New state pay raise to pump $1 million into local economy
State comptroller Susan Combs certifies budget for Sept. 1 effective date
BY LELAND ACKER

Just over $1 million per year will be added to the payroll of 1,600 state employees in Cherokee County beginning Sept. 1, as Texas Comptroller Susan Combs certified the state employee pay raises authorized by the 80th Legislature this year.

Mrs. Combs said state revenues are higher than projected, especially sales tax revenue.

"So far, the Texas economy has been resilient to the slowdown in the national economy, resulting in stronger than anticipated revenue growth in the first half of this year," Mrs. Combs said.

The impact to Cherokee County comes from the 1,600 state jobs located in Cherokee County. Rusk State Hospital (RSH) employs 995 people, with an annual payroll budget of $30 million. The two-percent pay increase will represent an increase of $600,000 to the payroll budget of RSH.

The Texas Department of Criminal Justice employs 605 people at the Skyview/Hodge units in Rusk, with a payroll budget of $20.4 million per year. The increase represents an additional $408,000 to the local economy over the next year.

An additional two percent pay increase set to take effect on Sept. 1, 2008 may represent an added $1,028,000 per year to Cherokee County in 2008-09, if certified by Mrs. Combs.

"I think it's great," said Bob Goldsberry, executive director of the Rusk Chamber of Commerce. "Any pay raises on that scale will trickle down to local retail."

Mr. Goldsberry said the pay raises will benefit the economic development of Rusk and said the chamber can maximize that benefit by continuing to support the shop at home first program.

"We want to keep that in the forefront of people's minds," Mr. Goldsberry said.

State employees will receive a two-percent pay raise effective Sept. 1, and possibly an additional pay raise on Sept. 1, 2008, as a result of legislation passed this year.