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Committee asks LBFC to study location-based pay for state government employees

2218021 · February 4, 2025
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Summary

The House State Government Committee voted to direct the Legislative Budget and Finance Committee to study location-based pay for state government employees, citing recruitment and retention problems at PennDOT and regional cost‑of‑living disparities.

Representative Pialey told the House State Government Committee that persistent staffing shortages and dangerous road conditions drove his push to study location‑based pay for state government employees. The committee voted to refer House Resolution 23 to the Legislative Budget and Finance Committee for study.

Committee members said the study would collect county and metropolitan cost‑of‑living data, evaluate how uniform state wages affect hiring and retention, compare different ways to implement location‑based pay, and estimate the fiscal impact of any change. Representative Pialey recounted constituents' repeated tire damage from a large pothole on Route 202 to illustrate recruitment and retention consequences at the local level, and he said PennDOT wages in the Southeast are not competitive with local cost of living.

Supporters said the study is a factual first step. Representative Probst praised the proposal as a way to shift money from what he described as PennDOT administrative waste to workers’ pay. Representative Bridal said areas in the Southeast are understaffed and the study would help other regions such as Lebanon, Lancaster and York understand staffing shortfalls. Opponents warned about added work for the Legislative Budget and Finance Committee and the potential long‑term fiscal impact if statewide pay floors rise.

Chair Diamond confirmed with the sponsor that the resolution addresses state government employees only (not municipal employees). The resolution directs the Legislative Budget and Finance Committee to return recommendations, including county and metropolitan cost‑of‑living data and fiscal estimates, and to explore implementation options such as county or metropolitan adjustments.

The committee moved and seconded consideration of House Resolution 23; a roll call occurred and the motion passed. The transcript records the motion and that the motion passed but does not compile a numeric roll‑call tally in the record.

The referral authorizes a study only; it does not change wages or create any immediate pay adjustments. The study's findings would be advisory, to inform possible future legislation.

Clarifying details recorded in committee remarks include Representative Pialey’s request that the study include: county and metropolitan cost‑of‑living indices (southeast counties cited: Chester, Montgomery, Bucks, Delaware), an analysis of the hiring and retention effects of uniform wages, and fiscal estimates for implementation options. Representative Probst cited a recent PennDOT construction contract he described as $770,000,000 for three miles in Monroe County to argue existing spending priorities should be reviewed. Representative Bridal said PennDOT staffing in parts of Chester County is about 70 percent of authorized levels. The resolution directs the Legislative Budget and Finance Committee to produce recommendations and cost estimates within the timeframe specified in the resolution.

Votes at the committee level were recorded as "motion passes" in the transcript; the committee did not provide a compiled numeric tally in the excerpt provided. The referral enacts a study only and does not alter employee pay or budgets.