HOUSE BILL NO. 483

INTRODUCED BY G. BECK

A BILL FOR AN ACT ENTITLED: "AN ACT REVISING THE PAY PLAN FOR STATE TEACHERS; PROVIDING PAY INCREASES FOR STATE TEACHERS; AMENDING SECTIONS 2-18-301, 2-18-303, AND 2-18-313, MCA; AND PROVIDING AN EFFECTIVE DATE."

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

Section 1. Section 2-18-301, MCA, is amended to read:

"2-18-301. Purpose and intent of part -- rules. (1) The purpose of this part is to provide the market-based compensation necessary to attract and retain competent and qualified employees in order to perform the services that the state is required to provide to its citizens.

(2) It is the intent of the legislature that compensation plans for state employees, excluding those employees excepted under 2-18-103 or 2-18-104 and excluding employees compensated under 2-18-313 and 2-18-315, be based on an analysis of the labor market as provided by the department in a salary survey. The salary survey must be submitted to the office of budget and program planning as a part of the information required by 17-7-111.

(3)

The department shall administer the pay program established by the legislature on the basis of merit, internal equity, and competitiveness to external labor markets when fiscally able.

(4) The department may promulgate rules not inconsistent with the provisions of this part, collective bargaining statutes, or negotiated contracts to carry out the purposes of this part."

Section 2. Section 2-18-303, MCA, is amended to read:

"2-18-303. Procedures for using pay schedules. (1) The pay schedules provided in 2-18-312 must be implemented as follows:

(a) The pay schedules provided in 2-18-312 indicate the entry salary and market salary for each grade for positions classified under the provisions of part 2 of this chapter.

(b) Each employee newly hired by the state of Montana must be hired at the entry rate, except as provided in subsections (7) and (8).

(c) On the first day of the first complete pay period in fiscal year 1998, each employee is entitled to the amount of the employee's base salary as it was on June 30, 1997.

(d) (i) Effective on the first day of the pay period that includes an employee's anniversary date during the fiscal years ending June 30, 1998, and June 30, 1999, an employee's market ratio must be compared to the target market ratio in the matrix that corresponds to the employee's grade level and completed years of uninterrupted state service. For employees hired on or before September 30, 1994, the anniversary date is October 1.

(ii) The matrix for the target market ratios is as follows:

