The bill introduces temporary salary reductions for state government employees during the 2025-2027 fiscal biennium, specifically reducing base salaries by 4.98% from July 1, 2025, through June 30, 2026. Certain groups, including elected officials and higher education staff, are exempt from these reductions. The Office of Financial Management will ensure that no employee's pay falls below the minimum wage due to these reductions. Employees affected by the salary cuts will accrue temporary salary reduction leave, which can be utilized according to collective bargaining agreements. The bill also mandates that institutions of higher education implement compensation reductions as specified in the omnibus appropriations act and clarifies that student employees are not subject to these reductions.

Additionally, the bill amends existing laws related to employee compensation and retirement benefits, including the definitions of "law enforcement officers" and provisions for medical services and retirement benefits for members of various retirement systems. It expands the definition of "law enforcement officer" to include certain tribal employees and updates compensation structures to account for reductions due to budgetary measures, including those from the COVID-19 pandemic. The bill aims to ensure that employees receive fair credit for their service and benefits while addressing the financial challenges faced by state agencies. It also establishes that certain provisions will expire by June 30, 2029, and will take effect on July 1, 2025, underscoring its urgency for public welfare.

Statutes affected:
Original Bill: 41.04.820, 43.03.3051, 41.04.340, 43.01.041, 41.06.500, 41.26.162, 41.37.010, 41.40.010, 43.43.120