b19-197 Final Com Report

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Council of the District of ColumbiaCommittee on Government Operations and the Environment

Committee Report

1350 Pennsylvania Avenue, N.W., Washington, DC 20004

To: Members of the Council of the District of Columbia

From: Mary M. Cheh, ChairpersonCommittee on Government Operations and the Environment

Date: July 11, 2011

Subject: Bill 19-197, the “Executive Service Compensation Amendment Act of 2011”

The Committee on Government Operations and the Environment, to which Bill19-197, the “Executive Service Compensation Amendment Act of 2011,” was referred,reports favorably on the legislation and recommends its adoption by the Council of theDistrict of Columbia.

CONTENTS

Statement of Purpose and Effect _______________________________________Page 2

Legislative History __________________________________________________ Page 2

Background and Committee Reasoning __________________________________Page 2

Section-by-Section Analysis _________________________________________ 6

Summary of Public Hearing __________________________________________ Page 16

Fiscal Impact ______________________________________________________Page 17

Analysis of Impact on Existing Law ____________________________________Page 17

Committee Action __________________________________________________Page 18

List of Attachments ________________________________________________ Page 18



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STATEMENT OF PURPOSE AND EFFECT

The purpose of B19-197, the “Executive Service Compensation Amendment Actof 2011,” is to amend the District of Columbia Government Comprehensive MeritPersonnel Act of 1978 and the District of Columbia Police and Firemen’s Salary Act of 1958 to approve the proposed compensation for the Chief of the Metropolitan PoliceDepartment, the Chief of the Fire and Emergency Medical Services Department, theChancellor of the District of Columbia Public Schools, and the Chief Medical Examiner;to prevent officeholders in these positions from receiving additional financial incentivepay, including longevity and bonus pay; to ensure that salaries for future officeholders inthese positions are not set by virtue of what the current officeholders receive; and toensure that such future officeholders in these positions will be paid within the limits of the DX Schedule.

LEGISLATIVE HISTORY

March 31, 2011 Introduction of B19-197 by Chairman Brown at the request of theMayor

April 5, 2011 Referral of B19-197 to the Committee on Government Operationsand the Environment

April 8, 2011 Notice of Intent to Act on B19-197 is published in the District of

Columbia Register

May 13, 2011 Notice of Public Hearing on B19-197 is published in the District of

Columbia Register

May 27, 2011 Public Hearing on B19-197 held by the Committee on GovernmentOperations and the Environment

July 11, 2011 Consideration and vote on B19-197 by the Committee onGovernment Operations and the Environment

BACKGROUND AND COMMITTEE REASONING

Bill 19-197 as introduced would amend the D.C. Government Comprehensive

Merit Personnel Act of 1978 to increase the number of pay levels for the ExecutiveSchedule (DX Schedule) for subordinate agency head positions from 5 to 7, and approvea proposed compensation system change regarding the salaries of the Chief of Police, theChief of Fire and Emergency Medical Services, the Chief Medical Examiner, and theChancellor of District of Columbia Public Schools (DCPS).



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I. Bill 19-197 As Introduced

A. Compensation Tiers

Currently, the District has five DX Schedule pay levels, with the highest possible

annual rate of pay for an E5 employee of $179,096. The bill as introduced proposes twoadditional tiers which would increase the annual rate of pay options for agency heads andother Executive service employees to a maximum of $225,000 for a proposed E6 and$279,000 for a proposed E7. The bill proposes that the Council have 45 days to review allsalaries proposed under the additional pay grades, notwithstanding the existing salariesfor the Chief of Police, the Chief of Fire and Emergency Medical Services, the Chief Medical Examiner, and the Chancellor of DCPS Schools. If the Council does not approveor disapprove the salary, the salary would be deemed disapproved.

By way of contrast, the federal government also has five Executive pay levels.The maximum amount provided in the highest level, E1, such as for Cabinet officials, is

$199,700.

The federal government’s 5-tier Executive Schedule is as follows:

PAY LEVEL MAXIMUM Level 1 $199,700

Level 2 $179,700

Level 3 $165,300

Level 4 $155,500

Level 5 $145,700

The proposed revised D.C. DX Schedule is as follows:

PAY LEVEL MINIMUM MID-LEVEL MAXIMUME1 $85,284 $106,605 $127,926

E2 $92,746 $115,907 $139,056

E3 $100,848 $125,964 $151,081

E4 $109,590 $136,859 $164,129

E5 $118,651 $148,874 $179,096

E6 $148,000 $186,500 $225,000

E7 $186,000 $220,000 $279,000

The Executive, through the Department of Human Resources (DCHR), notes thatthe Council passed temporary legislation, which expired in 2008, that authorized a 7-tiercompensation structure for subordinate agency head positions in the same amounts asthose proposed by Bill 19-197.



