Statewide budget assumptions set, including 3 percent merit raises for state employees

JFAC has agreed by unanimous consent to include the recommended 3 percent funding for merit-based raises for all state employees in agency budgets that it sets this year, and to funding the costs for the once-every-11-years 27 ^th payroll period next year, a quirk of the calendar.

Sen. Jim Guthrie, R-McCammon, said he didn’t object to the 3 percent for raises, but wanted to note for the record that the state spends a lot on employee benefits. “I’ve been a little bit frustrated with the lack of recognition of what our benefits are,” he said. Guthrie said he contemplated pushing for 4 percent for raises and not covering the $1,040 per employee for health insurance cost increases, but decided against that. Instead, he said he hopes the Legislature will have an interim study committee examine total compensation for state employees and report back next year.

The joint committee also agreed unanimously to cover the third year of four years of annual increases in pay for statewide elected officials, as previously approved by the Legislature and written into state law. The cost comes to $46,700 next year; that’s $1,000 each for the state superintendent of schools, controller, secretary of state and state treasurer, $1,100 for the governor, $400 for the lieutenant governor, and $41,200 for judges.

JFAC also agreed by unanimous consent to include 3 percent base salary increases for public school classified staff and administrators in the budgets it sets; and to fund non-discretionary adjustments in an array of state agency budgets, including public schools, higher education, and Medicaid, in compliance with state law. That includes adjustments for caseload, utilization and federal match adjustments in Health & Welfare as recommended by the governor, and the governor’s recommendation for enrollment workload growth in higher education and professional-technical education.

As individual agency budgets are set, JFAC members still could propose variations. “Motion makers can make changes how they see fit in their motions,” said Paul Headlee, deputy legislative budget director. “You have complete discretion to make those changes.”

After making the statewide budget decisions, JFAC is taking a break; it’ll be back for a public hearing on the state budget starting at 9:45.