TARGET MARKET RATIOS

Grade	Years

0	1	2	3	4	5	6	7	8	9	10

4	0 .844	0 .874	0 .904	0 .935	0 .967	0 .999	1 .000	1 .000	1 .000	1 .000	1 .000

5	0 .842	0 .871	0 .900	0 .930	0 .961	0 .992	1 .000	1 .000	1 .000	1 .000	1 .000

6	0 .840	0 .868	0 .896	0 .925	0 .955	0 .985	1 .000	1 .000	1 .000	1 .000	1 .000

7	0 .838	0 .865	0 .892	0 .920	0 .949	0 .978	1 .000	1 .000	1 .000	1 .000	1 .000

8	0 .836	0 .862	0 .889	0 .916	0 .944	0 .972	1 .000	1 .000	1 .000	1 .000	1 .000

9	0 .834	0 .859	0 .885	0 .911	0 .938	0 .965	0 .993	1 .000	1 .000	1 .000	1 .000

10	0 .832	0 .857	0 .882	0 .908	0 .934	0 .961	0 .988	1 .000	1 .000	1 .000	1 .000

11	0 .830	0 .854	0 .878	0 .903	0 .928	0 .954	0 .980	1 .000	1 .000	1 .000	1 .000

12	0 .828	0 .851	0 .875	0 .899	0 .924	0 .949	0 .975	1 .000	1 .000	1 .000	1 .000

13	0 .826	0 .849	0 .872	0 .896	0 .920	0 .945	0 .970	0 .996	1 .000	1 .000	1 .000

14	0 .824	0 .846	0 .869	0 .892	0 .915	0 .939	0 .963	0 .988	1 .000	1 .000	1 .000

15	0 .822	0 .844	0 .866	0 .888	0 .911	0 .934	0 .958	0 .982	1 .000	1 .000	1 .000

16	0 .820	0 .841	0 .863	0 .885	0 .907	0 .930	0 .953	0 .977	1 .000	1 .000	1 .000

17	0 .818	0 .839	0 .860	0 .882	0 .904	0 .926	0 .949	0 .972	0 .996	1 .000	1 .000

18	0 .816	0 .836	0 .857	0 .878	0 .899	0 .921	0 .943	0 .966	0 .989	1 .000	1 .000

19	0 .814	0 .834	0 .854	0 .875	0 .896	0 .917	0 .939	0 .961	0 .984	1 .000	1 .000

20	0 .812	0 .831	0 .851	0 .871	0 .892	0 .913	0 .935	0 .957	0 .979	1 .000	1 .000

21	0 .810	0 .829	0 .849	0 .869	0 .889	0 .910	0 .931	0 .953	0 .975	0 .997	1 .000

22	0 .808	0 .827	0 .846	0 .866	0 .886	0 .906	0 .927	0 .948	0 .970	0 .992	1 .000

23	0 .806	0 .825	0 .844	0 .863	0 .883	0 .903	0 .923	0 .944	0 .965	0 .987	1 .000

24	0 .804	0 .822	0 .841	0 .860	0 .879	0 .899	0 .919	0 .940	0 .961	0 .982	1 .000

25	0 .802	0 .820	0 .838	0 .857	0 .876	0 .895	0 .915	0 .935	0 .956	0 .977	0 .999

(iii) On the first day of the pay period that includes an employee's anniversary date during the fiscal years ending June 30, 1998, and June 30, 1999, the employee's base salary must be increased to the greater of:

(A) the market salary for the employee's grade multiplied by the target ratio that corresponds to the employee's grade level and completed years of uninterrupted state service not to exceed 4%;

(B) if under subsection (1)(d)(iii)(A), progression from one target market ratio to the next exceeds 3%, then the employee's base salary increased by the amount of that progression plus 1%; or

(C) the employee's base salary as it was on the last day of the pay period immediately preceding the pay period that includes the employee's anniversary date, plus 1%.

(e) An employee's base salary may be no less than the entry salary for the employee's assigned grade.

(f) The maximum salary for each grade is determined by subtracting the entry salary from the market salary and adding that amount to the market salary.

(2) The pay schedules provided in 2-18-312 and the provisions of subsection (1) of this section do not apply to those teachers or blue-collar occupations compensated under the pay schedules provided in 2-18-313 and 2-18-315.

(3) The pay schedules provided in 2-18-313 and 2-18-315 must be implemented as follows:

(a) (i) The pay schedules provided for in 2-18-313 indicate the annual compensation for teachers employed under the authority of the department of corrections or the department of public health and human services for fiscal years 2000 and 2001.

(ii) The pay range of each teacher must be determined according to the number of graduate-level credits in the teacher's area of instruction that the teacher has earned in addition to either a bachelor's degree or a master's degree as specified in 2-18-313.

(iii) The base salary of each teacher must be determined according to the appropriate step in the appropriate pay range. Each teacher's step progression must be as provided for in this subsection (3)(a)(iii). On the first day of the first pay period that includes October 1 of each fiscal year, a teacher shall advance one step in the appropriate pay range on the schedule provided in 2-18-313, except that a teacher hired on or after October 1, 1999, shall advance only on the teacher's actual anniversary date.

(b) (i) The pay schedules provided in 2-18-315 indicate the maximum hourly compensation for fiscal years ending June 30, 1998, and June 30, 1999, for employees in apprentice trades and crafts and other blue-collar occupations recognized in the state blue-collar classification plan who are members of units that have collectively bargained separate classification and pay plans.

