Audit Reports Affecting Multiple Agencies
A Biennial Report on Recommended Adjustments to the Classification Salary Schedule
Report Number 96-719
We recommend that the Legislature adjust the Classification Salary Schedule by 3.5 percent for
each year of the 1998-1999 biennium. We base our recommendation on the analysis of the impact of
inflation on the real earnings of classified employees, the compensation practices of other
employers, turnover data, and the competitiveness of the State's benefits package. The salary
structure adjustments would cost approximately $110 million in fiscal year 1998 and $114 million
in fiscal year 1999.
Key Facts And Findings
The average classified employee has experienced a cumulative loss in real earnings, or purchasing
power, of $1,057 since 1992. Even after including employee promotions, merit increases, and
bonuses, average classified employees' salaries have increased by only 7.47 percent since 1992, while
inflation has grown by 11.80 percent.
Adjustments to the Classification Salary Schedule have not kept pace with national and local
salary structure trends for three of the last five years, and will lag behind again in fiscal
Competitive salaries take on added importance in the recruitment of employees since the value of
benefits provided to new state employees now lags behind the national average. While the benefits of
state employees eligible for benefit replacement pay equal 45.5 percent of payroll, benefits for new
state employees (who are not eligible for benefit replacement pay) equal 33.8 percent of payroll.
Nationally, benefits average 40.7 percent of payroll.
Contact the SAO about this report.
Download the PDF version of this report. (.pdf)
(utilizing Adobe's PDF Conversion by Simple Form).