Tentative employee collective bargaining agreements would increase state spending by $356.4 million in 2021–23

By: Emily Makings
12:49 pm
October 5, 2020

Employee collective bargaining agreements (CBAs) for 2021–23 were submitted to the Office of Financial Management (OFM) on Oct. 1. Altogether, if approved by the Legislature, they would increase general fund–state (GFS) spending in 2021–23 by $356.4 million.

For general government employees, the submittal notes, “The state engaged in negotiations with the labor organizations representing state employees with recognition of both the ongoing global health care pandemic and significant budgetary challenges facing the state . . . our objective was to capture savings while maintaining the current level of benefits.” There is not a general wage increase, and employees will have 24 furlough days over the biennium. The furloughs are expected to save $92.7 million in the GFS.

The state will continue to contribute 85 percent of the cost of employee health care premiums. They will be funded at $1,046 per employee per month in FY 2022 and $1,130 per employee per month in FY 2023. Health care for general government and higher education employees is expected to increase GFS spending by $50.0 million.

The CBA for K–12 employee health benefits also maintains the 85 percent cost share, but it funds the premiums at $1,097 per employee per month in FY 2022 and $1,149 per employee per month in FY 2023. This is expected to increase GFS spending by $329.9 million.

Finally, the CBAs for individual providers of home care services, family child care providers, adult family home providers, and language access providers include wage and rate increases. Funding these CBAs (and providing parity for agency providers) is expected to increase GFS spending by $69.0 million.

Under state law (RCW 41.80.010(3)), the director of OFM must certify that the agreements are financially feasible and the governor must include them in his budget proposal. The Legislature must then approve or reject the CBAs as a whole.

Categories: Budget.