Annual report with recommendations, 1983 December 5

5.

1 OMMISSIONERS

AOGETT. CHAIRMAN ICE AVENUE
VILLE. GA 30134 8681
\. YNOR . VICE CHAIRMAN L--___:=-=---P:::-.--o=-. :B:O, :::X 2139
SAVANNAH . GA 31498 912 - 236-2491
EUGENE T . BRANCH 621 RIDGECREST ROAD. N .E. ATLANTA. GA 30307 404- 586-1523
GENE CLAYTON P. 0 . BOX 65 TALLAPOOSA. GA 30176 404-574- 2318
WILLIAM B. GUNTER 3100 EQUITABLE BUILDING ATLANTA, GA 30043 404- 572 -6300
EDWARD J . HARRELL 700 GEORGIA FEDERAL BUILDING P . 0 . BOX 4987 MACON . GA 31208 912-743 - 7051

STATE COMMISSION ON COMPENSATION
RESEARCH CONSULTANT WILLYS R . KNIGHT 401 STATE CAPITOL
ATLANTA . GEORGIA 30334
404-656-7854

ANNUAL REPORT WITH RECOMMENDATIONS

COMMISSIONERS
WILLIAM 0. HEALAN . JR. 113 WEST CANDLER STREET WINDER, GA 30680 404- 867-7554
MIKE JONES 215 N . WALL STREET P. 0 . BOX 12169 CALHOUN. GA 30701 404-629-4531
HERBERT H . MABRY 501 PULLIAM STREET. S.W . ATLANTA. GA 30312 404-525-2793
THERMAN McKENZIE P. O. BOX16549 ATLANTA. GA 30321 404-768-2941
ADAIR M . NUNNALLY 700 GORNTO ROAD VALDOSTA. GA 31602 912-242-7713
VIRGIL R. WILLIAMS 2055 WEBB GIN HOUSE ROAD SNELLVILLE. GA 30278 404-498- 2020

December 5, 1983
TO: Governor Joe Frank Harris Lieutentant Governor Zell Miller Speaker of the House of Representative, Thomas B. Murphy Chief Justice of the Supreme Court, Harold N. Hill, Jr. Chief Judge of the Court of Appeals, Arnold Shulman Clerk of the House of Representatives, Glenn Ellard Secretary of the Senate, Hamilton McWhorter Legislative Counsel, Frank Edwards
Gentlemen:
The State Commission on Compensation, having finished its study for the year, does herewith file its annual report as required by law (Georgia Laws 1971, pages 105-106).
FINDINGS
We can point to a number of positive developments this year. First, there is good news in the fact that the rate of inflat~on is now markedly lower than it has been for a number of years, making the job of salary administration easier. Next, in its 1983 session the General Assembly provided significant salary increases for a number of statehouse officials, correcting numerous inequities. And, finally, we note with pleasure that all officials under the jurisdiction of this Commission were granted a cost-of-living adjustment (4 percent) effective July 1, 1983. Truly, this was a positive year in the state's salary program, and we applaud the action of the General Assembly. Yet the picture is not all bright as will be brought out in the text which follows.
t:JNIV. OF GEO GIA LIB

Report of State Commission on Compensation page #2
-Base Salary Levels
fe note with much satisfaction that salaries for statehouse officials under our jurisdiction are now close to the levels recommended in our last annual report. Yet, there were significant exceptions in that there were no increases for legislators nor for the judiciary.

THE ADEQUACY OF BASE SALARIES

A - Statehouse Officials

We find that our statehouse officials are paid now at the average (or
possibly a little better) for the 50 states, and this is to be commended. But the story cannot stop here. By law the members of this Commission must make other comparisons. When this is done we find that there is inferiority in our current salary levels. By these other yardsticks one finds, for example, the officials under our purview get slightly less than those agency heads in Georgia whose compensation is set by boards (like the Board of Industry and Trade, Board of Regents, the State Transportation Board, etc.). Further, salaries for our statehouse officials are at a much lower level than those prevailing in the higher rungs in the federal government, private industry, trade and banking. This differential has persisted for many years. The truth is that the compensation levels for top leadership in state government all across the nation is low compared with the salaries for those who lead business enterprises and federal agencies.