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B. Existing Salaries of Top District Officials

Bill 19-197 as introduced also proposes that the Council approve the existing ratesof compensation for the Chief of Police, the Fire Chief, the Chief Medical Examiner, andthe DCPS Chancellor.

Currently, the Chief of Police earns an annual base salary of $230,743, althoughthe DC Department of Human Resources (DCHR) reports that she receives $253,817 intotal compensation given longevity pay for her 20 years of police service, multiplepercentage increases as a result of union collective bargaining with the MetropolitanPolice Department (MPD), and a 5% Base Retention Differential.

The Fire Chief currently receives an annual salary of $179,096, the statutorymaximum, but the bill would set this salary at $187,302. This was the salary received bythe Fire Chief’s predecessor at the time he left the position, as well as the current Chief’sinitial base pay upon taking the position.

The Chief Medical Examiner (CME) has served the District since 2004. Herinitial annual salary was $152,254, but the CME has received an annual salary of $185,000 since 2007.

The DCPS Chancellor’s predecessor was earning an annual salary of $275,000when she left, which is the salary amount the Council is asked to approve for the newDCPS Chancellor.

II. Comparative Salary Analysis

A. Salary Information Provided by the D.C. Department of HumanResources

Prior to the May 27, 2011 hearing on Bill 19-197, the Committee requested thefollowing information from DCHR with respect to the proposals in the bill. ShawnStokes, Acting Director of DCHR, provided answers to the following four questions:

• How do the salaries for the four identified positions compare to the salaries of persons who filled those positions previously?

• How do the salaries for the four identified positions compare to their counterpartsin neighboring/similar jurisdictions?

• How were the salary levels for E6 and E7 determined?

• Does the federal government or neighboring/similar jurisdictions have pay gradesthat are this high?

The Committee also received responses from DCHR following the hearing on Bill19-197, requested by Councilmembers Cheh and Mendelson, who noted during thehearing the paucity of justification provided by the Executive for the approval of theexisting salaries of the Chiefs and Chancellor.



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1. Comparison with Previous Office Holders

The previous Chief of Police’s final base salary was $175,000. Cathy Lanier, atthe time of her appointment as the new Chief of Police, had an initial base salary of $175,000. During her time as Chief, Chief Lanier has become eligible and received

tenure pay based on her 20 years of services, which results in a base salary of $230,743,and a total salary of $253,817. The responses note that over time, the Chief’s salary hasincreased as a result of a 5%-10% longevity award, one 5% and two 3% increases as aresult of labor union negotiations, and a 5% Base Retention Differential, from the initial$175,000 annually to the current amount of $253,818 in total compensation.

Dennis Rubin, the previous Chief of Fire and Emergency Medical Services, had a final base salary of $187,302 when he left office in December 2010. At the time of hisappointment in January 2011, Chief Kenneth Ellerbe had an initial base salary of $187,302, which was subsequently reduced to $179,096, as the temporary legislationauthorizing the additional compensation tiers had expired by this time. This was an

increase of $37,000 annually over his previous compensation as Deputy Fire Chief for theDistrict.

The previous Chancellor of Schools, Michelle Rhee, had a final base salary of $275,000. The new Chancellor, Kaya Henderson, was provided an initial base salary of $275,000, as set by the employment agreement executed with former Mayor AdrianFenty on November 1, 2010.

The previous Chief Medical Examiner (CME) (pre-2004) had a final base salary of $165,000. The current Chief Medical Examiner, Dr. Marie Pierre-Louis, wasappointed with an initial base salary of $152,254. Her present salary is $185,000, and hasbeen since July 8, 2007. Even though the District passed legislation in 2000 requiring thatany CME appointed after the effective date must be certified in forensic pathology by theAmerican Board of Pathology or be eligible for such certification, unless waived by theCouncil, the Council has passed acts waiving the certification requirement for Dr. Pierre-Louis. The statute notes that “The certification requirement of paragraph (2) of thissubsection may be waived by the Mayor for the CME appointed to fill the term beginningon May 1, 2007, and ending on April 30, 2013.” PR17-480 confirmed Dr. Pierre-Louisfor the 6-year term ending April 30, 2013, on October 2, 2007. During this time, hersalary increased to its present level of $185,000 annually. Also during that time, theexpanded DX Schedule was in place such that this salary was not above the statutory cap.

2. Comparison with Surrounding/Similar Jurisdictions

a. Chief of Police

DCHR stated that this position compensates at 24% over the regional average($185,312), and 13% over the national average ($203,465). It further notes that Chief Lanier is the highest paid Chief regionally, and the fourth highest paid nationally, behindLos Angeles, CA ($300,442); Chicago, IL ($260,004); and Philadelphia, PA ($255,000).



