Gov. Asa Hutchinson
says sufficient money is on hand to pay merit pay raises for fiscal 2017, which ends June 30. He had delayed the decision to see how state revenue continued to flow as the year came to an end.
Agency savings and money in the merit pay fund were determined to be sufficient to allow the pay raises to be implemented.
Bonuses will range from 1 to 3 percent of pay based on a three-tiered rating system from satisfactory to "exceeds standards."
The amounts will be paid as bonuses. In the next fiscal year, merit pay will be awarded as a pay increase, according to a statement from Finance and Administration.
The state will roll out a new pay plan for the new fiscal year and beyond, beginning July 1. It will provide adjustments in a variety of categories. For those already at the maximum pay for their job grade, they'll get a 1 percent increase. Future plans also call for longevity payments of $600 to $900 for employees who've worked at least 10 years for the state.
Here's the full release from Larry Walther, director of Finance and Administration.
Update: A breakdown on cost and those affected from DFA's Jake Bleed:
The total cost to the state for the merit bonuses will be $23m this fiscal year – that is total cost, i.e. not merely general revenue but also other sources of funding (federal, special, etc)
Split for employees covered by the changed pay plan –
55% will get the minimum increase authorized under the plan, depending on their position
45% will get a 1 percent increase