At the November 2020 Executive Committee meeting, agency staff reviewed budget assumptions for the FY 21/22 budget. A 2% cost of living allowance was proposed in order to maintain staff morale and support staff retention. The committee directed staff to conduct a cost of living survey of other jurisdictions and requested the fiscal impact of a 2% and 3% COLA. The survey results are included as an attachment with this staff report. A majority of the jurisdictions responding implemented a cost of living adjustment between 2% and 3.5% in two of the three survey years (FY 19/20, 20/21, 21/22), and Pacific Grove adopted a single year 4.5% COLA. Most have not finalized a cost of living allowance for FY 21/22.
The TAMC Board had a approved a 3% cost of living allowance in the FY 20/21 draft budget but it was eliminated from the final budget due to the COVID-19 pandemic concerns.
The cost of a 2% cost of living allowance is estimated to be $40,645. A 3% is estimated to be $60,968. The elimination of 2 part-time intern positions would cover the impact of a 2% COLA. Staff is reviewing other potential reductions and should be able to absorb a 3% COLA as well. The agency continues to maintain a healthy reserves also.
Staff requests direction on how to proceed on the FY 21/22 budget.