FINAL BILL REPORT

                  SSB 6767

                          C 319 L 96

                      Synopsis as Enacted

 

Brief Description:  Establishing procedures for compensation modifications for state employees under chapter 41.06 RCW.

 

Sponsors:  Senate Committee on Ways & Means (originally sponsored by Senators Rinehart and West).

 

Senate Committee on Ways & Means

 

Background:  The Washington Personnel Resources Board is responsible for adopting and revising the comprehensive classification plan for classified, civil service employees as well as exempt employees under the jurisdiction of the Board.  The Board uses this authority to grant salary adjustments and reclassifications to groups of employees.  Prior to the current biennium, the Office of Financial Management (OFM) reviewed the proposals for reclassifications for their fiscal impact, and passed on for the Board's review only those requests the costs for which could be absorbed.  This sometimes resulted in agencies building bow­wave costs for the approved salary adjustments into their budgets for the following biennium.

 

Legislation enacted in 1995 requires that the Board approve only those salary adjustments and reclassifications during the 1995-97 biennium that meet certain criteria.  The Board can approve those salary adjustments that address recruitment and retention issues, correct salary compression or inversion problems, recognize increased duties and responsibilities, or correct salary inequities.  A salary inequity exists where similar work is assigned to different classified positions that have a salary difference greater than 7.5 percent.

 

Last year's omnibus appropriations act provides $5 million GF-S and $5 million in other funds for Board-approved salary adjustments.  The 1996 supplemental budget adds another $4.475 million GF-S for these purposes.  The 1995 budget act further specifies that the Board can approve another $2.5 million GF-S, $2.5 million other funds of salary adjustments the costs for which can be absorbed by the requesting agencies.  The total cost of all salary adjustments approved by the Board cannot exceed these amounts specified in the appropriations acts.

 

The Washington Management Service (WMS) was created by legislation enacted in 1993.  The Director of the Department of Personnel (DOP) has rule-making authority over WMS.  In establishing WMS rules, the director must provide for flexibility in setting and changing salaries.

 

Summary:  The criteria in effect for the current biennium concerning granting salary adjustments and reclassifications are made permanent.

 

OFM must review the agency's fiscal impact statement.  If OFM determines that the agency can absorb the cost of the salary adjustment within the agency's current authorized level of funding for the current fiscal biennium and for the subsequent fiscal biennia, the Board can approve the salary adjustment at any time during the biennium.

 

If the agency cannot absorb the cost of the salary adjustment, then the following procedures must be followed:

 

The Board prioritizes the requests for salary adjustments and reclassifications and submits the prioritized list to the Governor, the House and the Senate at the same time DOP's biennial budget request is submitted to OFM.  The Legislature establishes, in the biennial appropriations act, the level of funding that may be applied by the Board to the prioritized list and may specify the implementation dates for Board-approved salary adjustments.  The Board may approve salary adjustments and reclassifications only to the extent that the total cost does not exceed the level of funding established in the budget.

 

Salary adjustments for classified employees and for exempt employees under the jurisdiction of the Board fall under the new procedures and criteria.

 

In developing WMS rules concerning setting and changing salaries, the director of DOP must require review and approval by the director for any salary change greater than 5 percent proposed for a group of employees.

 

Votes on Final Passage:

 

Senate    43 0

House     98 0

 

Effective:  June 6, 1996