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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 Snyder

ORIGINAL DATE

LAST UPDATED

01/23/05

HB

SHORT TITLE Judicial Salary Increases

SB SB 133

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)

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

107.

House Bill 181 duplicates the judges compensation appropriation in the current (LFC) version of

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 $0-$29.0

$0-$48 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

Senate Bill 133, “Judicial Salary Increases” appropriates $1,355.8 thousand 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 jus-

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

Senate Bill 133 – Page

2

By setting the salary of and associate justice at $115 thousand, the salaries of Court of Appeals

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 metro-

politan court judges.

FISCAL IMPLICATIONS

Estimated additional operating budget impact for FY07 and FY08 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 approximately

$30 thousand, or the salaries of the judiciary would not be fully funded under the proposal.

The appropriation of $1,355.8 thousand contained in this bill is a recurring expense to the gen-

eral 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 which was 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.

Senate Bill 133 is a companion bill to House Bill 181 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