04/10/2015 01:30 PM House FINANCE

HOUSE BILL NO. 176                                                                                                            
                                                                                                                                
     "An  Act eliminating  geographic pay  differentials for                                                                    
     employees of the  legislature; repealing state employee                                                                    
     salary  schedule   increases;  and  providing   for  an                                                                    
     effective date."                                                                                                           
                                                                                                                                
1:49:24 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Saddler MOVED  to ADOPT  the proposed  committee                                                                    
substitute  for  HB  176,  Work  Draft  29-LS0796\E  (Wayne,                                                                    
4/2/15). There being NO OBJECTION, it was so ordered.                                                                           
                                                                                                                                
Co-Chair Thompson noted that  staff from various departments                                                                    
were available to answer questions.                                                                                             
                                                                                                                                
JANE   PIERSON,   STAFF,  REPRESENTATIVE   STEVE   THOMPSON,                                                                    
provided the  changes in the Committee  Substitute (CS). The                                                                    
geographic  pay  differential  had  been  removed  from  the                                                                    
legislation due  to potential problems  outlined in  a legal                                                                    
opinion (copy on file). The  bill only addressed the Cost of                                                                    
Living  Allowance  (COLA),  which  was scheduled  as  a  2.5                                                                    
percent increase  on July 1,  2015, and would not  occur for                                                                    
state, legislative,  and court employees. She  detailed that                                                                    
COLA had ranged  from zero to very high  rates; the previous                                                                    
year it  had been  1 percent. She  relayed that  the savings                                                                    
under  the  legislation  would be  approximately  $9,296,100                                                                    
annually for all branches of the government.                                                                                    
                                                                                                                                
Representative Gara  understood the  need for  cost savings;                                                                    
however,  he recalled  a three-year  pay  increase that  was                                                                    
minimal for state employees. He  detailed that the first two                                                                    
years  had been  increases of  1 percent,  which had  lagged                                                                    
behind  inflation, whereas,  the third  year was  planned at                                                                    
2.5 percent  in order  to even out  with inflation  over the                                                                    
three-year period.  He believed the  bill took away  the one                                                                    
increase that  would hold employees even  with inflation. He                                                                    
asked for  verification that his understanding  was accurate                                                                    
and relayed his concern.                                                                                                        
                                                                                                                                
Ms. Pierson replied that  Representative Gara's numbers were                                                                    
accurate.   She  reiterated   that  historically   the  COLA                                                                    
increases had ranged from zero to 4 percent.                                                                                    
                                                                                                                                
HB  176  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.