CONSTITUTIONAL WAIVER H.C.R. 61: FLOOR ANALYSIS






House Concurrent Resolution 61 (as reported)
Sponsor: Representative Gary Newell
Senate Committee: Appropriations

CONTENT
House Concurrent Resolution 61 would provide a waiver of the requirement of Article XI, Section 5 of the State Constitution, which provides that increases in rates of compensation authorized by the Civil Service Commission can be effective only at the start of a fiscal year and must be included in the Governor's budget proposal for that year.


This waiver would apply only to the increases in compensation contained in the recently settled three-year contract between the State and the Michigan State Troopers Association. The terms of settlement, which will be retroactive to its effective date of October 1, 2002, were given interim approval by the Civil Service Commission on May 18, 2004, after the time when the Governor could transmit the increase as part of her budget.

FISCAL IMPACT
The waiver would allow beginning payment of a contract settlement that features, among other terms and conditions of employment, wage increases for Trooper and Sergeants of 2% for FY 2002-3, 3% for FY 2003-04, and 4% for 2004-05. The terms of the contract will cost the Department of State Police approximately $6.8 million for FY 2003-04 and $ 13.5 million for FY 2004-05. No additional costs for FY 2002-03 will be required, as retroactive pay for this period was not included in the settled contract. The Department of State Police has determined that, due to sufficient encumbrances made in anticipation of the terms of the contract settlement, no additional appropriations will be required to fund the conditions of the contract.


Date Completed: 6-17-04 Fiscal Analyst: Bruce Baker




floor\HCR61 Analysis available @ http://www.michiganlegislature.org
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.

Analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. hcr61/0304