State employee benefits are up for debate because of Idaho's ailing economy, the governor's finance chief said Friday.

The move will likely hold up the state's ongoing effort to raise employee pay while scaling back on benefits. However, officials can't guarantee benefits will stay intact either.

"I can't promise on either front. I can't say there are no (raises), therefore there is no benefit cut," said Wayne Hammon, Gov. Butch Otter's finance chief. "The governor said last year that both things move hand in hand. At this point, our numbers just aren't final yet."

Earlier this month, Otter announced a 3 percent across-the-board cut in state budgets. He also said he wouldn't ask for an increase in state employee pay - a plan he's been pushing to bring public employees' pay into parity with the private sector.

State officials have said that given the economy, they would not move quickly with another plan to make state employees pay more for their health benefits, another step to more closely mirror the private sector.

Last year, the salary surveys showed state employees' salaries were an average of 15 percent behind market salary rates and that the state's salary structure was about 8 percent to 10 percent behind market rates, according to a special report on employee compensation for the next fiscal year.

The report recommends 5 percent merit raises and a 3 percent increase in salary ranges for state workers.

Hammon said analysts are penciling out the state's economic forecast right now. He'll see it sometime in the next two weeks and finalize a recommendation for Otter. It will be available to the public the first week of January, he said.

Otter has informed all Cabinet members, department directors and agency heads that "we just cannot afford" an increase in pay, Hammon said.

The governor's office will make a recommendation to the Idaho Legislature. But ultimately, Hammon said, the decision lies with Idaho's lawmakers.

"If we are in a position where salaries are going up incrementally slower, we have to be cognizant of that and maybe make sure we link with that," said Otter spokesman Jon Hanian. "We're trying to level the playing field with the private sector. (Otter) believes we need a multi-year approach to get where we need to."

Since September, Otter has ordered state agencies to slash more than $130 million from the general fund budget this year. He's also ordered Idaho's institutions and agencies to put an additional 2 percent - another $54 million - in reserve, in case the economy continues slicing into state tax revenues.

Kathleen Kreller: 377-6418