The Appropriations Committee voted to advance Senate File 38, a bill adjusting the calculation method used to determine investment-performance compensation for the state treasurer’s office. Committee members and witnesses said the bill changes the averaging method used to compute performance pay; it does not expand who is eligible to receive the compensation.

Deputy State Treasurer Dawn Williams told the committee the proposal emerged from a legislatively mandated study of performance compensation. Williams said the bill replaces year‑by‑year measures with a multi‑year averaging method to “smooth the performance over those years.” Patrick Fleming, who identified himself in the hearing as a finance official involved in the study, told the committee the change implements consultant recommendations and “just about everyone would have something that would smooth the highs and the lows.” He said the change is intended to reduce volatility in performance-pay calculations rather than increase total payouts.

Senators discussed the bill as a retention tool: proponents argued that performance pay helps keep experienced investment staff in state service. Some members urged caution and said the committee should allow fuller discussion on the floor; one member noted surprise that no representative from the treasurer’s office initial sponsoring role had been present earlier but was later represented by the deputy treasurer and investment staff.

There was no public testimony in opposition in the hearing record. Committee roll-call recorded five ayes and the bill passed out of committee.

Votes at a glance

- Committee vote on Senate File 38 final: Senators Driscoll, Garou, Larson, Smith and Chairman Salazar — Aye (5 ayes).