(ii) The compensation of each employee on the first day of the first pay period in each fiscal year is that amount corresponding to the grade occupied on the last day of the preceding fiscal year.

(4)

Methods of administration not inconsistent with the purpose of this part and necessary to properly implement the pay schedules and adjustments provided in 2-18-312, 2-18-313, 2-18-315, and this section may be provided for in collective bargaining agreements.

(5) The current wage or salary of an employee may not be reduced by the implementation of the pay schedules provided for in 2-18-312, 2-18-313, and 2-18-315.

(6) The department may authorize a separate pay schedule for medical doctors if the rates provided in 2-18-312 are not sufficient to attract and retain fully licensed and qualified physicians at the state institutions.

(7) The department may develop programs that enable the department to mitigate problems associated with difficult recruitment, retention, transfer, or other exceptional circumstances. To the extent that the program applies to employees within a collective bargaining unit, it is a negotiable subject under 39-31-305.

(8) The department shall review the competitiveness of the compensation provided to all occupations under this part. If the department finds that substantial problems exist with recruitment and retention because of inadequate salaries when compared to competing employers, the department may establish criteria allowing an adjustment in pay or classification to mitigate the problems. To the extent that these adjustments apply to employees within a collective bargaining unit, the implementation of these adjustments is a negotiable subject under 39-31-305."

Section 3. Section 2-18-313, MCA, is amended to read:

"2-18-313. Teachers' pay schedules. (1) The pay schedule for teachers for the period that includes October 1, 1999, until the first day of the pay period that includes October 1, 2000, is as follows:

Annual Hours -- 2080	Note: Does Not Include Insurance

Term -- Twelve Months	Matrix Type -- Annual

Education Level

STEP	BA	BA+15	BA+30	BA+45	BA+60/	BA+75/

MA	MA+15

1	24,708	25,449	26,213	26,999	27,809	27,572

2	25,449	26,213	26,999	27,809	28,643	29,503

3	26,213	26,999	27,809	28,643	29,503	30,388

4	26,999	27,809	28,643	29,503	30,388	31,299

5	27,809	28,643	29,503	30,388	31,299	32,238

6	28,643	29,503	30,388	31,299	32,238	33,206

7	29,503	30,388	31,299	32,238	33,206	34,202

8	30,388	31,299	32,238	33,206	34,202	35,228

9	31,299	32,238	33,206	34,202	35,228	36,284

10	32,238	33,206	34,202	35,228	36,284	37,373

11	33,206	34,202	35,228	36,284	37,373	38,494

12	34,202	35,228	36,284	37,373	38,494	39,649

13	35,228	36,284	37,373	38,494	39,649	40,839

(2) Effective on the first day of the pay period that includes October 1, 2000, the pay schedule for teachers is as follows:

Annual Hours -- 2080	Note: Does Not Include Insurance

Term -- Twelve Months	Matrix Type -- Annual

Education Level

STEP	BA	BA+15	BA+30	BA+45	BA+60/	BA+75/

MA	MA+15

1	25,810	26,584	27,382	28,203	29,049	28,802

2	26,584	27,382	28,203	29,049	29,920	30,819

3	27,382	28,203	29,049	29,920	30,819	31,743

4	28,203	29,049	29,920	30,819	31,743	32,695

5	29,049	29,920	30,819	31,743	32,695	33,676

6	29,920	30,819	31,743	32,695	33,676	34,687

7	30,819	31,743	32,695	33,676	34,687	35,727

8	31,743	32,695	33,676	34,687	35,727	36,799

9	32,695	33,676	34,687	35,727	36,799	37,903

10	33,676	34,687	35,727	36,799	37,903	39,040

11	34,687	35,727	36,799	37,903	39,040	40,211

12	35,727	36,799	37,903	39,040	40,211	41,417

13	36,799	37,903	39,040	40,211	41,417	42,660"

NEW SECTION . Section 4. Effective date. [This act] is effective July 1, 1999.

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