State employees' pay increases under threat as COLA cuts are debated

In a heated session of the Maryland General Assembly's Appropriations Committee, a passionate plea echoed through the chamber, highlighting the struggles faced by state employees. As representatives gathered to discuss the budget for fiscal year 2026, the focus turned to the critical issue of cost-of-living adjustments (COLA) and merit increases that many state workers rely on for financial stability.

A representative from the American Federation of State, County, and Municipal Employees (AFSCME) strongly opposed the Department of Legislative Services' (DLS) recommendation to cut these essential increases. The representative emphasized that the agreements for these raises were reached after tense negotiations, ensuring they aligned with the state's financial capabilities. "A deal was made, and our contract must be respected and upheld," they asserted, urging lawmakers to consider the economic realities faced by state employees.

The representative presented stark statistics that painted a troubling picture: since 2010, inflation has surged by over 40%, while COLA adjustments for state employees have only totaled 28%. This disparity means that many workers today have less purchasing power than they did 15 years ago. With inflation currently hovering around 4%, the proposed 1% COLA for this year falls significantly short of what is needed to keep pace with rising living costs.

Moreover, the issue of step increases—annual raises intended to help employees progress economically—was brought to light. The representative noted that nearly 30% of employees on the standard pay scale and over 40% in the correctional pay scale are behind on these promised increases. Alarmingly, more than 14% of those affected have missed five or more steps, indicating they have gone at least five years without the raises they were promised upon hiring.

"This is not just AFSCME's claim; these are the state's own numbers," the representative stressed, underscoring the urgency of the situation. The combination of inadequate COLA adjustments and the failure to provide promised step increases has left many state employees feeling undervalued and financially strained.

As the committee deliberates on the budget, the call to uphold the agreements made with state employees resonates strongly. The future of Maryland's workforce hangs in the balance, with the hope that lawmakers will recognize the importance of supporting those who serve the state. The outcome of these discussions will not only impact the financial well-being of state employees but also the overall morale and retention of a workforce that plays a vital role in the community.