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Staff outlines health insurance, PERSI and benefits cost drivers for state payroll
Summary
Legislative analysts explained how benefits compose roughly one-quarter of personnel costs, described the governor's proposed health-insurance appropriation, and reviewed employer contribution rates to the Public Employee Retirement System of Idaho (PERSI).
Frances Lippitt, a budget and policy analyst with the Legislative Services Office, briefed the committee on state employee benefits and how benefits are incorporated into agency budgets.
Lippitt said benefits represent about 25% of overall personnel costs and that health insurance accounts for nearly half of benefits spending. The state budgets health insurance as an appropriation per full-time position (FTP); variable benefits such as retirement, Social Security and Medicare are budgeted as a percentage of salary. The presentation noted a combined variable-benefit rate of roughly 23% of salary for fiscal 2025.
On health insurance, Lippitt said the actuarial calculation supports appropriating $14,300 per FTP in fiscal 2026 to cover plan costs in 90% of cases; that level would increase the FY2026 health-appropriation cost by about $56.6 million versus the lower figure tied to plan reserves. The recommended appropriation is more conservative than an alternative $13,960 per FTP figure that tracks a 10% minimum reserve requirement.
Lippitt also reviewed PERSI employer contribution rates cited in the presentation: 11.96% for general members, 14.65% for public safety, and 13.47% for teachers. Employer contributions for PERSI totaled about $141.5 million in fiscal 2024, she said.
Why it matters: benefits decisions drive a large share of agency budgets. The Joint Change in Employee Compensation (CEC) committee evaluates changes in the total compensation system, including benefits, and its co-chairs present recommended compensation adjustments to JFAC for funding consideration.
Ending: Lippitt urged members to use CEC testimony and the budget-book materials to assess trade-offs among salary adjustments, benefits appropriations and recruitment/retention policies.
