Simpson Suggests Reducing Pay Raises

Cash-strapped legislative leaders on Friday escalated their search for money to augment Republican Gov. Phil Batt’s bare-bones budget.

House Speaker Michael Simpson called for essentially reducing Batt’s 5 percent state employee pay raise to 4.5 percent.

The scheme, opposed by Batt and meeting resistance from at least some Senate Republicans, came while budget writers were adding to the new governor’s spending blueprint.

By including increased state payments for employee health insurance and other benefits as part of a 5 percent increase in compensation, Simpson said lawmakers would free up another $2.5 million.

But critics questioned whether the speaker’s unprecedented proposal would send the wrong message to government workers. They say those workers too often have been denied pay increases or been given only minimal hikes so cash could be used to finance programs with higher legislative priorities.

Senate leaders were expected to meet with Simpson and Batt next week to resolve the issue.