Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports if they are used for other purposes.

 

Current FIRs (in HTML & Adobe PDF formats) are available on the NM Legislative Website (legis.state.nm.us).  Adobe PDF versions include all attachments, whereas HTML versions may not.  Previously issued FIRs and attachments may also be obtained from the LFC in Suite 101 of the State Capitol Building North.

 

 

F I S C A L    I M P A C T    R E P O R T

 

 

 

SPONSOR

Martinez

DATE TYPED

01/26/04

HB

129

 

SHORT TITLE

Full-Time Judicial Employee Salary Increases

SB

 

 

 

ANALYST

Wilson

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY04

FY05

FY04

FY05

 

$2,127.0

 

 

Recurring

General Fund

 

Relates to Appropriation in the General Appropriation Act

 

SOURCES OF INFORMATION

 

LFC Files

 

Responses Received From

Administrative Office of the Courts (AOC)

Attorney General’s Office (AGO)

 

SUMMARY

 

Synopsis of Bill

 

House Bill 129 appropriates $2.127 million from the general fund to the Department of Finance and Administration (DFA)  for expenditure in fiscal year 2005 to provide salary increases for full-time judicial employees in state courts. Of this amount, $1.532 million is appropriated to implement a two and eight-tenths percent compa-ratio restoration for judicial employees and $595 thousand is appropriated to bring judicial employees to at least ninety percent of their salary ranges.

 

Significant Issues

 

The AOC provided the following definitions that may be helpful to this analysis:

 

  • Compa-Ratio - Pay expressed as a percentage of the midpoint of a salary range.

 
  • Midpoint - The salary midway between the minimum and maximum pay rates of a salary range. The midpoint represents the competitive market rate for jobs with the same relative worth in relevant labor markets.

 

  • Salary Ranges/Salary Structure - The range of pay rates, from minimum to maximum.  The Judicial Branch salary range has a minimum value of 80 percent and the maximum value of 125 percent.     

           

2.8% compa-restoration ($1,532.0)

           

The Judicial Branch Salary Structure was adjusted by 2.8 percent, effective January 1, 2004. The structure adjustment is necessary to maintain a salary structure that is competitive within relevant labor markets. 

 

The AOC states that without a compa-restoration, judicial branch employees will remain stagnant in their assigned salary ranges, and will continue to fall below the competitive market.  The 2.8 percent Salary Structure adjustment was initiated to support the foundation for employee growth and development and will also help restore an employee’s compa-ratio placement.

           

90% compa-ratio initiative ($595.0)

           

This bill will recognize employee competency in their assigned salary range, slightly above the minimum of 80 percent, affecting the lowest paid staff, the majority of which are Judicial Specialists (Clerk 2's).  Forty-six percent of Judicial Specialists (Clerk 2's) statewide are below 90% compa-ratio.  A total of 310 employees of the judiciary located throughout all judicial districts are compensated at less than 90 percent of their compa-ratio.   This funding would equalize the pay rate for employees statewide who are in the same positions and are performing the same job duties.

 

Judicial employees who are currently placed the lowest in their assigned salary range will remain below the 90% compa-ratio.  This causes retention problems in the magistrate courts, as employees gravitate to the Metropolitan Court and District Courts for better salary opportunities.  Low salaries also impact the recruitment process by placing a compensation ceiling for new hires with great applicable experience and education.  Morale problems could continue due to inconsistency in pay for individuals performing the same job duties who are receiving lower pay.

 

FISCAL IMPLICATIONS

 

The appropriation of $2.127 million contained in this bill is a recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of fiscal year 2005 shall revert to the general fund.

 

ADMINISTRATIVE IMPLICATIONS

 

The AOC will administer the provisions of this bill with existing staff.

 

DW/prr:lg