Idaho CEC hears DHR push 4% pay increase, targeted IT bump as agencies warn of turnover and service delays

The Change in Employee Compensation Committee on Dec. 12 heard the Division of Human Resources recommend a set of pay adjustments intended to close market gaps and reduce high turnover among state employees.

Janelle White, administrator of the Division of Human Resources, recommended “funding a 4% salary increase for all permanent employees with agency discretion to apply that increase as a percentage or a dollar amount,” and proposed a 4% average increase to salary structure midpoints. She also recommended an additional 5.5% increase for positions in the IT/engineering salary structure to address acute recruitment and retention challenges.

White framed the recommendations with data showing long-term market pressure: she said state base salaries have risen about 4.2% over the last decade while inflation exceeded 30%, reported a statewide turnover rate of 19.2% in fiscal 2024 (about 5,000 separations), and summarized more than 1,700 written employee testimonies collected this year expressing concerns about cost of living, pay compression and burnout.

Why it matters: agency leaders told the committee that vacancies and turnover are already affecting public services. Colonel Bill Gardner, director of the Idaho State Police, said some districts are sustaining multiple patrol vacancies and warned training and recruitment costs are high, while Jess Byrne, director of the Department of Environmental Quality, said permitting timelines have roughly doubled in some programs as experienced staff depart.

Financial impact and implementation: White presented a fiscal estimate of about $107.1 million to the general fund and $39.1 million in other funds — a total of roughly $146.3 million — for the FY 2026 cost of implementing her recommended package. She said agencies should have discretion to apply merit matrices so raises can be differentiated by performance at the agency level.

Benefits and insurance: Faith Knowlton, administrator of the Office of Group Insurance, described a recent carrier transition and a hybrid insurance model that uses a 10% reserve; she told the committee her office’s actuarial comparison shows roughly $98 million in projected savings over three years from the carrier change, and reported strong early service metrics from the new carrier (fast call response, high claims accuracy and rapid escalation resolution).

Pension context: Mike Hampton of the Public Employee Retirement System (PERSI) reviewed pension demographics and funding. PERSI reported roughly $22.1 billion in assets, a funded ratio of 85.4% and an amortization period of 10.8 years; Hampton summarized the statutory COLA framework (a 1979 statute sets an automatic component tied to CPI-U and allows the board to recommend additional discretionary adjustments and retroactive amounts) and said the board will forward a 2020 retro recommendation to the legislature.

Agency appeals for targeted relief: Several agency directors urged that targeted funding — particularly for IT, public safety and technical roles — be prioritized because market differentials are large and specialized roles are especially costly to backfill. Alberto Gonzales, chief information officer for ITS, said IT staff routinely face offers that exceed state pay by 20–25% or more, driving turnover; Steve Bailey, director of the Department of Administration, provided examples where agency staff left for local employers with pay increases in the 24–52% range.

What the committee will do next: Committee leaders set a schedule to compile a recommendation to the Joint Finance-Appropriations Committee (JFAC) and deliver it by Jan. 9, 2025, with follow-up meetings planned the week of Jan. 7–9. The transcript records no formal motions or votes during this session.

A note on sources and procedure: The committee’s recorded testimony included presentations from DHR, OGI, PERSI and agency heads, plus a 400‑page packet of written employee testimony and more than 1,900 submitted comments combined. Several committee members requested additional agency-level breakdowns and vacancy counts, which presenters said they would provide to the committee.