Committee deadlocks on change‑in‑employee‑compensation; four CEC proposals fail to pass

The Joint Finance‑Appropriations Committee on Jan. 31 spent more than an hour debating four competing change‑in‑employee‑compensation (CEC) proposals but failed to approve any of them, leaving lawmakers without a committee recommendation on statewide salary adjustments for fiscal 2026.

Committee analysts presented four distinct CEC options that differed in distribution method (flat dollar versus percentage), targeted groups, and implementation rules. Representative Miller offered the dollar‑amount motion that would provide $1.55 per hour per permanent FTP and a bundle of targeted increases, while other members proposed merit‑based percentage increases and the governor’s 5% merit recommendation.

Representative Miller moved the first proposal, described by analysts as applying a $1.55/hour increase across state employees and specific funding for community colleges, IT and engineering workers, trooper pay, and public schools; Representative Mitchell seconded. Senator Cook proposed an alternate motion that would provide up to 4% merit increases, which Senator Woodward seconded earlier in the day as part of a separate motion. Representative Furness later offered a substitute combining a $1.55 floor with a guaranteed 3% minimum for some employees; Senator Galloway seconded that motion.

Debate centered on philosophical and practical differences. Supporters of merit‑based raises argued supervisors need flexibility to reward high performers; backers of the flat‑dollar approach argued it better protects lower‑paid workers. Senator Cook said a flat raise “moves toward the notion of a participation trophy,” while a flat raise “would give the same pay” to high and low performers and reduce supervisors’ ability to reward excellence. Representative Handy cautioned that many employees self‑assess as top performers and urged managers to find other motivation tools.

Legislative staff repeatedly cautioned members about making on‑the‑fly changes to complex package calculations. Senator Wintrow asked to include an 8% increase for troopers in one version of the governor’s proposal but was ruled out of order because the number was not in the written motion; staff said adding it ad hoc risked calculation errors downstream.

The committee also spent time resolving a procedural dispute over joint voting thresholds. Members produced a written letter of practice about joint voting that leadership circulated, but some newer committee members questioned whether the letter had been formally adopted by vote and whether “majority” meant majority of members present or majority of each full committee. The chair ruled to follow the letter’s precedent for the session.

The committee conducted multiple roll calls on substitute and original motions; none achieved the required majorities in both the House and Senate committees. After the final roll call, the chair said the motions had failed and asked staff to return with revised proposals at a future date. “These motions are too complex to calculate on the flight,” the chair observed before adjourning the meeting and rescheduling affected agency hearings.

Ending: Lawmakers left the CEC debate without a recommendation; staff will recalculate the proposals and leaders said they will bring revised motions back for the committee’s consideration at a later date.