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April 30, 2024 HB 24-1467
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 24-1184
Rep. Bird; Sirota
Sen. Zenzinger; Bridges
Date:
Bill Status:
Fiscal Analyst:
April 30, 2024
House Appropriations
John Armstrong | 303-866-6289
john.armstrong@coleg.gov
Bill Topic: MODIFICATION TO THE STATE PERSONNEL TOTAL COMPENSATION
Summary of
Fiscal Impact:
☐ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☐ Local Government
☐ Statutory Public Entity
The bill requires the state to develop a pay structure that moves from a merit
pay system to a step pay system. The bill increases workload in state agencies in
FY 2024-25 only.
Appropriation
Summary:
No appropriation is required.
Fiscal Note
Status:
The fiscal note reflects the introduced bill.
Summary of Legislation
The bill requires the Department of Personnel and Administration (DPA) to develop an equitable
pay structure that provides consistent and predictable salary increases, in consultation with the
organization that represents state employees. The bill also repeals the requirement that the
division of worker’s compensation and the division of labor standards and statistics in the
Department of Labor and Employment pay their employees on a monthly basis.
Background
DPA, representing the state, and Colorado WINS, the organization representing state
employees, agreed through the partnership agreement that step pay would be implemented
across all executive branch agencies (excluding the Department of Higher Education) by
July 1, 2024. Funding to pay covered employees based on their initial step placement was
included in the FY 2024-25 Long Bill.
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April 30, 2024 HB 24-1467
State Expenditures
The bill increases state workload in all state agencies starting in FY 2024-25.
Department of Personnel and Administration. DPA will establish new rules, processes and
updates to forms and documentation to finalize the transition to step pay in accordance with
the partnership agreement developed between the state and Colorado WINS. This work will can
be accomplished within existing resources.
Executive branch state agencies. Executive branch agencies have already begun the process of
placing employees on the step progression under the partnership agreement with Colorado
WINS. It is assumed any costs associated with implementation of step pay will be covered
through the Long Bill for FY 2024-25, and through the budget process on an ongoing basis.
Workload will increase initially for agencies finalize implementation of step pay based on DPA
guidance and rules. On an ongoing basis, state agency human resources staff will be required to
maintain information on employees step, process information related to step placement when
employees move between agencies or change position. Workload will vary across agencies
depending on the number of employees and various other factors. The fiscal note assumes that
this workload will replace other methods (such as merit pay) used to determine employee
compensation and pay increases, and that no additional appropriation is required.
Effective Date
The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming
no referendum petition is filed.
State and Local Government Contacts
All State Agencies
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
fiscal year. For additional information about fiscal notes, please visit the General Assembly website.