JFAC approves FY2026 compensation package, sets $1.55/hour minimum adjustment and targeted increases

The Joint Finance‑Appropriations Committee approved a statewide employee compensation package on Feb. 6 that includes a $1.55‑per‑hour minimum increase for permanent state employees and additional targeted adjustments for specific employee groups.

Representative Miller moved the primary motion to fund a $1.55 per hour increase for permanent employees of state agencies and institutions beginning FY2026, include $2,305,700 for community colleges, salary schedule adjustments for employees at pay‑range minimums, additional funding for military division parity with federal pay, a 4.5% adjustment for IT and engineering workers, up to an 8% increase for Idaho State Police troopers, and a $1.55 per hour or 3% increase (whichever is greater) for nursing and health‑care state workers.

Keith Bybee, Division Manager, Budget Policy Analysis, explained the motion’s structure and the reporting requirements in the draft language. Bybee said the language directs agencies to provide pay increases between $1.05 and $1.55 per hour except where paragraphs 2–5 outline different treatment for salary schedules (IT/engineering, public safety, nursing/healthcare) and directs that unspent new funding not used for pay increases revert and be reported to the legislature. The language also requires a monthly report from the Division of Human Resources and the Office of the State Comptroller identifying pay changes.

Representative Miller’s motion itemized fiscal totals: $128,354,900 from the general fund, $34,266,900 from dedicated funds, and $14,807,300 from federal funds for a total of $177,429,100.

Committee discussion focused on compression and retention concerns. Senator Ward Engelking said the package does not adequately address pay compression above about $64,000 and said she would not support the motion. Senator Wintrow echoed concerns about competitiveness and retention. Senators Cook and Woodward said they would support the motion while noting tradeoffs; Cook framed the action as broadly rewarding workers and Woodward expressed concern about the motion’s potential to create “use it or lose it” dynamics and compression effects.

After debate, the committee recorded the vote. The clerk announced the Senate vote as 8 ayes, 2 nays, 0 absent; the House vote was announced as unanimous. The committee reported a combined total of 18 ayes and 2 nays and approved the motion, which will carry a due‑pass recommendation to the floor.

Staff noted the language and funding totals will be incorporated into program maintenance bills and the committee asked staff to compile additional agency requests for salary actions beyond the approved CEC amounts.