Board Finalizes 1.76 Percent Cost Of Living Adjustment For Step Pay Plan

The McLennan County Commissioners' Court convened on July 15, 2025, to discuss significant financial adjustments, primarily focusing on cost of living adjustments (COLA) and step pay plans for county employees.

During the meeting, officials announced an updated COLA estimate of 1.76%, an increase from the previous estimate of 1.61%. This adjustment will be the final update for the year, reflecting changes in the Consumer Price Index (CPI) data released just prior to the meeting. The COLA is crucial for ensuring that employee salaries keep pace with inflation.

The court also reviewed various options for adjusting the step pay plan, which was implemented the previous year. Four options were presented, each linked to the new COLA figures. The first option maintained the previous average step adjustment of 4.65%. The second option proposed applying the COLA across the board, resulting in an estimated cost of $490,000. The third option combined the average COLA with market adjustments, leading to an estimated cost of approximately $895,093. The final option suggested applying the COLA universally, except for two job titles experiencing higher turnover, with an estimated cost of $962,970.

Additionally, the court discussed the incentive pay program, which does not rely on COLA adjustments. The current estimate for incentive payouts for the upcoming budget year is $587,000, slightly higher than the previous year's payout of $588,650. Officials noted that the actual payouts often differ from budgeted amounts due to eligibility criteria.

In conclusion, the meeting highlighted the county's commitment to adjusting employee compensation in line with economic changes while also addressing the need for careful budgeting in light of anticipated increases in payroll expenses. The court plans to further review these adjustments before finalizing the budget for the upcoming year.