• State agencies request salary increases for staff in their fiscal year 2027 budget requests • Gov. Katie Hobbs’ proposal for a 2% to 3% raise for all state employees was rejected earlier this year • Agencies say years of rejected raise requests are leading to high turnover rates and low employee morale

Several state agencies are requesting salary increases for their staff after a proposal for a 2% to 3% raise for all state employees fell through earlier this year.

According to agency budget requests submitted to the Governor’s Office for fiscal year 2027 — which starts July 1, 2026 — several state entities are requesting employee salary increases ranging anywhere from 4% to 10%.

All of the agencies asking for salary increases cited high turnover rates and low employee morale, with

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