2008 Legislation
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HOUSE CONCURRENT RESOLUTION NO. 49<br /> – State employee compensation


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Bill Status

HCR049.....................................................by STATE AFFAIRS
EMPLOYEE COMPENSATION - Stating findings of the Legislature and
recommending an increase in compensation for state employees.

02/28    House intro - 1st rdg - to printing
02/29    Rpt prt - to 2nd rdg
03/03    2nd rdg - to 3rd rdg
03/05    3rd rdg - ADOPTED - 51-19-0
      AYES -- Anderson, Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Black,
      Block, Bolz, Bowers, Brackett, Bradford, Chadderdon, Clark, Collins,
      Crane, Eskridge, Hagedorn, Hart, Harwood, Henderson, Kren, Labrador,
      Lake, Loertscher, Luker, Marriott, Mathews, McGeachin, Mortimer,
      Moyle, Nielsen, Nonini, Patrick, Raybould, Roberts, Schaefer,
      Shepherd(02), Shepherd(08), Shirley, Smith(24), Snodgrass, Stevenson,
      Thayn, Thomas, Vander Woude, Wills, Wood(27), Wood(35), Mr. Speaker
      NAYS -- Bock, Boe, Chavez, Chew, Durst, Henbest, Jaquet, Killen,
      King, LeFavour, Pasley-Stuart, Pence, Ringo, Ruchti, Rusche, Sayler,
      Shively, Smith(30), Trail
      Absent and excused -- None
    Floor Sponsor - Schaefer
    Title apvd - to Senate
03/06    Senate intro - 1st rdg - to Com/HuRes
03/14    Rpt out - rec d/p - to 10th Ord
03/17    10th Ord - ADOPTED - 26-8-1
      AYES -- Andreason, Bair, Bastian, Broadsword, Cameron, Coiner,
      Corder, Darrington, Davis, Fulcher, Geddes, Goedde, Hammond,
      Heinrich, Hill, Jorgenson, Keough, Little, Lodge, McGee, McKague,
      McKenzie, Pearce, Richardson, Siddoway, Stegner
      NAYS -- Bilyeu, Burkett, Kelly, Langhorst, Malepeai(Sagness),
      Schroeder, Stennett, Werk
      Absent and excused -- Gannon
    Floor Sponsor - Cameron
    Title apvd - to House
03/17    To enrol - Rpt enrol - Sp signed
03/18    Pres signed - To Secretary of State

Bill Text

  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                  Second Regular Session - 2008


                              IN THE HOUSE OF REPRESENTATIVES

                             HOUSE CONCURRENT RESOLUTION NO. 49

                                 BY STATE AFFAIRS COMMITTEE

  1                               A CONCURRENT RESOLUTION

  5    Be It Resolved by the Legislature of the State of Idaho:

  6        WHEREAS, the Legislature has by law provided that the Governor  and  Divi-
  7    sion  of  Human  Resources report to the Legislature their recommendations for
  8    proposed pay policies, together with the estimated costs thereof; and
  9        WHEREAS, the Legislature has received and reviewed the report of the  Gov-
 10    ernor dated January 7, 2008, and the report of the Division of Human Resources
 11    dated December 1, 2007.
 12        NOW,  THEREFORE,  BE IT RESOLVED by the members of the Second Regular Ses-
 13    sion of the Fifty-ninth Idaho Legislature, the House  of  Representatives  and
 14    the Senate concurring therein, that:
 15        (1)  It  is  the policy of the state of Idaho to provide a total compensa-
 16        tion system that attracts, retains  and  recognizes  state  employees  for
 17        their  valuable  service. The foundation of this system is to pay competi-
 18        tive job market average salaries, reward performance  with  a  merit-based
 19        compensation philosophy, and a quality benefits package.
 20        (2)  The  Change  in Employee Compensation Committee recommends no adjust-
 21        ments be made to the current payline or compensation structure.
 22        (3)  The committee recommends that the  Joint Finance-Appropriations  Com-
 23        mittee  provide  funding  for  a  3% increase in employee compensation for
 24        state employees to be distributed as follows:
 25             (a)  Agencies and institutions are first directed to allocate to  all
 26             eligible state employees a 1% salary increase.
 27             (b)  Agencies  and institutions are required to review and target any
 28             needed funding, based on merit, toward high turnover classifications,
 29             individuals below midpoint within their agency, and individuals below
 30             90% of the Compa-Ratio.
 31             (c)  Agencies and institutions are directed to target  any  remaining
 32             funding based on merit using the merit matrix required by Idaho Code.
 33        (4)  The  committee  recommends the following for an active state employee
 34        benefit package:
 35             (a)  The Joint Finance-Appropriations Committee is directed  to  pro-
 36             vide  funding  of  $8,700  per  full-time equivalent position for the
 37             employer portion of the benefit premiums. The Department of  Adminis-
 38             tration  is  directed to collect no more than $16,400,000, equivalent
 39             to a 29% total employee premium increase  for  premiums  from  active
 40             state employees.
 41             (b)  State  agencies and institutions are directed to remit all state
 42             funding for health  insurance  included  in  the  appropriations  for
 43             employees  eligible  to  be enrolled in health insurance to the group
 44             insurance account created in section 67-5771, Idaho Code.