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It should also be noted the population served as well as the employees in thepolice departments of these comparative jurisdictions, as reported by DCHR:

JURISDICTION POPULATION BASE

SALARY

EMPLOYEES

IN DEPT.

LONGEVITY

PAYLos Angeles, CA 8,175,133 $205,180 12,750 No

Chicago, IL 2,695,598 $260,004 15,250 No

Philadelphia, PA 1,526,006 $255,000 7,400 No

Boston, MA 617,594 $164,000 2,500 No

Fairfax County,VA

1,081,726 $175,567 1,756 No

MontgomeryCounty, MD

971,777 $190,000 1,165 No

Baltimore City,MD

641,000 $158,100 4,000 No

Prince GeorgesCounty, MD

863,420 $162,967 1,700 No

RegionalAverage

972,308 $185,312 1,540

NationalAverage

2,518,575 $203,465 10,929

District of Columbia

601,723 $230,743 4,350 Yes

b. Fire Chief

DCHR stated that the regional average for Fire Chiefs is $165,454, and thenational average is $169,849, and noted that Chief Ellerbe’s compensation isapproximately 13% above the regional average and 10% over the national average.Additionally, the “position pays 16% over the average of the jurisdictions whosepopulations and department sizes are similar to the District…and 6% over the average of jurisdictions whose populations are more than the District’s population.” DCHRadditionally provided the following information:

JURISDICTION POPULATION BASESALARY

EMPLOYEESIN DEPT.

CALLSRECEIVED

New York City,

NY

8,175,133 $205,180 14,000 1,954,316

Fairfax County,VA

1,081,726 $175,567 1,750 91,600


971,777 $190,000 1,000 100,000

Baltimore City,MD

641,000 $158,100 1,800 235,000

Regional 611,534 $165,454 783 104,733



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AverageNationalAverage

2,275,947 $169,849 4,170 637,478


601,723 $187,302 1,804 162,440

c. Schools Chancellor

DCHR stated that the Chancellor’s base salary is 110% of the local average of $249,881, and is in the 90

thpercentile of school systems with an enrollment of 25,000 or

more students. District of Columbia Public Schools (DCPS) ranks fourth nationally interms of compensation for this position. DCHR additionally provided the followinginformation:


STUDENTSENROLLED

PENSIONPLAN

Philadelphia, PA 1,526,000 $338,000 154,000 YesLos Angeles, CA 3,792,621 $330,000 694,288 Yes

Miami Dade, FL 2,496,435 $325,000 345,000 Yes

Baltimore City,MD

641,000 $260,000 82,866 Yes


971,777 $239,754 144,064 Yes

Fairfax County,VA

1,081,726 $237,000 175,296 Yes

RegionalAverage

972,308 $242,251 148,787

NationalAverage

2,849,198 $277,838 406,022


601,723 $275,000 45,000 Yes

d. Chief Medical Examiner

DCHR compared the Chief Medical Examiner against neighboring state jurisdictions (Virginia and Maryland), reporting the pay for Virginia as $200,000, andMaryland as $223,317. DCHR further stated that the District’s CME is “compensatedwell below the average of its national counterparts … 21% lower than the city average

nationwide.” The response further notes that the “position is very specialized andtraditionally requires that the incumbent be certified by the American Board of Pathology.”

Indeed, D.C. Code § 5-1402(c)(2) provides that “the CME, the Deputy CME, andany medical examiners appointed after October 19, 2000, shall be certified in forensicpathology by the American Board of Pathology or be eligible for such certification.”However, as noted previously, there is an exception in (c)(3) which states that “The



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certification requirement of paragraph (2) of this subsection may be waived by the Mayorfor the CME appointed to fill the term beginning on May 1, 2007, and ending on April30, 2013.” Dr. Pierre-Louis received her last raise, to her present salary of $185,000, onJuly 8, 2007, and is the CME appointed to fill the May 2007-April 2013 term. D.C. Code§ 5-1402(e) states that CME’s shall only be appointed for a term of 6 years.

Each of the comparative jurisdictions provided by DCHR also have a certificationrequirement for the CME with the American Board of Pathology, and presumably, eachincumbent meets that criteria. As such, the salaries provided to those CMEs likely reflectthe additional certification. DCHR provided the following:


CERTIFICATIONREQUIREMENT

PENSIONPLAN

Maryland 5,773,552 $223,317 American Board of Pathology

Yes

Virginia 8,001,024 $200,000 American Board of Pathology Yes

Philadelphia, PA 1,526,006 $225,916 American Board of Pathology

Yes

New York City,NY

8,175,133 $203,501 American Board of Pathology

Yes

Los Angeles, CA 3,792,621 $276,912 American Board of Pathology

Yes

Chicago, IL 2,695,598 $235,250 American Board of Pathology

Yes

City Average 4,047,340 $235,394

State Average 6,887,288 $211,658District of Columbia

601,723 $185,000 American Board of Pathology oreligible, except asnoted in D.C. Code§ 5-1402(e)

Yes

3. How the Additional Tiers Were Determined

The Council passed emergency and temporary legislation in 2007 to increase theExecutive pay schedule from 5 to 7 levels. DCHR noted that virtually identical

compensation amounts were used in the 2007 legislation. DCHR opined that the expiredbills served as the basis for the new scheme.

