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Paying the people who work in governance: Strike the right balance for Minnesota
Improved Compensation Council reforms are needed now.
By Tom Berg, Nick Zerwas, Jim Fox, Robert Meyerson and James Robins
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As DFL and Republican former members of the Compensation Council appointed by the Minnesota Supreme Court and governor, we supported changes enacted in 2023 enhancing the council’s salary-setting role for state constitutional officers and agency commissioners, along with salary recommendations for judges and justices. On a bipartisan basis, we supported limited executive branch salary-setting authority for the council to break the gridlock evident for the past quarter-century.
Throughout the 21st century, executive branch salaries had held level most years — with occasional increases only in three of the last 23 years. The advisory Compensation Council had urged gradual inflation-based increases, but recommendations were ignored in 20 of those years. Not surprisingly, Minnesota lost top departmental leaders to better-paying positions — most often taking public jobs in local communities or higher education. These leaders communicated effectively and ran departments efficiently. Gradually, we’ve seen some high-level effectiveness slip away. Legislative actions taken last year were appropriately aimed at correcting an emerging crisis.
A bipartisan ad-hoc group of multiple-term council members questioned some specific 2023 changes. We wanted a closer look — and cast a wide net by asking key legislators, judicial administrators and judges, staff at the Minnesota Management and Budget (MMB) who answer to the governor, and other interested parties to participate. Answers given were more troubling than we anticipated, especially from the judiciary. As requested by a key legislative chair, we prepared our report thoroughly and quickly, putting together draft legislation by late 2023 with help from capable veteran Legislative Coordinating Commission (LCC) staff. Legislation is now pending in Senate and House committees (SF 3863/HF 3707), but needs a hearing to pass this year.
The proposed changes address two glaring challenges that interfere with Compensation Council duties — the need to thoroughly study salary-setting decisions and the ability to communicate not only with MMB, but with the judiciary too. The bill extends the existing timeline deadline of less than three months for deliberations to beyond one year — aligning with the formal recommendations of the Minnesota Judicial Council and Minnesota District Judges Association (MDJA). The proposed timeline allows for deeper analysis of state hot spots such as recreational cannabis, human services, child nutrition, internet security (MnIT) and the Metropolitan Council. In addition, the Judicial Council made clear its desire to work more closely with the Compensation Council on judges’ salaries by extending preliminary budget planning coordination. If those changes are not made in 2024, proper judiciary budgeting coordination will be delayed by two full years to fiscal year 2030-31 at the earliest.
The 2023 ban on ex parte communications between council members and the judiciary has been criticized by senior legislators we’ve contacted, and the Judicial Council unanimously approved its elimination. Forcing distribution of important information exclusively through the MMB and LCC not only limits dialogue but discourages attorneys who understand judicial operations from joining the council. The ad-hoc group also concluded that the Legislature went too far in giving away its power of the purse to the unelected Compensation Council. We propose limiting council authorizations to two budget cycles. Last year’s changes enable major financial obligations far into the future, potentially shifting budget responsibilities away from elected lawmakers.
Solving other less-pressing problems will allow retired judges and former legislators to serve on the council once again (unless they are paid lobbyists), and will place cost-of-labor (Bureau of Labor Statistics) inflation guidelines in state law.
Our ad-hoc group appreciated the unanimous formal Judicial Council approval of the timeline change and elimination of the communications ban. Yet, the noncontroversial legislation languishes in committee with explanations that last year’s changes are good enough for now and staff is too busy with other priorities. Those who took time to closely study the issue strongly disagree. The bill restores executive, legislative and judicial balance, and delivers more thorough budget deliberations.
Better management of complex state services and budgets can avoid costly mistakes in our ever-changing society. Several good steps forward and a few backward steps were taken last year. Thorough budgeting and proper governing balance should never bow to a “good enough for now” attitude. The Legislature and Gov. Tim Walz need to get these changes done now. Pass the needed changes in 2024.
Tom Berg, Nick Zerwas, Jim Fox, Robert Meyerson and James Robins are former members of Minnesota’s Compensation Council. Berg and Zerwas are former members of the Minnesota House.
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Tom Berg, Nick Zerwas, Jim Fox, Robert Meyerson and James Robins
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