The Hawaii House of Representatives has introduced a legislative bill, HB1034, aimed at addressing salary increases and cost adjustments for state officers and employees who are excluded from collective bargaining. Introduced on February 10, 2025, the bill outlines funding provisions for the fiscal biennium 2025-2027, specifically targeting those in compensation plans similar to those within bargaining unit (8).

The bill appropriates funds from various sources, although it notably indicates that no general, special, federal, or other funds are allocated for the fiscal years 2025-2026 and 2026-2027. This raises questions about the financial viability of the proposed salary adjustments, as the lack of allocated funds may hinder the implementation of the intended increases.

Key provisions of HB1034 include the stipulation that salary increases for employees funded by federal, special, or other funds will be proportionately paid from those respective sources. Additionally, any unspent funds by the end of the fiscal years will lapse, emphasizing the need for timely expenditure.

The bill has sparked discussions among lawmakers regarding its implications for state finances and employee morale. Critics express concern over the absence of allocated funds, suggesting that without a clear financial plan, the bill may not achieve its intended goals. Supporters argue that it is a necessary step to ensure fair compensation for state employees who do not have collective bargaining rights.

As the legislative process unfolds, the future of HB1034 remains uncertain. If passed, it could set a precedent for how salary adjustments are handled for non-bargaining state employees, potentially impacting workforce stability and recruitment in Hawaii's public sector. The bill is scheduled for further review, and its outcomes will be closely monitored by stakeholders across the state.