It’s official — no pay raise for state employees

By: Niki Kelly

Outlets: Indiana Capital Chronicle

Published: March 23, 2026

Words: 201

Last Updated: 4 months, 1 week ago

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For the second year in a row, Indiana’s state employees will receive no pay raises.

The contingency fund that usually covers salary adjustments was reduced by 90% in the current state budget.

After the budget was implemented in July 2025, a new revenue forecast showed the state could take in more money and accumulate nearby $5 billion in surplus by mid-2027.

While no memo was sent to all state employees, a state personnel department …

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