Ohio County commissioners have announced a new pay raise for county employees, even as they anticipate significant increases in health insurance premiums for the upcoming year.
In previous years, the county provided a $1,000 wage increase to employees before Thanksgiving. However, with escalating health insurance costs, this practice has been adjusted.
At their latest meeting, commissioners approved an $800 wage increase for 2024. Employees will receive this amount as a one-time payment in their next paycheck, and it will be incorporated into their regular wages starting July 1, 2025.
According to County Administrator Randy Russell, Ohio County employs 164 full-time workers. The county is currently conducting a salary study to explore the most effective ways to support its staff financially. Commissioner Zach Abraham indicated that while arbitrary wage increases are not ideal, they recognize the need to address insurance cost rises.
Commission President Don Nickerson echoed this sentiment, acknowledging the financial strain on both the county budget and its employees. The county’s contribution to employee health insurance is expected to increase by $450,000 next year, bringing the total to approximately $4 million. This amount constitutes about 20% of Ohio County’s $21 million budget.
Abraham noted that despite some cost-saving measures, including plan adjustments and shifting some expenses to employees, insurance premiums remain relatively low compared to market rates. He suggested a potential pay raise of $500 to $750 per employee but emphasized the need for a decision on whether to distribute the increase as a lump sum or incrementally.
Commissioner Randy Wharton stressed the importance of providing stability and clear career paths for employees, given the challenges of hiring and retention. He highlighted the difficulty of managing benefits costs, particularly in light of expected insurance cost increases of 15-20% next year.
Wharton also noted that commissioners must collaborate with elected officials, such as the sheriff and assessor, to plan for future staffing and budgetary needs. He mentioned the ongoing efforts to improve office efficiency and reduce staffing needs, citing County Clerk Mike Kelly’s successful digitization of records as an example.
Despite these cost-control efforts, Wharton emphasized the importance of fair compensation to retain skilled employees. He expressed a commitment to safeguarding benefits and ensuring that employees feel valued.
Overall, Abraham and Wharton stressed the need for a balanced approach that considers both employee compensation and budgetary constraints, underscoring the importance of retaining a motivated and efficient workforce.