Committee Recommends 5% Wage Increase for Non-Union County Employees

Montgomery County Board Finance & Budget Committee on Thursday | May 7 Meeting

Article Summary: The Montgomery County Board Finance & Budget Committee on Thursday, May 7, 2026, voted unanimously to recommend a 5% wage increase for FY2027 for all county employees not covered by collective bargaining, choosing to match the rate written into most current union contracts rather than a smaller bump tied to the cost of living.

FY2027 Wage Increase Key Points:

• The committee recommended 5% raises for non-union county employees in FY2027.
• Three existing union contracts already require 5% increases in FY2027.
• One committee member initially suggested 4.5% — slightly above the 4% Central Illinois cost of living figure cited at the meeting.
• Health insurance premiums are expected to rise 30 to 40 percent in FY2027, which committee members acknowledged could shift more cost onto employees regardless of the wage decision.

HILLSBORO — The Montgomery County Board Finance & Budget Committee on Thursday, May 7, 2026, voted unanimously to recommend 5% wage increases in FY2027 for county employees not covered by collective bargaining agreements, advancing the higher of two figures discussed at the meeting.

The recommendation continues a conversation begun at the committee’s April meeting and represents the committee’s preliminary position heading into the formal FY2027 budget cycle. The motion was made by Dr. Patty Whitworth, who also serves as Montgomery County Board Vice Chair, and seconded by Rob Corso. All five committee members in attendance — Whitworth, Corso, committee Chairwoman Connie Beck, Chris Daniels and Evan Young — voted in favor. Committee Chairman Doug Donaldson was absent.

Union Contracts Set the Benchmark

Development & Personnel Committee Chair Chad Ruppert, attending as a non-voting participant, told the committee that three union contracts currently in place require 5% wage increases in FY2027. He framed those raises as catch-up: the union contracts, he said, were drafted to bring bargaining-unit employees into line with previous, higher non-union raises in earlier years.

That history weighed on the committee’s deliberations. County Clerk Sandy Leitheiser asked the committee to recommend 5% raises specifically to match the union rate. Beck and Whitworth each indicated their preference for 5%.

Cost-of-Living and Insurance Concerns

Committee member Evan Young initially suggested 4.5% raises, which he noted would still exceed the current Central Illinois cost of living figure of 4%. That option drew less support after Ruppert’s explanation of the union contract history.

Health insurance costs are the other factor hanging over the decision. Three days earlier, Tony Johnston of Assured Partners Gallagher told the Development & Personnel Committee that the county should expect its FY2027 health insurance renewal quote to come in at an increase of 30 to 40 percent, citing a current loss ratio of 127 percent on the county’s plan. Ruppert reminded the Finance & Budget Committee of that projection and warned that the increase “may require an impact on employee contributions,” signaling that some of the gain from a 5% raise could be absorbed by higher employee premium shares.

Renewal Numbers Coming in September

Final health insurance renewal numbers are expected to be available in early September, with the county board anticipated to make its final decision on a plan at its October meeting. The committee did not link the wage increase recommendation to a contingency based on the insurance renewal.

Next Steps

The 5% recommendation now moves to the full Montgomery County Board as part of the FY2027 budget process. The motion as approved by committee is a recommendation only — final wage authority rests with the full board.

Separately, the committee also recommended approval of a 36-month electricity and natural gas contract with Direct Energy, noted a March royalty payment of $177,964.86 that brought the county Coal Fund balance to $10.989 million, and approved a series of Coal Fund 375 expenditures.

Background

Wage discussions in Illinois counties this spring have unfolded against a complicated backdrop of moderating headline inflation, sustained increases in employer health insurance costs and continuing union catch-up bargaining following the 2022–2023 inflation spike. Montgomery County’s decision to match union contracts at 5% — even while the Central Illinois cost of living figure cited by Young sits at 4% — fits a broader pattern of small-county governments aligning non-union pay to bargained rates to avoid creating internal inequities.