05/06/2005 09:00 AM Senate FINANCE

                                                                                                                                
     CS FOR HOUSE BILL NO. 98(RLS)                                                                                              
     "An  Act relating  to  the compensation  of  the governor,  the                                                            
     lieutenant  governor, and certain  public officials,  officers,                                                            
     and employees not  covered by collective bargaining agreements;                                                            
     and providing for an effective date."                                                                                      
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
Co-Chair  Green informed  the Committee  that  revised language  for                                                            
this legislation is being developed.                                                                                            
                                                                                                                                
10:55:01 AM                                                                                                                   
                                                                                                                                
MIKE TIBBLES,  Deputy Commissioner,  Department  of Administration,                                                             
noted  that he  had previously  testified  before  the Committee  in                                                            
regards to this bill's  Senate companion bill. This bill would align                                                            
the  Statutory  pay   schedule  for  partially  exempt   and  exempt                                                            
employees in  the Legislative, Judicial,  and Executive branches  of                                                            
State  government   to  the  pay   schedules  negotiated   with  the                                                            
supervisory bargaining  unit. The House of Representatives  added an                                                            
amendment  that would increase  the salary  of the Governor  and the                                                            
Lieutenant Governor  with an effective date of December  2006. A new                                                            
Administration  would be seated by  that date. The House  also added                                                            
an amendment that would  increase the salary of commissioners from a                                                            
28E range "to a range of  not less than 28 and not greater than 30".                                                            
                                                                                                                                
Co-Chair  Green noted  that  the effective  date  pertaining to  the                                                            
Commission salaries would be July 2005.                                                                                         
                                                                                                                                
Mr. Tibbles affirmed.                                                                                                           
                                                                                                                                
Co-Chair Green  asked the affect of not advancing  this legislation;                                                            
specifically  how  the  salaries of  the  affected  employees  would                                                            
relate to their  government agency  counterparts in organized  labor                                                            
represented positions.                                                                                                          
                                                                                                                                
Mr. Tibbles  noted that the affected  employees' statutory  schedule                                                            
is approximately  five-percent  less  than that  of supervisory  and                                                            
collective  bargaining  unit employees.  This bill  would align  the                                                            
affected employees'  salaries with  those; therefore, all  employees                                                            
at, for example,  a range 21 position, would be paid  the same. This                                                            
issue is important due  to the equity issue, as there is a statutory                                                            
mandate that requires  employees to be paid the same  for like work.                                                            
In addition, this  legislation would also assist in  recruitment and                                                            
retention of  long-term experienced  and valuable employees.  Absent                                                            
this  legislation,  a  nine-percent  disparity  would  be  occurring                                                            
between  the statutory  schedule and  the union  contract  schedule.                                                            
Such a  "large disparity"  would make  it difficult  to recruit.  It                                                            
might also discourage people  from moving into supervisory positions                                                            
as they might make less money by moving up.                                                                                     
                                                                                                                                
Co-Chair   Green  noted   that  the  current   five-percent   salary                                                            
difference  would increase  to approximately  a nine-percent  as the                                                            
result of upcoming negotiated  bargaining unit increases. That nine-                                                            
percent difference  is "substantial"  and has  been a factor  in the                                                            
loss of valuable employees.                                                                                                     
                                                                                                                                
Co-Chair Green  stated that the bill  would be HELD in Committee  in                                                            
anticipation of a forthcoming amendment.                                                                                        
                                                                                                                                
10:59:59 AM