Although the Committee recognizes that under the proposed additional tiers,Council approval would be required for any appointments paid within the E6 or E7 level,the Committee also recognizes that having approximately $100,000 in additional annualcompensation available to the Executive may not be necessary or reasonable. As notedabove, the federal executive compensation scale tops out at $199,700, for E1, or Cabinet-



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level positions. It is hard for the Committee to justify that any District employee is facinga more difficult employment role than federal Cabinet officials.

At the hearing, DCHR Acting Director Shawn Stokes argued that the Districtneeded to pay more than surrounding jurisdictions due to differences in pensions or other

benefits. Councilmember Mendelson objected to this statement and countered that, in thecase of the Chief of Police, for example, a pension on her current salary would equal$184,000 annually. He further noted that the Chief of Police and Chief Medical Examinerwere employed with the District for years before their current appointments andsubsequent salaries. He questioned Ms. Stokes regarding why she would argue that theDistrict needs to be able to offer higher salaries to attract talent, when in fact the Districtwas incubating its talent and hiring from within. Ms. Stokes’ statement was more general,in that the District must be able to recruit top talent by offering significant financialbenefits to potential hires. However, it is still not clear that the District’s existing salarycap of $179,096 is a detractor for the District with respect to hiring, especially whencompared against the federal cap of $199,700.

4. Federal Compensation Schedule

DCHR provided the federal government Executive Schedule as noted above.DCHR also provided additional comparative amounts for neighboring jurisdiction asnoted above.

B. Committee Review of Comparable Salary Information

1. Occupational Outlook Handbook

The Committee reviewed alternate sources of information to conduct acomparative compensation analysis of the proposed salaries. One source, the U.S. Bureauof Labor Statistics (BLS), publishes the Occupational Outlook Handbook (OOH) eachyear that provides information about individual careers. This information includes thenature of the work, training and qualifications, job outlook, and earnings.

Figures provided in the OOH for each type of position at issue were all lower thanthose provided by DCHR. The highest salaries for Chiefs of Police was reported as$114,000 annually; for Fire Chiefs, $105,000 annually; for Schools Chancellors,$159,000 annually; and the Chief Medical Officers, for which OOH did not have aspecific category, a range for medical professionals from $186,000-$340,000 annually.

2. News and Other Informational Sources

In a review of other informational sources, additional salary ranges are expressed,however these sources also provided figures lower than those provided by DCHR. Beloware highlights of those findings.



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a. Chief of Police and Fire Chief

For the Chief of Police, compensation is contingent on location, years of service,and education/training. An article on the subject provided that in Georgia, with a relatively reasonable cost of living, a Chief of Police would make $44,771-$90,314/year.1

A 2009 survey of salaries of Municipal Officials by the International City/CountyManagement Association compared salary information of various high-ranking officialsusing several categories, including population size, geographic region, geographicdivision, form of government, and metro status.

The article contrasts this with California, with a high cost of living, noting salariesaverage $97,000-$166,250. The article notes the national average in 2010 for thisposition is $47,546-$96,835, but for persons with 20 years of experience, the average is$59,600-$108,970/year.

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• Nearly a 3% increase in salaries from 2008 to 2009;

For fire chiefs and chiefs of police, thesurvey noted:

• Average salaries for the Chiefs in jurisdictions of 500,000-1,000,000 people of approximately $150,000;

• Average salaries for the Chiefs in the Northeastern region of the U.S. of approximately $91,000 for the Chief of Police, and $81,000 for the Fire Chief;

• Third Quartile average salaries by type of government (Mayor-Council) for theChiefs of approximately $86,000; and

• Third Quartile average salaries for the Chiefs by type of government (Mayor-Council) for jurisdictions of 500,000-1,000,000 people of approximately$161,000.

