Lawrence city staff propose 2.5% pay raise, step increases for workers

Lawrence city staff and a compensation consultant laid out a 2027 pay plan for city workers on Tuesday, proposing a 2.5% wage increase for all employees and step increases for some positions, even as commissioners remained skeptical and took no action.

The recommendation carries an estimated $2.4 million impact for the general wage adjustment and about $2.7 million more for step increases across all funds. City officials said the proposal is aimed at more than simply handing out raises: it is meant to address retention, recruiting, wage compression and the city’s ability to stay competitive with other employers at a time when personnel costs have risen for several years and budget pressure has grown.

Human resources director Shakeva Christian said the city hired McGrath Human Resources Group to conduct a wage study in 2018, and that review showed city salaries were lagging behind the market. A follow-up study in 2021 helped justify major compensation investments in 2022 and 2023, when the city spent millions of dollars on general increases and broader restructuring of the pay plan. Christian said those earlier steps were designed to keep Lawrence from falling further behind private employers and other governments competing for the same workers.

Consultant Victoria McGrath said the newer study was narrower in scope. Rather than rebuilding the entire pay structure, it was intended to check whether salary ranges were still competitive and whether some jobs needed to move into different pay grades. That kind of review matters most in public safety and operations, where the city must keep police, fire-medical, public works, parks and administrative staff in place to avoid service disruptions.

Commissioners did not vote on the proposal Tuesday, leaving the raises unapproved for now. The pay plan will be folded into the city’s broader 2027 budget process, where salary costs, tax decisions and service levels are likely to be debated together. For Lawrence residents, the question is not just what city workers earn, but how much of the next budget will go to labor costs and what happens to hiring, retention and daily services if the increases are delayed or cut back.