Joint Finance Committee approves across-the-board hourly pay floor, adds targeted increases for IT, troopers and health workers

The Joint Finance-Appropriations Committee on Thursday approved a package to provide a minimum $1.55-per-hour pay increase for permanent employees of state agencies and institutions, with additional targeted increases for several job classes and a separate allocation for community colleges.

The motion — introduced by Representative Miller and seconded by Senator Groves — directs funding of $84,411,100 to pay $1.55 per hour per employee, includes $2,305,700 for community colleges (funded as an assumed 5% equivalent), and provides a total package of $177,429,100 across general, dedicated and federal funds. The motion passed the committee by recorded votes: the Senate vote was 8 ayes and 2 nays; the House voted unanimously, giving a committee total reported as 18 ayes and 2 nays.

Why it matters: committee staff and members said the package is intended to balance a cost-of-living floor for all employees with additional market adjustments for designated groups. The funding will be added to maintenance bills and, if the package remains in the final bills, will be part of the FY 2026 base.

Key provisions - A $1.55-per-hour increase for permanent state employees (funding shown as $84,411,100 in the motion). Agencies may implement increases between $1.05 and $1.55 per hour in the circumstances spelled out in the committee language. - $2,305,700 for community colleges, described as a 5%-equivalent allocation because community colleges are not state employees and FTP data are not available in the legislative database. - A 4.5% salary schedule adjustment for classified and nonclassified IT and engineering staff. - Funding for Idaho State Police troopers so total trooper increases do not exceed 8%. - Funding so nursing and health-care state workers receive $1.55 per hour or 3%, whichever is greater. - Reporting requirements directing the Division of Human Resources and the Office of the State Controller to produce a monthly report identifying pay changes and any uses of salary savings or other balances.

Debate and dissent Committee debate focused on retention, compression and whether the package sufficiently addresses compensation for higher-paid, highly trained staff. Senator Ward Engelking said she was “still very concerned about the pay increase for our highly skilled, our highly trained, employees … I won't be able to support the motion.” Senator Wintrow likewise said she could not support the motion, citing the statute’s requirement to provide a competitive salary package and concerns about retention. Senator Cook and Senator Woodward each spoke in favor, saying the package struck a pragmatic balance and would move the process forward.

Representative Miller, who introduced the motion, told the committee the package replaces a $1.00-per-hour minimum from previous versions with $1.05 to $1.55 implementation options and a market-weighted approach for specific schedules. In presenting the motion, Miller read the funding and itemized adjustments into the record: “I move fiscal year 2026 to provide $84,411,100 for a dollar 55 per hour per employee of state agencies and institutions. Include $2,305,700 for community colleges. Include $6,042,800 for salary schedule adjustments for those at the minimum of the pay grade… Additional funding for Idaho military division to maintain parity with federal military compensation, an additional 4.5% for IT engineering workers, additional funding for ISP troopers, and additional funding for nursing and health care workers to receive a dollar 55 or 3%, whichever is greater.”

Implementation and reporting The committee’s adopted language requires that new funding cannot be transferred from personnel costs to other categories and directs agencies to revert and report any new funding not allocated to pay increases. Agencies that use existing resources to provide increases above $1.55 per hour must report those actions. The motion directs monthly reporting by the Division of Human Resources and the State Controller so the Legislature and the Change in Employee Compensation (CEC) committee can track pay actions.

Vote at a glance - Motion: Provide $1.55 per hour to state employees plus specified targeted adjustments and reporting. Moved by Representative Miller; seconded by Senator Groves. - Committee outcome: Passed. Senate: 8 ayes, 2 nays. House: unanimous (committee reported total 18 ayes, 2 nays). The committee’s majority directed a due-pass recommendation to the floor.

What happens next The approved adjustments will be added to the maintenance bills and appear in the package the committee forwards to the floor. The language also establishes reporting that the Legislature said it will use to monitor implementation and any further requests tied to CEC-related actions.