PayScale.com, launched in 2002, provides global compensation data.3 It claims to

have the world's largest database of individual employee compensation profiles, whichprovides custom employee attributes and specific job titles for every industry. TheCommittee notes that are obvious differences between the compensation amountsreported by PayScale, the OOH, news reports, and information provided by DCHR.However, these figures can serve as a guide and provide context. Below are samples of the compensation profiles provided for Chiefs of Police4 and Fire Chiefs5

JURIS-DICTION

:

Chiefs of Police

SALARY YEARS OFEXPERIENCE

SALARY INDUSTRY SALARY

Texas $45,423-

$107,860

1-4 $32,902-

$70,883

Law

Enforcement

$47,497-

$100,420Illinois $50,026-

$119,4775-9 $35,084-

$64,854LocalGovernment

$43,629-$94,687

1 Page, Kara, The Average Salary of a Chief of Police, accessed from eHow.com on May 10, 2011.2 Waters, Rollie O., and Powell, Joyce, Salaries of Municipal Officials, 2009, Section C1.3 http://www.payscale.com4 http://www.payscale.com/research/US/Job=Police_Chief/Salary/by_Years_Experience5 http://www.payscale.com/research/US/Job=Fire_Chief/Salary/by_Years_Experience



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Georgia $44,594-$92,125

10-19 $44,219-$75,390

College/ University

$60,984-$93,921

Massachusetts $72,348-$128,217

20+ $58,569-$108,703

$

Pennsylvania $48,500-

$78,131

$ $

Ohio $35,608-$70,462

$ $

Florida $72,927-$114,337

$ $

Fire ChiefsJURISDICTION SALARY YEARS OF

EXPERIENCESALARY INDUSTRY SALARY

Texas $57,884-$117,916

1-4 $39,360-$55,979

FireDepartment

$50,490-$88,660

California $50,421-$122,084

5-9 $52,402-$79,842

LocalGovernment

$55,897-$90,050

Georgia $50,500-$85,368

10-19 $49,896-$83,106

PublicSafety

$70,337-$91,693

Illinois $55,695-$127,965

20+ $56,574-$98,291

PublicServices

$75,417-$96,907

Colorado $56,520-$106,762

$ EmergencyMedicalServices

$53,000-$128,838

Michigan $50,868-$81,440

$ $

Arizona $51,204-$84,000

$ $

b. Chief Medical Examiner

For the Chief Medical Examiner salaries vary widely, depending on the size of the jurisdiction, the responsibilities involved, and the years of experience of the CME. Onesource stated that 4 years of experience could yield $45,000/year, but compared that with20 years of experience, which could yield $80,000-$200,000. Another source statedapproximately the same range, noting the effect of location and experience, as $75,000-$200,000/year. An April 2011 article about the appointment of a new Chief Medical

Examiner in Cuyahoga County, Ohio, stated that the new hire, who previously ran theRhode Island Office of the Medical Examiner, would be paid $225,000.

A 2001 survey by the National Association of Medical Examiners of salariedState Medical Examiners reported salary information for 11 states (Alabama, Arkansas,Kentucky, Maine, New Hampshire, Oklahoma, Oregon, Rhode Island, Utah, Vermont,and Virginia). The figures reported in this survey ranged from $97,250-$180,287. The



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survey reported that the mean actual income for Chief State Medical Examiners (in 2001)was $149,752.

PayScale.com reported samples of the compensation profiles for ForensicPathologists (it had no listing for Chief Medical Examiner)6

• For the three jurisdictions provided, salaried ranged from $112,000 (in NewYork) to $185,000 (in California);

.

• For years of experience, 1-4 years averaged $43,000-$105,000; 5-9 yearsaveraged $100,000-$168,000; 10-19 years averaged $150,000-$205,000; and for20+ years, averaged $168,000-$245,000; and

• For types of industry, Government reported an average of $117,500-$222,000;Hospitals reported as average of $45,000-$115,000; and Law Enforcementreported as average of $58,000-$210,000.

c. School Superintendents

PayScale.com reports samples of the compensation profiles for SchoolSuperintendents as follows7

• By jurisdiction, ranging from $76,000 (Michigan) to $177,000 (Texas);

:

• By years of experience, 1-4 years averaged $88,500-$138,000; while more than 5years averaged $90,500-$151,000; and

• By number of students enrolled, which did not provide student populationcommensurate with the District. However, for school districts with up to 20,000students (DCPS’ student population is approximately 45,000), the site reported anaverage of $131,000-$192,000.

III. Salary Analysis

A. Chief Medical Examiner

Of the four positions which are the subject of the legislation, the Chief MedicalExaminer is the only position whose compensation is in many cases lower than hercounterparts. One reason for her lower comparable salary may be, as noted above, thelack of certification by the American Board of Pathology. The CME’s in Virginia andMaryland earn annually $200,000 and $223,317 respectively, but as those states requiresa certification, presumably the higher rate of pay takes such certification intoconsideration.

