FY2020-21 Compensation Request Minnesota District Judges Association FY2020-21 Compensation Request Judiciary Finance and Civil Law Division February 13, 2019

BASIS FOR COMPENSATION REQUEST: Compensation Council (Minn. Stat. § 15A.082) Independent Economist

Compensation Council Creation: “A Compensation Council is created each odd-numbered year to assist the legislature in establishing the compensation of constitutional officers, justices of the supreme court, judges of the court of appeals and district court, and the heads of state and metropolitan agencies included in section 15A.0815.” Minn. Stat. § 15A.082, subd. 1. Criteria: “In making compensation recommendations, the council shall consider the amount of compensation paid in government service and the private sector to persons with similar qualifications, the amount of compensation needed to attract and retain experienced and competent persons, and the ability of the state to pay the recommended compensation.” Minn. Stat. § 15A.082, subd. 4.

Compensation Council (March, 2017) Recommended Compensation Increases July 1, 2017: 3.5% July 1, 2018: 3.5% January 1, 2019: 4.63% January 1, 2020: 4.63% “These increases… will maintain and enhance the ability of the Courts to attract and retain highly qualified judges from all sectors.”

Independent Economist For over 20 years, MDJA has used an Independent Economist to review and analyze data, and recommend judicial compensation increases. Past Economists: Karl Egge, PhD – Chair, Department of Economics, Macalester College Karine Moe, PhD – Chair, Department of Economics, Macalester College Current Economist: Kristine West, PhD — Associate Professor of Economics, St. Catherine University

Dr. West’s August 15, 2018 Report “This report is a follow-up to a 2016 report where we recommended increased of 4.63% for 2017 and 2018, which would have corresponded to 3% real increases when adjusted for expected inflation. The actual increases of 2.5% closely tracked with inflation and thus did not yield real increases. … Thus, we recommend a 5% increase in each year of the next biennium to better compete with outside labor market opportunities.” “As in 2016, we are concerned that the discrepancy between judicial salaries and attorney’s salaries in the private and public sector could dissuade high-quality attorneys from taking on the difficult job of a judge for a substantial pay cut. Our concern leads us to recommend real salary increases.”

By the Numbers 5% Increase: Year 1: $157,179 x 1.05 = $165,038 A 5% increase is a 1.43% increase in the Minnesota Judicial Branch’s operating budget, which itself is approximately 2% of the entire budget for the State of Minnesota.

Public Sector Comparison 2018: Nine county attorneys in Minnesota earned more than district court judges. Carver: $169,208 Dakota: $186,308 Hennepin: $182,024 Olmsted: $170,839 Ramsey: $175,214 St. Louis: $159,307 Scott: $163,000 Stearns: $168,178 Washington: $171,580

MJB Budget FY2018-19 Requested Salary Increases: Staff: 3.5% Judges: 3.5% Salary Increases Received: Staff: 2.5% Judges: 2.5%

MJB Eligible Employee Increases FY18-19 (Employee Compensation Pool Increases) FY2018-19 Increase Percentage: Percent of all employees receiving increase: Court Reporters: 4% 9.5% Above 3%* 26.5% Unrepresented, Law Clerks, Clerical Staff: 3% 53% Less than 3%** 2% * Pay for Performance merit review model; performance review score of 11-15 received more than 3%. ** Unrepresented staff with a performance review score of 10 or less received 0-1%. Represented staff with less than successful performance review received less than 3%. All Minnesota judges received salary increases of 2.5%.

U.S. Chamber Institute for Legal Reform (ILR) The ILR is the United States’ most influential advocate for civil justice reform. In September 2017, Minnesota was ranked #4 in the entire country in the 2017 Lawsuit Climate Study. Measures how reasonable and balanced the state’s tort liability systems are perceived to be by U.S. businesses.

National Center for State Courts Annual, national survey of judicial salaries: RANKING: 2018 2019 CHANGE General Jurisdiction Judges: 24th 25th ↓ ↓ General Jurisdiction Judges (Adj.): 18th 19th Intermediate Appellate Judges: 21st 22nd Supreme Court Justices: 20th ↔

Teresa R. (Tracy) Warner, MDJA President (651) 266-8221 THANK YOU Teresa R. (Tracy) Warner, MDJA President (651) 266-8221