Legislation Alert - Pay Raises & Retirement Investments

The Texas Legislature has announced a new appropriations plan, House Bill 1, for the upcoming biennium that includes a pay raise for state employees, investments in state pensions, and additional agency funding.

View the entire Salary Increase Bill

House Bill 1

Employee Retirement Measures

 

The salary increase provision language is as follows:

Sec. 17.18. Appropriation for a Salary Increase for General State Employees.

(a) As used in this section, “salary increase” shall mean:

(1) a 5.0 percent increase in annual salary with a minimum of $3,000 per annum increase in salary, to begin on September 1, 2023, and another increase in annual salary to occur on September 1, 2024, consisting of an additional 5.0 percent increase with a minimum of $3,000 per annum increase in salary;

(2) any related employee benefits costs associated with the salary increase described by Subsection (a)(1) including contributions required by Sections 17.03 and 17.06; and

(3) funding necessary to implement the recommendations for changes to State Classification Plan as provided by the State Auditor’s Biennial Report on the State’s Position Classification Plan for the 2024-2025 Biennium.

(b) In addition to other amounts appropriated elsewhere in this Act which can be found in an individual strategy item contained in the bill pattern for each agency, for the biennium the Comptroller of Public Accounts is appropriated an amount estimated to be $0 out of the General Revenue Fund, an amount estimated to be $0 out of the General Revenue-Dedicated, an amount estimated to be $0 out of State Highway Fund No. 006, an amount estimated to be $0 out of Other Funds and accounts, and an amount estimated to be $0 out of federal funds to fund a salary increase as described in Subsection (a) for all employee positions of state agencies paid according to the Schedules A, B, and C Classification Salary Schedules, including employees of the Higher Education Coordinating Board and the employees of a Texas A&M University System service agency, as such a salary increase is reflected in the salary rates authorized elsewhere in this Act. Included in the amounts above and in the other amounts appropriated elsewhere in this Act which can be found in an individual strategy item contained in the bill pattern for each agency are General Revenue Funds, General Revenue-Dedicated Funds, State Highway Fund No. 006, and Other Funds that are intended to provide the salary increase for certain FTE positions currently paid from federal fund sources that would not be available for this purpose.

(c) The amounts appropriated by this section and elsewhere in this Act that are intended to be used for the salary increase described by Subsection (a) and which can be found in an individual strategy item contained in the bill pattern for each agency may not be used to provide a salary increase for statewide elected officials, justices and judges of the appellate and district courts, district attorneys, criminal district attorneys, county attorneys performing the duties of a district attorney, line item exempt (non-classified) employees, employees of institutions of higher education (except the employee positions of the Higher Education Coordinating Board and of a Texas A&M University System service agency), or the compensatory per diem of board or commission members.

(d) Provisions requiring salaries and benefits to be proportional to the source of funds shall apply to all sums allocated under this section and to the appropriations made elsewhere in this Act that are intended to be used for the salary increase described by Subsection (a) and which can be found in an individual strategy item contained in the bill pattern for each agency. Each agency shall pay the increase in compensation from funds held in the state Treasury and from local funds in the same proportion as the employee’s regular compensation unless their salary is paid from those federal funds deemed unavailable in Subsection (b).

(e) The Comptroller of Public Accounts shall promulgate rules and regulations as necessary to administer this section and the appropriations made elsewhere in this Act that are intended to be used for the salary increase described by Subsection (a) and which can be found in an individual strategy item contained in the bill pattern for each agency. Funds appropriated in this section and the appropriations made elsewhere in this Act that are intended to be used for the salary increase described by Subsection (a) and which can be found in an individual strategy item contained in the bill pattern for each agency shall be allocated to each agency, and to the appropriate employee benefit appropriation items, in accordance with these rules and regulations and may be used for the purpose of providing a salary increase and paying associated benefit costs.

(f) Notwithstanding other restrictions on transfers of appropriations from one strategy to another, the funds appropriated for the salary increase may be transferred to other strategies without limitation for the purpose of implementing the salary increase. MISCELLANEOUS PROVISIONS (Continued) A99T-LBB House-9-A IX-120 January 6, 2023

(g) This section and the appropriations made elsewhere in this Act that are intended to be used for the salary increase described by Subsection (a) and which can be found in an individual strategy item contained in the bill pattern for each agency do not authorize an increase of classified salary rates or exempt salary rates above the rates listed in the applicable schedule in this Act.

(h) State agencies appropriated monies under this Act may not increase fees or taxes during fiscal years 2024 or 2025 to offset the appropriations made by this section or elsewhere in this Act that are intended to be used for the salary increase described by Subsection (a). The monies necessary for the salary increase described by Subsection (a) for employees of agencies subject to appropriations limited to revenues collected provisions are included in the totals appropriated by this section and elsewhere in this Act that are intended to be used for the salary increases described by Subsection (a) and which can be found in an individual strategy item contained in the bill pattern for each agency. This subsection does not apply to the Texas Department of Insurance.

(i) This section shall apply to part-time employees hired pursuant to Government Code, Section 658.009. For the purposes of this section, in computing the annual salary increase for a parttime employee, the salary increase shall be proportional to an employee working 40 hours per week.

(j) This section applies to all staff at the Windham School District and the Texas Department of Juvenile Justice. This section applies to the non-instructional staff at the School for the Deaf and the School for the Blind and Visually Impaired; it does not apply to the instructional staff whose salaries are statutorily tied to the salary schedule at the Austin Independent School District.

 

View the entire Salary Increase Bill

Employee Retirement Measures

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