Longevity pay increase.

03LSO-0146.L1

FISCAL NOTE (HB0042)

	FY 2004	FY 2005	FY 2006
NON-ADMINISTRATIVE IMPACT
Anticipated Expenditure Increase:
FEDERAL FUNDS	0	380,000	410,000
GENERAL FUND	0	1,430,000	1,570,000
OTHER	0	540,000	590,000

Source of expenditure increase:

Ten-dollar increase in longevity payments from $30 to $40 per month.

Assumptions:

1. Estimates are based upon current employees’ months of service and expanded out for fiscal years 2005 and 2006.

2. Estimates reflect only the $10 cost difference from $30 to $40 for each longevity.

3. Estimates reflect a 7.5 percent factor for turnover.

4. 20 percent is added for benefits costs.

5. Funding for $40 longevity raises in budget for fiscal year 2004.

Prepared by:   Dean Temte, LSO    Phone:   777-7881

(information provided by Kirsten Fanning, A&I; phone 777-6429)