This Fiscal Note is not an official copy and should not be quoted or cited.
This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0441 - Salaries of commissioners within the Dept. of Labor and Indus. Rel. are set at 90% of a circuit judge's salary
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO. 1949-02
BILL NO. Perfected SCS for SB 441
SUBJECT: Labor: Salary Increases
TYPE: Original
DATE: April 7, 1999
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS Net Effect on All State Funds SUBJECT TO APPROPRIATIONS ESTIMATED NET EFFECT ON FEDERAL FUNDS Net Effect on All Federal Funds SUBJECT TO APPROPRIATIONS ESTIMATED NET EFFECT ON LOCAL FUNDS Numbers within parentheses: ( ) indicate costs or losses This fiscal note contains 4 pages. FISCAL ANALYSIS ASSUMPTION The Office of Administration (COA) - Division of Personnel does not expect to be fiscally impacted. However, salary
increases for commission members for the Department of Labor & Industrial Relations could have an escalating impact on
salaries of related positions in other agencies. The Labor & Industrial Relations Commission (LIC) would be fiscally impacted. The proposal would provide for the
LIC members salary to increase equal to the annual salary of an administrative law judge in charge plus $3,000. The
proposed annual salary for an administrative law judge in charge in FY 2000 is $90,499.03. The proposed annual salary for
a commission member in FY 2000 is $91,176. This legislation would increase each member's salary to $93,499.03,
resulting in an annual increase of $2,323.03 per member ($93,499.03 - $91,176). The total impact would be $6,969.09 per
year. Beginning in FY00, the Division of Employment Security (ES) will be covering salary costs for one-half of one
appointed member of the LIC under the cost allocation plan. The actual cost to ES's federal funds could change based on
pending legislation to increase a circuit judge's base rate and the percentage of the LIC cost changeable to the ES's
Administration Fund for subsequent years. For purposes of this fiscal note, Oversight assumes that 2.5 FTE would be
charged to the Worker's Compensation Fund and .5 FTE would be charged against ES's federal funds. An inflationary
factor of 2.5% would be included for FY01 and FY02 along with a fringe benefit rate of 29.89%. The estimated fiscal
impact to the Workers' Compensation Fund for the 2.5 FTE Commissioners' increase in salary would be $6,284 in FY00;
$7,732 in FY01; and $7,926 in FY02. The estimated fiscal impact to federal funds as a result of the .5 FTE Commissioner
increase in salary would be $1,257 in FY00; $1,547 in FY01; and $1,586 in FY02. The Missouri State Employees' Retirement System (MOSERS) estimates a potential for an increase in the state's
contribution for retirement as a result of the increases in the salaries of the three Labor and Industrial Relations
Commission members. According to an analysis conducted by MOSERS, the proposed annual payroll would increase
$6,969. Based on the current contribution rate of 20.10%, an increase in the annual retirement benefits contribution made
by the state would be $1,401. ESTIMATED NET
EFFECT ON
FUND AFFECTED
FY 2000
FY 2001
FY 2002 General Revenue
($1,168)
($1,401)
($1,401) Worker's Compensation Fund
($6,284)
($7,732)
($7,926) Total Estimated
($7,452)
($9,133)
($9,327)
FUND AFFECTED
FY 2000
FY 2001
FY 2002 Federal Fund
($1,257)
($1,547)
($1,586)
Total Estimated
($1,257)
($1,547)
($1,586)
FUND AFFECTED
FY 2000
FY 2001
FY 2002 Local Government
$0
$0
$0
FISCAL IMPACT - State
Government
FY 2000
FY 2001
FY 2002
(10 Mo.)
GENERAL REVENUE FUND Cost - MOSERS Increase in State's
Contribution
as a Result of Increased
Salaries
($1,168)
($1,401)
($1,401) NET EFFECT ON GENERAL REVENUE FUND
($1,168)
($1,401)
($1,401)
SUBJECT TO
APPROPRIATIONS WORKER'S COMPENSATION FUND Costs-Labor & Industrial Rel. Commission (LIC) Personal Service (Salary
Increases)
($4,838)
($5,953)
($6,102) Fringe Benefits
($1,446)
($1,779)
($1,824) Expense and Equipment
$0
$0
$0 Total Costs-LIC
($6,284)
($7,732)
($7,926) NET EFFECT ON WORKERS' COMPENSATION FUND
($6,284)
($7,732)
($7,926)
SUBJECT TO
APPROPRIATIONS FEDERAL FUNDS Costs-Department of Labor & Industrial Relations Division of Employment Security (ES) Personal Service (Salary
Increases)
($968)
($1,191)
($1,221) Fringe Benefits
($289)
($356)
($365) Expense and Equipment
$0
$0
$0 Total Costs-ES
($1,257)
($1,547)
($1,586)
FEDERAL FUNDS
($1,257)
($1,547)
($1,586)
SUBJECT TO
APPROPRIATIONS FISCAL IMPACT - Local
Government
FY 2000
FY 2001
FY 2002
(10 Mo.)
$0
$0
$0 FISCAL IMPACT - Small Business This proposal should not have a direct fiscal impact on small businesses.
DESCRIPTION
This proposal changes the salaries of commissioners within the Department of Labor and Industrial Relations so that they are set at the annual salary of an administrative law judge in charge plus $3,000. Since the Chief Administrative Law Judge's salary is calculated as a percentage of an associate circuit judge salary plus $5,000, the Commissioners' salary is ultimately calculated based on 90% of the associate circuit judges salary, plus $8,000. The proposed salary for an Associate Circuit Judge for FY 2000 is $94,998. The Commissioners' salary for FY2000 is $91,176. This act would change the salary for FY2000 to $93,499.
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.
SOURCES OF INFORMATION
Department of Labor & Industrial Relations
MOSERS
Office of Administration
Jeanne Jarrett, CPA
Director
April 7, 1999