STAND. COM. REP. NO. 1554

Honolulu, Hawaii

, 2005

RE: H.B. No. 1528

H.D. 2

S.D. 2

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 1528, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PUBLIC EMPLOYEES,"

begs leave to report as follows:

The purpose of this measure is to increase the salaries of certain department heads, deputies, and other positions set by statute.

Specifically, this measure adjusts the salary levels for positions within the following:

(1) Office of Elections;

(2) Office of the Auditor;

(3) Legislative Reference Bureau;

(4) Ethics Commission;

(5) Hawaii Labor Relations Board;

(6) Office of the Ombudsman;

(7) State Procurement Office;

(8) Stadium Authority;

(9) Civil Defense Agency;

(10) Commission on Water Resource Management;

(11) Housing and Community Development Corporation of Hawaii;

(12) Public Utilities Commission;

(13) Office of Solid Waste Management;

(14) Executive Office on Aging;

(15) Hawaii Paroling Authority;

(16) Office of Veterans Services;

(17) Labor and Industrial Relations Appeals Board;

(18) Office of Community Services;

(19) Division of Financial Institutions; and

(20) Office of the Public Defender.

Your Committee understands that, many years ago, heads of executive departments, trial court judges, the administrative director of the courts, and heads of the legislative service agencies received similar salaries, which resulted in wage parity between executives in the three branches of government. Your Committee finds that, in 2004, the Executive Salary Commission adjusted the salary levels for directors and deputy directors within state executive departments. However, because the salary levels for the positions listed above are currently established by statute, they are beyond the review of the Executive Salary Commission.

Because of the changes in salary calculation, some positions have seen varying degrees of increase, while others have not seen any increase. This disparity in salaries is especially true among the legislative service agencies. Unlike their counterparts in the executive and judicial branches, legislative agency heads and their deputies have not received a salary increase since 1990.

Based upon the current law, it appears that some other executive agency positions were intended by the Legislature to be compensated within the same salary range as deputy directors or assistants, while others require adjustment by the proper authority, as appropriate. Your Committee believes that it is necessary to provide for the adequate compensation of the individuals in these positions at a level commensurate with their responsibilities, experience, and performance in order to recruit and retain qualified individuals.

Your Committee has amended this measure to further continued discussion by:

(1) Deleting references to the salary of other specified state officers as a method of establishing salaries for certain positions;

(2) Providing that all salaries are of unspecified amount; and

(3) Specifying that salaries that are set by appointing authorities are capped at an undetermined amount.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1528, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1528, H.D. 2, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

BRIAN T. TANIGUCHI, Chair