OFM presents 2025–27 bargaining costs, wage and premium changes to JCER

The Joint Committee on Employment Relations heard a presentation from the Office of Financial Management (OFM) on the 2025–27 collective bargaining agreements, including tentative agreements, arbitration awards and the agency's cost estimates.

The presentation matters because OFM’s financial feasibility determinations were included in the governor’s proposed budget and will determine whether the Legislature funds the contracts that, if funded, typically take effect July 1. OFM said it published the tentative agreements and interest arbitration awards on its website and provided a detailed cost roll-up for state employees, school-employee health benefits and non-state-provider contracts.

Michaela Dolman, who leads the state HR team within OFM, said the agency began its bargaining planning a year in advance and emphasized giving a general wage increase for all represented employees, targeted pay adjustments in hard-to-fill roles and premiums to address 24/7 staffing challenges. “We did caution the arbitrator to consider the financial ability of the state to pay for increased compensation,” Dolman said, referring to cases that…