Cost of readjusting pay, health care for state employees after Great Recession may top $583M

The new cost of implementing labor contracts for Washington state employees and home care aides in next year’s state budget might exceed $583 million. That includes wage increases and keeping health care coverage roughly the same as today.

How much more of a challenge that adds to next year’s budget process remains to be seen. The state is under a state Supreme Court contempt order to improve funding of K-12 schools next year and fully fund basic education by the 2017-18 school year, which could require $1.5 billion or more in new investment in the next budget alone, and Gov. Jay Inslee’s budget office has said it expects a shortfall even before K-12 investments are considered.