2% pay raises advocated for top officials, judges

The state salary commission voted Monday to recommend pay raises for the governor, judges and legislators, concluding that higher salaries are justified to attract the "best and brightest" to public service.

State executive and judicial branch officials would get raises in July that the last salary commission endorsed, then would receive 2 percent annual increases through July 2018.

Legislators would receive previously scheduled raises in July and January, then 2 percent annual increases through January 2018.

The commission’s recommendations, which were approved unanimously, will automatically take effect unless the Legislature rejects the guidance in its entirety before the session ends in May.

"We feel that was fair to keep the type of people we need to run our government," said Michael Irish, the commission’s chairman and the chief executive officer of Diamond Head Seafood Co., Halm’s Enterprise and Keoki’s Lau Lau Co.

The Abercrombie administration had urged the commission to consider the state’s budget challenges and the continuing negotiations with unions for public workers.

The state had initially floated 2 percent annual raises with unions in private contract talks, for example, and the state’s negotiating position could have been undercut if the commission had come out with significantly higher raises for administration officials.

Voters in 2006 approved a state constitutional amendment that created a salary commission appointed by the governor, the Senate, the House and the Judiciary to review state pay every six years. The rationale was to remove the perception of politics from discussions about compensation, yet the commission’s recommendations have often been politically unpopular because of public cynicism about state government.

Chad Buck, who serves on the salary commission and is owner of the Hawaii Foodservice Alliance, said he believes the pay raises are necessary to attract and retain quality leadership in state government. He said a large part of being able to keep talent in his own business is competitive pay.

"In a nutshell, I get what I pay for," Buck said in an email. "I don’t see a difference between my business hiring and keeping qualified people in leadership positions and the state’s need to do the same. As a state, we are facing significant challenges. Now, more than ever, we need the right people in leadership positions serving the people of Hawaii."

Administration officials, judges and state lawmakers took 5 percent pay cuts in 2009 to help with the state’s budget deficit.

After the previously scheduled raises take effect in July, the governor, lieutenant governor, chief of staff and department directors and deputies would also receive new 2 percent annual raises from July 2014 to July 2018.

The salary commission found that many executive branch officials could easily get higher-paying jobs in the private sector but instead chose to take on high-profile government posts because of a commitment to public service. The commission also noted that the governor, lieutenant governor and attorney general are paid less than the city’s mayor, managing director and prosecuting attorney.

If the raises are allowed to take effect, the governor’s salary would increase to $158,700 from $117,312 in July 2018.

The commission considered the academic training, skill and experience required for the Judiciary, and the lack of opportunity for judges to earn outside income, in urging raises for judges. Like administration officials, after the previously scheduled raises take effect in July, judges would get 2 percent annual raises from July 2014 to July 2018.

Supreme Court Chief Justice Mark Recktenwald’s salary would increase to $236,100 from $156,727 in July 2018.

For state lawmakers the commission determined that while the Legislature is a part-time office, the time required for lawmakers to fulfill their duties and the real and perceived conflicts of interest limit the potential for other employment. Legislators did not get a salary increase from 1993 to 2005, but the most recent pay raises have been controversial because they came as the state’s economy sank.

Lawmakers would receive previously scheduled raises in July and January and 2 percent annual increases from January 2015 to January 2018.

So, for example, the average legislator’s salary would increase to $62,604 from $46,273 in January 2018. The House speaker and Senate president would continue to earn $7,500 more annually than other lawmakers.

To block the pay raises, the Legislature would have to pass a concurrent resolution before the end of the session disapproving of the salary commission’s recommendations. Lawmakers are unable to reject portions of the commission’s report — such as the proposed raises for the governor or lieutenant governor, for example, or their own raises — to reduce the potential for political machinations.

"I don’t have a problem with the recommendations," said House Speaker Joseph Souki (D, Wai­hee-Wai­ehu-Wai­luku).

Senate President Donna Mercado Kim (D, Kalihi Valley-Moana­lua-Halawa) said she would have to discuss the issue with Senate leadership and with majority Demo­crats in private caucus.

Rep. Richard Fale (R, Waia­lua-Kahuku-Wai­ahole) and two other Republicans had asked the salary commission to suspend the previously scheduled raises for legislators in July and January until there is greater growth in the economy. But the commission is prevented by law from blocking those raises.

Fale said he would vote against the new salary recommendations if given the chance. He said a pay raise for lawmakers would be difficult to explain to people in his district who are still struggling financially. "I can’t go, ‘I know things suck for you, but oh well, I’m getting a … pay raise. So have a nice day,’" he said.