Cabinet pay raises questioned, defended by House committee

Shortly after the calendar turned to 2015, state agency heads received a sizeable financial bump from their boss. Not all members of the Legislature are so supportive.

Some members of the House State Government Finance Committee spent Thursday morning questioning the decision of the state’s top official, while others defended Gov. Mark Dayton.

Last week, Myron Frans, commissioner of Minnesota Management & Budget, notified the Legislature that Dayton used his authority in early January to dole out nearly $803,000 in pay increases — ranging from $22,407 to $35,475 — to his state department commissioners. Most salaries now fall between $144,991 and $154,992.

Two years ago, the DFL-controlled Legislature changed state law so that the governor could pay commissioners up to 133 percent of his salary. Previous law capped the limit at 95 percent for most and 85 percent for a few.

“I think there are going to be some changes made on this front, and I’m looking forward to that,” said Rep. Sarah Anderson (R-Plymouth), the committee chair. “At the end of the day, it is our responsibility to be mindful of how we’re spending state dollars. … Our revenue source is the taxpayers of Minnesota.”

About two hours later on the Senate Floor, Senate Majority Leader Tom Bakk (DFL-Cook) successfully offered an amendment to the deficiency spending bill that would suspend the salary increases until July. That bill, SF174, now awaits House action.

Before approving the House deficiency funding bill, HF264, the House Ways and Means Committee on Monday rolled back emergency funding for Health, Human Services and Natural Resources departments by amounts equal to about six months of pay increases for the respective commissioners. That bill also awaits action by the full House.

About retaining talent

Frans said the pay increases are needed to keep top talent, and he noted that commissioners hadn’t had raises in 12 years. Dayton previously indicated that any member of his cabinet could more than double their state salary elsewhere, such as in local government or at a university.

Rep. Sarah Anderson

“It’s really about looking to the future and what kind of people we’re going to attract,” Frans said. “Let’s get the bar back up, which will help us retain and attract talent.”

Rep. Michael Nelson (DFL-Brooklyn Park) said that if commissioners received a 2 percent increase in each of the past 12 years, they’d be making more today than they are with the raises.

He added that if the state is trying to be run like a business, top talent is required. “We could put a bunch of slugs in there and pay them nothing and then we’d scream when our government is not running right.”

Rep. Jim Nash (R-Waconia) noted that most of the raises are approximately 1.5 times the current federal poverty level, with some exceeding 3 percent. “My phone has been melting from emails and phone calls. … We’ve got these that are beyond outlandish, and I think they show a real contempt for the average Minnesotan.”

Governor does not make an appearance

In a Tuesday letter, Anderson requested the governor come before the committee to explain his actions, saying, “Many Minnesotans have expressed concerns over these pay raises.” Dayton responded by letter later in the day indicating he "would be glad to host a meeting with you and other legislators to answer your questions and to discuss the role of administrative salaries in the governance of Minnesota." The meeting would be open to the press.

Dayton was also critical of the $16,171 raise — to $123,971 —given to Ben Golnik, executive director of the House Republican caucus, “less than two months after he began his state service.” The governor further noted that House Chief Clerk Patrick Murphy is paid $148,000 after a $32,508 increase from his previous salary. Murphy, an employee in the nonpartisan House Chief Clerk’s Office since 1978, was promoted after former Chief Clerk Al Mathiowetz retired.