Finance panel approves bigger pay hike for state employees as total budget swells

The legislative budget-writing committee voted for raises for state workers that would give many on the lower end of the pay scale a higher-than-normal boost.

The Joint Finance Committee, a 12-member panel of representatives and senators from both parties charged with drafting the state’s operating budget, approved the increases during its first day of markup, a period when the committee takes the governor’s recommended budget and begins voting on specific funding requests, essentially writing the budget. State employee pay is usually one of the first items to get a vote in the committee.

Under the plan approved last week, full-time state workers would receive wages ranging from 3% to 9%, depending on their pay grade, with the lowest grades receiving upper percentages. Unionized employees would receive raises under negotiated contracts, with education employees getting a 3% raise and applicable step increases, with teachers getting an additional 6%.

The state and school districts are facing labor shortages despite Delaware having one of the nation’s highest jobless rates. The usual drawing cards – fixed pensions and generous health insurance benefits when compared to many employers in the private sector, are not drawing enough applicants.

Like most states, Delaware faces underfunded pension and health care obligations. The budget panel agreed to make regular contributions to state employee health care funding.

The JFC has added $120 million in spending to the proposed state budget, the Associated Press reported. This comes as federal funds from the Covid-19 pandemic are going away, and a recession is more than a remote possibility.

State employees constitute a formidable voting bloc, especially with the long-running decline at some major employers like DuPont and the demise of the state’s two auto assembly plants in recent decades.

“We owe it to our dedicated state workers to compensate them fairly and offer meaningful opportunities for career advancement. As we responsibly did last year, we’re targeting working Delawareans who most need a raise,” said Joint Finance Committee Chair Rep. William Carson. “The cost of goods and services have been increasing rapidly, forcing working families to make tough decisions that no one should have make. By continuing to use a sliding scale for raises, we are ensuring all employees receive a raise, but we’re preventing those on the lower end of the pay scale from falling further behind.”

The average state employee makes about $52,000 and, under the plan would see an average 6% increase.

Also, as part of the pay policy package, the JFC approved a recommendation from Gov. John Carney establishing a $15 minimum wage for merit full-time state employees. Delaware is moving toward a $ 15-an-hour base wage by 2025 with many employers already offering that pay for entry-level workers.

This is the second consecutive year that the Joint Finance Committee has approved a sliding scale pay raise for state workers, with the fiscal 2023 budget.

The legislative budget staff will now write the final budget bill, which the General Assembly must approve.