Branstad extends pay raise to non-contract state workers

UPDATE: Gov. Terry Branstad released details of a proposed salary bill Thursday that extends a pay raise to non-contract state employees and authorizes them to participate in health insurance plans that require a 20 percent employee contribution.

The governor has proposed a series of 1 percent, non-recurring raises to take effect on July 1, Jan. 1, 2014, July 1, 2014 and Jan. 1, 2015 – the same level as provided to members of the State Police Officers Council in their new two-year collective bargaining agreement. Branstad's plan also allows merit-based pay increases within each employee pay grade in each of the next two fiscal years at the discretion of department and agency directors.

In addition, Branstad has authorized state non-contract employees to participate in health insurance plans that require a 20 percent employee contribution, but which also allows employees to earn a $90 a month premium reduction in return for participating in new employee wellness programs.  Those participating in wellness programs can significantly reduce their health insurance premium costs, according to the governor's office.

The proposal affects about 3,435 state employees not covered by a collective bargaining contract and will cost $3 million in fiscal 2014 and $5.7 million in fiscal 2015, according to the governor's office.

“I think this is a good step and I think it's going to help us meet our goal of being the healthiest state in the nation,” Branstad told reporters. Regarding the possibility of proposals yet this legislative session to increase the salaries of state-level elected officials and Iowa Judges, Branstad said “stay tuned” but he had nothing to announce at this time.

Under the governor's current salary and benefits proposal, state non-contract employees will enroll in these new health insurance programs this fall and they will be effective for the calendar year beginning on Jan. 1, 2014. In the aggregate, Branstad said the proposed raises would exceed the cost of employee contributions to their health insurance plans.

“We want the best possible deal for state workers in Iowa while protecting the taxpayers who fund state government, which is why we are providing both pay increases and wellness programs to this group of state employees,” Branstad said in a statement. “We are pleased to offer this great deal for all state non-contract employees, because we will have healthier employees and a better deal for Iowa's taxpayers.

“If Iowa is to have the healthiest state in the nation, it is time for Iowans to have ownership of their own health, starting with our hard-working state employees,” he added. “By offering these wellness programs and health risk assessments, these non-contract state employees will identify risk factors to their health and make corrections in order to live long, healthy lives with their families and friends.”

Sen. Bob Dvorsky, D-Coralville, chairman of the Senate Appropriations Committee, said he was glad to see the governor is proposing a salary bill and he expected money to cover  both noncontract and contract employees would be included in the package. He said he was hopeful majority House Republicans would take up the measure, given that GOP leaders have indicated they do not plan to run a separate salary measure this session but rather have agencies deal with pay issues in their general-fund allotments for fiscal 2014.

Rep. Chuck Soderberg, R-LeMars, chairman of the House Appropriations Committee, said that probably would be the House approach similar to what was done the last two fiscal years.

Dvorsky said “there should be some discussion” of elected officials' salaries although the issue can be politically sensitive. He said current salaries for statewide elected officials are “probably not in line with comparable positions” and the departure of State Auditor David Vaudt might provide an opportunity to address pay issues.

One option, he said, might be to make any increase in compensation for state-level elected officials effective after the 2014 election.