $119 million for across-the-board raises, less than half of which would come from general revenue. He has promised to raise worker pay by 5.5% and to bring all state employees up to at least $15 an hour to compete with private business in a tight labor market.

The latter move would affect about 8,800 workers currently making less than that, budget director Dan Haug told the House Budget Committee on Monday. Parson’s administration is hoping it will help ease high rates of turnover in a state government that has shrunk its workforce by about one-sixth in the past 15 years and fallen to the bottom of the nation in state worker pay.

“We’re getting to the point where if we have more vacancies and turnovers, we’re not going to be able to operate our state facilities,” Haug said.

The state has about 51,000 positions, roughly 3,000 of which are vacant, he said. Turnover across the state government is 26%, but concentrated among workers making the least. Last year, nearly 55% of state workers making less than $30,000 left their jobs, Haug said.

In prisons and mental health facilities that have minimum staffing requirements, Haug said the state is paying overtime to ensure enough workers stay on to fill a second shift.

“That’s not the way we want to run the state,” he said, later adding, “We’re not trying to set the market. Honestly we’re not even trying to get in the middle of the market, we’re just trying to get somewhere where we can be competitive.”

Few lawmakers disagreed the situation is urgent, and the plan is endorsed by the Republican budget leaders in both chambers of the legislature. It also comes at a time of record revenues for Missouri. The state ended its last fiscal year in July with a $1 billion surplus.

Still, some Republicans remained concerned about the long-term costs of the raises. Others doubted it would make a difference in recruiting for the lower-wage positions where turnover is highest. Several accused Parson of making a “political statement” by proposing a $15-an-hour minimum.

Rep. Doug Richey, an Excelsior Springs Republican, called the $15 minimum proposal an “arbitrary baseline that prevents us from being able to be responsive to the market.”

Rep. Scott Cupps, a Shell Knob Republican, criticized the administration for offering the same raise to low- and high-wage state workers alike.

“We have a supplemental budget plan that is going to fix that by saying we’re going to give the starving dog and the fat dog both 5.5% more food?” he said. “That’s nonsensical … Some of these jobs, the market is double. 5.5 is not going to fix that.”

He also expressed frustration that Parson was asking for raises after vetoing increases that lawmakers passed last year targeting child welfare workers in the Department of Social Services. The Children’s Division has experienced up to 30% turnover rates in recent years.

“I am disappointed that that was vetoed,” Cupps said. “Those people matter. We almost sent a message that we don’t care about them.”

In the Senate last week, Republican leaders said they worried about the effect of a state minimum salary on private businesses.

“As an employer myself … state government has to somewhat keep up, but it also can’t be in a situation where they [are] taking those employees from businesses that are trying to run their own business as well,” Senate President Dave Schatz, a Sullivan Republican, said.

Democrats have thrown their support behind the proposal.

“What’s the cost to not doing this pay plan?” Rep. Maggie Nurrenbern, a Kansas City Democrat, said to Republican counterparts Monday. “Why aren’t we investing in ourselves?”

This story was originally published January 10, 2022 at 4:54 PM.