However, the Committee notes that medical professionals are traditionallycompensated at rates that surpass the District’s DX Schedule. As the Committee does notseek to prevent the District from attracting high level medical talent by virtue of mandating lower compensation, the Committee suggests that the Executive considerestablishing a separate compensation schedule strictly for medical professionals. This

6 http://www.payscale.com/research/US/Job=Forensic__Pathologist/Salary/by_Years_Experience7 http://www.payscale.com/research/US/Job=School_Superintendent/Salary/by_Years_Experience



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schedule would take into account the types of medical work completed by Districtgovernment employees, the type of training for the specialty practiced, the years of experience the employee has in the field, and other relevant metrics. In this way, theCommittee would be receptive to revisiting the CME’s salary as appropriate to moreeffectively match compensation for the position in surrounding jurisdictions.

B. Fire Chief

The salary for the Fire Chief is higher than most comparable jurisdictions, but isnot beyond reason. Local jurisdictions, including Baltimore City, MD, MontgomeryCounty, MD, and Fairfax County, VA, compensate this position annually at $158,100,$190,000, and $175,555 respectively. DCHR notes that due to the District’s uniquelocality and the “complexity of operations,” including “fire suppression and emergencymedical protection for presidential motorcades and helicopter landings…[and] thetraining and development of more than 2,000 employees and the oversight of fire and lifesafety inspection, education, and intervention programs” affecting 10,000 residents a

year, that the proposed salary is warranted. The Committee recommends that the salary asproposed by the bill be approved.

C. Chief of Police

The annual salary for the Chief of Police of $253,817 (with a base salary of $230,743), is higher than all but three jurisdictions reported by the District Department of Human Resource or found via other sources. Local jurisdictions, including Baltimore,Montgomery County, and Fairfax County, compensate this position annually at $193,800,$216,603, and $176,366 respectively. DCHR reports the Chief is the fourth highest paidChief of Police in the country.

The Executive’s response states that the Chief’s current salary is “competitive andcommensurate with the experience” of Chief Lanier. The Committee recognizes the hardwork and dedication of the Chief, and further notes that, in comparison to other jurisdictions, the Chief is very well compensated and receives a highly competitiveannual salary.

The Committee recommends that the Chief’s current total salary of $253,817should be considered the total compensation the Chief is eligible to receive, with noprovision for longevity pay, performance bonuses, annual increases received by otherMPD employees, or additional benefits and financial incentives. As noted, this totalcompensation is less than only three Chiefs of Police in the nation, and as the Districtmust safeguard its financial solvency, the Committee seeks to avoid an uncheckedupward salary trajectory for this or other positions.

D. Schools Chancellor

The salary for the Schools Chancellor is higher than salaries for similar servicesin other jurisdictions. The incumbent’s initial annual salary of $275,000 was the outgoing



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salary of her predecessor. DCHR reports that this compensation is 110% of the localaverage of $249,881, and is in the 90 th percentile of school systems with an enrollment of 25,000 or more students. Data provided by DCHR for school superintendents around thecountry reveal that the Chancellor’s current salary is tens of thousands of dollars higherthan what similar employees earn annually, and this does not even take into account the

small number of students, comparatively speaking, for which the DCPS Chancellor isresponsible.

Nevertheless, DCHR argues that DCPS is a struggling school system, and thusany Chancellor will have a difficult job ahead to improve the system’s performance. TheCommittee recognizes that DCPS is still not as strong a school system as the Districtneeds or deserves. Accordingly, the Committee recommends that the existing salary of $275,000 be approved with the stipulation that the Chancellor may receive no morecompensation beyond that figure.

IV. Committee Analysis and Recommendations

A. District of Columbia Economic Situation

The Committee does not support the expansion of the DX Schedule to includetwo additional compensation tiers. The Committee notes that this request for salaryschedule increases and approval of the salaries above the District’s statutory maximumcomes at a time of otherwise fiscal constraint. In the last few budget cycles, the Districthas employed several financial measures to mitigate the effects of the 2008 recession.The recession caused spending pressures of millions of dollars across the Districtgovernment, which forced unpleasant decisions including the elimination of a significantnumber of occupied positions, requiring remaining District employees to accept aconstructive reduction in salary due to furlough days, and the loss or reduction of programs and services, and increase in fees, for District residents.

Even in times of strong financial health, the Council should be cautious inapproving additional tiers of compensation. The Council should also seriously evaluatethe approval of salaries that are beyond the District’s statutory maximum. However, inleaner times, it is particularly important that the Council consider how each District dollaris spent, especially those on compensation.

The Committee does not believe that, given the current economic climate, it isappropriate to authorize the higher compensation levels as proposed in the bill. The levelsrequested by the Executive go well beyond what federal employees are able to earn, andit is unclear why District officials should be compensated at upwards of $279,000annually. The Committee does not believe that the existing statutory maximum of $179,096 is a disincentive for any potential employees of the District, nor does theCommittee believe that the Executive needs the authority, even with a requirement forCouncil approval, to offer salaries of up to $100,000 above the existing statutorymaximum, under the guise of needing to attract the best talent to the District, as



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suggested by DCHR. The Committee believes that not approving the additionalcompensation tiers will serve as a check on such an upward compensation trajectory.

