Legislator exploring ways to improve state employee benefits even if pay hike not possible for FY ’18

The Missouri legislature could have a difficult time building a pay increase for state employees into the Fiscal Year 2018 budget, but there are other things it could consider to improve those employees’ benefits.

The Joint Interim Committee on State Employee Wages has heard a follow-up report from St. Louis-based CBIZ Human capital Services.  CBIZ studied nearly 38,000 of Missouri’s 50,000 employees.  It’s already reported to the legislature that those employees are the least paid in the nation, with compensation more than 10-percent below what is recommended to compete in the job market.

The study said it would cost the state $13.69-million to bring more than 5,000 of those state workers’ pay up to the minimum CBIZ recommended to be competitive in the market.  That would be a one-percent increase in the state’s payroll.

Committee Chairman Mike Bernskoetter (R-Jefferson City) said building that into the budget that legislators will propose over the next couple of months could be difficult based on what he’s heard from the House’s Budget Committee Chairman, Scott Fitzpatrick (R-Shell Knob).

“I’ve heard reports where he thinks we’ll have to cut $500-million out of the budget,” said Bernskoetter.  “Hopefully it won’t be that bad but I guess we’ll see as they go through the process.”

Bernskoetter said he does believe that if there is enough money to increase state employee pay, it is among Fitzpatrick’s priorities.

“If the budget is the way he thinks it is it’s going to be tough this year, but he’s led me to believe he’s interested in improving state employee pay,” said Bernskoetter.

He said even if the state can’t begin increasing state employees’ pay this year, the study makes clear a path toward improving that pay.

“We have a blueprint for the future, so there is something in that,” said Bernskoetter.  “We have a plan that hopefully we can implement in the future.  If not this year, next year.”

Some of CBIZ’s other recommendations could be worked on this year, however.  One is that Missouri replace its step-based system for awarding salary increases.  A CBIZ representative called it “archaic,” and expensive to administer.  Bernskoetter said he is reviewing proposed legislation to make that change.

Another recommendation is that Missouri return to requiring that an employee work five years to be vested rather than ten years.  Bernskoetter liked that idea as well.

“Say we have Governor Greitens and he wants to bring in the best and the brightest … even if he was here for two terms – eight years – they would not get anything out of it other than their salary.  They wouldn’t be vested,” said Bernskoetter.  “That’s one way of compensating the best and the brightest.  If we can’t at least give them a great salary, we’ve got a good benefit package.”

Bernskoetter would also like to see state employees given more flexibility, where possible.

“Obviously you have some places – the Department of Corrections – where you have to be staffed 24-hours a day and you can’t really be flexible.  But if we can be flexible in certain departments – if people want to work 6 to 2, or if they can work from home, I think I need to sit down and talk to different departments and be more flexible with employees,” said Bernskoetter.  “If we can’t give them a pay raise, then be more flexible with their schedule.”

CBIZ won a bid of up to $300,000 to conduct the pay study.

Our earlier stories:

House Members optimistic about taking first step in improving state employee pay

Legislators to learn more about state employee pay study at meeting next week