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Analysts tell JFAC health insurance and PERSI are largest drivers of benefits spending; governor proposes higher per‑employee health appropriation
Summary
Legislative analysts outlined how health insurance, pension contributions and other benefits affect personnel costs, and described the governor's recommended per‑employee health appropriation for FY2026.
At the Joint Finance‑Appropriations Committee meeting, Frances Lippitt, budget and policy analyst at the Legislative Services Office, provided an overview of the state's employee benefits package and how benefit costs are built into agency budgets.
Lippitt said benefits generally account for about a quarter of state personnel expenditures, with health insurance representing nearly half of benefits costs. She told the committee the state budgets health insurance on a per‑full‑time‑position (FTP) appropriation and that the actuarial recommendation used for the governor's FY2026 proposal would set the…
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