Here are some specifics. The current salary in the federal government for those in Executive Level V (which is the lowest rung in the Executive Executive Schedule) is $63,800 -- some $12,000 more than Georgia pays the heads of its major departments.

Even more striking is the inferiority of salaries in Georgia's state government when comparisons are made with the private sector. Leaving aside the top 100 largest prominent firms like General Motors, Lockheed , AT&T, IBM, etc. and directing our attention to the "small company managements," we find large differentials indeed. Taking an average salary for the six top management positions in "small companies" we find this picture today:

Average Salary Levels, 1982

Six position average*

General Industry Retail and Wholesale Diversified

$102,100 100,600 114,400

Report of State Commission on Compensation
page #3

Services Utilities Commercial Banks Life Insurance Property and Casualty

114,100 66,300 99,400 98,500 72,700

*The six positions in the average were: Chief Executive Officer, Chief Operating Officer, Top Finance, Top Legal, Top Human Resources, and Top Management Information System/Data Processing Officer.

Source: 1982 Sibsori arid Company survey

Roughly speaking, our highest officials in Georgia state government are paid at only about 50 to 60 percent of the levels prevailing for top people in "small companies." Further, those in the private sector very frequently get large amounts of additional income (not included in the figures above) in the form of bonuses, fringe benefits and stock options .
Summing it up we find that, generally speaking, our statehouse officials are being adequately paid when compared with other states, but inadequately from some other standpoints. The task of the Commission is complicated by the fact that it is required by law to use a number of different yardsticks, not just one.

STATE JUDICIARY

(1) Consideration of Federal Judicial salaries

As bas been true for many years we find that the compensation paid federal judges today is far above that for the Georgia judiciary. The disparity continues to be large. Here are the facts for the federal courts:

Chief Justice of the Supreme Court Associate Justices, Supreme Court Judges, Circuit Courts of Appeals Judges, District Court Judges, Bankruptcy Court
u. s. Attorney

$100,000 96,700 77 ,300 73,100 63,600 63,800

In contrast, here are the salaries paid to the Georgia judiciary:

Justice of the Supreme Court Judge, Court of Appeals Superior Court Judge District Attorneys
*Plus local supplements in many circuits.

57,680 57,050 48,275* 42,635

Report of State Commission on Compensation page #4
It is not only Georgia that pays its judges below the federal level, but so do nearly all the states. This disparity between state and federal levels of compensation arose out of circumstances which existed many years ago but which are not justified today. Judges of the federal courts do not handle matters of greater moment than those in the Georgia courts. Those on the bench in our state judiciary need just as much legal background, high character and broad experience in life as those in the federal courts. In Georgia courts the issues often involve life or death. They protect our life, liberty and property. What can outrank these matters? The inferiority of state court salary levels cannot be justified on matters of training, experience, importance of issues or legal competence.
(2) Comparisons with Salaries in the Private Practice of Law
We find that judges in our Georgia courts get only about 60 percent of
that received by partners in leading law firms and by senior ~embers in corporate law departments. The picture has improved slightly in recent years in that salaries for our state jurists have been rising slightly whereas, typically, earnings in major law firms have been trending down ward. Nevertheless, large disparities still exist.
We find that compensation levels for partners and senior members of law departments in private enterprises currently run some $30,000 to $50,000 higher than is paid to our judges and district attorneys. Whether this is a fair comparison can be argued at length. It is true that many hardworking, capable attorneys in Georgia today do not receive compensation at the level which exists in prominent law firms and in the highest rungs in legal departments of large corporate enterprise. Nevertheless, we want judge~ who have the ability to perform successfully in private firms. Further, experienced attorneys whom we would like to see come from private practice to the bench often refuse such appointments because they cannot stand the financial sacrifice.
There is no doubt that the earn.ings potential in private law firms and in corporate law departments exceeds that for jurists in Georgia by a considerable margin.
(3) Comparisons with Salaries in our Sister States
Salaries for Georgia jurists now lag significantly behind those in our sister . states. Compared with ten other states in the Southeast we find the level of judicial salaries in Georgia is now appreciably lower than in seven others, about the same as in two others, and .higher than one (West Virginia). For exact figures in all these states see Exhibit A in Appendix.

