May 31, 2022 – Richmond, VA
UPDATE June 1, 2022, at 5:00 p.m. ET: The VGEA has heard that the budget was approved by the General Assembly this afternoon with no changes to state employee raises. Now, the budget will be sent to Governor Youngkin for final amendments and approval. Once the Governor receives the budget from the General Assembly, he has seven days to amend or approve it. The VGEA will keep you updated as we get additional updates.
As expected, Virginia’s money committees released their proposed biennial budget* for 2023-2024 (July 1, 2022- June 30, 2024) on the evening of May 29, 2022.
If the proposed budget is approved without additional changes by both the General Assembly and Governor Youngkin (which the VGEA expects at this time), it will be great news for state employees.
Sincere thanks to VGEA lobbyist, Dylan D. Bishop, who reviewed the proposed budget in detail to identify the portions that are pertinent to VGEA members. We’ve provided those below.
If approved as-is, state employees will receive the following:
The General Assembly is scheduled to convene Wednesday, June 1, 2022, to amend or approve the money committees’ proposed compromise.
The budget will then go to Governor Youngkin for final amendments and approval. Once the Governor receives the final budget from the General Assembly, he has 7 days to amend or approve it.
Again, the VGEA doesn’t anticipate that the budget will change significantly from the proposed compromise released on May 29, 2022, but it remains a possibility. Of course, we’ll be sure to keep you informed of any relevant policy changes should they develop.
State Employee Raises (Budget Item 483 #3c)
This amendment adjusts funding included in the introduced budget for employee compensation to provide a five percent salary increase in each year of the biennium for state employees, university faculty including adjunct faculty and graduate teaching assistants, and state-supported local employees. Certain employee groups receiving a separate, targeted compensation adjustment equal to or greater than 7.5 percent in the first year will receive a 2.5 percent salary increase in the first year and a five percent salary increase in the second year. The total cost of the across-the-board salary adjustments is $223.1 million from the general fund in fiscal year 2023 and $523.6 million from the general fund in fiscal year 2024. Note: Most state employees’ pay increase will not become effective until August 1, 2022. (See HB29 “Caboose Budget,” Budget Item 477 #1c.)
State Employee Bonus (Budget Item 483 #4c)
This amendment provides $66.5 million from the general fund in fiscal year 2023 for a one-time bonus payment of $1,000 to state employees on December 1, 2022.
Review of Return to Work Policies for Retired Employees (Budget Item 498 #2c)
This amendment requires the VRS to conduct a review of Virginia’s return to work policy regarding individuals who have retired and wish to return to work in a VRS covered position and compare it to policies in other states. The amendment includes $250,000 from the nongeneral fund to support costs incurred in conducting the review.
Provide Funding for Retiree Health Care Credit (Budget Item 483 #2c)
This amendment provides $80.4 million from the general fund in over the biennium to VRS to increase the funded status for the retiree health credit plans for state employees, employees of the constitutional offices and local social service departments up to 30%.
Lump Sum Payment to VRS in FY 2022 (HB29 “Caboose Budget”, Budget Item 277 #1c)
This amendment provides $750.0 million from the general fund in fiscal year 2022 for a lump sum payment to the VRS to address the unfunded liability of the VRS run programs. A companion amendment to House Bill 30 includes additional contingent appropriation of $250.0 million to VRS.
Companion Amendment to “Lump Sum Payment to VRS in FY 2022” (Budget Item 269 #1c)
This amendment redirects funding included in the introduced budget for lump sum payments for the VRS retirement system. A companion amendment in House Bill 29 provides a $750.0 million payment to the VRS in fiscal year 2022. Making the payment a year earlier than originally proposed will allow the funds to be invested a year earlier and realize an additional year of investment returns prior to the next valuation.
Adjust Correctional Officer Salary Increase to Equal Deputy Sheriffs (Budget Item 402 #2c)
This amendment adjusts funding in the introduced budget providing a targeted salary increase to DOC correctional officers. The introduced budget included funding to increase the starting salary for DOC correctional officers up to $44,000, and increase the starting salary for deputy sheriffs and regional jail officers to $42,000. This amendment adjusts the funding to set the new starting pay at $42,000 equal to the level for deputy sheriffs and regional jails. This is consistent with § 15.2-1609.2 of the Code of the Virginia which states deputy sheriff pay shall be no less than that of correctional officers. The $42,000 salary increase still results in a 19.8% increase in starting pay for correctional officers. The amendment also adjusts funding to reflect a July 10, 2022 effective date.
Provide $3,000 Salary Increase for Probation and Parole Officers (Budget Item 399 #3c)
This amendment provides $3.3 million from the general fund the first year and $3.6 million from the general fund the second year to provide a $3,000 salary increase for probation and parole officers effective July 10, 2022 for the August 1, 2022 payday, and adds language directing the Department of Corrections to review staffing and compensation for probation and parole officers and deliver a report containing such information to the Governor and the Chairs of House Appropriations and Senate Finance and Appropriations Committees by October 1, 2022.
DOC Air Conditioning Installation (Budget Item 486 #23c)
This amendment provides $8.8 million the first year from the American Rescue Plan Act State and Local Recovery Fund for air conditioning installation at several adult correctional facilities.
DHRM Review of Providing Childcare on Capitol Square (Budget Item 86 #1c)
This amendment requires the Department of Human Resource Management (DHRM) and Department of General Services (DGS) to review the feasibility of offering childcare services within the Capitol Square complex. This service was previously offered in the Virginia Department of Transportation (VDOT) building on Broad Street.
Telework Data Reporting (Budget Item 86 #2c)
This amendment directs the DHRM to compile and report data on the number of employees for each agency working remotely and the days per week each employee remotely worked for the 2019 calendar year, during the Coronavirus pandemic and prior to July 5, 2022, and under the new Standard Telework Agreement effective July 5, 2022.
Study of Compensation @ DBHDS (Budget Item 311 #9c)
This amendment directs the Department of Behavioral Health and Developmental Services (DBHDS) to collect information from Community Services Boards and the Behavioral Health Authority on employee compensation to assist in developing a proposal to address compensation issues to be considered in the 2023 Session.
As always, we’re listening and advocating for you. Reach out to the VGEA team at info@vgea.org with questions, comments, or concerns.
* “Virginia operates under a two-year (biennial) budget cycle. Each year the Governor prepares the proposed budget bill for introduction by the General Assembly. The bill is initially adopted in even-numbered years and amended in odd-numbered years.” Learn more at budget.lis.virginia.gov.
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