NOTICE WAIVER:  MSP CONTRACT                                                                 S.C.R. 15:

                                                                                                    SUMMARY OF BILL

                                                                                      REPORTED FROM COMMITTEE

Senate Concurrent Resolution 15 (as reported without amendment)

Sponsor:  Senator Mike Nofs

Committee:  Appropriations

CONTENT

Senate Concurrent Resolution 15 would waive the requirement of Article XI, Section 5 of the State Constitution, which provides that increases in rates of compensation authorized by the Civil Service Commission may be effective only at the start of a fiscal year and must be included in the Governor's budget proposal for that year. The resolution would permit increases in rates of compensation for certain members of the Department of State Police as set in the contract settled between the Michigan State Police Troopers Association (MSPTA) and the State and approved by the Civil Service Commission.

FISCAL IMPACT

A new collective bargaining agreement has been established to be effective from October 1, 2014, to October 1, 2017, between the Office of the State Employer and the Michigan State Police Troopers Association. The Constitution states that increases in rates in compensation may be effective only at the start of a fiscal year and it requires the Governor to transmit such increases to the Legislature as part of his or her budget. Since the Civil Service Commission-approved compensation coming out of this bargaining agreement with the MSPTA came too late for the Governor to transmit the increase to the Legislature as part of the FY 2014-15 budget (a routine occurrence with MSPTA contracts over the years), the resolution would waive the requirement and permit the rate increases.

The Department of State Police reports that the new compensation plan—which, as other contracts do, can include such matters as salaries, pension, Medicare, retirement, health, life insurance, long-term disability, shift differential, and overtime—will require an additional $1.0 million GF/GP for FY 2014-15 and $2.0 million GF/GP over the original Governor's budget recommendation for FY 2015-16.

Date Completed:  5-27-15                                                     Fiscal Analyst:  Bruce Baker

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.