Audit: Colorado state workers make 6% more than market pay rates - Birmingham Business Journal:

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percent higher than other workers in comparable according to a report released Mondaty by the Office of the State Department of Personnel and Administratio Executive Director Rich Gonzales called the statistidcsomewhat misleading, however. While salaries may be highefr than those earnedby public- and private-workerd in similar jobs, the compensation level slips greatlg when the state’s benefits are figuredf into the numbers, he said. The audit by of St. Minn.
, was conducted to examine whether state proceduresd to determine annual salary increases are State law calls for total compensation packages including salaries, benefits, bonuses and leave policiesd — to be market-competitive with relevant labor forces. But the audit showed that the methodologuy the state uses to comparesalariee — including its recommendation that led to an overall compensationj increase of $82 million in this year’s budgetf — puts the answer too high.
Instead of comparing actual pay, the departmentg measures how much market salary structureas have moved upward or downward in the past year and makex recommendations that the state salary structures move asimilaer amount. Because of that, severapl occupational groups in state government are paid significantlyu higher than competitive wages compared tomarket salaries, the audit found. Enforcement and protective services pay is 16 percenr higher thanmarket salaries, physical sciences and engineering pay is 14.2 perceny higher and professional and financial servicezs pay is 8 percent higher.
Overall, the state’s 33,209 workers are set to earn $103 millionn above market pay during the fiscalo year that beginsJuly 1, despite the state having to cut serviceas and siphon from its reserve fund to closew a $1.4 billion budger gap since November. This rankled several Republicans on the LegislativeAudit Committee. “If you are on the order of 14 perceng overmarket pay, we are doing the taxpayers and workingb families and small businesses a said Rep.
Frank McNulty, R-Highlands “Small businesses are not giving automatic raisew during thesetough times, and the state of Coloradop can’t expect those who pay taxes and fees to bolsterr this system that apparently is on auto pilot.” Among auditor James Fox’s recommendations were that the state begih comparing actual salaries to determine its pay increasexs and purchase salary surveys done by reputable groupsd rather than spend the time and effort to collect data on its own. Gonzales agreed to compl with each.
Gonzales did caution, that because state benefits are below those offered in many comparable state workers are actually making a total compensation packagre thatis less, rather than more, than their counterparts. “Compensation is more than just he toldthe committee. Gonzales also said that whilr he is willing to purchase salary surveys that can cost somewherebetween $125 and $200 he will have to ask for an increass in operational budget because there are several he may need to get. That statement brought a rebuke from committeee ViceChairman Sen.
Dave Schultheis, R-Colorado “I would hope that with the potential of thisoverspendingb $103 million, we could find a few thousand to get the numbersd we need in surveys,” Schultheis said.