Loading...
HomeMy WebLinkAboutProposed Findings of Fact by the 2023 County of Hawaii Salary Commission Dated October 12, 2023Hawaii County Dept. of Human Resources 10/16/2023 01:19:37 PM PROPOSED FINDINGS OF FACT BY THE 2023 COUNTY OF HAWAII SALARY COMMISSION DATED OCTOBER 12, 2023 Pursuant to Section 13-28 of the County Charter for the County of Hawaii Charter (2022), as amended (hereinafter "Charter"), the County of Hawaii Salary Commission (hereinafter "COH Salary Commission") hereby makes the following findings in support of its decision to adjust the salaries and salary schedules of elected and appointed officials of the County of Hawaii to be effective January 1, 2024: 1. The COH Salary Commission has the authority to review and set compensation for all county executive positions, elected positions and appointed positions of directors and deputy directors (collectively hereinafter "Covered Positions") so that their total compensation and benefits have an equitable and reasonable relationship to compensation in the public and private sectors. 2. The COH Salary Commission has not reviewed and adjusted the compensation for any Covered Positions since March 1, 2018. The base compensation for these positions has remained unchanged and frozen at the same 2018 base salary. Individuals occupying these positions have not received either a cost of living adjustment or any increase in their pay for five consecutive years. Meanwhile employees covered by the collective bargaining process have received contractually agreed upon adjustments and raises in their compensation during the period from 2018-2023. This situation has created unfairness and inequity in the compensation for the Covered Positions. In accordance with the Charter and Hawaii Revised Statutes Chapter 92, the COH Salary Commission's meetings held on June 8, 2023, July 11, 2023, August 4, 2023, and September 7, 2023, and October 12, 2023; were duly noticed and afforded opportunities for public comment and testimony was received. 4. To facilitate and assist in its review of compensation for the Covered Positions, and as required by the Charter, the COH Salary Commission consulted with those boards and commissions which have appointing authority for department heads, specifically, it solicited input from the Police Commission, Fire Commission, and Merit Appeals Board. The COH Salary Commission also afforded the Mayor of the County of Hawaii and all Covered Positions to submit input and/or recommendations for the COH Salary Commission to consider. The COH Salary Commission also considered all testimony both written and oral received to date, the cost -of -living index from 2018 through 2023, the purchasing price of a dollar in 2023, historical salary data, salaries of excluded managers within the County of Hawaii, the schedule of raises for both included and excluded subordinates over the past five years, challenges with recruitment for positions within the County of Hawaii, the duties and responsibilities of the Covered Positions with the County of Hawaii, salaries of the Covered Positions' counterparts in other Hawaii County Dept. of Human Resources 10/16/2023 01:19:37 PM county jurisdictions within the State, inversion challenges, and other public and private industry data. 5. Historically, the salaries established by the COH Salary Commission have been indexed to the increases given to County of Hawaii employees in collective Bargaining Units 11 (HFFA), 12 (SHOPO), and 13 (HGEA - Professional and Scientific Employees) ("collectively, BUs") and the various Civil Service managerial employees who are excluded from collective bargaining ("Excluded Managers"), but whose salaries are tied to the BUs. 6. The COH Salary Commission has not awarded any inflationary adjustment for the Covered Positions since January 1, 2018 and March 1, 2018 (depending on the Covered Position). The COH Salary Commission has not met to evaluate the salaries of Covered Positions since 2019. 7. The COH Salary Commission acknowledges that employees whose positions are included in or indexed to BU 11 are set to receive a cumulative total of 17.25% in across- the-board ("ATB") salary increases for the period July 1, 2018 through June 30, 2025. Employees whose positions are included in or indexed to BU 12 are set to receive a cumulative total of 21.25% in ATB salary increases for the period July 1, 2018 through June 30, 2025. Employees whose positions are included in or indexed to BU 13 are set to receive a cumulative total of 16.02% in ATB salary increases for the period July 1, 2018 through June 30, 2025. Covered Positions have not and currently are not scheduled to receive any increase in salaries since 2018. 