But the 17.1-percent jump in money for wages is too costly, so the agency has recommended to Gov. Dirk Kempthorne a smaller, but still expensive, plan to give bigger paychecks to 19,000 state workers, many of whom have gone two years without raises.

The agency offered two choices:

• Finance pay increases over five years, starting with a 6.8-percent boost during the 2004-05 budget year, which begins July 1, 2004. That would cost the state general fund $34 million.

• Provide state agencies with a one-time 2 percent increase in salaries — allowing workers to get temporary raises of up to 10 percent in a “retention and recognition award program.” That could cost about $10 million.

The report also says the state´s 500 nursing occupation employees should get merit increases of 10 percent to address “overly competitive pressures, turnover and a sizable market lag.”

The cost of the increase is estimated at $1.7 million. As a group, state workers´ pay lags 14.6 percent behind their private sector counterparts. State nursing employees trail their private sector peers by 22.3 percent, the report said.

A top senator signaled support for the plan, and Kempthorne´s spokesman reiterated the governor´s support for raises without specifically endorsing the agency´s report.

State workers greeted the news enthusiastically.

“Everything rises except for salaries,” said Joy Habben, a vocational specialist at the Idaho State School and Hospital in Nampa. “I´m feeling the pinch (but) we´re here every day dutifully doing our jobs. We really need to see something happen this year.”

State agencies have gone without additional money to give their workers two years running. Agencies that have managed to save money from their operating budgets have awarded handfuls of raises. That´s how last spring Kempthorne was able to give three of his aides raises of between 14 and 43 percent.

For the entire 2002-03 budget year that ended June 30, agencies awarded only two bonuses and fewer than 500 merit raises.

Kempthorne spokesman Michael Journee on Wednesday reiterated support for state workers but declined comment specifically on the Division of Human Resources´ new recommendations, which Kempthorne can either accept or reject.

“The governor will give out those details in his State of the State address,” Journee said.

If he rejects the recommendations, he must, by law, present his own to the Legislature. If lawmakers take no action on Kempthorne´s recommendation, his takes effect by default.

Historically, recommendations from the state´s personnel agencies have been either equal to or higher than the governor´s end recommendation. Last year, Human Resources recommended a 1 percent increase for the 2003-04 budget year, but Kempthorne recommended no new money for salaries.

Whether to put more money into state employee salaries is expected to be the among the biggest budget decisions facing lawmakers in the next legislative session.

Senate Commerce and Human Resources Chairman John Andreason of Boise said he supports a 6.8 percent jump in money for salaries and said pushing a pay-raise package through the Legislature is “my No. 1 priority for the coming session.”

“I think we have made a mistake in ignoring state employee salaries over the last two years, and now we´re in a situation where we can´t afford to catch up at once,” Andreason said.

Some lawmakers have lamented that failing to give raises to such a large work force only contributes to the state´s money troubles, since state employees will be less likely to contribute to an economic recovery.

Others said it is inappropriate to put more money into state employee pay the same year the governor and the Legislature passed tax increases to balance the budget.

State workers are anxious. The Human Resources´ report says employee turnover is running about 13 percent. Historically, turnover is about 11 or 12 percent, the report said. Employees have voiced frustration that health insurance costs and an increase in the cost of living are taking a bite out of their flat paychecks. The cost of living rose 1.2 percent last year.

Maria Contreras, who works for the Department of Correction in Blackfoot, echoed those sentiments.

Contreras said often workers are asked to go beyond the scope of their job descriptions. “A raise would be an incentive to keep doing the good job we have been doing,” she said.

But Wade Douglass, a Boise computer network analyst for the Department of Administration, said he understands the state´s plight and expects the governor and lawmakers will provide additional money to workers when they can.

“I just kind of figure the benefits and the way I´m treated, it´s worth hanging in there until the economy recovers,” said Douglass.

To offer story ideas or comments, contact Wayne Hoffman
whoffman@idahostatesman.com or 377-6416

Edition Date: 10-02-2003

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