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Health-insurance increase and employee-compensation decisions left unresolved after lengthy JFAC debate
Summary
The committee debated competing proposals for FY2026 health insurance funding and multiple pay-adjustment proposals but did not adopt either health-insurance proposal, and compensation motions were withdrawn for staff revision.
The Joint Finance-Appropriations Committee debated two interrelated personnel items ' health insurance funding and change in employee compensation ' but left both unresolved after extended discussion.
Health insurance: Analysts presented two competing FY2026 proposals. The governor's recommendation would raise the health-insurance base to $14,300 per eligible full-time equivalent (FTE), with an estimated total cost of approximately $56,315,200 across all funds (including $42,076,600 general fund). The CEC committee recommended a lower increase to $13,960 per eligible FTE, for a total estimated cost of $40,261,200 (including $29,996,000 general fund). The legislature must also adopt language covering plan structure as one element of the statutory process.
Committee discussion focused on reserve adequacy and the risk of falling below the plan's contractual 10% contingency reserve. Keith Bybee explained Milliman actuarial projections showing a total plan cost around $482,000,000 for FY2026.…
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