HB 1598-FN – AS INTRODUCED
2008 SESSION
10/09
HOUSE BILL 1598-FN
AN ACT relative to the salary ranges for unclassified state officers.
SPONSORS: Rep. Hawkins, Hills 18; Rep. Weyler, Rock 8
COMMITTEE: Executive Departments and Administration
This bill requires that the salary range for unclassified state officers be adjusted to provide 8 steps within each grade, and requires that such state officers are compensated at rates above subordinate classified employees.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
08-2095
10/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eight
AN ACT relative to the salary ranges for unclassified state officers.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Unclassified State Employees; Salary Range Adjustment Required. The commissioner of the department of administrative services, in consultation with the outside consultant retained for the purpose of assessing the appropriate salaries of unclassified state officers, and subject to the approval of the joint committee on employee compensation, shall revise the salary ranges for unclassified state officers provided in RSA 94:1-a, I(a) in accordance with this act. The adjusted salary ranges required by this section shall not apply until appropriate legislation adopting the changes becomes law.
2 Adjustment of Unclassified Officer Salary. Amend RSA 94:2 to read as follows:
94:2 Adjustment.
I. [Effective July 1, 1953,] The annual salary of each official holding any of the positions named in RSA [94:1] 94:1-a, I shall be the minimum salary provided for therein except as otherwise provided. [Any such official whose salary on June 30, 1953 is in excess of said minimum provided for his position shall be placed at the next higher step in the range and shall be entitled to any increase provided for herein until the maximum is reached. Provided further that any such official having had 10 years or more continuous service for the state shall be placed at the next higher step in the range.]
II. Any official whose salary upon placement in the [new] salary range in RSA 94:1-a, I is less than that of a subordinate classified employee in his or her department shall be placed at the next higher step in range above said classified employee and shall be entitled to any increase provided for herein until the maximum is reached.
3 Unclassified Officers; Yearly Service Increases. Amend RSA 94:3 to read as follows:
94:3 Yearly Service Increases. [For each year after July 1, 1953,] Upon recommendation of the appointing authority, the holder of any position mentioned in RSA 94:1-a shall be entitled to an annual increase in salary amounting to [1/5] 1/8 of the difference between the minimum and maximum salary for said position [but in no case shall the total salary exceed the maximum as herein established].
4 Effective Date. This act shall take effect 60 days after its passage.
LBAO
08-2095
Revised 03/10/08
HB 1598 FISCAL NOTE
AN ACT relative to the salary ranges for unclassified state officers.
FISCAL IMPACT:
The Department of Administrative Services states this bill will increase state expenditures by an indeterminable amount in FY 2009 and each year thereafter. There is no fiscal impact on county and local expenditures or state, county, and local revenue.
METHODOLOGY:
The Department of Administrative Services states this bill requires the use of an outside consultant for purposes of assessing unclassified state officers salaries, the adjustment of an unclassified superior’s salary when it is less than a subordinate classified employee in their department, changing the annual increase from 1/5th to 1/8th of the difference between the minimum and maximum salary for unclassified state officers and deletes language that prevented the salary from exceeding the maximum.
The Department estimates the cost to hire an outside consultant to review unclassified state officer salaries will be $227,527 in FY 2009. The Department used the $185,000 contract price of the last unclassified positions study completed in 2001 and added a 3 percent inflation factor to provide an estimate for a FY 2009 contract cost.
The Department states the requirement to place an unclassified employee whose salary is less than a subordinate classified employee in his or her department shall be increased to the next higher step will increase costs by an indeterminable amount. Depending on the salary group and step, the amount of an increase will vary. Additionally, the Department anticipates as classified employees move into step 8 of their salary range, there may be an increase in the number of unclassified employees whose salary is less than a subordinate classified employee in his or her department. The Department is not able to determine the fiscal impact at this time.
Finally, the Department states the changing from 1/5th to 1/8th of the difference between the minimum and maximum salary for unclassified state officers and eliminating the restriction that the annual increase not exceed the maximum will have an indeterminable fiscal impact. The changing from the 1/5th to 1/8th of the difference between the minimum and maximum salary will actually result in a decrease in the amounts between steps for those unclassified state officers who are not at maximum. For those unclassified state officers who are at maximum, they will receive an annual increase of 1/8th the difference between the minimum and maximum. The Department states FICA (@ 7.65%) and retirement (@ 8.74%) costs will increase as a result of providing the 1/8th increment to those unclassified state officers who are at maximum.
The Department states there are 334 unclassified positions, of which 39 are per diem positions, 46 are in the Attorney General’s Office, 14 positions have a salary set at maximum with no minimum (LL through QQ), and one position is grandfathered classified in the unclassified system. It is assumed these positions would not be impacted by the proposed legislation. Of the remaining 234 positions: 2 are at the minimum step, 4 are at step 1, 11 are at step 2, 14 are at step 3, 14 are at step 4, and 189 are at maximum. For this analysis the Department assumes positions will receive steps or increases July 1 and incumbents will remain in their positions. Finally, the amounts calculated each year are added to the next year to show the cumulative impact of the 1/8th increases. The Department estimates the following increases in state expenditures as a result of the 1/8th increases for unclassified positions at maximum:
FY 2009 |
FY 2010 |
FY 2011 |
FY 2012 | |
Number of Unclassified Employees at Maximum |
189 |
203 |
217 |
228 |
Estimated Expenditure Increase |
$631,127 |
$1,336,022 |
$2,107,339 |
$2,921,210 |