An Act to Create a State Employee Compensation Stabilization
Maine Legislature, Session 132, LD 1539
Committee: Appropriations and Financial Affairs
Sponsors: TIPPING, ROEDER
Amends: 5 MRSA §1536, 5 MRSA §7066

Legislative Document
No. 1539
S.P. 623
In Senate, April 8, 2025
An Act to Create a State Employee Compensation Stabilization 
Fund
Reference to the Committee on Appropriations and Financial Affairs suggested and ordered 
printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator TIPPING of Penobscot.
Cosponsored by Representative ROEDER of Bangor and
Senators: BALDACCI of Penobscot, HICKMAN of Kennebec, Representatives: ARCHER of 
Saco, DHALAC of South Portland.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  5 MRSA §1536, sub-§1, ¶A, as amended by PL 2015, c. 267, Pt. L, §8, is 
further amended to read:
A.  Eighty percent to the stabilization fund; and
Sec. 2.  5 MRSA §1536, sub-§1, ¶G, as enacted by PL 2021, c. 398, Pt. ZZZ, §3, 
is amended to read:
G.  Twenty Nineteen percent to the Highway and Bridge Capital program, Other 
Special Revenue Funds account.; and
Sec. 3.  5 MRSA §1536, sub-§1, ¶H is enacted to read:
H.  One percent to the State Employee Compensation Stabilization Fund under section 
7066.
Sec. 4.  5 MRSA §7066 is enacted to read:
§7066.  State Employee Compensation Stabilization Fund
The State Employee Compensation Stabilization Fund, referred to in this section as 
"the fund," is established within and administered by the Department of Administrative and 
Financial Services. 
1.  Use of funds.  Amounts in the fund must be expended to augment the salaries of 
state employees to provide parity between the salaries of state employees and the salaries 
of comparable positions in the public and private sectors as determined by a market pay 
study under section 7061, subsection 4, paragraph B or another market pay study 
conducted, contracted or reviewed by the Department of Administrative and Financial 
Services and as agreed upon through negotiations with the labor organization that 
represents state employees. 
2.  Funds received; investments; unexpended balances.  The fund is funded by 
revenue received pursuant to section 1536, subsection 1, paragraph H.  Amounts in the fund 
may be invested as provided by law, and interest earned by the fund is credited to the fund.  
Unexpended balances in the fund at the end of the fiscal year may not lapse but must be 
carried forward to the next fiscal year.
For purposes of this section, "state employee" has the same meaning as in Title 26, 
section 979-A, subsection 6.
SUMMARY
This bill creates the State Employee Compensation Stabilization Fund within the 
Department of Administrative and Financial Services. Funds must be used to augment the 
salaries of state employees to provide parity between the salaries of state employees and 
the salaries of comparable positions in the public and private sectors as determined by a 
market pay study. Unexpended balances in the fund at the end of the fiscal year do not 
lapse and are carried forward to the next fiscal year. "State employees," as used in the bill, 
refers to employees of the executive branch. 
The bill amends provisions governing the allocation of excess General Fund revenues 
to fund the State Employee Compensation Stabilization Fund. The bill reduces the 
percentage of funds received by the Highway and Bridge Capital program from 20% to 
19% and directs to the State Employee Compensation Stabilization Fund 1% of the excess 
General Fund revenues left over after certain transfers are made.