Even the Republican Senate president predicted the next governor would face a worker walkout.
Union officials said workers won't stand to be treated again as they were by the 2003 Legislature, which froze salaries for 1 1/2 years before a 25-cent hourly increase takes effect Jan. 1, 2005, union officials said.
Tom Schneider, executive director for the Montana Public Employees' Association and its 3,100 state members, said workers want a "decent raise" that makes up the buying power they have lost and provides an additional increase for the next two years.
"They're not going to sit back and accept another kick in the face like last time," he said Monday. "The employees feel like they balanced the budget for the last two years."
Chuck Swysgood, budget director for Gov. Judy Martz, called a pay raise for the 15,600 state workers "one of the top priorities of the governor." While not venturing a guess as to what the state may be able to offer, he does expect some increase to be put on the table.
"We're planning on it; we're just not sure how much," he said. "That was always the thought since the last session."
Paula Stoll, who will represent the state in negotiations with the unions, said the goal is to reach an agreement before the proposed budget is finalized in mid-November. The state won't make an offer until October when estimates of available money are known, she said.
The two sides have failed to settle before lawmakers convene three times since 1990, with the 1991 stalemate resulting in a five-day strike.
Senate President Bob Keenan, R-Bigfork, predicted the myriad demands for government's scarce money will leave employees with an unsatisfactory raise and could spark another walkout.
"I anticipate the new governor will be faced with a strike in the first eight months in office," he said. "Collective bargaining troubles are in the offing."
A state employee pay raise will compete with education, human services, corrections and the university system for few dollars, Keenan said. "There's not enough money for all."
Since 1981, state workers have received average annual raises ranging from 1.5 percent to 11.8 percent. Four times, including last year, employees had their pay frozen.
Schneider said the freeze, although accompanied by an increase in the state contribution to health insurance, caused employees to fall behind the rising cost of living.
"There was some grudging willingness to take it last time," he said. But a recent report shows state tax collections exceeded forecasts by more than $70 million last year and employees should be the top priority for some of that money, he added.
Stoll said each 1 percent raise costs the state about $8.5 million annually, although delaying the effective date can reduce the cost to a two-year budget.
Feaver said pay freezes are inherently dangerous.
"You should never freeze somebody's salary," he said. "They will never forgive you and they will never get back what they've lost.
"I don't know the number that it will take for people to forget the pain suffered for the last 18 months," he added. "It's in everybody's best interest - the governor, the Legislature, the employee groups - to make an agreement before the Legislature begins."
Beside a pay raise, some of the bargaining topics identified by the unions include increasing the state payment to health insurance, providing more frequent raises for length of service, and creating a retirement incentive.
Meanwhile, the Montana National Guard has updated its plan for staffing state institutions in the event of a strike. Maj. Scott Smith, Guard spokesman, said that is routinely done in advance of legislative sessions because that is when walkouts usually occur.
The Guard also needed to make sure it has enough soldiers in the wake of mobilization orders affecting nearly half the state's 2,500-member force, he said. Officials estimate they would need 325 soldiers to run four institutions at Boulder, Columbia Falls, Lewistown and Warm Springs, and 224 more for the two prisons and reform school.
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