Appropriations for the Salary Increase Allocation for Certain State Positions

Overview

Applicable to

• State agencies
• Texas Higher Education Coordinating Board
• Teacher Retirement System of Texas
• Texas Permanent School Fund Corporation
• All staff at the Windham School District and Texas Juvenile Justice Department
• Non-instructional staff at the Texas School for the Blind and Visually Impaired
• Texas A&M University System service agencies 
• Article X agencies

Summary

The enactment of Senate Bill 30 provides a 5 percent increase in monthly salary with a minimum increase of $250 per month for certain state positions beginning July 1, 2023, and ending Aug. 31, 2023, and appropriates any related employee benefit costs associated with the salary increase required by the General Appropriations Act (GAA), Article IX, Sections 17.03 and 17.06. House Bill 1, the General Appropriations Act (GAA), extends the SB 30 increase from Sept. 1, 2023, through Aug. 31, 2024 (i.e., through appropriation year [AY] 2024), and provides for an additional 5 percent increase in annual salary with a minimum annual increase of $3,000 for AY 2025. It also appropriates any related employee benefit costs associated with the salary increase required by GAA, Article IX, Sections 17.03 and 17.06. The Texas Comptroller of Public Accounts provides information on the appropriations for the salary increase.

For more information, see:

• Guidelines for the Salary Increase for Certain State Positions (FPP F.017)
• Changes to Article IX of the GAA and Other Bills of Interest to State Agencies (FPP F.008)

Authorization

SB 30, Section 9.01, 88th Legislature, Regular Session.
HB 1, GAA, Article IX, Section 17.16, 88th Legislature, Regular Session.

Legend

Agency Requirements for the Salary Increase

For July and August 2023, all affected agencies must determine the amount of salary increase appropriation necessary to fund their total increase in salaries. SB 30, Section 9.01(e) and GAA, Article IX, Section 17.16(d) require agencies to ensure salary increase amounts and benefit costs paid from multiple appropriated funds are proportional to the agency’s method of finance. SB 30, Section 9.01(g) and GAA, Article IX, Section 17.16(h) prohibit agencies from increasing fees or taxes to offset appropriations made for the purpose of the salary increase. 

SB 30, Section 9.01, 88th Legislature, Regular Session

Appropriation and Program Cost Account for Salary Increase for SB 30

The Comptroller’s office will establish appropriation number 38901, titled SB 30 Appropriation for a Salary Increase in AY 2023, for each agency as the receiving account for the salary increase allocation from the Comptroller’s office. Each agency must create a program cost account (PCA) for appropriation year 2023 that infers the USAS program code 3991 and appropriation number 38901.

Transfer of Salary Increase Allocation From the Comptroller’s Office for SB 30

Each agency must prepare and submit a USAS budget revision no later than July 7, 2023, to transfer the salary increase amount and associated benefit costs related to Sections 17.03 and 17.06 from the Comptroller’s office to the agency’s receiving account.

To correctly code the salary increase allocation transfer from the Comptroller’s office, agencies must answer both of these questions:

• Will the appropriation transfer be a committed or collected budget?
• Will the appropriation transfer from Agency 902 be from Fund 0001 or 0999?

Use the guidelines in the table below to determine if the salary increase allocation transfer should be committed or collected and to identify the correct fund to transfer from Agency 902.

Committed Budget

Committed budget if agency appropriations are …	902 Fund
Funded with general revenue (GR)	0001
Funded with appropriated receipts or interagency receipts identified in the method of finance and deposited to Fund 0001	0001
Set up with committed budgets funded from GR dedicated accounts (GR-D) or other special funds	0999

Use the following coding block to transfer a committed budget from Agency 902 to the agency receiving account with a document type A, batch type 1.

Agency Number	T-Code/ Title	Appropriation Number	COBJ	Appropriated Fund/ Agency Fund/ PCA
902	012/Appropriation Transfer Out-Exp	38901	7000	0001*/0999* 0001/0999 38901
XXX	018/Appropriation Transfer In-Exp	38901	7000	Determined by Agency

*See above guidelines for committed budget to determine Fund 0001 or 0999.

Collected Budget

Collected budget if agency appropriations are …	902 Fund
Funded with federal funds	0999
Funded with GR-D accounts or other special funds set up with collected budgets	0999
Funded with appropriated receipts, interagency receipts, bond proceeds, grants or other sources deposited to GR-D accounts or other special funds	0999

Use the following coding block to transfer a collected budget from Agency 902 to the agency receiving account with a document type A, batch type 1.

Agency Number	T-Code/ Title	Appropriation Number	COBJ	Appropriated Fund/ Agency Fund/ PCA
902	012/Appropriation Transfer Out-Exp	38901	7000	0999/ 0999/ 38901
902	015/Appropriation Transfer Out-Rev	38901	3000	0999/ 0999/ 38901
XXX	018/Appropriation Transfer In-Exp	38901	7000	Determined by Agency
XXX	021/Appropriation Transfer In-Rev	38901	3000	Determined by Agency

Note: The AGL field is required for all budget transfer transactions.