However, the Committee recommends approval of the salaries of the fourpositions at issue in the bill—the Chief of Police at $253,817 annually, the Fire Chief at

$187,302 annually, the Chief Medical Examiner at $185,000 annually, and the DCPSChancellor at $275,000 annually. The Committee nevertheless is mindful of the publicperception such salaries may engender, and, as noted above, recommends that the salaryas provided for the Chief of Police remain the total amount of compensation the Chief iseligible to receive. Similarly, the Committee recommends that the DCPS SchoolsChancellor be eligible to receive no more compensation than the $275,000 annually asprovided. The Fire Chief will be appropriately compensated for his position at $187,302annually. The Committee does note, with respect to the Chief Medical Examiner, thesuggestion that the Executive consider establishing a compensation schedule strictly formedical professionals that may more closely track the compensation such professionalsordinarily receive.

B. Committee Print

The Committee notes that the Committee Print provides for the repeal of theexisting Code language which provides longevity pay to the Chief of Police and the FireChief. The Print places limitations on each of these current officeholders from receivingany additional financial incentives, such as bonus or retention pay, on top of the salariesas approved by this bill. The Print also stipulates that the salaries are not to be used as abasis for determining the rate of compensation for such future office holders in thesepositions, and requires that each future officeholder be compensated in accordance withthe existing DX Schedule. Although the Committee is approving the existing salaries forthese positions, which are all beyond the statutory maximum, the Committee seeks toensure that these officeholders cannot continue on an upwards salary trajectory throughbonuses and other financial incentives. As discussed throughout this report, theCommittee believes the compensation levels already provided these officeholders aremore than fair when compared against similarly situated employees in other jurisdictions.

C. Conclusion

The Committee recommends disapproval of the two additional compensation tiersas proposed in the bill. The Committee does not believe that the existing statutorymaximum of $179,096 is a disincentive for any potential employees of the District, nordoes the Committee believe that the Executive needs the authority, even with arequirement for Council approval, to offer salaries of up to $100,000 above the existingstatutory maximum, under the guise of needing to attract the best talent to the District.

The Committee recommends approval of the portion of the bill as introduced withrespect to approving the existing salaries for the Chief of Police, the Fire Chief, the Chief Medical Examiner, and the DCPS Chancellor, with the stipulations on increases as notedabove.



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SECTION-BY-SECTION ANALYSIS

Section 1 provides the long and short title of Bill 19-197.

Section 2 provides that the Mayor shall designate the appropriate salary for eachsubordinate agency head position, but notwithstanding that provision provides that theCouncil approves the existing salaries for the Chiefs of Police, Fire, and MedicalExaminers ($253,817, $187,302, and $185,000 respectively), and the Chancellor of Schools ($275,000). These approved levels of compensation shall not be increased in anyway, by any form of financial incentive. The approved levels of compensation shall notbe used as a basis for determining the salary of an officeholder in these four positionshired after the effective date of the Act, and each position shall be paid in accordancewith the DX Schedule

Section 3 deletes existing language in the Code that provides for longevity pay forthe Chief of Police and the Fire Chief.

Section 4 sets forth the fiscal impact statement.

Section 5 states the effective date of the legislation.

SUMMARY OF PUBLIC HEARING

The Committee on Government Operations and the Environment held a publichearing on Bill 19-197 on Friday, May 27, 2011. Councilmember Mary M. Cheh,Chairperson of the Committee, called the hearing to order at 11:40 a.m. in Room 412 of the John A. Wilson Building. Chairperson Cheh offered her opening remarks explaining

that B19-197 would amend the DC Government Comprehensive Merit Personnel Act of 1978 to increase the number of Executive Schedule pay levels from 5 to 7, and approvethe existing salaries for the Chief of Police, the Fire Chief, the Chief Medical Examiner,and the DCPS Schools Chancellor. Council Chairman Kwame R. Brown, Chair of theCommittee of the Whole, and Councilmember Phil Mendelson, Chair of the Committeeon the Judiciary, also offered remarks. With that, she opened the floor to witnesses. Thefollowing witnesses testified on B19-197 before the Committee:

Kris Baumann, Fraternal Order of Police Labor Committee, testified in oppositionto Bill 19-197, and expressed two main concerns regarding procedure for holding thehearing and the “superfluous” nature of the bill. Mr. Baumann objected to having a

hearing on the bill on the Friday before Memorial Day, tucked in between two cabinet-level confirmation hearings. He also noted that the current Administration has alreadybeen shown to have issues with pay, and yet through the bill is seeking to increaseExecutive compensation. He stated that the Council should not aid an Administrationcurrently under examination for its compensation levels and that the Administrationought to show it can handle important issues.



