THE SENATE

S.C.R. NO.

118

TWENTY-SECOND LEGISLATURE, 2004

S.D. 1

STATE OF HAWAII

H.D. 1

   


SENATE CONCURRENT

RESOLUTION

 

RELATING TO THE RECOMMENDATIONS OF THE 2004 EXECUTIVE SALARY COMMISSION.

 

WHEREAS, Section 26-55, Hawaii Revised Statutes (HRS), establishes a five-member Executive Salary Commission (Commission) to convene every eight years beginning in November 2003, and to recommend an appropriate salary for the Governor, Lieutenant Governor, and each department head or executive officer, as well as appropriate salary ranges for the deputy department heads; and

WHEREAS, according to Section 26-55(d), HRS, the Commission's recommended salaries shall become effective on July 1st of the next fiscal year unless the Legislature disapproves the recommended salaries by adopting a Concurrent Resolution that is approved by a simple majority of each house of the Legislature, prior to adjournment sine die of the legislative session in which the recommended salaries are submitted; and

WHEREAS, the Commission convened on November 4, 2003, and held a series of meetings to deliberate on a range of factors in considering salary adjustments for the heads of the Executive Branch; and

WHEREAS, on February 17, 2004, the 2004 Commission submitted to the Legislature, through the Governor, its report and recommendations relating to salaries for the eight-year period commencing on July 1, 2004; and

 

WHEREAS, the 2004 Commission recommended that:

(1) Effective 2006:

(a) The Governor receive $112,000; and

(b) The Lieutenant Governor and the Administrative Director of the State receive $100,000;

and

(2) Effective July 1, 2004:

(a) The head of the Department of Attorney General receive $105,000, and the deputy head receive $91,350-$96,600;

(b) The heads of the Departments of Health, Transportation, Accounting and General Services, Commerce and Consumer Affairs, Taxation, and Budget and Finance receive $100,000, and their deputy heads receive $87,000-$92,000;

(c) The heads of the Departments of Human Services, Labor and Industrial Relations, Land and Natural Resources, and Business, Economic Development, and Tourism receive $95,000, and their deputy heads receive $82,650-$87,400; and

(d) The heads of the Departments of Human Resources Development, Hawaiian Home Lands, Agriculture, and Public Safety receive $90,000, and their deputy heads receive $78,300-$82,800;

and

WHEREAS, the Commission further recommended that a two percent compounded adjustment be provided annually to all of these salaries for their respective time periods; and

WHEREAS, the Commission also recommended that the decision regarding any salary adjustment for the Deputy to the Superintendent of Education be deferred to the Board of Education; and

WHEREAS, while it is appropriate for the Legislature to consider salary adjustments for the heads of the Executive Branch, it must also consider its fiduciary responsibility to the State; and

WHEREAS, the current department heads have been employed in their positions for not more than fourteen months, and have not suffered a fourteen year salary freeze; and

WHEREAS, the Commission's recommendations will result in an eighteen per cent increase in salary by the year 2013, without any performance appraisals, position justifications, or further review by the Legislature; and

WHEREAS, the Legislature has concerns regarding the Commission's recommendations for:

(1) Salary tiers among department heads; and

(2) A two per cent compounded adjustment annually, which is not the same as an incremental increase; and

WHEREAS, the fiscal impacts of the Commission's recommendations on the Employees' Retirement System (ERS), and the Employer-Union Health Benefits Trust Fund (EUTF) have not been accounted for in the Commission's recommendations; and

WHEREAS, the Commission's recommendations do not account for other reimbursement and compensation that executive branch officials receive, such as vacation leave, sick leave, and the use of state automobiles or the receipt of automobile allowances; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-Second Legislature of the State of Hawaii, Regular Session of 2004, the House of Representatives concurring, that the ERS is requested to submit a report to the Legislative Reference Bureau (LRB) that includes, but not be limited to, information on the fiscal impact of the Commission's recommendations, specifically regarding the additional annual amounts of higher pension payments payable to executive branch officials due to higher average final compensations as defined by section 88-81, HRS; and

BE IT FURTHER RESOLVED that the EUTF is requested to submit a report to the LRB that includes, but not be limited to, information pertaining to the fiscal impact of the Commission's recommendations, specifically regarding the added costs resulting from the Commission's recommendations; and

BE IT FURTHER RESOLVED that the ERS is requested to submit a report to the LRB that includes, but not be limited to, how the annual sick leave benefits received by those executive branch officials covered by the Commission will increase annual pension payments if considered credited service for pension calculation purposes; and

BE IT FURTHER RESOLVED that the Director of Finance is requested to submit a report to the LRB that includes, but not be limited to, information pertaining to the monetary value of vacation and sick leave benefits that executive branch officials covered by the Commission currently receive annually; and

BE IT FURTHER RESOLVED that the Department of Accounting and General Services is requested to submit a report to the LRB that includes, but not be limited to, information pertaining to the annual values of the use of state automobiles by executive branch officers covered by the Commission, and the annual values of automobile allowances for executive branch officers covered by the Commission; and

 

BE IT FURTHER RESOLVED that the Department of Human Resources Development is requested to submit a report to the LRB that includes, but not be limited to, information pertaining to the annual value of parking and any other benefits not specifically requested from any other agency; and

BE IT FURTHER RESOLVED that all reports to be made to the LRB pursuant to this Concurrent Resolution be submitted to the LRB no later than October 1, 2004; and

BE IT FURTHER RESOLVED that the LRB is requested to compile the information received pursuant to this Concurrent Resolution into a single report to be submitted to the Legislature at least twenty days prior to the convening of the Regular Session of 2005; and

BE IT FURTHER RESOLVED that the members of the Twenty-Second Legislature hereby express their deep thanks and appreciation to the members of the 2004 Commission for their hard work on this difficult matter; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to: the Governor; the President of the Senate; the Speaker of the House of Representatives; the members of the 2004 Executive Salary Commission; the Administrator of the Employees' Retirement System; the Administrator of the Employer-Union Health Benefits Trust Fund; the Director of Finance, the State Comptroller, the Director of Human Resources Development, and the Acting Director of the Legislative Reference Bureau.

Report Title:

2004 Executive Salary Commission