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Beaufort County explains 2.5% COLA recommendation as CPI data evolves
Summary
County staff told commissioners the recommended 2.5% cost-of-living adjustment was based on March CPI (12-month to February 2.41%); more recent April figures rose to 3.81%, which postdates the budget build.
County staff explained the rationale behind the recommended employee cost-of-living adjustment (COLA) during the budget workshop, saying the percentage was set based on the best CPI information available when staff built the expenditure budget.
"So when we looked at the CPI from February of 25 to February 26th, last 12 months, it was 2.41%. And that's why there's a 2.5% recommendation in the budget for CPI for a Cola," Brian (staff member) told commissioners, adding that later April CPI numbers rose to 3.81% and therefore recent data is higher than what was available in March when expenditures were built.
Staff provided the board with line-item COLA cost estimates: $715,038 in the general fund, about $42,006 for the Water Enterprise Fund and $3,983 for the Solid Waste Fund. Brian said the county builds personnel expenditures in March and finalizes revenue in April, noting the lag in federal CPI releases.
The explanation was offered after commissioners expressed concern that the recommended COLA may look low compared with more recent inflation reports; staff said the recommendation used the most reliable data available at the time of the budget build.
Closing: The board will consider the recommendation as part of the overall budget process and staff will continue to provide updated fiscal context during budget hearings.