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Al Billick, Public Witness, testified regarding his confusion about the bill’spresence on the agenda, as there are expired contracts that are not receiving theappropriate attention from the Executive. He noted efforts to reduce benefits in violationof collective bargaining agreements, furloughs for government workers, and chargingemployees more for their health care costs.

Shawn Stokes, Acting Director, Department of Human Resources, testified insupport of the bill, noting that the increased E6 and E7 pay levels are necessary to attractand retain talented employees. She also noted that with respect to the bill’s provisions toapprove existing salaries for the Chief of Police, Fire Chief, Chief Medical Examiner, andthe DCPS Chancellor, each of these positions “provide critical services that impact thehealth, safety, and welfare of the District’s residents.” Under questioning fromCouncilmembers Cheh and Mendelson, Ms. Stokes stated that while the salaries of thefour positions at issue were set before her arrival, she believes them to be fair.Councilmember Cheh told Ms. Stokes she had not proven her case, and that she is notinterested in moving the portion of the bill establishing the E6 and E7 compensation

levels. Additionally, Councilmember Mendelson told Ms. Stokes that it was hard to takethe analysis provided by her office seriously, referring to it as “bush league.” He askedfor a justification for the pay scale, to which Ms. Stokes mentioned the expired 2007temporary legislation that had briefly established identical compensation levels. He alsoasked why the District would need to pay anyone more than the federal governmentprovides to its Cabinet officials, to which Ms. Stokes responded that the District does nothave comparable compensation systems with respect to pensions and other benefits.Councilmember Mendelson noted that each of the officials were employees of theDistrict prior to assuming their current roles, so any discussion of needing to pay thembeyond the pay scale in order to attract their “talent” was absurd.

Chairperson Cheh thanked the witnesses for their testimony and called the hearingto a close at 2:45p.m.

FISCAL IMPACT

The Committee on Government Operations and the Environment finds that fundsare sufficient to implement Bill 19-197. A fiscal impact statement, prepared by the Chief Financial Officer and dated April 11, 2011, is attached to this report.

IMPACT ON EXISTING LAW

This bill would amend Section 1052 of the District of Columbia GovernmentComprehensive Merit Personnel Act of 1978, effective June 10, 1998 (D.C. Law 12-124;D.C. Official Code § 1-610.52) to approve the existing salaries of Chief of Police, theChief of Fire and Emergency Medical Services, the Chief Medical Examiner, and theChancellor of DCPS Schools, to prevent any longevity pay, retention pay, bonus pay,cost-of-living increases, or other financial incentive pay for these officeholders, to requirethat salaries for future officeholders in these positions are not based on the salaries asapproved by this Act, and to ensure that future officeholders in these positions are



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compensated within the limits of the DX Schedule. The bill would also amend theDistrict of Columbia Police and Firemen’s Salary Act of 1958, approved August 1, 1958(72 Stat. 481; D.C. Official Code § 5-541.01 et seq.), to remove the Chief of Police andthe Fire Chief from persons who may receive per annum compensation increases due tolongevity.

COMMITTEE ACTION

On July 11, 2011, the Committee on Government Operations and theEnvironment convened a mark-up on Bill 19-197, the “Executive Service CompensationAmendment Act of 2011.” Present and voting were Chairperson Mary M. Cheh,Councilmember David Catania, and Council Chairman Kwame Brown serving in his exofficio capacity for the purposes of meeting the quorum requirement, and voting presenton all pieces of legislation coming before the Committee. Chairperson Cheh gave a brief opening statement on the bill.

Chairperson Cheh then moved for approval of the Committee print of Bill 19-197.The Committee voted 2-0 to approve the Committee print with the members voting asfollows:

YES: Councilmembers Cheh and Catania

NO: -

PRESENT: Chairman Brown

Chairperson Cheh then moved for approval of the Committee report on Bill 19-197. The Committee voted 2-0 to approve the Committee report with members voting asfollows:

YES: Councilmembers Cheh and Catania

NO: -

PRESENT: Chairman Brown

The meeting was adjourned.

LIST OF ATTACHMENTS

(A) Bill 19-197, as introduced(B) Committee Print of Bill 19-197(C) Notice of Intent to Act, published in the District of Columbia Register (D) Public Hearing Notice, published in the District of Columbia Register (E) Public Hearing Agenda and Witness List



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(F) Written Testimony Provided to the Committee(G) Fiscal Impact Statement for Bill 19-197

b19-197 Final Com Report

Documents

Transcript of b19-197 Final Com Report