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Bill > LD1539


ME LD1539

ME LD1539
An Act to Create a State Employee Compensation Stabilization Fund


summary

Introduced
04/08/2025
In Committee
04/08/2025
Crossed Over
06/05/2025
Passed
06/09/2025
Dead

Introduced Session

Potential new amendment
132nd Legislature

Bill Summary

This bill creates the State Employee Compensation Stabilization Fund within the Department of Administrative and Financial Services. Funds must be used to augment the salaries of state employees to provide parity between the salaries of state employees and the salaries of comparable positions in the public and private sectors as determined by a market pay study. Unexpended balances in the fund at the end of the fiscal year do not lapse and are carried forward to the next fiscal year. "State employees," as used in the bill, refers to employees of the executive branch. The bill amends provisions governing the allocation of excess General Fund revenues to fund the State Employee Compensation Stabilization Fund. The bill reduces the percentage of funds received by the Highway and Bridge Capital program from 20% to 19% and directs to the State Employee Compensation Stabilization Fund 1% of the excess General Fund revenues left over after certain transfers are made.

AI Summary

This bill creates the State Employee Compensation Stabilization Fund within the Department of Administrative and Financial Services to help address salary disparities for state employees in the executive branch. The legislation modifies the allocation of excess General Fund revenues by reducing the Highway and Bridge Capital program's share from 20% to 19% and directing 1% to the new compensation fund. The fund's purpose is to augment state employee salaries to achieve parity with comparable positions in public and private sectors, as determined by market pay studies. The funding mechanism allows for annual contributions, and any unspent money will carry forward to the next fiscal year instead of being returned to the general fund. Importantly, the specific salary adjustments will be determined through negotiations with labor organizations representing state employees, ensuring that the compensation increases are based on professional market research and collaborative discussions. The bill represents a strategic approach to maintaining competitive compensation for state workers while preserving funding for other important state infrastructure programs.

Committee Categories

Government Affairs

Sponsors (6)

Last Action

CARRIED OVER, in the same posture, to any special or regular session of the 132nd Legislature, pursuant to Joint Order SP 800. (on 06/25/2025)

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