JFAC stalls on health insurance and employee compensation after contested debate on reserves and merit pay

A series of contested votes on health insurance funding and broader employee compensation left Idaho’s Joint Finance‑Appropriations Committee without a bicameral majority for either option Friday, and committee leaders withdrew competing compensation motions so staff can revise and return with full numbers.

The first contested issue was the health insurance base used to set employer contributions per eligible full‑time position. Division Manager Keith Bybee presented two alternatives: the Change in Employee Compensation (CEC) committee recommendation, which would set the FY2026 health‑insurance base at $13,960 per eligible position (a $960 increase over the current base), and the governor’s recommendation, which would set the base at $14,300 per eligible position (a $1,300 increase). Bybee told the committee the difference affects both the plan reserve and the dollar amount request; the governor’s number would leave an estimated $10 million more cushion in fund reserves compared with the CEC recommendation.

Bybee summarized the actuary’s projection: “The current projections from the Milliman report suggest … with the CEC recommendation … it would pull the reserve…