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Finance council approves distribution for FY27 1% pay increase; $13.2M SGF allocated
Summary
The State Finance Council approved the distribution plan for a 1% pay increase for most executive-branch employees, allocating $13.2 million from the State General Fund and $34.1 million in all funds overall and applying a 1% increase across the classified pay matrix.
The State Finance Council approved the Director of Budget's recommended distribution of funds to implement a 1% pay‑plan increase for selected state employees in fiscal 2027.
Director Proppitt said section references in the session materials (identified in the presentation) authorize the increase and the administration proposes raising the entire classified pay matrix by 1 percentage point — every grade and step — to keep implementation uniform. The materials provided to council members break the allocation out by agency and fund on pages 35–45, Proppitt said. "The total for the pay plan at 1% is $13,200,000 SGF and $34,100,000 all funds," the director told the council.
Senator Blasey moved approval; Senator Sykes seconded. The council carried the motion on a unanimous roll call vote.
Proppitt did not field detailed policy questions during the council session; members asked for the agency‑by‑agency breakout view in the materials. The distribution will take effect as part of the fiscal‑year 2027 budget implementation process and agencies will receive adjusted appropriation/expenditure‑limitation instructions consistent with the vote.
