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Bill

LD 1987

An Act To Fund Collective Bargaining Agreements With Executive Branch Employees And Continue The Voluntary Employee Incentive Program

132nd Legislature (2025-2026) Introduced by Drew Gattine

LD 1987 funds and enables negotiated executive-branch salary increases under CBAs and keeps VEIP, with a $99 million per-year cap on Salary Plan transfers.

Signed by Governor
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Bill Summary · LD 1987

Summary — LD 1987

Title: An Act To Fund Collective Bargaining Agreements With Executive Branch Employees And Continue The Voluntary Employee Incentive Program
Bill Number: LD 1987 — Signed by Governor (2025-07-01)
Introduced: June 13, 2025
Subjects: Executive Branch collective bargaining, State finances, State personnel

Purpose and intent

LD 1987 authorizes funding mechanisms to implement agreed-upon salary schedule adjustments for executive-branch employees consistent with collective bargaining agreements (CBAs) and continues the Voluntary Employee Incentive Program (VEIP). The bill's intent is to provide the executive branch the authority and financial structure needed to pay negotiated salary increases and continue a program that supports voluntary workforce reductions or other incentive-based personnel actions.

Key provisions

  • Authorizes upward adjustments to salary schedules for executive-branch employees consistent with various collective bargaining agreements.
  • Continues the Voluntary Employee Incentive Program (VEIP).
  • Allows General Fund and Highway Fund costs arising from these actions to be supported through transfers between and within departments and agencies and through the Salary Plan program (General Fund account) within the Department of Administrative and Financial Services (DAFS).
  • Places an explicit limit on transfers from the Salary Plan: up to $99,000,000 in each of fiscal years 2025‑26 and 2026‑27.
  • Notes that the unobligated balance in the Salary Plan was $62,828,133 as of June 11, 2025, and anticipates additional balances may lapse to the Salary Plan at fiscal year end.

Fiscal impact

  • Preliminary and amended fiscal notes vary:
    • Early and some amendment-specific fiscal notes indicated "No fiscal impact."
    • The fiscal note for the bill as engrossed (with Senate Amendments A and B) indicates current biennium cost increases to both the General Fund and the Highway Fund.
  • The bill does not specify a single total cost figure; costs will be covered principally by department transfers and Salary Plan transfers subject to the $99,000,000 per‑year limit. The available Salary Plan balance as of 6/11/2025 was $62,828,133, with expectation of further lapses replenishing that account.

Who is affected

  • Executive-branch employees covered by the CBAs whose salary schedules are adjusted.
  • Executive branch departments and agencies (which may redirect internal funds or receive Salary Plan transfers).
  • State finances (General Fund and Highway Fund) to the extent transfers are required.

Procedural and timeline notes

  • Introduced and moved rapidly: committee recommendation June 13, 2025; multiple House and Senate readings and amendments (House Amendment H‑697; Senate Amendments S‑421 and S‑435).
  • Experienced procedural actions including special appropriations tabling and reconsideration; vote roll call in the House (June 17: Yeas 118 — Nays 30).
  • Passed both chambers as amended and was signed by the Governor on July 1, 2025.
  • Because funding relies on transfers and Salary Plan authority, implementation timing will follow departmental budgetary actions and DAFS processing of Salary Plan transfers for FY2025‑26 and FY2026‑27.

Practical effect

LD 1987 provides statutory authorization and temporary funding mechanisms to implement negotiated salary increases for executive‑branch employees and keeps VEIP active, while capping Salary Plan transfers available to support those costs at $99 million per fiscal year for the two‑year period specified. Exact net fiscal exposure depends on departmental transfer actions and final utilization of Salary Plan balances.

Compiled from official sources — confirm details with the bill’s official record.

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