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committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports

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

SPONSOR Cervantes

ORIGINAL DATE

LAST UPDATED

01/21/05

HB 181

SHORT TITLE Judicial Salary Increases

SB

ANALYST McSherry

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$1,355.8

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

House Bill 181 is a companion to Senate Bill 133 and relates to Senate Bill 91 and House Bill

107.

House Bill 181 duplicates the judges compensation appropriation in the General Appropriation

Act.

ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT (dollars in thousands)

FY06

FY07

FY08 3 Year

Total Cost

Recurring

or Non-Rec

Fund

Affected

Total 0

Up to $29

thousand $13.6-$67.8 $13.6-96.8 Recurring General

Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Judiciary budget documents

Responses Received From

Department of Finance and Administration (DFA)

SUMMARY

Synopsis of Bill

House Bill 181, “Judicial Salary Increases” appropriates $1,355,800 from the general fund to the

AOC for the purpose of increasing the salaries of all justices, judges and magistrates. The bill

corresponds with the judiciary’s proposal to adjust the annual salary of an associate justice of the

Supreme Court to $115,040 from the current salary of $106,960.

House Bill 181 – Page

2

By setting the salary of and associate justice at $115,000 thousand, the salaries of Court of Ap-

peals judges, district judges, metropolitan court judges and magistrates would increase according

to a statutorily-set compensation hierarchy. Chief justices and judges are paid $2 thousand more

than associate justices and judges. Court of Appeals judges are paid 95 percent of an associate

justice salary; district judges are paid 95 percent of a Court of Appeals judge salary; metropolitan

court judges are paid 90 percent of a district court judge and magistrates are paid 75 percent of

metropolitan court judges.

FISCAL IMPLICATIONS

The FY08 additional estimated operating impact was estimated by assuming a FY08 1-5 percent

state employee compensation increase. The percentages were applied to the amount of the pro-

posed appropriation.

Estimated additional operating budget impact for FY07 is based upon another judicial salary

proposal, to increase the metropolitan court judges compensation from 90 percent to 95 percent.

If that bill passes, the fiscal impact of this bill would then increase by $30 thousand, or the sala-

ries of the judiciary would not be fully funded under the proposal.

The appropriation of $1,355,800 contained in this bill is a recurring expense to the general fund.

Any unexpended or unencumbered balance remaining at the end of fiscal year 2007 shall revert

to the general fund

SIGNIFICANT ISSUES

The judiciary’s proposal for compensation increases is a result of the recommendations from the

Judicial Compensation Commission, created during the 2005 legislative session.

The LFC recommendation for judge compensation is equivalent to the proposed funding in this

bill.

PERFORMANCE IMPLICATIONS

It is possible that increased salaries could attract higher caliber judges. The AOC proposes that

increased salaries would be an incentive for judges to remain in the judiciary until retirement,

providing endurance and expertise in the judiciary.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

The compensation recommendation included in the first version of the General Appropriations

Act includes funding for the proposed judicial salary increases in this bill.

House Bill 181 is a companion to Senate Bill 133 and relates to House Bill 107 and Senate Bill

81 which both proposed metropolitan court judge and magistrate salary increases.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

If this bill is not enacted, the additional funds proposed will not be appropriated for judicial sal-

ary increases. The LFC recommendation for compensation includes funding for this recommen-

dation and would provide the suggested increases if it is adopted in the General Appropriations

Act.

EM/yr