Change in Employee Compensation Process (CEC)

LC State makes every effort to ensure that its compensation structure supports employees, recognizes meritorious service, and remains competitive in an increasingly global job market. Annual increases are an important part of retaining a skilled and dedicated workforce. In Idaho, annual compensation increases for public employees are governed by a variety of state laws and policies and must be authorized annually by the Idaho State Legislature. The State of Idaho refers to some employee pay raises or other wage considerations as Change in Employee Compensation (CEC). There is a CEC legislative committee and the overall evaluation of employee wages is referred to as the CEC process. LC State is not provided state CEC dollars to cover all campus positions, so there must be sufficient College base funding to cover recommended employee increases.

Current Status for the Fiscal Year 2025 (FY25) CEC Process:

In December 2023, the Idaho Division of Human Resources (DHR) published an annual compensation report (Step One) and presented their recommendation of a 4.5% CEC merit salary pool to the Joint Change in Compensation Committee (Step Two).

In January 2024, the Office of the Governor recommended a 3% CEC merit salary pool (Step Three).

On January 17, 2024, the Joint CEC Committee passed a recommendation to the Joint Finance Appropriations Committee (Step Four) which included:

  • 2% merit salary pool for benefit-eligible, permanent employees, which does not not always translate into a 4.5% increase for each individual employee.
  • 1% across-the-board increase for all benefit-eligible, permanent employees.
  • A continuation of some classification-specific pay line exception and a new, separate salary structure for certain state classified employees, neither of which have a significant impact on the LC State workforce.
  • Shifting the overall classified staff salary ranges upward 3.7% (this does not impact employees unless they fall below the newly established minimum salary range).

All of these are recommendations and the College currently advocates on behalf of LC State's workforce while it awaits a final legislative decision about CEC.

On February 27, 2024, LC State President Dr. Cynthia Pemberton presented to the Joint Finance Appropriations Committee (Step Five).

On February 28, 2024, LC State President Dr. Cynthia Pemberton presented to the House Education Committee and the Senate Education Committee (Step Five).

On March 13, 2024, the Joint Finance Appropriations Committee voted on the FY 2025 Division of Human Resources budget.

The CEC Process:

Each December, the Idaho Division of Human Resources (DHR) publishes a full study of public employment compensation in Idaho with an analysis of compensation trends, market competitiveness, past increases, and the total state benefits package. Step one completed by DHR in Dec. 2023.

Each December, DHR presents its annual compensation report and its CEC recommendations to the Idaho State Legislature’s Joint Change in Employee Compensation Committee (JCECC). These recommendations may be accepted, rejected, or amended by the Governor or Legislature. Step two completed by DHR in December 2023.

Each January, the Idaho Governor, after reviewing DHR’s recommendations, advances a Governor’s Office recommendation in the annual budget proposal. The governor can choose to accept, reject, or amend DHR’s recommendation. Step three completed by the Governor’s office in January 2024.

During the legislative session (typically in early spring), the JCECC will forward its CEC recommendations to the Idaho State’s Legislature’s Joint Finance and Appropriations Committee (JFAC). JCECC’s recommendations may or may not match those put forward by DHR and/or the Governor’s Office. Step four completed by JCECC in January 2024.

In early to mid spring, the Presidents of all state universities and colleges present how they used legislative funds the past fiscal year as well as current needs. JFAC asks questions to clarify needs before submitting the budget to the House and Senate. The Presidents also present to the House and Senate Education committees.

JFAC ultimately votes on a CEC package for the coming year and forwards that to both the House and Senate for final approval as part of the overall budget. This happens typically in mid-spring.

Once the CEC is approved (typically in mid to late spring) and authorized by the Legislature, DHR develops specific CEC implementation guidance for state agencies.

LC State reviews DHR guidance and develops a plan as to how the CEC will apply to its workforce.

LC State’s plan is presented to DHR and the Department of Financial Management (DFM) for approval. There may be further required amendments to LC State’s plan based on DHR and/or DFM feedback.

DHR and DFM approve LC State’s CEC plan and implementation begins.