Committee deadlocks on CEC pay proposals; four alternative compensation packages fail to pass

The Joint Finance‑Appropriations Committee spent substantial time on Jan. 31 debating four alternative change‑in‑employee‑compensation (CEC) packages for fiscal year 2026 but did not approve any plan and deferred the matter for later action.

Committee analysts and members outlined four motions: a flat $1.55 per hour per full‑time equivalent distribution with other adjustments (motion 1); a compromise dollar figure plus a guarantee of at least 3% for certain salary bands (motion 2); a merit‑based package providing up to 4% with merit distribution (motion 3); and the governor’s recommendation, a 5% merit distribution (motion 4). Representative Miller presented the dollar‑per‑hour motion (motion 1) with a total figure cited at $177,429,000; Senator Cook and others offered a merit‑based substitute that included different ceilings and distribution rules; the governor’s motion was presented separately.

Debate focused on competing philosophies—flat dollar adjustments to meet lower‑paid workers’ needs versus merit‑based increases to reward high performers. Senator Woodward said a flat approach can become “the notion of a participation trophy,” arguing for merit elements. Senator Cook and others emphasized merit as a retention and recruitment tool; Cook urged members to consider merit‑based pay and described existing HR safeguards to limit favoritism.

Representatives and senators also discussed distributional details that affect school districts and localities. Senator Ward Engelking cautioned that many school districts do not have insurance reserves and that the actual cost for district employee benefits is closer to the governor’s numbers; Mr. Bybee explained methodology used to calculate fund splits by agency and the treatment of community colleges and special programs.

Several motions were put to roll call votes during the meeting; none achieved the required outcome under the committee’s joint voting procedures. Committee members noted procedural questions about whether the committee should count majorities of members present or of the full committee; staff located a 2023 letter describing the joint voting procedure used in recent years and the committee adhered to its precedent for today’s votes. After multiple roll calls and opportunities to change votes, committee chairs announced that no CEC motion passed and that the committee would “come back to this issue at a future date.”

Because no single CEC motion passed, no single compensation package was adopted and no dollar amounts will be enacted from this session’s CEC debate until the committee returns to the issue.