In July of each year, present law requires county officials' minimum compensation to increase annually based on the average annual salary increase for state employees from the previous fiscal year. However, this increase must not exceed 5% per year. Additionally, the percentage increase for county officials cannot be less than the percentage increase for county officials in the county with the median population of all counties. The commissioner of finance and administration certifies this annual increase on or before May 1 of each year. If the department of economic and community development determines that during the previous fiscal year a county experienced substantial characteristics of economic distress, then this bill authorizes that county to, by resolution of the county legislative body, forgo the increase in compensation described above. "Substantial characteristics of economic distress" includes, but is not limited to, major loss of employment, recent high unemployment rates, traditionally low levels of family incomes, high levels of poverty, and high concentrations of employment in declining industries. This bill provides that the minimum compensation for county officials in a county that chooses not to increase the minimum compensation is increased to the level it would have been if not for the resolution when (i) the department of economic and community development determines that the county is no longer experiencing substantial characteristics of economic distress or (ii) county officials take office following the next county election after the resolution was adopted. This bill requires the department of economic and community development to make the determination of each county's level of economic distress no later than July 1 of each year based upon unemployment, per capita income, and poverty levels of all counties of this state, using statistical data prepared by any agency of the state or federal government.

Statutes affected:
Introduced: 8-24-102(d), 8-24-102