Government Operations & Military Affairs committee advances pay-act draft with multi-year raises for state employees

The Government Operations & Military Affairs committee voted Friday to move draft number 26-0799, draft 2.2, of the pay act out of committee after a review and brief question-and-answer period.

Brent Thayer, director and chief counsel of legislative counsel, told the committee the bill implements the results of collective bargaining for fiscal years 2027 and 2028. "For most classified employees in fiscal year 27 there will be the average 1.9% step increase, and then two additional across-the-board increases — 2% on July 12 and 2% on Jan. 10 — for a total for fiscal year 27 of a 5.9% increase," Thayer said. For fiscal year 2028, Thayer said the draft funds an average 1.9% step increase plus a 3% across-the-board increase, for a total average increase of 4.9% for those covered by the collective bargaining agreements.

The draft extends the negotiated percentages to employees who are exempt from collective bargaining if the three branches choose to do so within their budgets and likewise applies the percentages to exempt agency and department heads, deputies and executive assistants who are not covered by CBAs.

Thayer walked members through revised statutory salaries for statewide officers, including the governor, lieutenant governor, secretary of state, state treasurer, auditor and attorney general, and described updated salary tables for department and agency heads and for the judiciary. He said the draft replaces prior statutory salary figures with the new numbers tied to the same sequence of July and January adjustments and the FY28 increase.

On judicial pay matters, Thayer noted new daily rates for assistant judges, listing $245.82 effective 07/12/2026, $250.74 effective 01/10/2027, and a final increase to $263.03 effective 07/11/2027; he acknowledged and said he would correct a typographical error on the draft where a different figure had appeared.

The appropriation section sets out the funding necessary to pay the increases. Thayer said the FY27 general fund appropriation for executive-branch increases is $23,918,820, with a Transportation Fund appropriation of $3,000,000 for Agency of Transportation and Department of Public Safety obligations and an estimated $27,184,607 from special, federal and other sources. For FY28 he cited an executive-branch general fund figure of $24,974,632, a Transportation Fund appropriation of $3,000,000 and other funds of $28,362,343.

A committee member asked whether the FY28 amounts were already appropriated in the governor's proposed budget. Amy Pope, speaking for the joint office, clarified that the FY28 figures are not appropriated in the bill itself. "We don't appropriate future years in the bill," she said, explaining that the numbers appear in operating statements used for budget tracking but are not an appropriation included in this draft.

Members also asked why some FY28 totals appear lower than FY27; Thayer responded that FY27's totals are larger because the FY27 increases sum to 5.9% while FY28's increases total 4.9%, and he emphasized the pay act funds only the increases rather than base salaries.

After the presentation and a brief period for questions, the committee moved the draft 26-0799, version 2.2, and the clerk conducted a roll call. Representatives Boyden, Coppin, Pangoe, Cooper, Nugent, Pinstell, Stone, Waters Evans and Byron recorded "Yes" votes. The chair volunteered to serve as the bill reporter. The motion carried and the draft was advanced out of committee.

Next steps: the committee formally reported the bill and the draft will proceed per legislative process. The committee adjourned following brief closing remarks.