BOISE, ID – Facing a tough budget year, the Idaho governor did not recommend providing a pay increase for state employees, who will also see higher health insurance costs.

Leaders of the state legislative committee tasked with making compensation recommendations for the state’s 25,000 employees told the Idaho Capital Sun on Tuesday they aren’t sure whether the joint committee will meet at all this year.

The joint Change in Employee Compensation, known as CEC, Committee, typically starts meeting ahead of the legislative session and again early in the session to make its recommendation to the budget-writing committee.

“We’re still thinking over the CEC issue,” committee Co-Chair Sen. Dan Foreman, R-Moscow, said Tuesday. “Obviously, the budget’s an issue this year, more so than normal.”

Heading into the 2026 legislative session, the state is facing an estimated $600 million to $1 billion budget shortfall for the next fiscal year.

Gov. Brad Little’s proposal to balance the budget includes no adjustment of employee salaries, based on current revenue projections, according to the Legislative Budget Book. 

“Should revenue projections indicate sufficient funding, the Governor recommends prioritizing change in employee compensation to ensure state employee pay remains competitive,” the budget book said.

Idaho Legislature’s budget committee is scheduled to set ‘maintenance’ budgets on Jan. 23

Increasing health care costs mean that state employees will see an estimated 7.3% increase in out-of-pocket costs for health and dental insurance costs, according to the governor’s budget proposal. Employees may see increases between $29 and $654 per year, depending on the plan type and the number of dependents enrolled.

CEC Committee Co-Chair Rep. James Holtzclaw, R-Meridian, said Tuesday he wasn’t sure if the committee would meet, but that the health care increase concerned him.

“I think it’s important for us to keep employees whole,” he said. “I really think we have the best employees, and we want to just keep them happy.”

The budget-writing Joint Finance-Appropriations Committee is scheduled to set statewide “maintenance budgets” on Jan. 23. These bare-bones agency budgets include previously approved spending, with new requests considered in subsequent “enhancement budgets.”

House Speaker Mike Moyle in a press conference Monday said he hasn’t had discussions regarding employee compensation.

“We have some of the best employees ever … We love these guys, and we share their concerns, and we’ll do what we can to help them,” Moyle said when asked about employee raises. “But maybe this year it’s going to be a little off the table.”

Idaho HR report shows 14% turnover, and salaries lagging behind market 

The Idaho Division of Human Resources’ annual workforce report found the state experienced 14.6% turnover in 2025, and had an 11.2% vacancy rate.

The report found the state’s average base salary is 15% behind the 50th percentile of the public and private sector.

The findings in the report prompted CEC committee member Rep. John Gannon, D-Boise, to call for the committee to meet and consider wage increases for employees. He told the Sun he has been requesting a meeting.

“No business or government can operate efficiently with this kind of dysfunctional employment,” Gannon said in a written statement. “… the best employees will be encouraged to seek comparable employment elsewhere.”

This story first appeared on Idaho Capital Sun.