The Legislature’s budget committee Thursday hit a stalemate on statewide revenue and employee pay decisions, including raises for K-12 teachers as well as college and university workers. 

The Joint Finance-Appropriations Committee (JFAC) failed to reach an agreement on a revenue projection for the upcoming fiscal year, which will shape major spending decisions this year, including how much Republicans cut in taxes. Budget-setting lawmakers also disagreed over state employee benefit increases, and punted a decision on state worker raises. 

“We want to make sure we do it right,” said Sen. C. Scott Grow, an Eagle Republican and co-chairman of the committee, before adjourning the contentious meeting.

Likely the most factious question before JFAC was how to divvy up state employee raises. Debate centered on across-the-board hourly raises vs. merit-based pay increases — an ongoing Statehouse battle over focusing pay increases for lower- or higher-paid employees. Hourly raises primarily reward workers on the lower end of the pay scale while merit-based raises lift salaries for higher earners as well. 

Last week, Gov. Brad Little proposed 5% merit-based raises. But the Legislature’s Change in Employee Compensation (CEC) Committee recommended $1.55 hourly raises across the board along with additional pay hikes for skilled health care workers, Idaho State Police troopers and information technology and engineering specialists. 

On Thursday, Sen. Kevin Cook, R-Idaho Falls, pushed JFAC to adopt a hybrid of the two — $1.55 hourly raises or 4% raises, whichever is greater. In a lengthy speech, Cook framed across-the-board hourly raises as a form of “equity,” similar to the philosophy behind diversity, equity and inclusion, that rewards all employees regardless of performance.

Merit-based raises, on the other hand, are offered to employees who demonstrate “outstanding performance, innovation and leadership,” Cook said. “Don’t we want people questioning things, living outside the box, being innovative, putting in an extra hour to figure out how to do things the right way or improve on it?”

Rep. James Petzke, who supported the hourly increase, responded that comparing hourly raises to DEI was unfair. The Legislature’s role is to fund statewide raises that offset cost-of-living increases, not to reward certain employees for performance. 

“The cost of eggs has gone up the same for everybody,” said Petzke, R-Meridian. “There are lots of mechanisms that our agencies have to reward people based on merit.”

Statewide CEC decisions will affect pay for college and university employees. Raises for K-12 teachers, administrators and staff likely will be considered alongside the statewide employee raises. 

JFAC appears to be moving forward with Little’s recommendation for $84 million in K-12 pay hikes. Public school salaries are set at the district level. 

Committee members also split over increases to employee health benefit increases and revenue projections — largely along a House-Senate divide. House members unanimously supported a $6.4 billion target for state revenue in Fiscal Year 2026, which starts in July. But most Senate members supported a lower projection at $6.33 billion. 

The budget committee likely will restart debates over revenue projections and employee compensation in the coming weeks. 

In the meantime, JFAC will debate agencies’ “maintenance” budgets Friday. These budgets are designed to set a spending base for 2025-26, and allow lawmakers to scrutinize new spending requests separately.

Classroom flag restrictions head to House floor

Despite questions from Republican and Democratic lawmakers, a bill restricting flags in classrooms cleared a committee along party lines.

House Bill 10 would ban classroom flags “regarding a political party, race, sexual orientation, gender, or a political ideology.” The goal, said its sponsor, is to emphasize the U.S. flag.

“That is our symbol of unity and strength,” said Rep. Ted Hill, R-Eagle. “It’s important for our schools and our students to embrace this.”

Lawmakers spent much of Thursday’s 90-minute hearing trying to figure out what would be allowed, and what would be banned.

Teachers would be able to wear any pins or buttons they want, Hill said. Political flags — including the “Don’t Tread On Me” flag and the confederate flag — would be off limits, Hill said. Flags supporting college sports teams, even for private, religious-based schools, would be allowed, Hill said.

Public testimony, and some of the committee debate, focused on Pride flags, which HB 10 would prohibit.

Cassie Horner, a Boise school teacher, said Pride flags do not reflect a partisan agenda. Instead, she said, the free display of flags encourages students to discuss civil rights and history.

Daniel Murphy of Boise, a 15-year substitute teacher, said the “so-called Pride flag” advances “a distinct sexual proclivity,” and should be removed from classrooms.

In committee, Boise Democratic Rep. Monica Church led opposition to HB 10. Church, a public school teacher, said HB 10 was a “poorly written” attempt to rehash issues addressed by a 2021 school antidiscrimination law.

Hardline Rep. Tony Wisniewski, R-Post Falls, took issue with language that would allow teachers to display international flags — including flags from China, North Korea and Russia.

Wisniewski made a failed attempt to send the bill to the House floor for amendment. After that vote, he joined other Republicans in endorsing the bill.

It now goes to the House floor for a vote.

New bill revisits school board protocol

A new bill would require trustees to take public comment at school board meetings — no holds barred.

The bill is a followup to a 2024 law requiring school boards to “hear public comment, if offered by a member of the public, prior to taking action on an agenda item.” The bill would strike one restriction from the 2024 law: “Public comment shall be limited to items listed on the meeting agenda.”

Sen. Cindy Carlson, R-Riggins, is sponsoring the bill, calling it a “cleanup” of her 2024 bill.

Sen. Janie Ward-Engelking, D-Boise, raised some concerns, saying the change could allow a “free-for-all” at trustee meetings.

The Senate Education Committee voted unanimously to print the bill, setting the stage for a possible hearing at a later date.

Liebich nomination heads to Senate floor

Voting quickly and unanimously, Senate Education recommended Boise businessman Kurt Liebich for another five-year State Board of Education term.

The nomination now goes to the Senate floor for a final vote.