The Douglas administration and the Vermont State Employees Association have reached an agreement on a new contract.
The two-year pact takes effect July 1 and must still be approved by a vote of the 8,000 state employees.
The new contract will give employees 1.8 percent raises in each of the two years.
State employees will pay more for their prescription drugs.
The agreement follows negotiations, mediation, and a fact finding report. And the contract accepts the recommendations of the fact finder.