Report of State Commission on Compensation Page #5

An an example, here are salaries paid in two of these states, Florida
and Louisiana:

Supreme Court Appeals Court Trial Courts

Florida $65,805
59,385 56,710

Louisiana $66,566 63,367 60,169

Georgia $57,680
57,054 48,276*

*Plus local supplements where available.

In short, our salaries are below those of our sister states.

Local Supplements

Throughout the years this Commission has confronted a perplexing situation which is generated by the local supplements paid to some superior court judges and district attorneys. We would not want to see these eliminated. Beyond a doubt, they are most useful in attracting and retaining well-qualified people to serve in these roles--roles which are absolutely essential in maintaining order and justice in society. The dilemma is that a fourth of these judges, and a larger number of district attorneys, get no supplements at all. In contrast, the supplements in a couple of circuits place a handful of jurists among the best paid in the nation.

The judges getting no supplements perform roles just as essential and require as much professional competence as is the case for their better paid colleagues where ample supplements are paid. We have no answer for this problem, partly because the steps which need to be taken do not lie within the province of the Commission. Probably the most helpful step would be for those counties which do not pay supplements to start paying them. The cost to the counties would be trivial, yet the significance to the judges and district attorneys would be large.

LEGISLATORS
As has been the case for many years, we find that the compensation paid legislators in Georgia is unduly low. Aside from the fact that it is a politically sensitive matter, we can find no substantive reason why this situation should continue. This Commission must strive for a logical, equitable compensation rate for all officials under its purview. The Commission is not oblivious to the reality of politics, but it feels its role is to recommend what is right.
Throughout the nation today we find the average annual salary (excluding Georgia) for a state legislator to be $14,923. It is not right that a Georgia legislator receives less than one-half of this

Report of State Commission on Compensation Page #6
amount (Exhibit Bin Appendix). We are aware that our legislators now have a limited vouchered expense allowance, but this merely helps offset expenses of the office. Legislators in other states have similar expense allowances too. We know, also, that for the legislators who live in the Atlanta area the per diem paid during the 40-day session is extra income, but yet the sum involved is small and does not change the picture in any material way.
Georgia's legislators are hardworking and competent. It takes a lot of their time to perform their duties for the state. There are numerous cases where fine legislators have had to end their careers in the General Assembly because they could no longer afford to serve. The continuance of the low pay for legislators will surely undermine the "citizen legislator" ideal since the time is fast approaching when only those with substantial other income can afford to be legislators.
In 1967, when the Consumer Price Index stood at 100, our legislators were paid $4,200 per annum. Now the Index stands at a level in excess of 300--that is, it takes $3 to buy what $1 did in 1967. This means that the $7,200 received today will buy only what $2,400 would have covered in 1967. This is a tremendous drop in the real rate of compensation. We can think of no other occupation in our society which has suffered such a drop in its rate of pay.
Geor~ia continues its remarkable growth. All of its agencies have grown immensely since 1967, commensurate with the state's own development. Not only in its scale, but also in the complexity of the problems ~ Georgia legislators have a job requiring ever growing sophistication.
In summary, we find that the salary for legislators is unduly and arbitrarily low. This situation should be corrected at the earliest possible date. Under existing law, this could not happen before the session opens in 1985.
CURRENT AND PROPOSED SALARIES FOR OFFICIALS UNDER JURISDICTION OF STATE COMMISSION ON COMPENSATION
A few words of explanation are in order for the salaries recommended below for the year starting July 1, 1984 (see second column in table below). In some cases there are increases in the basic rate of compensation, namely: the Governor, the Attorney General, all members of the judiciary and legislators. In all other cases the intent has been to award merely a cost-of-living adjustment, chosen arbitrarily herein as 3.8 percent.

