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Idaho Transportation
Department
Public Affairs Office
P.O. Box 7129
Boise, ID 83707
208.334.8005
Fax: 208.334.8563
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Employee compensation remains in limbo

After querying state employees during pre-session hearings, the Change in Employee Compensation committee has considered a number of proposals, but thus far has not taken action.

The committee met on Feb. 15 and considered options for Fiscal Year 2006 salary compensation. Four motions surfaced during the meeting:

  1. Pay the employer’s share of health increases, estimated at $7 million; pay the employees’ share of health increases (approximately $485,000); and provide a 1 percent personnel cost increase to agencies
  2. Pay employer and employee costs for health insurance increases, estimated to be $7.5 million; and create an interim committee to revise the current pay system;
  3. Pay employer and employee shares of health insurance increases ($7.5 million); allocate funds for an average 1 percent personnel cost increase; and provide a 1 percent “surplus eliminator” (a one-time personnel cost increase similar to that of August 2004), and
  4. Adopt the governor’s recommended 1 percent CEC request

The CEC committee adjourned without approving any of the proposals.

Wednesday (Feb. 23), the Joint Finance and Appropriations Committee (JFAC) considered the salary issue but deferred action to late in the Legislative session when the FY05 and 06 budget picture is clearer.

ITD board members and executives acknowledge the department has important salary challenges, and they are concerned about adequately compensating employees, says Sue Simmons, administrator of ITD’s Division of Administration.

“The executive team is working within its means to address the challenges even before the legislature makes a recommendation. Board members continue to express their concerns about employee salaries and affirm their commitment to provide relief,” she adds.

Human Resources Manager Mary Harker said the following trends underscore the need to find personnel compensation solutions:

  • Cities and counties pay $3-4 more per hour than ITD for similar job functions
  • It takes ITD employees more than 18 years to reach the “policy point”
  • Advance-range hires are an average of 10-15 percent above the entry rate
  • Rising health care costs are eroding take-home pay, and
  • 17 percent of the ITD workforce holds second jobs

Among ITD’s primary goals for employee compensation are to:

– Affirm that employees are ITD’s most valuable resource
– Identify ways to retain the department’s top performers, and
– Address the market competitiveness

“We’re trying to determine how we can better manage salaries within the department even before the Legislature makes its recommendations,” Simmons says.

A story in the Idaho Statesman recently reported that JFAC co-chairs Maxine Bell and Dean Cameron hope the chances of committing funds to salary increases will be improved by delaying the decision until late in the session when the revenue picture is better known.

“I want with all my heart for the money to be there,” Bell said in a Statesman interview.