Senate committee advances constitutional amendment to require funding of arbitration awards for some state employees

The Senate Finance Committee voted to advance SB 28 on March 13, a bill that proposes a constitutional amendment to require the governor, if voters ratify the amendment, to include in the annual budget any appropriations necessary to implement arbitration awards for selected state employees.

Presenter (S12) said the bill establishes binding arbitration at impasse for most state employees, requires selection of a neutral arbitrator, expands negotiable subjects subject to change, and includes uncodified language directing the Comptroller to study growth industries. Several substantive amendments carve out institutions of higher education from the arbitration provisions so they may continue using existing processes; pension benefits are also excluded from collectively negotiable matters. Committee members asked whether the language in the bill would be the exact ballot question; Presenter noted the State Board of Elections formats the official ballot language.

Committee discussion touched on fiscal treatment and the interaction between a constitutional change and annual appropriations. The committee recorded a 7–3 vote in favor with several members opposing on fiscal grounds and concerns about creating unfunded obligations. As amended, the bill will proceed toward further legislative and possibly voter action if it reaches the ballot.

Why it matters: A constitutional change to require appropriation of arbitration awards would alter the balance between collective‑bargaining remedies and the legislature's control over appropriations for state obligations; carve‑outs and exclusions reflect stakeholder negotiation.

What happens next: The committee reported SB 28 favorably; if the constitutional amendment advances through the legislature and is approved by voters, it would change how arbitration awards for covered employees are funded.