Submit the prepared budget revision to the Appropriation Control section of the Comptroller’s office. On receipt of the salary increase amount and associated benefit costs related to Sections 17.03 and 17.06, agencies must transfer the salary increase allocation amount from their receiving appropriation to the strategy(ies) that salaries are ordinarily paid from. These transfers must maintain the same fund proportion as the source of funds the salaries or wages are ordinarily paid from.

Other End of Article Benefit Costs Related to Salary Increase Allocations for SB 30

Appropriations to pay benefit costs related to the salary increase are made in SB 30. Agencies will need to consider the effect of the salary increase and include additional amounts in their allocation request for the benefit appropriations (i.e., Social Security - State Match, benefit replacement pay and state retirement). See Salary Benefit Appropriation Allocations (APS 019) (FPP A.042) for instructions.

Return of Excess Appropriation Authority for SB 30

Before October 30, 2023, agencies must return to the Comptroller’s office any AY 2023 unused salary increase allocation amounts from SB 30, as well as unused other benefit amounts associated with the salary increase. Any return transactions must reverse the original transfer transactions from the Comptroller’s office.

HB 1, GAA, Article IX, Section 17.16, 88th Legislature, Regular Session

Appropriation and Program Cost Account for Salary Increase for HB 1

Direct Strategy Appropriations

Agencies with a salary adjustments strategy in their AY 24-25 bill pattern can follow Establishing Appropriations by Method of Finance, Rider, Capital Budget and Transfer Schedules (FPP A.020) to establish original budget in USAS. Agencies may refer to copies of the LBB ABEST/USAS CROSSWALK (Crosswalk) provided by their appropriation control officer to confirm the strategic structure program codes and corresponding appropriation number.

Before expending appropriations for salary adjustments, agencies must transfer the salary increase allocation amount to the strategy(ies) that salaries are ordinarily paid from. These transfers must maintain the same fund proportion as the source of funds the salaries or wages are ordinarily paid from.

Additional Salary Increase Allocation

If an agency is unable to implement the salary increase and any related employee benefit costs associated with Sections 17.03 and 17.06 with the amounts appropriated under the salary adjustments strategy in their AY 24–25 bill pattern, and requires additional funds, the Comptroller’s office will establish appropriation number 28901, titled Section 17.16 Appn for a Salary Increase, as the receiving account for a salary increase allocation from the Comptroller’s office. Each affected agency must create a program cost account (PCA) for AY 2024 and 2025 that infers the USAS program code on the Crosswalk for the salary adjustment strategy and appropriation number 28901. See Transfer of Salary Increase Allocation From the Comptroller’s Office below for more information.

Transfer of Salary Increase Allocation From the Comptroller’s Office for HB 1

Each agency must prepare and submit a USAS budget revision to transfer the salary increase amount and any related employee benefit costs associated with Sections 17.03 and 17.06 from the Comptroller’s office to the agency’s receiving account.

To correctly code the salary increase allocation transfer from the Comptroller’s office, agencies must answer both of these questions:

• Will the appropriation transfer be a committed or collected budget?
• Will the appropriation transfer from Agency 902 be from Fund 0001 or 0999?

Use the guidelines in the table below to determine if the salary increase allocation transfer should be committed or collected and to identify the correct fund to transfer from Agency 902.

Committed Budget

Committed budget if agency appropriations are …	902 Fund
Funded with general revenue (GR)	0001
Funded with appropriated receipts or interagency receipts identified in the method of finance and deposited to Fund 0001	0001
Set up with committed budgets funded from GR dedicated accounts (GR-D) or other special funds	0999

Use the following coding block to transfer a committed budget from Agency 902 to the agency receiving account with a document type A, batch type 1.

Agency Number	T-Code/ Title	Appropriation Number	COBJ	Appropriated Fund/ Agency Fund/ PCA
902	012/Appropriation Transfer Out-Exp	28901	7000	0001*/0999* 0001/0999 28901
XXX	018/Appropriation Transfer In-Exp	28901	7000	Determined by Agency

*See above guidelines for committed budget to determine Fund 0001 or 0999.

Collected Budget

Collected budget if agency appropriations are …	902 Fund
Funded with federal funds	0999
Funded with GR-D accounts or other special funds set up with collected budgets	0999
Funded with appropriated receipts, interagency receipts, bond proceeds, grants or other sources deposited to GR-D accounts or other special funds	0999

Use the following coding block to transfer a collected budget from Agency 902 to the agency receiving account with a document type A, batch type 1.

Agency Number	T-Code/ Title	Appropriation Number	COBJ	Appropriated Fund/ Agency Fund/ PCA
902	012/Appropriation Transfer Out-Exp	28901	7000	0999/ 0999/ 28901
902	015/Appropriation Transfer Out-Rev	28901	3000	0999/ 0999/ 28901
XXX	018/Appropriation Transfer In-Exp	28901	7000	Determined by Agency
XXX	021/Appropriation Transfer In-Rev	28901	3000	Determined by Agency

Note: The AGL field is required for all budget transfer transactions.

