Bill Summary – FastDemocracy

LEGISLATIVE SERVICES AGENCY
                OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
                                     200 W. Washington St., Suite 301
                                          Indianapolis, IN 46204
                                              (317) 233-0696
                                                 iga.in.gov
                                FISCAL IMPACT STATEMENT
LS 6371                                                             NOTE PREPARED: Jan 28, 2021
BILL NUMBER: HB 1112                                                BILL AMENDED:
SUBJECT: Marion County Magistrates.
FIRST AUTHOR: Rep. Speedy                                           BILL STATUS: CR Adopted - 1st House
FIRST SPONSOR:
FUNDS AFFECTED: X GENERAL                                           IMPACT: State & Local
                  DEDICATED
                  FEDERAL
Summary of Legislation: This bill allows the Marion County superior courts to appoint 27 full-time
magistrates after December 31, 2021, not more than 14 of whom may be from the same political party.
Effective Date: July 1, 2021.
Explanation of State Expenditures: Summary - This bill allows Marion County superior court to appoint
3 new magistrates. The added cost for each magistrate is estimated to be $181,570 in FY 2023.
Since these new magistrates would be appointed effective January 1, 2022, the total cost to the state General
Fund would be $267,117 in FY 2022 and $544,710 in FY 2023. Costs may be more in the future if the
salaries of judicial officers increase. [Current law allows the Marion County superior courts to appoint 24
full-time magistrates.]
Additional Information - The salaries of circuit and superior court magistrates can be adjusted each year by
one of two methods:
•       The General Assembly can increase the amount specified in statute.
•       If the General Assembly does not increase the salary of judicial officers by a nominal amount, then
under IC 33-38-5-8.1, salaries of judicial officers can be adjusted by the amount that executive staff salaries
in the same salary level are increased and the Chief Justice of the Indiana Supreme Court approves the
increase.
State expenditures associated with these new court officers also depend on the costs of fringe benefits for
state employees. While most of the benefits are based on a percentage of the salaries of the employee, the
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costs of medical insurance for the persons filling these new positions will depend on future decisions of the
executive branch. The extent to which the state would pass along any increase in health insurance costs to
employees is unknown.
The following table presents an estimate of the total compensation (base salary and fringe benefits) of
magistrates for FY 2023. Future salary increases will depend on legislative or administrative actions (see IC
33-38-5-8.1). For this analysis, judicial officers are assumed to receive a 2.5% annual salary increase.
                    Salaries and Benefits for Magistrates, Estimated for FY 2023
                    Salary                                             $131,223
                    Life Insurance                                     $171
                    Indiana Judicial Conference                        $1,000
                    Social Security                                    $10,039
                    Disability Insurance                               $1,745
                    Retirement                                         $23,325
                    Health, Dental, and Vision (blended rate)          $14,068
                    Total Cost Per Judicial Officer:                   $181,570
LSA uses the five-year average of normal costs between FY 2015 and FY 2019 of each active member of
the Judges Retirement Fund less the member’s contribution (roughly 6% of payroll) to calculate the annual
retirement costs of magistrates. Normal cost is defined as the present value of benefits accruing for a
particular plan year.
Explanation of State Revenues:
Explanation of Local Expenditures: Marion County may need to add office space or clerical staff to assist
these new magistrates.
Additional Information - Currently, Marion County has 3 full-time commissioners who function similarly
as magistrates. If the judges of the Marion Superior Courts are authorized to appoint 3 new magistrates, and
they eliminate 3 court commissioners, Marion County could save $424,210. On average, each court
commissioner receives an estimated $141,403 in both salary and benefits. The cost savings will be used to
pay for Marion County’s guardian ad litem services, court interpreters, and psychological evaluations.
Explanation of Local Revenues:
State Agencies Affected: Office of Judicial Administration, Indiana Supreme Court.
Local Agencies Affected: Marion County Superior Court; Marion County.
Information Sources: Hon. Heather Welch, Marion County Superior Courts; Emily VanOsdol, Court
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Administrator, Marion Superior Court; Interim Study Committee on Court and Judiciary; Indiana Supreme
Court; Indiana Public Retirement System website,
https://www.in.gov/inprs/files/2019ActuarialReport_JRS.pdf; Indiana State Budget Agency website, Policy
Instructions, https://www.in.gov/sba/files/Operating%20Budget%20Instructions%20FY22-23.pdf.
Fiscal Analyst: Corrin Harvey, 317-234-9438.
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Statutes affected: 
1. Introduced House Bill (H): 33-33-49-32
2. House Bill (H): 33-33-49-32