Senate Finance backs amended plan to partially fund state employee collective bargaining agreements

Senate Majority Leader Nicole Cannizzaro told the Senate Finance Committee that Assembly Bill 596, as amended, would fund portions of several recently ratified collective bargaining agreements for state employees to keep many benefits in place and shore up retention.

"Rewarding and appropriately compensating state personnel is not only essential for keeping skilled and experienced employees in state service," Senator Nicole Cannizzaro said, arguing that maintaining pay and benefits would reduce turnover and preserve continuity in state services.

The amendment (referred to in committee as proposed amendment 31-28) would appropriate $94,900,000 from the State General Fund and $16,600,000 from the Highway Fund over the 2025–27 biennium. Key provisions in the amendment that Cannizzaro summarized include a 1% cost-of-living adjustment in FY 2026 and an additional 1% COLA in FY 2027 for all bargaining groups, and a $1,000-per-year retention incentive paid quarterly to employees in the bargaining units regardless of whether the unit negotiated that specific payment.

Cannizzaro said the amendment aims to preserve parity with benefits funded by the prior legislature while recognizing the state’s current budget constraints; she and fiscal staff said the original funding requests from bargaining units would have totaled roughly $320 million. "We can't afford to make this investment into our hardworking state employees while maintaining an appropriate reserve in the state general fund," Cannizzaro said, explaining why the amendment reduces the total dollar amount while still seeking to keep employees as whole as possible.

Multiple labor and public-employee organizations spoke in support. Todd Inglesby of Professional Firefighters of Nevada and Don Hicks of the Fraternal Order of Police Lodge 21 thanked the committee and urged approval. Cassie Charles of the American Federation of State County and Municipal Employees praised the amendment and the committee’s work: "We have had state employees in this building for many days, many long days, telling you about their lives… I could not be more grateful for what you are putting back into this to help support our state employees every day," Charles said.

Representatives from other unions and organizations also voiced support, including the Nevada State AFL-CIO, the Nevada State Education Association, New Day Nevada, and local FOP leaders. Paul Lundkiewicz, president of FOP Lodge 21, said the amendment "rights a wrong" and urged support while noting the group desires full funding in future legislation.

Some commenters and speakers raised concerns about employees outside the bargaining units included in the amendment. Kent Ervin of the Nevada Faculty Alliance said state employees who are not covered by collective bargaining units — including certain classified employees, NSHE professional employees, faculty and graduate assistants, legislative staff, judicial employees and PERS-covered employees who do not collectively bargain — would not receive protections in the amended bill and would see retirement contribution increases and potential pay reductions July 1 without compensating funding.

Committee vice chairs and members asked technical questions about which bargaining groups are covered and whether the amendment keeps employees "whole." Cannizzaro and staff explained the amendment’s structure: it funds generally similar or like benefits to those funded by the prior legislature, provides flat-year funding for many items and extends similar benefits to newly organized groups where practicable.

After discussion, the committee adopted the amendment and moved AB596 as amended out of committee by voice vote; the motion to "amend and do pass as amended" is recorded as carried in the transcript excerpt.