MontanaHB 1369th Legislature, Regular Session (2025)HouseWALLET

State Employee Pay Plan

Sponsored By: John Fitzpatrick (Republican)

Became Law

AppropriationsPublic Officers and EmployeesUniversity System

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Bill Overview

Analyzed Economic Effects

13 provisions identified: 6 benefits, 1 costs, 6 mixed.

Bigger health contributions with tax cap

For Montana University System workers, the employer pays $1,080 a month starting July 1, 2025 and $1,107 starting July 1, 2026. For state employees and legislators, the employer pays $1,080 a month starting January 1, 2026 and $1,107 starting January 1, 2027. These amounts can be limited to avoid the federal 4980I excise tax on high-cost plans.

Legislator pay tied to state wages

For the 2027 session, each legislator’s pay equals 80% of Montana’s average hourly wage (average weekly wage divided by 40). For the 2029 session and after, pay equals 100% of that average hourly wage. Pay can rise or fall with the state average. The senate president and house speaker also get an extra $5 per day during session.

State worker raises in 2025–2026

The law locks in your base pay at the June 30, 2025 level going into fiscal year 2026. Your base pay then rises the first pay period including July 1, 2025 and again in July 2026 by $1.00 an hour or 2.5%, whichever is larger. If you are in a union, you get these raises only after your employer receives written notice that your unit ratified the contract. How the broadband pay plan is applied to your unit is open to bargaining.

Highway patrol pay set by surveys

Highway patrol base pay is set through the broadband plan using a labor market salary survey. The department completes the survey before January 1 of each odd-numbered year and finishes it at least six months before session. Results go to the budget office to guide salaries.

Legislator per diem and pay timing

During session, legislators get a daily allowance equal to the federal per diem for Helena, seven days a week. Payments pause if the legislature recesses for more than three days and resume when it reconvenes. The Department of Administration must offer every legislator the option to spread session pay over the two‑year term or part of it. This option changes only timing; per diem, mileage, special‑session pay, and interim pay stay the same.

One-time pay from 2023 already paid

For fiscal year 2023 only, the state paid a one-time lump sum in the first full pay period after April 11, 2023. Full-time workers received $1,040. Employees scheduled 20 to under 40 hours got $780. Employees scheduled under 20 hours got $520.

Funds to carry out raises and benefits

The law funds pay‑plan, benefit, and travel changes for fiscal years 2026 and 2027. It includes about $23.9 million General Fund in FY2026 and $48.0 million in FY2027 for the broadband pay plan (plus other funds). It adds group‑benefit funding ($1.83 million GF in FY2026 and $4.63 million GF in FY2027, plus other funds) and yearly travel‑reimbursement money ($94,189 GF plus other funds each year). It also sets aside contingency funds ($1.0 million GF plus other funds) for staffing and retirement costs and $75,000 for labor‑management training.

Plans can pay more for dependents

Group insurance plans are allowed to provide bigger employer contributions for employees with dependents. Plans are allowed, but not required, to do this.

School employer pays at least $10/month

If you work for a school district, your employer must pay at least $10 per month toward group benefits starting July 1, 2025.

No contribution under 20 hours or opt‑out

If you are part-time and regularly work under 20 hours a week, you are not eligible for the employer health contribution. If you choose not to enroll in the state plan, you also do not receive the contribution.

Clear travel reimbursement rules for staff

In Montana, hotels are paid at actual cost with a receipt. Meal limits are $8.25 breakfast, $9.25 lunch, $16.00 dinner, or 70% of the federal rate. Outside Montana, hotel and meal payments follow federal per‑diem maximums; a $12 nightly allowance applies to noncommercial, no‑receipt stays. The department can allow higher hotel or meal payments in special places or cases and can pay actual meal costs for DNRC wildfire firefighters. All state‑paid air travel must use the least‑cost class of service.

Unused health contributions go to reserves

Unused employer health contributions are moved into dedicated accounts. For state employees, the Department of Administration holds the funds. For self‑insured local governments, the local account holds them. The money can cover group losses or build reserves.

Local levies may cover higher benefits

Local governments (not schools) must pay at least $10 a month toward worker benefits and can levy property taxes above a base amount to fund higher contributions after a public hearing. That extra portion is not subject to the usual mill‑levy cap. This can help employees but may raise local tax bills.

Sponsors & Cosponsors

Sponsor

  • John Fitzpatrick

    Republican • House

Cosponsors

  • John Esp

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 271 • No: 173

House vote 3/20/2025

Do Concur

Yes: 38 • No: 12

House vote 3/19/2025

AMD-HB0013.002.005 Vinton D/PASS

Yes: 12 • No: 38

House vote 3/19/2025

Do Pass

Yes: 37 • No: 13

House vote 1/27/2025

Do Pass

Yes: 71 • No: 27

House vote 1/24/2025

AMD-HB0013.002.001 Mercer DO PASS

Yes: 45 • No: 53

House vote 1/24/2025

Do Pass

Yes: 68 • No: 30

Actions Timeline

  1. Chapter Number Assigned

    3/27/2025House
  2. Signed by Governor

    3/27/2025House
  3. Transmitted to Governor

    3/25/2025House
  4. Signed by President

    3/25/2025Senate
  5. Signed by Speaker

    3/24/2025House
  6. Returned from Enrolling

    3/21/2025House
  7. Sent to Enrolling

    3/20/2025House
  8. 3rd Reading Concurred

    3/20/2025Senate
  9. 2nd Reading Concurred

    3/19/2025Senate
  10. 2nd Reading Motion to Amend Failed

    3/19/2025Senate
  11. Committee Report--Bill Concurred

    2/26/2025Senate
  12. Committee Executive Action--Bill Concurred

    2/25/2025Senate
  13. Revised Fiscal Note Printed

    2/24/2025House
  14. Revised Fiscal Note Signed

    2/22/2025House
  15. Revised Fiscal Note Received

    2/21/2025House
  16. Hearing

    2/17/2025Senate
  17. Referred to Committee

    2/13/2025Senate
  18. First Reading

    1/28/2025Senate
  19. Transmitted to Senate

    1/27/2025House
  20. 3rd Reading Passed

    1/27/2025House
  21. 2nd Reading Passed

    1/24/2025House
  22. 2nd Reading Motion to Amend Failed

    1/24/2025House
  23. Committee Report--Bill Passed as Amended

    1/17/2025House
  24. Committee Executive Action--Bill Passed as Amended

    1/17/2025House
  25. Revised Fiscal Note Printed

    1/14/2025House

Bill Text

  • As Amended (Version 3)

    3/20/2025

  • Enrolled

    3/20/2025

  • As Amended (Version 2)

    1/17/2025

  • Introduced

    12/11/2024

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