2003 RESULTS 2003 Compensation Report for Mid-Atlantic Governments Part 2 - Salary Levels JANUARY 2004 prepared by Eric Jacobson, Sarah McCloskey, and Charles Whitmore Institute for Public Administration College of Human Services, Education & Public Policy University of Delaware www.ipa.udel.edu Background The purpose of this report is to share the results from the second of two sections of the 2003 Governmental Compensation Survey. For nearly 20 years, the Institute for Public Administration (IPA)1 has conducted this salary survey for the State of Delaware and numerous municipal governments. This study identifies trends in salary and compensation practices of government employers in the Mid-Atlantic region. This section of the salary survey (Part 2) presents a detailed analysis of average salary levels for 82 state government positions and 41 local government positions. Detailed descriptions of position titles can be found in the State and Local Position Description Booklets. The other section of the survey, the salary administration section (Part 1), is presented in a separate report. The salary administration section includes questions about general salary adjustments and tactics used to reduce compensation spending. Methodology To conduct the 2003 study, the IPA sent electronic links of this year’s survey via email to twenty state and local governments and the University of Delaware. Respondents received the links on October 1, 2003, and were asked to complete and return the survey by October 24, 2003. A total of eight states and eleven local governments in the Mid-Atlantic region completed the survey. We have included the University of Delaware in the group of local governments for calculations and summaries. For a complete list of the 2003 survey participants see Table 1. Results Results from Part 2 of the compensation survey are divided into three tables, each consisting of an eight-column worksheet. The data reported applies to the base salary of fulltime (30 hours or more per week) employees. Column one in each table is the position title. A 1 The IPA is a research organization within the College of Human Services, Education & Public Policy at the University of Delaware (www.ipa.udel.edu). 2 list of position title descriptions can be found in the State and Local Position Description Booklets. In Table 2, Combined State and Local Averages, the second column, found only in Table 2, is titled Number of Respondents. This number represents the total number of participants that provided any useable information for a particular position. The next column in all three tables, Actual Average Salary, represents the average amount paid for that position among all the reporting respondents. The next two columns, Actual Minimum and Actual Maximum are the average minimum and maximum amounts being paid to employees in that position. Following these columns are Formal Minimum and Formal Maximum, which are based on employers with a formal pay plan. These are the average values for the minimum and maximum salaries that are stated “on the books” in accordance with a formal pay plan. The last two columns are entitled Actual/Formal Minimum and Actual/Formal Maximum. If employers did not report formal minimum and maximum salaries, their actual values are used instead to calculate the averages. This allows us to include a greater number of responses in the calculations of averages. Finally, in the Final State Averages and Final Local Averages tables (Table 3 and Table 4) the bottom number in each cell (under the salary) is the number of responses used to calculate that average. In some cases, as noted in the tables, there was insufficient data to report or there was no data available at all. Discussion After coping for three years with a weak national economy and fiscal crises in state and local governments, the economy appears to be turning around. This recovery could be good news for government employees who suffered pay cuts, layoffs, and tax increases during recent years. According to a recent Wall Street Journal article, “The average white-collar worker or 3 midlevel executive can expect a wage increase of between 3% and 3.6% next year, roughly the same rise as this year.”2 However, despite signs of recovery in the economy, employees may still have to cope with minimal raises and increasing insurance expenses. As spending for health insurance increases and continues to strain state and local governments, employers are shifting a large share of the burden to their employees. A recent New York Times article claims, “State budgets will continue to be stressed by slow job growth and rapidly rising health care costs.” 3 These rising costs may continue to create budget shortfalls, creating pressure for managers to cut compensation spending. Also, with unemployment at a 6% rate, employers have few incentives to raise compensation rates to attract new workers. A useful resource for compensation information is the U.S Department of Labor’s Bureau of Labor Statistics (BLS). The BLS’ National Compensation Survey (NCS) contains, “Comprehensive measures of occupational earnings; compensation costs trends, benefit incidence, and detailed plan provisions.” The most recent versions of survey results can be found on the BLS website. 4 Also located on this website is information about the Employment Cost Index and employer costs for employee compensation. Employers can use this reference to compare their compensation practices with national trends. 2 Opdyke, Jeff. “How Big Will Your Raise Be?” Wall Street Journal. 11/20/03 Broder, John. “Despite Rebound, States’ Budgets are Still Reeling.” New York Times. 1/5/04 4 U.S. Department of Labor’s Bureau of Labor Statistics: www.bls.gov/ncs/home.htm 3 4 Data Tables: Table 1: State Governments: Delaware Maryland Massachusetts New Jersey New York North Carolina Pennsylvania Virginia Local Governments: City of Newark, DE City of Wilmington, DE Kent County, DE New Castle County, DE Sussex County, DE University of Delaware, DE Cecil County, MD Kent County, MD Salisbury, MD Chester County, PA Delaware County, PA Table 2: Combined State and Local Averages Table 3: Final State Averages Table 4: Final Local Averages 5 Institute for Public Administration College of Human Services, Education & Public Policy University of Delaware 180 Graham Hall Newark, DE 19716-7380 phone: 302-831-8971 e-mail: ipa@udel.edu fax: 302-831-3488 www.ipa.udel.edu The Institute for Public Administration (IPA) links the research and resources of the University of Delaware with the management, information, and leadership needs of schools and local, state, and regional governments in the Delaware Valley. IPA provides assistance to agencies and local governments through direct staff assistance and research projects as well as training programs and policy forums. IPA’s wide range of program areas includes civic education, conflict resolution, health-care policy, land-use planning, local, state and international government, school leadership, water resources, and women’s leadership. IPA’s main office is on the University’s Newark campus in 180 Graham Hall. Jerome Lewis is the director of the Institute and can be reached at 302831-8971. An Equal Opportunity/Affirmative Action Employer The University of Delaware is committed to assuring equal opportunity to all persons and does not discriminate on the basis of race, color, gender, religion, ancestry, national origin, sexual orientation, veteran status, age, or disability in its educational programs, activities, admissions, or employment practices as required by Title IX of the Education Amendments of 1972, Title VI of the Civil Rights Act of 1964, the Rehabilitation Act of 1973, the Americans with Disabilities Act, other applicable statutes and University policy. Inquiries concerning these statutes and information regarding campus accessibility should be referred to the Affirmative Action Officer, 305 Hullihen Hall, (302) 831-2835 (voice), (302) 831-4563 (TDD).