Legislative Executive Committee directs agency budgets to assume 0% pay increase pending JBC decision

The Executive Committee of the Legislative Council voted unanimously to have agency directors draft next year’s budgets assuming a 0% employee compensation increase and no additional benefit increases for now.

The committee’s action follows a presentation by Craig Harper of the Joint Budget Committee, who summarized the governor’s budget request that included about a 3.5% salary increase aligned with the WINS agreement and a proposal for the state to absorb health, life and dental premium increases. Harper said, “I am concerned that neither of those proposals will be viable for the state's budget, that the 3.5% salary increase is probably not going to be viable given our current fiscal climate. And the health life dental increase is also quite expensive.”

Madam Chair said the directive is intended only to facilitate timely budget drafting and added, “please don't take this approach as a commentary on how much we value all of you,” emphasizing the committee could incorporate any Joint Budget Committee decision later in the legislative process.

Mr. President moved that the secretary of the Senate and the chief clerk of the House include a placeholder in their agency budgets that results in flat compensation between fiscal years 2025–26 and 2026–27; Majority Leader Duran seconded the motion. The committee conducted a roll call; the transcript records Caldwell, Duran, Rodriguez, Simpson, Mr. President and House beak as voting Aye/Yes. The motion passed unanimously, 6–0.

After the vote, Director Harper asked for clarification about how to treat health, life and dental: whether the committee intended to hold the employer/employee percentage split steady (the transcript records an approximate 88/12 split) or to hold the state's dollar contribution steady. Harper noted premium increases for some self-funded plans have been large this year and that which approach is chosen will materially change dollar impacts for both the state and employees. The Chair and members indicated the preference to leave the ratio unchanged so increases, if any, would be felt on both sides and to update budgets if the Joint Budget Committee later adopts a different approach.

The committee did not adopt any change to benefits in dollar terms at the meeting and noted it will revisit compensation if the Joint Budget Committee acts.