A Biennial Report on Recommended Changes to the State's Compensation System for Fiscal Years 2004-2005
Report Number 03-701
The State's compensation system provides many tools to address employee pay
issues. We recommend the Legislature consider pay increase options for employees
and technical changes to maintain the compensation system. The total cost to
implement all of our salary recommendations is $124 million for the biennium.
However, this does not include the cost to provide agencies funding for merit
We found that:
- Salary Schedules A and B generally provide competitive salary ranges.
- State employees' pay is not competitive with salaries for comparable work
in government and private industry for many job classes.
- State trooper pay is not in line with Texas' city police departments.
Employee pay lags the market, even though the State's salary schedules provide
competitive salary ranges. While that may sound contradictory, the gap exists
because state agencies are unable financially or culturally to fully use the
tools available to them. We recommend the Legislature adopt a formal compensation
philosophy specifically outlining legislative intent regarding the three components
of a compensation system-salary, benefits, and retirement.
This could reduce the amount of time legislators spend debating the methods
used to grant employee pay increases during future legislative sessions. By
forming this foundation for how to pay employees, legislators could then focus
more strategically on funding options. We have included in this report the details
of our philosophy recommendations.
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