LITTLE ROCK, Ark. — On Tuesday, Arkansas Governor Sarah Huckabee Sanders announced a significant plan to revamp the compensation structure for state employees, amounting to an investment of $102 million. This initiative is aimed at benefiting over 14,000 workers employed by the state.

In her announcement, the Republican governor specified that this overhaul is included in her upcoming balanced budget proposal, which she is set to present to lawmakers later this month.

Governor Sanders highlighted that the primary goal of these changes is to align state employee salaries with those being offered in the private sector, especially for positions experiencing persistent staffing shortages. These roles include correctional officers, state troopers, nurses, and social service workers.

“We have completely reassessed the existing pay structure to establish a new compensation framework that recognizes dedication and motivates Arkansans to consider our most difficult-to-fill roles,” Sanders explained. “I am eager to collaborate with the Legislature to ensure this proposal is enacted, providing necessary and overdue changes for our dedicated public servants.”

Of the total annual cost associated with this pay adjustment, approximately $60 million will be sourced from general revenue, while the remaining funds will derive from various sources, including savings generated from unfilled positions. Sanders has encouraged agency leaders to explore funding this plan within their current budgets.

Additionally, the proposed changes will streamline job categories, reducing the number of titles from around 2,200 down to just over 800. It will also expand the pay structure to encompass six separate pay tables.

This proposal arrives amid a broader trend where public sector employers across the nation are facing difficulties in hiring and retaining staff. Many have increased wages to combat the competitive pressures from the private sector in their quest for workers.