Senator urges automatic cost of living pay raise

JEFFERSON CITY, Mo. -- One state senator says rising health care costs justify an automatic annual cost-of-living pay increase for most state employees. Sen. John Cauthorn presented his bill tying employees' salary increases to the Consumer Price Index to the Senate Financial and Governmental Organizations Committee on Monday. Salaries would automatically be adjusted when each fiscal year begins according to the percentage rise in the regional Consumer Price Index, which gauges inflation. But the legislature could pass a measure to block the increases from taking effect. Elected officials would not be included in the pay proposal.

Legislative staff estimated that a 1 percent increase under the Consumer Price Index would cost $12 million a year for salaries and benefits, including some federal money.

During the past three years the CPI has increased 2.7 percent, 1.2 percent and 1.9 percent.

------

On the Net:

Pay raise bill is SB860.

Missouri Legislature: http://www.moga.state.mo.us