Committee hears overview of pay act: planned 2%–3% increases, benefits changes, unions back measure

The Government Operations & Military Affairs Committee on March 17 received an overview of the proposed pay act, which would fund multi-year collective bargaining agreements and adjust statutory salaries for appointed positions.

DHR Commissioner Beth Fastigi urged committee members to support the measure, describing it as the vehicle that would “provide pay increases for fiscal year 27 and 28” and noting that some bargaining units are still finalizing ratification. “On behalf of Department of Human Resources and the administration we encourage you all to support the pay act,” Fastigi said.

The draft pay act submitted to the committee sets two-year contracts from July 1, 2026, to June 30, 2028, and schedules across-the-board increases of 2% in July 2026, 2% in January 2027, and 3% in July 2027, with continuation of step increases where applicable. Fastigi also outlined non-pay changes in the draft, including making Juneteenth and Indigenous Peoples’ Day premium-pay holidays, removing Bennington Battle Day from the premium list, increasing the non-medical vision benefit to $200 annually, eliminating the dental deductible, raising the orthodontia lifetime maximum to $3,750 and the annual dental cap to $2,000, and increasing the annual leave accrual cap by 20 hours.

Greg, speaking for the judiciary, described negotiated terms for the judiciary bargaining unit and the fiscal impact of those changes. He said the judiciary sought retitling and reclassification for several positions to address turnover and competitiveness—actions that added about $1.5 million plus $97,000 in retroactive pay. “So all told for year number one would be about $4.1 million and then in year number two would be about $2.65 million,” Greg said, putting the two-year judiciary total at roughly $6.724 million.

Commissioners and committee members pressed staff on details. One member asked about statutory base salaries and whether a newly elected governor would assume whatever statutory salary was effective that July; staff said the salary set for the pay period would apply to whoever holds the office. The committee also questioned why some statutory salaries (notably the governor’s) appear high relative to national comparators; staff said they did not have full historical context and would research and report back.

Unions told the committee they back the package. A VSEA representative introduced Adam Norton, who said the union supports the governor’s pay act and emphasized the need to reduce vacancy and overtime costs that arise from staffing shortages. Norton raised concerns about corrections staffing and noted some units remain in active negotiation, saying the corrections bargaining unit may proceed to fact-finding. Sergeant O’Neal, director of the Vermont State Troopers Association appearing by Zoom, said troopers anticipate strong member support but were awaiting a formal draft for ratification.

DHR staff said they have provided detailed calculations to the Joint Fiscal Office and expected to deliver a memo with the updated legislative template and numbers by the end of the following day so Ledge Council can insert figures into the draft language.

The committee did not take final votes. Members used the session as a primer and scheduled further work, with the chair adjourning until the committee’s next meeting the following morning.

What’s next: committee staff will circulate a memo and populated pay-act template to members and JFO, the judiciary will provide supporting documentation on its cost calculations, and outstanding bargaining units (including corrections) may require separate negotiations or fact-finding before final legislative action.