CT Lawmakers Approve Raises, Bonuses For State Employees

CONNECTICUT — The state Senate gave final approval to the raise and bonus package for state employees. The package was previously approved by the House.

Gov. Ned Lamont previously touted the agreement as a way to retain state employees amid a wave of potential retirements.

"The state has to live within its means just like the families and businesses we serve and represent," Lamont said in a statement when the deal was announced. "But this is also a unique situation where state employees did extraordinary work during a paradigm-altering pandemic, inflation has concurrently increased, and the state workforce could potentially undergo significant changes due to retirements and uncompetitive wages."

Here are five things to know about the deal:

What is included in the package?

Employees covered by the State Employees Bargaining Agent Coalition would get a 2.5 percent wage increase and step increases retroactive to July 1, 2021. They would then get the same increase on July 1, 2022 and again on July 1, 2023.

Employees would also get a $2,500 bonus if they are employed as of March 31, 2022, and a $1,000 if they are employed July 1, 2022. Bonuses are prorated for part-time employees.

How much will the deal cost?

The Office of Fiscal Analysis estimates the package will cost the state $1.87 billion over four years.

Is the deal final?

The deal is now final since the state Senate and House approved it. Similar deals would pass automatically if the legislature didn’t take action in the past, but a 2017 law requires approval from both chambers.

What was the Republican response?

Several Republican lawmakers decried the deal and said it would exacerbate Connecticut’s fiscal woes.

“This proposed contract is a raw deal for the working people of this state,” Sen. Ryan Fazio (R-Greenwich) said.

The deal works out to about $40,000 in raises per state employee over four years, Fazio said, which works out to about $1,300 per Connecticut household.

Fazio cited a study by the American Enterprise Institute, which found that Connecticut state employees on average are paid 5.6 percent less in salary than a private sector employee with similar qualifications.

The study also found that Connecticut state employees are compensated 33 percent more than a similar private sector employee when pension, healthcare and other fringe benefits are taken into account.

Are more state employees retiring than usual?

The state usually experiences 2,000 to 2,500 annual state employee retirements, according to the CT Mirror. More than 3,400 state employees have retired or have filed written intention to retire this year, but that number is expected to increase before July 1. Employees who retire after that date will get less lucrative retirement benefits.