Report of State Commission on Compensation page #7

Is 3.8 percent the right figure? Just how much of an adjustment to employ is debatable. Earlier this year the Consumer Price Index was running about 3.8 percent above last year, and more recently it has been under 3 percent. Meanwhile some forecasters are now predicting 5 percent for next year.

our basic intent is that people under the jurisdiction of this Commission should get the same cost-of -,- living adjustment as the General Assembly decides next March to award other employees of the state. If it is 3 percent, then our people should get 3 percent,
not 3.8 percent.

However, we do not intend for these officials to get the salary shown in the second column and a cost-of-living adjustment as well. The figures in the second column already include that adjustment. This consideration applies also to those cases where an increase in the base s~lary is recommended.

Current Salaries

Salaries starting July 1, 1984 as recommended by Commission

Governor Lt. Governor Commissioner of Administrative Services Adjutant General Commissioner of Agriculture Attorney General State Auditor Commissioner of Banking and Finance Comptroller General
Commissioner of Labor (Federal & State)
State portion Commissioner of Offender Rehabilitation

$71,314 . 41,496 51,896 71,134 (1) 51,896 57,681 48,152 (2) 51,896 51,896 57,823 29,490 51,896

$75,000 43,075 53,870 (1)
53,870 65,000 49,985 (2) 53,870 53,870
(3) 30,610 53,870

Table Footnotes
(1) Includes $8,256 for subsistence and housing. Salary will be determined in the coming year by United States Government Pay Schedule for Officers at that rank in the Armed Forces.
(2) ' Plus 8 percent factor in lieu of pension pickup. (3) One cannot say what the total figure will be in the coming year
because the federal component may change. Currently the federal input is $28,333.

Report of State Commission on Compensation page #8

Members, Pardons and Paroles Members, Public Service Commission
commissioner of Revenue State Superintendent of Schools
Secretary of State commissioner of Veterans Service

48,776 51,896 51,896 54,170 (2) 51,896 48,152 ( 2)

Members of General Assembly Speaker of House of Representatives President Pro Tempore of Senate Speaker Pro Tempore of House

7,200 25,767 ( 4)
2,800 2,800

Justice of Supreme Court Judge, Court of Appeals Superior Court Judge
District Attorney

57,680 57,054 48,275 42,635

50,630 53,870 53,870 56,230 (2) 53,870 49,985 (2)
12,500 25,767 (4)
2,800 2,800
65,000 64,500 55,000 48,000

Aggregate Fiscal Effect of the Salary Increases Proposed (Including some adjustments in the base rates as well as cost-of-living adjustments)

Cost to the State

Statehouse Officials Judiciary Legislators

$ 52,388 1,186,854
1,250,800 Total $2,490,042

DETAILED RECOMMENDATIONS

Effective July 1, 1984 the State Commission on Compensation recommends:

(1) That the salaries for those under the jurisdiction of this Commission be at the following levels:

(1) Governor

$75,000

An allowance in an amount specified in the

Appropriations Act shall also be provided for the

operation of the Governor's Mansion.

Table Footnotes
(4) Will get compensation at level of Lt . Governor effective opening 1985 Session.

aeport of State Commission on Compensation page #9

(2) (3) (4)
(5) (6) (7) (8) (9) (10)
(11) (12) (13) (14) (15) (16) (17)

Lieutenant Governor

43,075

Commissioner of Administrative Services 53,870

Adjutant General

The Adjutant General shall continue to receive the

pay and allowances under the same procedure as

provided by law.

Commissioner of Agriculture

53,870

Attorney General

65,000

State Auditor

49,985

Commissioner of Banking and Finance

53,870

Comptroller General

53,870

Commissioner of Labor

30,610

The Commissioner of Labor, as administrator of the

Georgia Employment Security Law, in addition to the

above amount, shall be entitled to, and shall receive

from, and out of, funds derived from federal grants

to the state for administration of said law, such

compensation as may be approved by the appropriate

federal agency in an amount determined to be com-

mensurate with the duties imposed by the Employment

Security Law together with authorized travel expenses

incurred in connection with the performance of

official duties from funds appropriated and available

for that purpose.

