LEGISLATIVE FISCAL ESTIMATE

SENATE, No. 4249

STATE OF NEW JERSEY

219th LEGISLATURE

 

DATED: DECEMBER 17, 2021

 

 

SUMMARY

 

Synopsis:

Requires certain unclassified State employees to receive certain salary increases.

Type of Impact:

Annual State expenditure increase, State General Fund

Agencies Affected:

Department of the Treasury

 

Office of Legislative Services Estimate

Fiscal Impact

Year 1 

Year 2 

Year 3 

 

State Cost Increase

Indeterminate

 

 

 

 

·         The Office of Legislative Services (OLS) estimates that this bill will result in an indeterminate annual expenditure increase for the State.  The fiscal impact cannot be determined because the OLS does not have information on the number of employees covered since January 1, 2020 and the current compensation and ePAR rating for each employee.  An increase in compensation also increases the State’s contribution to the retirement system in which the employee is enrolled and the State’s payment as an employer for various other fringe benefits costs paid by an employer.

 

 

BILL DESCRIPTION

 

      This bill provides that State unclassified managers with the employee relations group designation of managerial who are represented by the International Brotherhood of Electrical Workers and who have a designation code of &98 will receive annual salary increases for each year of a collective negotiations agreement with the State based upon the following scale:

 

            Final Annual ePAR Rating                                         Increase

            5 on a 5-tier rating system                                          5 percent

            3 on a 3-tier rating system                                          5 percent

            4 on a 5-tier rating system                                          4 percent

            3 on a 5-tier rating system                                          3 percent

            2 on a 3-tier rating system                                          3 percent

 

      The annual salary increases will be awarded until the employee reaches the salary limitation as determined through collective negotiations. 

      For those hired or promoted before January 1, 2020 into the position held on the effective date of the bill, the annual increase will be based on their current salary.  For those hired or promoted on or after January 1, 2020 into the position held on the effective date of the bill, the annual increase will be based on their initial starting salary.  In the absence of a Final Annual PAR Rating, the salary increase awarded will be four percent of base salary.

      The salary increases provided by this bill will be retroactive to January 1, 2020.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS estimates that this bill will result in an indeterminate annual expenditure increase for the State.  The fiscal impact cannot be determined because the OLS does not have information on the number of employees covered since January 1, 2020 and the current compensation and ePAR rating for each employee.  An increase in compensation also increases the State’s contribution to the retirement system in which the employee is enrolled and the State’s payment as an employer for various other fringe benefits costs paid by an employer.

 

 

Section:

State Government

Analyst:

Aggie Szilagyi

Section Chief

Approved:

Thomas Koenig

Legislative Budget and Finance Officer

 

 

This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

 

This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).