Urge Governor Kathy Hochul to Fund a 4% COLA for Staffing Crisis Resolution

Cost of Living Adjustment (COLA) plays a pivotal role in ensuring financial stability for our population. Let’s delve into its significance:

1. Protection Against Inflation: COLA acts as a safeguard against the erosive effects of inflation. As the cost of living rises due to factors like increased prices for food, housing, utilities, and healthcare, COLA ensures that wages and benefits keep pace. This protection is especially crucial for workers and retirees who rely on stable income to meet their basic needs.
2. Consumer Price Index (CPI): The calculation of COLA hinges on monitoring price changes for typical consumer goods and services. The Consumer Price Index (CPI) tracks monthly data on urban consumers’ expenses, representing about 89% of the U.S. population. By assessing fluctuations in prices, COLA adjusts wages and benefits accordingly. For instance, if the CPI rises by 2%, the COLA for that year would also be 2%, signifying that living costs have increased.
3. Inflation and Economic Indicators: Inflation rates significantly impact COLA. Rising inflation can escalate the cost of goods and services, affecting people’s ability to afford necessities. COLA aims to offset this by increasing earnings. Conversely, during deflation (a decrease in inflation), COLA remains unchanged. Other economic indicators, such as employment cost index, gross domestic product, and productivity costs, contribute to a comprehensive understanding of changing living expenses.