A Primer on Salary Rate for State Employees

To help the agencies prepare their Legislative Budget Request (LBR), the Executive Office of the Governor (EOG) provides each state agency with an approved annual salary rate for each budget entity that includes a salary appropriation. The salary rate is based upon actual salaries and is consistent with the General Appropriations Act (or any special appropriations act. 

Salary rate is a tool used by the Legislature to better manage and control positions and salaries. Rate annualizes agency personnel actions. Without the controls afforded by rate, the only limit on agency personnel actions would be the amount of salaries and benefits appropriated by the legislature. 

This would allow agencies, late in the fiscal year, to upgrade positions and increase salaries when the overall impact on the agency budget is small and can easily be absorbed.  

Because these salary increases are not automatically covered in the agency’s budget for the next fiscal year, the agency would begin the next fiscal year with a salary deficit. 

It is important to note that state agencies cannot exceed their approved annual salary rate for a given fiscal year.