Commissioner of Offender Rehabilitation 53,870

Each Member of Pardons and Paroles

50,630

Each Member of Public Service Commission 53,870

Commissioner of Revenue

53,870

State Superintendent of Schools

56,230

Secretary of State

53,870

Commissioner of Veterans Service

49,985

(18) (19)

Each Member of the General Assembly

12,500

This salary shall become effective upon convening

of the General Assembly in 1985. Each Member of

the General Assembly shall also receive the allow-

ances authorized in Georgia Laws 1980 Session, No.

1005, page 757 (and such additional allowances as

approved in later amendments to this statute), which

law permits reimbursements of certain expenses; and

shall continue to receive other allowances provided

by law including an expense allowance in the amount

of $59 per day and receive the same mileage allowance

for the use of a personal car when devoted to official

business as that received by other state employees.

Speaker of the House of Representatives

The Speaker of the House shall receive the salary

and allowances authorized as a Member of the General

Report of State Commission on Compensation Page #10

(20) (21)

Assembly. In addition, he shall receive an amount

to bring his total compensation to the same level as

that of the Lieutenant Governor effective the conven-

ing of each new term.

President Pro Tempore of the Senate

2,800

The President Pro Tempore of the Senate shall also

receive the salary and allowances authorized as a

Member of the General Assembly.

Speaker Pro Tempore of the House of

Representatives

2,800

The Speaker Pro Tempore of the House of Representatives

shall also receive the salary and allowances authorized

as a Member of the General Assembly.

(22) (23) (24)
(25)

Each Justice of Supreme Court

65,000

Each Judge of Court of Appeals

64,500

Each Superior Court Judge

55,000

Each Superior Court Judge shall also receive any

supplement paid to him by the county or counties

of his Judicial Circuit as may be provided by law.

Each Superior Court Judge shall also receive reim-

bursement of travel expenses as provided by law.

Each District Attorney

48,000

Each District Attorney shall also receive any

supplement paid to him by the county or counties

of his Judicial Circuit as may be provided by law.

Each District Attorney shall also receive reim-

bursement of travel expenses as provided by law.

In addition to the above base salaries, those officials will continue to get a salary supplement who qualify under Act No. 1071 (Senate Bill 42), Georgia Laws 1980, page 935, which states in part: "The annual salary being received on June 30, 1980 of each state official listed above, except Members of the General Assembly ; who is not a contributing member of a State Retirement System and, therefore, does not benefit by or participate in any program whereunder a portion of the employee contributions to the State Retirement System are made on behalf of the employee by the employer, shall be increased by 8 percent, effective on July 1, 1980." These supplements are payments to qualified individuals and shall not be construed as adhering to the office.

(2) That each member of the following named Boards and Commissions be paid the same per diem expense allowance, in lieu of any existing per diem allowance or other remuneration now received, as is paid Members of the General Assembly each day on which he attends a meeting of such Board or Commission; plus reimbursement of travel at t -he legal rate; with such maximum limitations on the number of meetings held as now prescribed by law:

Report of State Commission on Compensation page #11
State Board of Education State Medical Education Board Board of Regents of the University
System of Georgia State Personnel Board Board of Offender Rehabilitation Board of Industry and Trade Board of Natural Resources State Transportation Board Dental Educational Board State Scholarship Commission Veterans Service Board State Commission on Compensation
(3) That, in the event the General Assembly does not see fit to enact the salaries in No. 1 above, the Commission recommends that the officials under its purview get the same cost-of-living adjustments as are awarded other employees of the State.
Respectfully submitted,
STATE COMMISSION ON COMPENSATION

EXHIBIT A

JUDICIAL BRANCH

Current Salaries July 1983

jLABAMA

Supreme Court,

Chief Justice

Judges

Criminal Appeals, Presiding Judge

Associate Judge

Civil Appeals,

Presiding Judge

Associate Judge

Circuit Court Judges

District Court Judges

*Local supplements up to $15,000 in major cities.,

$58,500 58,000 57,500 57,000 57,500 57,000 48,000* 38,400

FLORIDA

Supreme Court District Court Circuit Courts

65,805 59,385 56,710

GEORGIA
Supreme Court,
Court of Appeals Superior Court
XENTUCKY
Supreme Court,
Court of Appeals
Circuit Courts District Courts