8. The COH Salary Commission notes that quite often Department Heads and Deputy Department Heads are suffering from salary "inversion" where subordinate Civil Servant employees are paid higher salaries than the Department Heads and Deputy Department Heads who supervise them and oversee their work. This inversion provides a disincentive for experienced Civil Servants to step into Department Head and Deputy Department Head positions when they are vacated and makes it difficult for the Mayor and appointing boards and commissions to appoint or promote experienced managerial employees from within the County of Hawaii or to recruit qualified candidates for employment. The COH Salary Commission considered inversion information, which compared base salaries that did not also include other forms of monetary compensation, such as overtime pay and step increases. None of the Covered Positions are eligible for overtime pay or step increases. 9. The COH Salary Commission considered all the above information and determined it was necessary to be competitive with the current compensation of Covered Positions to ensure the County's ability to both retain and recruit qualified employees. In so doing, the COH Salary Commission also considered that there has been a 22.44% Consumer Price Index (CPI) inflation rate change that has not been accounted for by failing to increase Covered Hawaii County Dept. of Human Resources 10/16/2023 01:19:37 PM Positions compensation since 2018, an unfair reduction of income for the individuals occupying these positions. This inflationary adjustment is granted to bring the base compensation from the 2018 level to a 2023 level. It does not entail any retroactive pay to individuals serving in these Covered Positions. 10. To keep pace with CPI inflation rates, pay increases granted to BU 13 employees, and to avoid further inversion scenarios where Civil Servants are paid more than their managers, the COH Salary Commission concludes that an inflationary adjustment of 22.44% in base salary for Covered Positions effective January 1, 2024 or on the first day of the month following the COH Salary Commission's final approval. In addition, the COH Salary Commission only approves a 5% pay increase after the base compensation is set to a 2023 level. This is the only increase granted to account for pay adjustments for fiscal year ("FY") 2024-2025, effective on July 1, 2024. The estimated inflationary rate for calendar year 2023 is 4.8%. This adjustment is also consistent with the wages paid to other County of Hawaii employees in collective bargaining units who receive across the board pay increases, step movements, and overtime. It shall be implemented and is consistent with the principles of adequate compensation for work performed and preservation of a reasonable relationship to compensation in the public and private sectors, as the COH Salary Commission is directed to do by Section 13-28 of the Charter. A table of the recommended salary increases as set forth in this section are attached hereto as Exhibit "A". 11. The COH Salary Commission acknowledges that the proposed inflationary adjustment and the 5% pay increase may not level the historic disparity but it is, nonetheless, a step in the right direction. The COH Salary Commission strongly recommends that this Commission meet annually, before the budget cycle begins, and make the appropriate adjustments going forward. It should be reiterated that the Covered Positions compensation have not received any adjustment since either January 1, 2018 or March 1, 2018 (certain select Covered Positions received salary increases on January 1, 2018, while others received their salary increases on March 1, 2018). 12. On October 12, 2023, the COH Salary Commission having acknowledged its charge pursuant to the Charter is to review and compensate all county elected officials and appointed Directors and Deputy Directors so that their total salaries and benefits have a reasonable relationship to compensation in the public and private sectors. The COH Salary Commission approved these Proposed Findings of Fact recommending the inflationary adjustment from the 2018 to 2023 level and grants a 5% pay increase for FY 2024-2025 for Covered Positions and will hereafter ensure publication at least once in two daily newspapers of general circulation, submit said Proposed Findings of Fact to the Office of the County Clerk and the Office of the Mayor for public inspection and will hold a public hearing on these Proposed Findings of Fact on a date to be announced in the aforementioned newspaper publication. Any adjustment that increases or decreases any salary by more than ten percent shall require an affirmative vote of two-thirds of the Hawaii County Dept. of Human Resources 10/16/2023 01:19:37 PM entire membership of the COH Salary Commission. Following public hearing, the COH Salary Commission may vote to approve the recommended salary increases attached hereto as Exhibit "A" at its next duly scheduled and noticed meeting. 