JUNEAU — A divided state House committee has advanced legislation that would tie state employee merit increases to increases in oil prices.
The rewrite of the HB 379 that moved from the House Finance Committee on Saturday calls for no merit increases until the average price per barrel for North Slope oil for the preceding fiscal year is at least $60. At that point, employees would get a portion of the 3.25-percent raises. The portion would increase when oil hits $70 and $80. The pay restrictions would be lifted when oil averages $90 for a full year.
The bill advanced on a 6-5 vote.
Supporters of the bill, sponsored by the House Rules Committee, say it makes sense as the state struggles with an estimated $4 billion deficit. Critics worry it could affect the state’s ability to retain workers.
