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Appropriations committee reviews Pay Act funding, schedule and concerns about wage compression
Summary
Committee heard details of the Pay Act funding for FY27–28: multi-step raises (July 2026 2%, Jan 2027 2%, July 2027 3%), benefit changes and estimated fund totals; members raised concerns that percentage-based increases can widen pay gaps between exempt and lower-paid classified staff.
The Appropriations Committee reviewed the Pay Act provisions for fiscal years 2027–28 and questioned how percentage-based increases interact with the state’s pay charts and classification structure.
"The Pay Act provides funding for pay and benefits in the collective bargaining agreements for fiscal year '27 and '28," Beth Fastigi, commissioner of the Department of Human Resources, told the committee. She described a schedule of raises tied to the two‑year contracts: a 2% across‑the‑board increase in July 2026 plus continuation of steps; another 2% in January…
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