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Joint committee reviews 70‑hour vs. 58‑hour payroll scenarios and governor’s holding account
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Summary
Finance presented two budget scenarios that would cut employee hours from 70 to 58 pay-period hours if the proposed pension loan is not approved. Members questioned a new governor's holding account shown in the draft budget and asked for clarity on hiring and the account’s purpose.
Lawmakers pressed finance officials on two budget scenarios offered to address a projected shortfall: a scenario that preserves a 70‑hour pay period conditioned on securing the proposed $29 million loan, and a scenario that reduces pay period hours to 58 if the loan is not obtained.
Representative Marissa Flores asked about the scenario assumptions, including whether there would be a reduction in force or hiring of contracted professionals. Finance staff said scenario 1 (70 hours) assumed no layoffs but a 10‑hour reduction in payroll period hours, preserved paid holidays, and removal of certain vacancies; officials said hiring of new NOPs (nonpermanent positions) would require gubernatorial request and legislative action.
Nut graf: Committee members also queried a new line item labeled the governor's holding account, which in the budget submission was shown with a $0 balance but the appearance of 100 NOP placeholder entries. Finance staff said the account was included in the FY2026 submission to allow administrative reprogramming authority but currently carried zero dollars and, therefore, provided no immediate budgetary flexibility.
Supporting details: - A committee calculation recorded on the record said maintaining current 70‑hour pay levels without the pension loan would require about $12.8 million in additional funding. - Finance staff explained that the governor’s holding account was requested in FY2026 with placeholder NOP entries at $1 each for administrative maneuvering; staff recommended the legislature remove the $1 placeholders because they serve no practical purpose. - Members asked whether contracted professional services hiring would continue under scenario 1; staff said operations were not allocated for new professional contracts in that scenario.
Ending: The committee recorded official requests for budget detail and asked finance to provide written breakdowns. Members signaled they would continue scrutinizing scenarios as written budget materials and trustee negotiations evolve.
