Committee: Joint Appropriations
Representative Pummel moved the committee approve Joint minutes of January 26, 1999. Seconded
by Senator Frederick. Motion prevailed by voice vote. Representative Klaudt moved the committee
approve the Joint minutes of January 27, 1999. Seconded by Representative Wudel. Motion
prevailed by voice vote.
Governor's Budget Book: Salary Policy
Mr. Bill Pike, LRC, staffed the meeting.
Ms. Sandy Zinter, Commissioner, Bureau of Personnel (BOP), introduced Ms. Sandy Jorgensen,
Compensation and Payroll, BOP, and Mr. Larry Kucker, Insurance/Employee Benefits Program,
BOP. Commissioner Zinter presented an overview of the salary competitiveness program. The cost
of the recommended FY00 employee compensation package is $22.2 million, $13.8 million of which
is for a 3% across the board salary raise, and $2.4 million of which is for the 2.5% adjustment to
midpoint.
Commissioner Zinter discussed the need for the pay grade system, noting it prevents employee discrimination and helps the Bureau of Personnel predict labor costs. The two main components of the salary policy are the annual adjustment and the movement to job worth. Of all state employees covered by the salary policy, 47% are below job worth, 33% are at job worth, and 20% are above job worth. When an employee reaches job worth, the employee's base salary does not increase. Ms.
Jorgensen noted currently 18 state employees have exceeded the top salary range for their job
classification.
Ms. Kathy Johnson, Board of Regents, explained how the 3% salary increase is distributed in a
discretionary manner to faculty members. Representative Klaudt requested a breakdown from the
Bureau of Personnel regarding the number of employees in each year of employment with the state.
Commissioner Zinter presented information on the state's health claim history, including the number
of budgeted claims versus actual claims. For FY00 BOP is requesting an increase of $6 million for
health insurance costs. Of the $6 million, $1.5 is to cover costs through the mental health parity
legislation, and $4.5 is for anticipated health claim costs. The state provides health insurance to
22,000 individuals.
Mr. Kucker answered questions of the committee. The state does subsidize family coverage to the
degree that it equals the cost of family coverage on the private market. Mr. Kucker described how
the Bureau works to contain health care costs through different program and incentives.
Senator Frederick noted employee compensation and health insurance figures can be found on pages
24, 138, 190, and 194 for the Executive Branch, the Board of Regents, the Unified Judicial System,
and the Legislative Research Council, respectively.
Mr. Ken Melius, Executive Director, South Dakota State Employees Organization, testified in favor
of a 4% across the board salary adjustment. He compared salary figures in South Dakota with those
in other central states.
Mr. Bob Stevens, South Dakota Education Association, noted his organization represents faculty
members in the Board of Regents. He requested the salary competitiveness plan remain in place,
noting the faculty do not receive the 2.5% midpoint adjustment. He said they also do not receive an
automatic 3% across the board raise due to the salary competitiveness policy.
MOTION:
To approve pages 24, 138, 190, 194, and 228 of the Governor's budget book.
Moved by:
Senator Frederick
Second by:
Representative Wudel
Action:
Was not acted on.
MOTION:
SUBSTITUTE MOTION AMEND HB 1179
"
Section 29. It is the intent of the Legislature that all funds appropriated in this Act for across-
the-board salary increases shall be distributed by the respective entities of government as follows:
Deborah Rumrill