The Arkansas state legislature is currently in their fiscal session. During the fiscal session only appropriation bills or spending bills are proposed, debated, and passed. However, rules allow that with a 2/3rds majority vote of each chamber the legislature may consider non-appropriation bills.
Sen. Breanne Davis (R-Russellville) has filed Senate Resolution 10 to consider a non-appropriation bill during the fiscal session. The bill would increase government worker pay schedules and provide bonuses to government workers.
This bill would allow a three percent (3%) increase in pay for government workers, even if it goes above the maximum salaries allowed under law for that position. General salary ranges are also increased by 42% on the low end of pay and 10% on the high end. Senior Executives in government could receive up to $221,870 in salaries. The median income for an entire Arkansas household is $56,335.
If you are in business in Arkansas, you already know there is a significant worker shortage. In this bill, new special bonus pay would use Arkansas businesses’ tax dollars against them by providing a “recruitment incentive” of $5,000 to recruit private company workers away from Arkansas businesses in order for them to go work for the government. New special bonus pay options would also be available for government workers which could include (a) $5,000 bonus, (b) 40 hours of paid leave, or (c) a lump sum payment of an employee’s annual leave, up to $10,000.
This new increased pay and bonus structure will compete directly with Arkansas businesses whose tax dollars create these positions and the tax dollars that make up their pay. Private businesses could lose workers or be at a competitive disadvantage to the government’s incentives.
Regarding the creation of jobs, the Arkansas Republican Party Platform states the following:
PEOPLE CREATE BUSINESSES; BUSINESSES CREATE JOBS; GOVERNMENT DOES NOT!
The legislation would include an emergency clause and go into effect beginning July 1, 2024.
The resolution has already passed the State Senate chamber. Upon full passage, a new bill will be filed and then follow the law-making process through both chambers.
