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Contract inflation and statewide cost allocations pass; health-insurance increase and employee compensation debated but not adopted
Summary
The committee approved contract-inflation and statewide cost-allocation adjustments unanimously but did not adopt a health-insurance base or a final employee‑compensation package after extended debate; competing motions were withdrawn or failed to achieve both‑house majorities.
The Joint Finance-Appropriations Committee advanced several statewide budget maintenance decisions, approved some items and deferred others following extensive debate on employee health insurance and pay.
Contract inflation
Keith Bybee presented a package of ongoing contract inflation requests. Representative Miller moved to include the governor’s FY2026 recommendation to adjust operating and capital outlay for ongoing contract lease inflators and similar contractual increases, a package totaling $3,356,400 across fund sources. The motion was seconded and passed on a recorded vote of 20–0.
Statewide cost allocation
Bybee next described statewide cost-allocation adjustments (agency billings for services other agencies provide), including changes to the attorney general billing, legislative audit, state controller and treasurer fees, risk management, and the office of information technology services. Co-chair Harmon moved the governor’s FY2026 recommendation for the statewide cost allocation adjustments. The package passed by unanimous recorded vote, 20–0.
Health insurance and reserve discussion
The committee then considered personnel benefit cost decisions…
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