Joint finance committee approves $177.4 million employee-pay package including $1.55/hour minimum

The Joint Finance-Appropriations Committee on Feb. 6 approved a statewide compensation package that provides $1.55 per hour per full-time-equivalent position for permanent state employees and includes targeted adjustments for select job classes. The committee voted the measure out of committee by recorded vote following a lengthy debate over pay compression and retention.

The package, presented by Keith Bybee, Division Manager for Budget Policy Analysis, would be inserted into the maintenance bills and totals $177,429,100 across funding sources. Bybee told the committee the motion includes a $1.55-per-hour minimum for state agencies and institutions, a 5% equivalent allocation for community colleges, a 4.5% increase for IT and engineering positions, up to an 8% increase for Idaho State Police troopers, and funding so nursing and health-care state workers receive $1.55 per hour or 3%, whichever is greater.

Representative Colin Miller (first reference: Representative Colin Miller) moved the package, saying the modification from prior proposals raises the minimum increase to $1.55 per hour from earlier amounts. “We modified the $1-per-hour minimum increase to a $1.55 minimum,” Miller said. Senator Groves seconded the motion.

By line-item accounting in committee materials, the package uses $128,350,400 from the general fund, $34,266,900 from dedicated funds, and $14,807,300 from federal funds, for a total of $177,429,100. The motion includes $84,411,100 to provide $1.55 per hour for permanent state employees and $84,669,500 for public schools and the Idaho Educational Services for the Deaf and the Blind, plus separate allocations to community colleges ($2,305,700), IT/engineering schedule adjustments ($6,042,800), and other targeted changes.

Debate focused on pay compression and whether the package sufficiently addresses market challenges for higher-paid employees. Senator Ward Engelking said she could not support the motion because it did not resolve pay problems for employees earning above roughly $64,000 per year and could worsen compression in the salary schedule. Senator Sandra Wintrow voiced similar concerns. Other members, including Senator Cook and Senator Woodward, supported the motion while acknowledging trade-offs; Cook described the package as a balance between rewarding performance and providing a baseline increase during inflationary pressure.

Language accompanying the motion directs agencies that new funding must be used for pay and prevents transfers from personnel to other categories. It also requires agencies that use existing resources to go beyond the funded minimum to report those choices back to the legislature and directs the Division of Human Resources and the Office of the State Comptroller to develop a monthly report documenting pay changes.

The committee recorded the roll call. Committee staff reported the Senate vote was 8 ayes and 2 nays; the House delegation was reported as unanimous in favor, and the committee reported a final tally of 18 ayes and 2 nays. The motion passed and will carry a due-pass recommendation to the floor.

Ending: Committee leadership instructed staff to fold the package into the maintenance-bill packet for floor consideration. Staff and the committee also asked Legislative Services to compile other agency requests for pay increases that extend beyond the committee’s approved CEC package.