Ways & Means subcommittee moves DAS compensation plan changes to full committee

The Joint Committee on Ways and Means Subcommittee on General Government on Jan. 29, 2025, heard a work session from the Department of Administrative Services on proposed changes to the State Compensation Plan and voted to forward the item to the full committee with the Legislative Fiscal Office recommendation that the report be acknowledged.

The report presented by Erin Haney, State Labor Relations Manager at the Department of Administrative Services, covered three compensation-plan changes that affect four groups of employees: two selective salary adjustments and one new differential. Haney said selective salary adjustments respond to classifications that have fallen behind the market, face recruitment and retention issues, or have internal equity concerns; differentials are additional pay for duties performed outside a classification.

Renee Klein, with DAS's Chief Financial Office, and the Legislative Fiscal Office recommended acknowledging receipt of the report. Co Chair Smith moved the item to the full committee with the Legislative Fiscal Office recommendation. After the cochairs asked whether there was any opposition, none was voiced and the request was approved to move forward.

Committee members asked clarifying questions about scope and budgeting. Representative Reschke asked whether DAS's classification studies include surveys of jobs outside state government; Haney said classification studies include market reviews of internal and external comparables and that the state conducts a biennial salary-and-benefit report comparing across counties, other states and the private sector. Haney and staff explained that the state attempts to position salaries to be competitive, targeting 95%–105% of market values.

Members also sought clarification on which agencies and employees are affected. Haney said DAS develops and maintains plans for approximately 42,000 classified, unclassified and management-service positions across the executive branch and negotiates collective bargaining agreements covering roughly 35,000 represented state employees; DAS also negotiates agreements covering non-state home care workers. She emphasized that the legislature has no legal authority over negotiated contracts but does review budget implications; ORS 291.371 requires DAS to report compensation-plan changes to the Joint Ways & Means when the Legislative Assembly is in session and to interim committees or the Emergency Board when the Legislature is not in session.

The subcommittee recorded the motion to forward the report to the full committee with the Legislative Fiscal Office recommendation. No formal roll-call vote was recorded in the transcript; the committee proceeded by unanimous consent.

The subcommittee will consider the report further at the full committee stage as scheduled.