Arkansas Gov. Asa Hutchinson (R) announced Thursday that thousands of state employees and state agencies will receive a 2 percent wage raise and salary adjustment.
The governor said a statement that the 2 percent cost-of-living-adjustment (COLA) is applied for executive branch employees and will reflect their upcoming paychecks on Feb. 25. It is the first such increase granted in the state in 10 years.
“I have never awarded this particular COLA increase,” Hutchinson said. “The last award was in 2012. I see this as absolutely necessary in light of the inflationary pressures that we are all experiencing.”
Hutchison also said that employees who work for agencies or offices that are not under his authority are ineligible to receive the new raises, adding that the COLA would not substitute for merit raises employees could receive, according to The Associated Press.
“I see this as absolutely necessary in light of the inflationary pressures they are all experiencing and because of their extraordinary work coming out of this pandemic,” Hutchinson said during a media briefing, the AP reported.
The governor noted the state’s chief fiscal officer has said Arkansas has enough general revenue for the increase, which will reportedly cost $24 million. The state expects to finish the current fiscal year with a roughly $500 million surplus.