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Committee approves bill giving constitutional officers more hiring and pay flexibility

2520702 · March 6, 2025
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Summary

House Bill 738 would let independently elected constitutional officers hire additional unclassified staff and set classified salaries up to the midpoint of a pay range without seeking Personnel Cabinet approval; the committee reported the bill favorably 18-1 with one pass.

The House State Government Committee reported House Bill 738 favorably by a vote of 18 yes, 1 no and 1 pass, advancing the measure to the full House.

House Bill 738, sponsored by Representative Peyton Griffey, would remove the cap on the number of unclassified employees constitutional officers may hire and allow those officers to set classified employees’ salaries up to the midpoint of the pay range without Personnel Cabinet approval. Representative Griffey said the change is intended to give independently elected constitutional officers “flexibility and discretion when it comes to hiring unclassified personnel and administering raises rather than additional bureaucracy.”

Allison Ball, Kentucky State Auditor, and John Gray, ombudsman in the auditor’s office, testified in support. Ball explained the measure is meant to address salary compression among merit (career) staff and to restore tools previously available to constitutional officers to achieve pay equity. John Gray said offices face specific examples of employees doing the same work but receiving different pay and that the bill would allow offices to remedy such disparities without changing appropriations.

Committee members asked how the bill would interact with existing pay caps and the fiscal note. Testimony clarified the bill would not alter the Personnel Cabinet’s pay ranges or appropriation levels; it would permit constitutional officers to set pay within existing ranges without seeking additional Personnel Cabinet approvals. The sponsor and witnesses stated the current fiscal-year cap on individual salary increases remains in place; testimony identified a 15% cap on salary increases in a fiscal year as a reference point for committee discussion.

Representative Johnson described the measure as largely a “red tape reduction,” and Representative Tipton asked whether the bill would help address salary compression; supporters said it would. Representative Tate asked about the fiscal note; the sponsor and witnesses emphasized the bill does not change appropriations and that the fiscal estimate assumes an extreme scenario in which every eligible position received a maximum increase, which they said is unlikely.

The committee adopted a committee substitute before the roll call. The committee secretary recorded the roll call and the chair announced the final tally as 18 yes, 1 no and 1 pass, and the bill will move to the House floor for consideration.