Kansas legislators approve 5% pay raise for state workers in budget, increases KPERS funding

Kansas legislators signed off on a 5% pay raise for state workers as part of a nearly $22 billion budget plan, which was sent to Gov. Laura Kelly Friday.

The pay hike for workers is the first since 2018, after legislators passed on improving salaries for most public employees last year. The raise is expected to cost $145 million overall, with roughly $50 million on that coming from the state general fund.

Sen. Rick Billinger, R-Goodland, chair of the Senate Ways and Means Committee, said the matter took on a heightened importance given historic levels of inflation.

"We understand we need to make sure we get all the state employees a better wage so they can afford to deal with inflation alone, much less just making a good living," Billinger said. "I think the big difference is we realize we need to take care of our people."

The raise will not apply to legislators, the state's judicial branch and hourly workers at state hospitals and prisons affected by a pay hike implemented in November.

"We put real money behind some things we need to put money behind," said Rep. Kathy Wolfe Moore, D-Kansas City. "At the top of that list was a 5% raise for employees, our most valuable assets."

The bill locks in much of the state's spending, though some key items will be deferred to when legislators return to Topeka in early May to wrap up their legislative business.

The budget also includes $1.4 million to increase Kansas Highway Patrol pay, as well as an additional $11 million purchase new aircraft for the agency.

Lawmakers sign off on bolstering pension fund

In a separate piece of legislation, the Kansas House approved an effort to deposit $854 million into the Kansas Public Employees Retirement System, an effort to shore up the state's pension fund.

Democrats and retirees were disappointed the measure did not include a cost-of-living adjustment for those currently receiving pension checks, something that has not occurred since the 1990s.

The move significantly increases the pension's funded ratio, which will likely rise above 80% with the bill. This will save the state hundreds of millions of dollars in the next five years.

"It does get us to 80.1% on the funded ratio for this fiscal year, so we were able to meet that objective," said Rep. Steven Johnson, R-Assaria, chair of the House Insurance and Pensions Committee.

Andrew Bahl is a senior statehouse reporter for the Topeka Capital-Journal. He can be reached at abahl@gannett.com or by phone at 443-979-6100.

This article originally appeared on Topeka Capital-Journal: State employees, KPERS pension fund get investments in Kansas budget