BILL ANALYSIS �
SB 216
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Date of Hearing: July 3, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
SB 216 (Beall) - As Amended: April 29, 2013
Policy Committee: PERSS Vote:6-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill requires the California Department of Human Resources
(CalHR) to address salary compaction for managerial and
supervisorial employees and provide data to the Legislature when
insufficient revenue is available to implement a salary
determination to increase managerial and supervisorial salaries
by 10% over the salaries of their subordinate rank and file
employees.
FISCAL EFFECT
CalHR estimates GF costs of approximately $200,000 for two
personnel years to compile and analyze the data. Additionally,
there will be unknown costs associated with salary increases
that may result from addressing compaction. A 1% increase in
the salaries of supervisors and managers would cost
approximately $35-$40 million, (GF/SF).
COMMENTS
1)Purpose . CalHR sets salaries for non-represented employees.
According to the author, due to state budget pressures in the
preceding decade, supervisory salaries have not kept pace in
many cases with salaries for rank-and-file employees who
benefit from overtime and collectively bargained pay
increases, for which supervisors are not eligible. The result
is salary compaction, which occurs when non-represented
employees make the same or less than those they supervise.
The author argues this discrepancy creates problems by
dis-incentivizing good managerial candidates from promoting.
A management level position can result in added stress and the
loss of overtime and collective bargaining privileges.
SB 216
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In some cases supervisors and managers demote back to
rank-and-file positions after a period of time as a supervisor
or manager because the minor pay difference does not
sufficiently compensate for the added stress and workload.
The author concludes a strong state workforce is critical to
ensuring effective and necessary services to California's
citizens and visitors. This bill attempts to address this
problem by requiring CalHR to provide data to the Legislature.
2)Support . The Association of California Supervisors states
that after years of cuts to state government, supervisors,
managers and confidential employees often make less than the
employees who work for them. In fact, according to a recent
survey, 43% of state supervisors and managers earn the same or
less than the employees who report to them. According to the
California Correctional Supervisor Organization, compaction
issues, left unaddressed, create a disincentive for qualified
line officers to seek promotion. This in turn, weakens the
structure of the entire organization.
3)Background . Often, when an agreement or MOU is reached with a
state bargaining unit, certain provisions of the agreement or
MOU are also extended to related classes of employees who are
excluded from bargaining (mostly managers and supervisors).
For example, if represented employees are given a salary
increase of three percent, that same increase is often
extended to excluded employees in related classes. However,
there is no statutory requirement to extend, to excluded
employees, a pay package that was bargained for represented
employees, or to study the impact of the MOU on related
excluded classes.
CalHR is charged with setting compensation for excluded
employees. According to CalHR, they do not routinely conduct
compaction studies upon reaching a MOU agreement, nor do they
routinely include estimated costs or savings of extending MOU
provisions to related excluded classes when submitting the MOU
package to the Legislature and LAO.
4)Previous legislation. SB 1113 (Evans) of 2012 was similar to
SB 216. SB 1113 was held on this Committee's Suspense File.
5)There is no registered opposition to this bill.
SB 216
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Analysis Prepared by : Roger Dunstan / APPR. / (916) 319-2081