JFAC raises state employee health‑insurance funding to $14,130 per FTE; broader pay package stalls

The Joint Finance‑Appropriations Committee voted Friday to raise health‑insurance funding for state employees to $14,130 per eligible full‑time equivalent position for fiscal year 2026, but the panel failed to pass any of several competing proposals for broader salary increases and deferred further action.

The health‑insurance motion — moved by Senator Woodward and seconded by Representative Tanner — was adopted after roll calls showed a majority in both the Senate and House delegations of the joint committee. Committee staff calculated the motion increases at $36,043,900 from the general fund, $8,599,500 from dedicated funds and $3,753,800 from federal funds, for a combined total increase of $48,397,200.

The vote followed a detailed staff presentation that laid out three separate dollar‑amount options for health coverage and forecasts of the insurance reserve balance. "The CEC committee's recommendation for health insurance funding at 13,960 per full time equivalent position," analyst Mr. Bybee told the committee when describing the options, and he then contrasted that with the governor's recommendation and an in‑between figure used by members.

Members debated whether the committee should use reserve funds to "buy down" premiums or reflect the actual projected cost of insurance. "I think we should be reflecting the actual cost of insurance," said Senator Ward Engelking, who argued buyers‑down in earlier years masked the underlying trend and would make future increases look larger. Representative Furness pushed back on the actuarial projections, saying of the consulting firm Milliman, "They have consistently been too conservative."

Bybee gave the committee the staff projections used in their decisions: adopting the $13,960 figure would project a fiscal‑year‑end reserve balance of about $51.6 million; the governor's $14,300 figure was projected to leave about $61.4 million in reserve; the midpoint $14,130 adopted by the committee fell between those figures.

On the broader change‑in‑employee‑compensation (CEC) package — a separate set of four competing motions that would have provided across‑the‑board dollar increases, percentage increases, or merit‑based raises for state agencies, higher education and public schools — the committee was unable to reach agreement. Staff described four approaches: (1) a flat dollar amount distributed with some agency flexibility; (2) the same dollar amount plus a minimum 3 percent for higher‑paid employees; (3) up to 4 percent distributed on merit; and (4) the governor's recommended 5 percent distributed on merit. Mr. Bybee cautioned the committee that "these are some complicated calculations on a statewide basis, and they're not as easy to adjust on the fly."

Representative Miller offered a motion (motion 1 on the committee sheet) based on the dollar‑and‑flex approach; Senator Cook offered a merit‑focused substitute; the governor's motion and additional substitute motions also were offered. Several motions were seconded and debated, but none secured the required joint‑committee majorities from both the House and Senate delegations before the committee recessed or adjourned. Chair Harmon told members the panel would return to the issue at a later date.

Members also disputed the precise voting procedure for the joint committee. The committee located and circulated a 2023 leadership letter that, as read into the record by the chair, states: "House and Senate majority leadership have determined to utilize the joint voting procedure used in the past while also announcing the votes of House and Senate Committees separately." Chair Harmon said that, under the letter as implemented in the committee's ballot programming, a motion requires a majority of the quorum present from each body — effectively six votes from each committee delegation under the day's attendance — for passage. That rule affected how members considered seconding or changing votes during roll calls.

Because the CEC salary motions failed to obtain a majority of the House delegation in at least one roll call and other motions also failed later in the session, the committee left the salary decisions unresolved. Chair Harmon said the committee would reschedule the affected agency hearings and return to compensation decisions at a future date.

Votes at a glance

- Health‑insurance funding (Sen. Woodward motion): Adopted. Mover: Senator Woodward; second: Representative Tanner. Tally reported by the chair: Senate 8 aye, 0 nay, 2 absent/excused; House 9 aye, 0 nay, 1 absent/excused; combined total 17 ayes, 0 nays, 3 absent/excused. Total funding increase: $48,397,200 (GF $36,043,900; dedicated $8,599,500; federal $3,753,800).

- CEC pay packages (multiple competing motions from Rep. Miller; Sen. Cook; Mr. Bybee/administrator motions; Gov. recommendation): All failed to achieve the necessary majorities in the joint committee during Friday's session; committee deferred further action. (See actions array for motion texts and procedural notes.)

What this means

The adopted health‑insurance funding level will be incorporated into the committee's fiscal‑year 2026 recommendations; other compensation increases remain under consideration. Members noted the chosen health‑insurance figure affects projected reserve levels and future premium calculations for both state agencies and local school districts that receive state benefit estimates. The committee said it would reconvene and work with staff to refine the salary motions and correct any calculation errors before another vote.

The meeting adjourned with staff and agencies told they would be rescheduled for the committee's next available date.