  1             (c)  The Department of Administration is  directed  to  institute  an
  2             additional  insurance plan option in order to provide state employees
  3             a choice that better meets the employee's individual needs and  bene-
  4             fit  coverage  desires. The additional plan must maintain premiums at
  5             the 2008 premiums cost for both the employer and the employee.
  6             (d)  The Department of Administration is further directed to  provide
  7             in  fiscal  year  2009  active employee insurance plans with benefits
  8             substantially similar to benefits provided in the  fiscal  year  2008
  9             active  employee insurance plans. If the Department of Administration
 10             is unable to maintain substantially similar benefits within the  fis-
 11             cal  year  2009  funding  designated  in subsection (4)(a) above, the
 12             department shall notify both the Change in Employee Compensation Com-
 13             mittee and the Joint Finance-Appropriations Committee of any substan-
 14             tial benefit changes to the insurance plans.
 15             (e)  The Change in Employee Compensation  Committee  recognizes  that
 16             there  exist  subsidies within the active employee insurance plans as
 17             well as within the active employee  insurance  premium  charges.  The
 18             Department of Administration shall be given the appropriate flexibil-
 19             ity  to address other inequities within the active employee insurance
 20             plans that are deemed appropriate by the Director of  the  Department
 21             of Administration.
 22        (5)  The  committee further recommends that elected officials, judges, and
 23        commissioners be treated in a similar manner as state employees.
 24        (6)  Agencies and institutions shall create compensation and  distribution
 25        plans  to  ensure  such  plans  are consistent with the policies contained
 26        herein. Agency directors and institutional presidents  shall  approve  all
 27        compensation  and distribution plans and ensure that implementation of the
 28        plans is consistent with policies contained herein. Each agency and insti-
 29        tution shall forward, for  informational  purposes  only,  copies  of  the
 30        agency  approved  compensation  and  distribution plans to the Legislative
 31        Services Office and the Division of Financial Management by June 1, 2008.
 32        (7)  For fiscal year 2009, agencies and institutions are  hereby  directed
 33        to  allocate  salary savings to provide for employee salary needs based on
 34        performance, before other operational budget  priorities  are  considered.
 35        Where applicable, employees whose salaries are below midpoint of their pay
 36        grade,  or  occupational groups with significant turnover shall be consid-
 37        ered first in the order of salary savings distributions.
 38        (8)  The effective date of implementation of  ongoing  salary  adjustments
 39        shall be June 15, 2008.
 40        BE  IT FURTHER RESOLVED that appropriations measures to fund nonclassified
 41    employees be prepared as nearly as possible in the same manner as for  classi-
 42    fied employees.

Statement of Purpose / Fiscal Impact

                       STATEMENT OF PURPOSE    
                             RS 17992C2

   Under Idaho Code 67-5309C(4) the Idaho Legislature may by concurrent
resolution accept, modify, or reject the Governor's recommendations for sate
employee compensation including benefits. This concurrent resolution modifies the
Governor's recommendation from a 5% personal funding increase and $2,075 per
employee for employer benefit costs increases to a 3% increase in personnel
funding and $1,575 per employee for employer benefits cost increases. 
   Idaho code 67-5309(2)(d) requires the Legislature to make a recommendation
regarding the benefit package for state employees. The Department of
Administration is required to establish a third high-deductible insurance plan
and keep the current Traditional and PPO insurance plans at equal benefit
coverage levels for FY 2009.
   Finally, this resolution requires state agencies to develop compensation
distribution plans; directs the use of salary savings by state agencies; and
recommends that elected officials, judges, and commissioners be treated in the
same manner as state employees. 

                           FISCAL NOTE

            CEC Costs:
                General Funds         $ 20,576,300
                Dedicated Funds       $  8,311,200
                Federal Funds         $  4,172,600
                  TOTAL:              $ 33,060,100

            Benefits Funding Increases:
                General Funds         $ 18,716,400
                Dedicated Funds       $  8,067,200
                Federal Funds         $  4,467,000
                  TOTAL:              $ 31,250,600

            Total CEC & Benefits Costs:
               General Funds          $ 39,292,700
               Dedicated Funds        $ 16,378,400
               Federal Funds          $  8,639,600
                  TOTAL:              $ 64,310,700

Contact: Representative Schaefer  332-1000           

STATEMENT OF PURPOSE/FISCAL NOTE                           HCR 49