Colorado budget committee approves salary adjustments and health benefits changes

The Colorado Joint Budget Committee made significant strides in addressing state employee compensation during its recent meeting on March 12, 2025. Key discussions centered around proposed salary increases and adjustments, with a notable focus on the Office of the State Public Defender (OSPD).

The committee approved a 2.5% across-the-board salary increase for state employees, alongside a 0.6% step plan increase, which is expected to impact approximately 38,000 state workers. This decision reflects a commitment to maintaining competitive compensation amid ongoing retention challenges within various state departments.

However, the OSPD's request for a 5.7% salary increase was met with scrutiny. The committee ultimately recommended a 3.5% increase, which is still above the general state increase but significantly lower than what the public defenders had sought. This decision was influenced by the OSPD's unique compensation plan aimed at improving employee retention, as many of their staff have less than five years of service. The recommendation for a lower increase was framed as a necessary compromise to balance budget constraints while still addressing retention issues.

In addition to salary discussions, the committee also tackled the elimination of the state employee reserve fund and adjustments to minimum wage, which is set to rise to $16.55. These decisions are part of a broader effort to streamline state expenditures while ensuring fair compensation for employees.

The committee's actions reflect a careful balancing act between fiscal responsibility and the need to support state employees adequately. As the budget process continues, the implications of these decisions will be closely monitored, particularly regarding employee retention and the overall effectiveness of state services.