COLA adjustments in proposed Killeen budget explained by increased inflation

Killeen Daily Herald
By Kevin Limiti | Herald
July 17, 2023

From police officers to firefighters, and every city job in-between, all Killeen city employees are slated to get at least a %6 raise in the coming fiscal year, which is double the raise they got last year.

In the proposed 2024 budget for the city of Killeen, cost of living adjustments (COLA) for city employees was increased significantly more when compared to the 2023 budget, which the city manager said was partly due to high inflation.

This increase for the COLA in the new budget includes 7% for civil service pay and 6% for classified employees.

In the 2023 budget, the COLA for civil service and classified employees were both raised by 3%.

Civil service employees are government employees who require training or certification such as firefighters and police officers while classified employees are those who perform routine duties and functions for the city.

Pay for starting police officers rose to $32.21 per hour in the proposed 2024 budget from $30.10 per hour in the current budget; while starting fire rescue officers working an eight-hour shift rose from $27 to $28.89 per hour. Pay for fire rescue officers working 24 hour shifts rose from $20.37 to $21.80 per hour, according to the proposed budget.

City Manager Kent Cagle said in an email Monday that there are many reasons on how the COLA adjustments are determined in the budget each year, but that inflation was part of the city’s determination.

“We do our best to keep pace and be competitive with market salaries, while being aware of the mounting inflation costs our employees/citizens are experiencing,” Cagle said. “Overall, we want to take care of our existing and future employees, while still maintaining a balanced budget. I’m very optimistic about this potential benefit we’re able to offer our employees this year, as they’re our most valued asset.”

According to the U.S. Bureau of Labor Statistics, the Consumer Price Index — which measures inflation — increased by 3% in June from last year. Most of the increase came from the shelter index, which measures rent and utility payments as well as housing costs.

Food costs rose 5.7% overall from December 2022 in the CPI and electricity rose 5.4%. But energy costs overall fell by 16.7%.

Social Security received an 8.7% increase in COLA adjustments in 2023, earning those benefiting from the program approximately $140 more each month, the biggest increase in decades.

Killeen’s proposed budget for fiscal year 2024 totals $282.4 million, a decrease of approximately $16 million from the current year. The Killeen City Council will hold a public hearing Aug. 1 on the new budget.