The State has not formally linked negotiated wage increases to CPI or other inflation measures since the early Nineties.   CPI-U, the most common measure, is not very relevant to the actual cost of living, is not very accurate for Alaska,  is only measured in Anchorage, and last I looked only measured twice a year.   What negotiated increases represent is basically what the State will offer, the unions will accept, and the Legislature will approve; there is no more logic to it than that.   The unions wouldn't dare throw a general increase to the Legislature right now, so they'll sit on their three percent step progression.   Before long the LTC guys and the marine employees who don't get steps will get restless and they're the only unions that could actually sustain a strike that would have a real impact on the economy.