Submit the prepared budget revision to the Appropriation Control section of the Comptroller’s office. On receipt of the salary increase allocation amount, agencies must transfer the salary increase allocation amount from their receiving appropriation 28901 to the strategy(ies) are ordinarily paid from. These transfers must maintain the same fund proportion as the source of funds the salaries or wages are ordinarily paid from.

Note: The Comptroller’s office may request additional data to support additional salary increase funding. Please be prepared to provide the requested information.

Other End of Article Benefit Costs Related to Salary Increase Allocations for HB 1

Appropriations to pay other benefit costs related to the salary increase are made in HB 1. Agencies will need to consider the effect of the salary increase for the other benefit appropriations. Agencies will need to consider the effect of the salary increase and include additional amounts in their allocation request for the benefit appropriations (i.e., Social Security - State Match, benefit replacement pay and state retirement). See Salary Benefit Appropriation Allocations (APS 019) (FPP A.042) for instructions.

Return of Excess Appropriation Authority for HB 1

Before October 30 of each fiscal year, agencies must return to the Comptroller’s office any prior year unused salary increase allocation amounts transferred from the Comptroller as well as unused other benefit amounts associated with the salary increase. Any return transactions must reverse the original transfer transactions from the Comptroller’s office.

Remaining unused balances from the amounts directly appropriated to each agency will need to be lapsed.

Frequently Asked Questions

How is the amount of the increase calculated for existing eligible employees?

The 5 percent or $250 per month increase is built into the maximum amounts for the salary schedules for July and August of fiscal 2023, and for fiscal 2024 and fiscal 2025. For CAPPS Central agencies, CAPPS will apply the increase automatically on July 1, 2023, and Sept. 1, 2024. Other agencies and institutions, including CAPPS Hub agencies, must calculate and apply the increase themselves for eligible employees.

Fiscal 2023

For eligible employees hired before July 1, 2023, the salary increase for July and August 2023 is 5 percent of the employee’s salary as of June 30, 2023. The minimum increase for this period is $250 per month.

Fiscal 2024

For eligible employees hired before July 1, 2023, the salary increase for fiscal 2024 is 5 percent of the employee’s salary as of Aug. 31, 2023, but not including the 5 percent salary increase from July and August 2023. The minimum increase for this period is $250 per month. This means there is no additional 5 percent or $250 minimum increase effective Sept. 1, 2023. All other salary actions (merit increases, promotion, demotion, etc.) that adjust an employee’s base salary from July and August 2023 will be included in calculating the increase.

Fiscal 2025

For eligible employees hired before Sept. 1, 2024, the salary increase for fiscal 2025 is 5 percent of the employee’s salary as of Aug. 31, 2024. The minimum increase for this period is $250 per month.

The 5 percent salary increase for fiscal 2025 will include all salary actions (the 5 percent increase for 2024, merit increases, promotion, demotion, etc.) that adjust an employee’s base salary from fiscal 2024.

How is the amount of the increase calculated for newly hired eligible employees?

The 5 percent increase is built into the maximum amounts in the salary schedules for July and August of fiscal 2023, per SB 30, and for fiscal 2024 and fiscal 2025, per HB 1. Both bills authorize a salary increase for all employee positions of state agencies paid according to Classification Salary Schedules A, B and C for included agencies.

Fiscal 2023 and 2024

For eligible employees hired during July and August 2023 and in fiscal 2024, agencies are allowed to use the funding appropriated for the increase for the portion of the new hire’s salary that can be attributed to the 5 percent salary increase. The minimum increase for this period is $250 per month.

Note: Employees hired during July and August 2023 and in fiscal 2024 are considered existing employees for the purpose of calculating the increase for fiscal 2025.

Fiscal 2025

For eligible employees hired during fiscal 2025, agencies are allowed to use the funding appropriated for the increase for the portion of the new hire’s salary that can be attributed to the 5 percent salary increase. The minimum increase for this period is $250 per month.

How many salary increases will employees receive?

Eligible employees will receive two 5 percent or $250 per month increases. HB1 provides increases for Sept. 1, 2023, and Sept. 1, 2024. SB 30 begins the increase on July 1, 2023, but the SB 30 increase may not be considered when determining the increase for Sept. 1, 2023.

How is the amount of the increase calculated for employees that work only part of a month?

For eligible employees working only part of a month, the increase is prorated for the month and is proportional to the percentage of the employee’s base salary that was paid for the month.

Are there any limitations on using the salary increase funding provided in SB 30 and HB 1?

If a position’s salary was already increased to a minimum of 5 percent or $250 per month, and the position experiences turnover, agencies may not use this legislative salary increase funding to further increase the salary for the position.

Can the salary increase funding be used for lump-sum payments for vacation time?

Agencies are allowed to use salary increase funding for part of a lump-sum payment for vacation time for eligible employees who have separated from state employment, but only for the part that can be attributed to the salary increase. See Lump-Sum Payment of Accrued Vacation Time for more information.

Can the salary increase funding be used for the required ERS/TRS surcharge imposed on certain return-to-work retirees?

Agencies are allowed to use salary increase funding to pay part of the surcharge paid to ERS or TRS for certain return-to-work retirees, but only for the part that can be attributed to the salary increase. See Retired State Employees Who Resume State Employment for more information.