Joint finance panel deadlocks on statewide pay proposals; CEC items left unresolved

Lawmakers on the Joint Finance‑Appropriations Committee considered four competing change‑in‑employee‑compensation (CEC) motions Friday but failed to adopt any of them, postponing a final decision.

Committee staff member Mr. Bybee presented four distinct approaches in a prepared packet: a flat dollar increase computed at $1.55 per hour per FTE across many employees with specific carve‑outs ($84,411,000 statewide for state employees on that basis and additional amounts for community colleges and public schools); a version that combines the $1.55 floor with a guaranteed minimum 3% for higher‑paid employees; a merit‑based plan that provides up to 4% by merit; and the governor’s recommended approach calculated as a 5% salary increase by merit. Bybee explained the methodology and funding splits by fund source and agency.

Representative Miller moved the first packet motion (the $1.55 per hour calculation, which the record shows totaled about $177,429,000 across identified categories); Representative Mitchell seconded. Senator Cook offered a substitute that emphasized merit (described on the record as providing $1.55 or 4% by merit, and with an alternative calculation the file shows as $180,312,100 in totals); other members subsequently offered additional substitute language.

Debate was robust and procedural questions about joint committee voting rules interrupted numeric discussion. Committee members cited differing philosophies: Senator Cook and others argued for merit‑based increases to reward high performers; Representative Handy described practical reasons some managers favor uniform increases. Representative Furness and other members argued for the committee’s original dollar‑per‑hour approach in light of actuarial projections and district budget constraints.

Multiple votes were held across competing motions. The committee recorded that at least one substitute failed to obtain a House majority; another substitute and the original motion each failed in subsequent roll calls. After the final recorded roll, the chair declared each CEC motion had failed and said the committee would “come back to this issue at a future date.” Staff and members agreed not to attempt further on‑the‑fly number changes during the same hearing because the calculations are “complicated” and errors had occurred previously when drafting motions orally.

Because no CEC motion passed, the committee did not adopt any of the proposed statewide pay packages, and no change is effective. Committee staff will return with revised language and calculations for a future meeting. The committee also discussed and relied on a leadership letter from 2023 that frames how joint committee majorities are counted for votes; members disagreed on whether the letter requires a majority of members present or a majority of the full committee, and the chair ruled to follow the letter as precedent for Friday’s proceeding.

Direct quotes in the record include Senator Cook arguing that the nation was “built on merit” and urging merit‑based pay; Senator Ward Engelking noting the need to “reflect the actual cost of insurance” (in the earlier benefits conversation); and Representative Miller and Mr. Bybee explaining the methodology and distribution differences among the four motions. The committee adjourned without adopting a CEC package and will reschedule the remaining budget hearings.

Because no motion passed, there is no fiscal effect to implement until the committee reconvenes and adopts a proposal.