Paying frontline workers cost state $23.6M
Published 7:00 pm Thursday, September 23, 2021
SALEM — Oregon will spend $23.6 million on hazard payments of up to $1,550 for state employees who were required to work in-person during the first 16 months of the COVID-19 pandemic.
State employees who worked at least 200 hours of overtime during that time frame will receive an additional $575 payment, under the deal Gov. Kate Brown agreed to in July.
The governor signed off on the payments during contract bargaining with public employee unions, after Oregon lawmakers opted not to pass a broad payment program to reward more frontline workers including in the private sector. But the Brown administration had not calculated the cost of the payments when The Oregonian reported on them and other elements of the new labor contracts in late July.
Now budget analysts have pegged the total cost at $23.6 million, according to a fiscal document. The money will come from a combination of general fund tax dollars, lottery, federal funds and other nonfederal sources such as earmarked funds and fees. Lawmakers on the Ways and Means committee were scheduled to hear an update on this and other increases in state workers’ compensation at a Sept. 17 hearing online, but it was canceled along with other check-ins on the workings of state government after legislative leaders learned of a COVID-19 case during this week’s special session.
The broader frontline worker payment proposal legislators considered in the 2020 legislative session would have cost an estimated $450 million and also contained $1,200 back-towork incentive payments for front-line workers who collected unemployment during the pandemic. Frontline workers who stayed on the job would have received $2,000 in stimulus money, The Oregonian reported.
States are allowed to use federal American Rescue Plan money to issue payments to frontline workers during the pandemic, and House Speaker Tina Kotek, D-Portland, has said that would be her top spending priority for the remaining federal relief funds in 2022. Kotek announced earlier this month she is running for governor in 2022.