Talking with reporters at a news conference in his office after today’s State of the State address, Gov. Butch Otter was asked about his recommendation for zero funding for raises for state employees. He noted that he is proposing $12 million to cover health care cost increases for state workers next year, suggesting that might be viewed as “a substitute for CEC,” or Change in Employee Compensation, the legislative shorthand for legislative funding for pay increases.

Jani Revier, Otter’s budget chief, told reporters that under the governor’s proposed budget, the state will spend an additional $12.7 million on employee health insurance costs increases next year, an amount she called “significant” and said is “equivalent to a 2 percent CEC.” That expenditure would fully fund the state’s share of the cost increases; state workers still would have to pay their share of the increase, she said.