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Committee deadlocks on health insurance rate; employee compensation motions withdrawn after extended debate
Summary
Lawmakers debated health insurance per-employee funding, reserve risk and compensation formulas. Two competing health insurance motions (governor: $14,300 per eligible FTE; CEC: $13,960) failed to secure the committee's bicameral majorities; separate compensation motions were later withdrawn to allow more staff work and further consideration.
The Joint Finance and Appropriations Committee spent extended floor time debating statewide personnel benefit costs, health insurance funding and employee compensation proposals, but members left without adopting a change to the state employee health insurance base or a final compensation package.
State analysts presented two competing recommendations for FY2026 health insurance funding for eligible full-time equivalent positions. The Economic Outlook/CEC committee recommendation would set health insurance at $13,960 per eligible FTP (a net general fund increase of $29,996,000 and a total increase of $40,261,200). The governor’s recommendation would raise the per-FTP base to $14,300 (an increase of $42,076,600 from the general fund and a total increase of $56,315,200). Analysts said both proposals keep the plan design intact; the numeric choice affects the plan’s contingency reserve.
Actuarial projections from Milliman — the actuary cited by staff — were discussed at length. Division of…
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