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House approves compensation package for state and higher-education employees
Summary
The Utah House passed House Bill 4 on March 3, 2008, authorizing a 3% cost-of-living adjustment for state and higher-education employees, an optional additional increase tied to health-plan changes, and adjustments to contract-service provider pay; the bill moves to the Senate.
The Utah House on March 3 approved House Bill 4, a compensation bill that provides a 3% cost-of-living adjustment (COLA) for state agency and higher-education employees and additional provisions tied to health-benefit changes.
Representative Ron Bigelow, the sponsor, told colleagues the measure separates compensation into a single bill to make increases easier to follow. He described the bill as providing a 3% COLA, an additional 2% COLA contingent on changes in health plans, and related higher-education medical insurance cost adjustments that staff estimate at about 9.9 percent. The bill also authorizes a 3% contract increase for certain service providers.
The sponsor offered Amendment No. 4 (dated March 3) to clarify treatment for most higher-education employees: a 2% COLA plus, at institutions' request, a 1% equivalent discretionary compensation increase, and language giving three colleges—Dixie State College, College of Eastern Utah and Snow College—the option to convert a 3% end medical allocation into a COLA if employees shift to less costly plans. Bigelow described the change as technical and within the intent of the compensation package.
Representatives raised implementation questions. Representative King said she would likely support the bill but flagged concerns about health-insurance coverage in some areas (she cited San Juan County), saying carve-outs might be necessary so ‘‘real coverage’’ isn’t reduced. Representative Allen asked about the prevalence of contract-service providers and whether a 3% increase would be sufficient in a competitive market; Bigelow replied the adjustment is comparable to the employee COLA and represents about a $5,200,000 increase across several departments (juvenile justice, health, human services, natural resources, environmental quality and rehabilitation office).
Summation was waived, and the House recorded a final vote of 70 yes and 1 no. The bill will be referred to the Senate for further consideration.
The House also distributed a document mapping budget items between House Bill 2 and Senate Bill 3 to help members locate funded items within the large supplemental bills before floor debate the following day.
