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

SPONSOR Komadina

ORIGINAL DATE

LAST UPDATED

3/2/07

HB

SHORT TITLE Study Cabinet Secretary and Agency Director Salaries SB SM 63

ANALYST Propst

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

SUMMARY

Synopsis of Bill

Senate Memorial 63 directs the Department of Finance and Administration to study the salary

ranges for cabinet secretaries and agency directors and report to the Legislative Finance

Committee before November 1, 2007.

SIGNIFICANT ISSUES

SM 63 notes that compensation packages for cabinet secretaries and agency directors should be

commensurate to their duties and responsibilities and are important factors in attracting and

retaining highly qualified people. SM 63 also notes that current compensation ranges may be

overly broad and thereby create inequity.

To study the issue, SM 63 directs DFA to produce a study that includes an analysis of how state

compensation packages compare to those paid by the private sector for executives with duties

and responsibilities comparable to cabinet secretaries and agency directors and make

recommendations on possible adjustments to current salary ranges.

WEP/nt