Chief Justice Associate Justice
Chief Associate Chief Associate

57,680 57,680 57,054 48,276
57,820 56,664 54,929 54,350 52,038 44,521

LOUISIANA
Supreme Court Court of Appeals District Courts

66,566 63,367 60,169

MISSISSIPPI
Supreme Court,
Chancery Courts Circuit Courts

Chief Justice Presiding Justice Associate Justice

60,000 59,000 58,000 51,000 51,000

NORTH CAROLINA

Supreme Court,

Chief Justice

Judges

Court of Appeals, Chief Justice

Judges

Superior Court Judges, Senior

Judges

District Court

Chief

Judges

61,128 59,868 57,948 56,676 51,984 50,328 42,372
40,752

OTB CAROLINA supreme Court,
Circuit Court

Chief Justice Associate Justice

TJRNESSEE

supreme Court Court of Appeals Trial Level Judges

Chief Justice Associate Justices Presiding Judge As~ociate Judges

11ST VIRGIN IA Supreme Court Circuit Courts

VIRGINIA

Supreme Court,

Chief Justice

Associate Justice

Includes $4,000 travel allowance annually.

Circuit Courts

District Courts

SOURCE: Our own Survey conducted in July 1983.

Exhibit A Page #2
JUDICIAL BRANCH
$71,251 63,128 63,128
68,175 65,650 64,135 63,125 60,600
49,000 45,000
68,000* 65,400* 57,000 51,300

EXHIBIT B

COMPARED WITH OTHER STATES

LEGISLATIVE BRANCH

ANNUAL COMPENSATION FOR LEGISLATORS (July 1983)

(Does not include per diem to cover lodging, meals, taxi, etc. when in session or in committee work during interim.)

Alaska Michigan California New York Illinois New Jersey Pennsylvania Florida Oklahoma Wisconsin Kentucky Louisiana Maryland Minnesota Hawaii Arizona llissouri Delaware Colorado Virginia Iowa Connecticut Washington Indiana Tennessee Oregon South Carolina Mississippi Vermont North Carolina Kansas Arkansas Georgia Texas New Mexico
Maine North Dakota Alabama South Dakota
West Virginia Nebraska Montana Utah
Rhode Island New Hampshire

Extra Session Salari
No No No No No No No No No Yes Yes No No No No No No Yes No Yes No No Yes No No Yes Yes No No Yes Yes No No Yes-odd years
even years No Yes Yes Yes-odd years
even years Yes No Yes Yes-odd years
even years . No Yes

Sal arr

Unvouche.red Allowance

Total

$46,800

$ 4,000

$50,800

31,000

6,200

37,200

33,732 (12-84)

33,732

30,804

Varies by PoSition 30,804

28,000

28,000

25,000

25,000

25,000

25,000

12,000

12,000

24,000

20,000

3,330

23,330

22,638

450

23,088

14,650 (1984)

8,075

22,725

4,500

16,800

21,300

21,000

21,000

18,500

600

19,100

13,650

2,500

16,150

15,000

15,000

15,000

15,000

12,198

2,500

14,698

14,000

14,000

11,000 (1-84)

3,000

14,000

13,700

13,700

10,500

. 2,500

13,000

12,850

12,850

9,600

2,000 (Est.) 11,600

8,308

3,000

11,308

8,400

2,850 (Est.) 11,250

10,000

400

10,400

8,100

1,890

9 , 990

9,500

9,500

6,936

1,800

8,736

4,050

3,600

7,650

7,500

7,500

7,200

7,200

7,200

7,200

4,500

4,500

2,250

2,250

6,500

200

6,700

4,000 (Est.)

2,160

6,160 .

1,350

4,800

6,150

2,800

2,800

3,200

3,200

5,136

5,136

4,800

200

5,000

4,429

4,429

1,500

1,soo

500

500

300

300

200 (for 2-year term)

200

Average: $14,769 (all 50 states) Average: $14,923 (Georgia excluded)

1111iifff/t1ifill/I
3 2108 05732 7036