State employee longevity pay.

05LSO-0228.L1

                                                         

FISCAL NOTE

 

	FY 2006	FY 2007	FY 2008
NON-ADMINISTRATIVE IMPACT
Anticipated Expenditure Increase:
GENERAL FUND	0	1,477,481	1,611,906
OTHER	0	566,368	617,897
FEDERAL FUNDS	0	418,620	456,707

 

Source of revenue increase:

 

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

 

Assumptions:

 

• All employees included in the count - total 7,856
• The cost for longevity payments will continually change as employees continue to gain more years of service and/or leave state government.
• Estimates reflect the ten dollar ($10.00) increase only. 
• Counted the longevity as if it would be incurred for the entire year since there is no idea/way to count just the months it might occur in.  Example, some employees may begin to get a longevity in March and some in December, but counted all of them for twelve months since it is impossible to differentiate an estimate by the month it may occur in.
• Estimates reflect a 7.5 percent allowance for turnover.
• 20 percent is added for benefit costs.
• Funding for $40 longevity raises in budget for fiscal year 2006.

 

 

 

 

 

 

 

 

 

 

 

Prepared by:   Brian Foster, Dept. of A and I   Phone:   777-6740