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JBC staff outlines compensation choices: salaries, step-like increases and insurer premium risk drive budget uncertainty
Summary
Craig Harper of Joint Budget Committee staff briefed the Executive Committee on compensation decision items, highlighting a 2.5% across-the-board request, a 0.6% step-like component, and health insurance premium risk that could require substantial state funding.
Craig Harper, director for Joint Budget Committee staff, presented background and options on the employee compensation common policy, emphasizing that the two largest budget drivers are salary costs and health/life/dental insurance.
Harper said the negotiated partnership agreement from September is the basis for the governor’s request and that legislative decisions historically have mirrored the executive branch request for legislative staff. Harper outlined the salary components embedded in the request: a 2.5% across-the-board increase and a 0.6% step-like component for classified employees. He said the 2.5% component equates to about $130,000 for the General Assembly; statewide, the 2.5% across-the-board would be roughly $83 million in total funds and about $44 million in general fund.
Harper explained that the step-like increase (classified employees’ step plan) accounted for roughly 0.6% of the total request this year and equates to about $233,000 for the General Assembly; statewide that step-like share is roughly $17 million total funds and $10 million general fund. Together those components approach a roughly 3.1% cumulative increase (2.5% + 0.6%) cited in staff materials.
On benefits, Harper said the negotiated agreement “requires the state to fund all premium increases for fiscal year 25–26.” For the legislative branch, staff estimated total Health Life Dental appropriation at about $6 million, representing roughly a $500,000 increase year over year; statewide estimates were described as on the order of a half-billion dollars and an expected 7–8% increase overall in premium costs.
Harper emphasized substantive uncertainty: the Joint Budget Committee had not completed decisions and the fiscal capacity to fund the partnership agreement was an open question. He warned of the potential consequence that “any significant deviation from the partnership agreement would force a reopening of the agreement.” The presentation provided options that go beyond the partnership agreement (for example, base personal services reductions) but staff said such choices have political and practical implications and would drive further negotiations.
No committee vote was taken on compensation at this meeting; members asked clarifying questions and staff advised the Executive Committee that these would be ongoing discussions at JBC.
