HB 644-FN – AS INTRODUCED
2007 SESSION
01/03
HOUSE BILL 644-FN
AN ACT relative to differential pay of direct care employees at state institutions.
SPONSORS: Rep. Wheeler, Merr 6; Rep. Morrison, Belk 2
COMMITTEE: Health, Human Services and Elderly Affairs
This bill increases the weekly salary differential for certain employees at the New Hampshire hospital, Laconia developmental service, Glencliff home for the elderly, New Hampshire veterans’ home, and the youth development center from $5 to $25.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
07-1077
01/03
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Seven
AN ACT relative to differential pay of direct care employees at state institutions.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Salary Differential Increased. Amend RSA 99:11 to read as follows:
99:11 Differentials; Direct Care Employees.
I. The annual salaries of classified employees who are actively engaged in the care and treatment of patients or inmates at the New Hampshire hospital, Laconia developmental services, Glencliff home for the elderly, New Hampshire veterans’ home, the Tobey School, and the youth development center, and the security employees, pharmacists, and dieticians employed at the New Hampshire hospital, shall be increased by a [$5] $25 per week differential. This paragraph shall not apply to those employees who receive hazardous duty pay under RSA 99:10.
II. Any direct care employee of the Glencliff home for the elderly, New Hampshire veterans’ home, Laconia developmental services, or the Tobey School, certified capable of administering medication under RSA 326-B:17, VII, shall receive a salary increase of one grade in the salary scale while authorized by the superintendent to administer medication.
2 Effective Date. This act shall take effect 60 days after its passage.
LBAO
07-1077
Revised 02/22/07
HB 644 FISCAL NOTE
AN ACT relative to differential pay of direct care employees at state institutions.
FISCAL IMPACT:
The Department of Health and Human Services, New Hampshire Veterans Home, and Department of Administrative Services state this bill will increase state, county, and local expenditures, and state restricted revenue by an indeterminable amount in FY 2008 and each year thereafter. This bill will have no fiscal impact on county and local revenue.
METHODOLOGY:
The Department of Health and Human Services (DHHS) states this bill would increase the direct care pay differential from $5 to $25 per week and would extend the differential to certain employees at the Tobey School. DHHS states employees affected would include 445 at New Hampshire Hospital (NHH), 135 employees at the Glencliff Home for the Elderly, 152 employees at the Youth Development Center (YDC), 20 employees at Laconia Developmental Services, and 11 teachers at the Tobey School. In addition, there are 27 employees at the Tobey School that do not currently receive the direct care differential that would be eligible under this bill. According to the Department of Administrative Services, benefit calculations for the salary increases would consist of Social Security at 6.2% of salary, Medicare at 1.45% of Salary, and employer retirement contributions of 8.74% of salary, for a total benefit rate of 16.39% of salary. Medical and dental insurance would not be affected by this change. Assuming an increase in differential pay of $20 per week per employee currently receiving differential pay ($1,040 annually), an increase of $25 per week per employee not currently receiving differential pay ($1,300 annually), and benefits at 16.39% of salary, the estimated fiscal impact for DHHS is as follows:
DHHS Annual Cost | |
New Hampshire Hospital (445 positions) |
$462,800 |
Glencliff Home for the Elderly (135 positions) |
$140,400 |
Youth Development Center (152 positions) |
$158,080 |
Laconia Developmental Services (20 positions) |
$20,800 |
Tobey School – Currently receiving differential pay (11 positions) |
$11,440 |
Tobey School – Not currently receiving differential pay (27 positions) |
$35,100 |
Total Annual Salary Cost |
$828,620 |
Benefits at 16.39% |
$135,811 |
Total DHHS Salary and Benefit Costs |
$964,431 |
Of the total salary and benefit costs, $700,461 would be general funds, $184,174 would be federal funds, $46,651 would be county funds, $30,978 would be local funds, and $2,167 would be other funds. The Department states this bill also amends RSA 99:11, II to provide a salary increase of one grade to certain direct care employees. The Department states RSA 326-B:17, VII was repealed effective July 1, 2005, and no similar provision was crated when RSA 326-B, the Nurse Practice Act, was reenacted. Accordingly, there will be no fiscal impact relative to this provision of the bill.
The NH Veterans Home states they currently have 285 direct care positions that would be affected by this bill. Assuming an increase in differential pay of $20 per week per employee ($1,040 annually), and benefits at 16.39% of salary, the estimated fiscal impact for the NH Veterans Home is $344,980 (285 X $1,040 X 1.1639). In addition, the NH Veteran’s Home estimates there are 10 employees capable of administering medication that would be eligible for a one salary grade increase as a result of this bill. The cost of one salary grade increase is approximately $1,061 per employee per year which would increase state expenditures by an additional $12,349 annually assuming benefits at 16.39% of salary.
The Department of Administrative Services states the e-info Warehouse indicates there are 1,186 positions assigned to different agencies across the state system that could be affected by this bill based on position code designations for direct care pay. This number includes both filled and vacant positions. Assuming an increase in differential pay of $20 per week per employee ($1,040 annually), and benefits at 16.39% of salary, the Department estimates the fiscal impact at $1,435,601 annually (1,186 X $1,040 X 1.1639).