13. The COH Salary Commission is comprised of volunteer commissioners who are mindful of current economic conditions and anticipated concerns of the public. The COH Salary Commission balanced such against their obligation to set salaries consistent with the principles of adequate compensation for work performed while preserving a reasonable relationship between the salaries it sets for Covered Positions so that their total salaries and benefits have a reasonable relationship to compensation in the public and private sectors, mindful that the salaries of other County of Hawaii employees have regular salary increases. In total, the recommended salary increase for the Covered Positions for fiscal year 2024 are approximately $484,107 or 0.06% of the County operating budget, while the recommended salary increases for fiscal year 2025 are an additional $264,216 or roughly 0.03% of the current operating budget. These potential salary increases were accounted for when the fiscal year 2024 budget was prepared. 14. The COH Salary Commission is aware that salaries offered for equivalent work in the private sector may be higher than that offered by the County of Hawaii. The COH Salary Commission also notes that other employees may continue to make higher wages based on their ability to receive overtime pay. The COH Salary Commission's intent is to bring Covered Positions up to a fair and equitable salary consistent with these Proposed Findings of Fact to facilitate recruitment and retention of qualified Covered Positions. The above Findings of Fact will be available for public inspection at the Office of the County Clerk and the Office of the Mayor as required by Section 13-28(e) of the Hawaii County Charter. Base Inflationary Adjustment for Base 2018-2023 of Compensation Inflationary 22.44%as of Position 2018-Current Adjustment January 1, 2024 Mayor 162,582 36,486 199,068 Managing Director 153,612 34,476 188,088 Deputy Managing Director 132,744 29,796 162,540 Prosecuting Attorney 153,228 34,392 187,620 First Deputy Prosecuting Attorney 145,968 32,760 178,728 Fire Chief 151,200 33,936 185,136 Deputy Fire Chief 143,640 32,244 175,884 Chief of Police 153,270 34,398 187,668 Deputy Chief of Police 145,968 32,760 178,728 Corporation Counsel 153,228 34,392 187,620 Assistant Corporation Counsel 145,968 32,760 178,728 Director of Human Resources 128,628 28,872 157,500 Deputy Director of Human Resources 122,628 27,528 150,156 Director of Environmental Management 132,744 29,796 162,540 Deputy Director of Environmental Management 126,420 28,380 154,800 Director of Finance 132,726 29,790 162,516 Deputy Director of Finance 126,402 28,374 154,776 Housing Administrator 126,420 28,380 154,800 Director of Planning 132,744 29,796 162,540 Deputy Director of Planning 126,420 28,380 154,800 Director of Public Works 132,582 29,754 162,336 Deputy Director of Public Works 126,264 28,344 154,608 Director of Parks and Recreation 128,760 28,896 157,656 Deputy Director of Parks and Recreation 122,628 27,528 150,156 Director of Information Technology 126,420 28,380 154,800 Director of Liquor Control 126,420 28,380 154,800 Director of Research and Development 126,420 28,380 154,800 Deputy Director of Research and Development 113,778 25,542 139,320 County Clerk 126,420 28,380 154,800 Deputy County Clerk 113,778 25,542 139,320 County Auditor 126,420 28,380 154,800 Council Chair 77,016 17,292 94,308 Council Member 70,008 15,720 85,728 Exhibit A Base Base Compensation 5% Increase Compensation as of Effective as of Position January 1, 2024 July 1, 2024 July 'I, 2024 Mayor 199,068 9,960 209,028 Managing Director 188,088 9,408 197,496 Deputy Managing Director 162,540 8,136 170,676 Prosecuting Attorney 187,620 9,384 197,004 First Deputy Prosecuting Attorney 178,728 8,940 187,668 Fire Chief 185,136 9,264 194,400 Deputy Fire Chief 175,884 8,796 184,680 Chief of Police 187,668 9,384 197,052 Deputy Chief of Police 178,728 8,940 187,668 Corporation Counsel 187,620 9,384 197,004 Assistant Corporation Counsel 178,728 8,940 187,668 Director of Human Resources 157,500 7,884 165,384 Deputy Director of Human Resources 150,156 7,512 157,668 Director of Environmental Management 162,540 8,136 170,676 Deputy Director of Environmental Management 154,800 7,740 162,540 Director of Finance 162,516 8,136 170,652 Deputy Director of Finance 154,776 7,740 162,516 Housing Administrator 154,800 7,740 162,540 Director of Planning 162,540 8,136 170,676 Deputy Director of Planning 154,800 7,740 162,540 Director of Public Works 162,336 8,124 170,460 Deputy Director of Public Works 154,608 7,740 162,348 Director of Parks and Recreation 157,656 7,884 165,540 Deputy Director of Parks and Recreation 150,156 7,512 157,668 Director of Information Technology 154,800 7,740 162,540 Director of Liquor Control 154,800 7,740 162,540 Director of Research and Development 154,800 7,740 162,540 Deputy Director of Research and Development 139,320 6,972 146,292 County Clerk 154,800 7,740 162,540 Deputy County Clerk 139,320 6,972 146,292 County Auditor 154,800 7,740 162,540 Council Chair 94,308 4,716 99,024 Council Member 85,728 4,296 90,024 Exhibit A