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

SPONSOR Ruiz

DATE TYPED 3/05/05

HB HM 36/aHEC

SHORT TITLE School Secretary and Clerk Salary Study

SB

ANALYST Chabot

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Public Education Department (PED)

Responses Not Received From

State Personnel Office

SUMMARY

Synopsis of HEC amendment

The House Education Committee amendment to House Memorial 36 changes the agency to con-

duct the study to the Office of Education Accountability of the Department of Finance and Ad-

ministration and changes the date for the report to September 30, 2005.

Synopsis of Original Bill

House Memorial 35 resolves that the LESC be requested to conduct a study of assessing the ap-

propriate salaries for the skill levels required for public school district secretaries, clerks and

bookkeepers, make recommendations for a salary schedule process, and report the findings by

December 1, 2005.

Significant Issues

The memorial states school districts are having an increasingly difficult time hiring qualified

House Memorial 36/aHEC -- Page 2

people for secretaries, bookkeepers and clerks requiring specialized training because salaries for

these individuals have remained flat while other school employees have increased. This results

in high job-turnover rates resulting in increased costs for recruiting, hiring and training.

[FISCAL IMPLICATIONS

While the study itself will be of minimal cost, if minimum salary schedules for these personnel

are put into statute, there will be an increased cost to school districts requiring increases in gen-

eral fund for the State Equalization Guarantee.

Education reform may require the expenditures of at least an additional $26 million in FY07 as

follows: $16 million for raising minimum salaries of level 3-A teachers to $45,000; $4 million

for pre-kindergarten; and $6 million for fine arts. These will be in addition to expected increased

costs for opening the doors (fixed costs, insurance, enrollment growth, and increased employer

contributions to the educational retirement fund) which could be another $35 million. In addi-

tion, $4 million is needed for increased employer contributions to educational retirement fund

from higher education institutions. It may be prudent to avoid additional commitments to recur-

ring appropriations in future fiscal years.

ADMINISTRATIVE IMPLICATIONS

LESC will have to determine the most appropriate method to conduct the study.

TECHNICAL ISSUES

Page 2, line 13, correct the spelling of “secretaries”.

ALTERNATIVES

An alternative is to allow school districts to establish salary schedules for these positions based

upon job requirements and the salaries paid for similar occupations in the private and public sec-

tor in the geographic area of the school district.

Another alternative is to request the Department of Finance and Administration Office of Educa-

tional Accountability to conduct the study and make recommendations to the Legislature.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL.

A salary study will not be accomplished.

GAC/lg