LEGISLATIVE SERVICES AGENCY OFFICE OF FISCAL AND MANAGEMENT ANALYSIS FISCAL IMPACT STATEMENT LS 7444 NOTE PREPARED: Jan 27, 2025 BILL NUMBER: HB 1319 BILL AMENDED: SUBJECT: Elkhart County Courts. FIRST AUTHOR: Rep. Wesco BILL STATUS: CR Adopted - 1 st House FIRST SPONSOR: FUNDS AFFECTED:XGENERAL IMPACT: State & Local DEDICATED FEDERAL Summary of Legislation: This bill allows the judges of the Elkhart circuit and superior courts to appoint five full-time magistrates. (Current law allows for the appointment of two magistrates.) Effective Date: July 1, 2025. Explanation of State Expenditures: Summary - The total estimated cost for four full-time magistrates in Elkhart County is about $477,546 in FY 2026 and $714,217 annually, beginning in FY 2027. Currently, the state pays $105,417 of the base salary and fringe benefits for the juvenile magistrate position. Elkhart County Magistrate Positions Provisions Effective DateFY 2026FY 2027 #1 Juvenile Magistrate to Full-time Magistrate7/1/2025 $51,380 $49,787 #2 IV-D Commissioner to Full-time Magistrate7/1/2025 $213,083$221,477 #3 New Magistrate 1/1/2026 $106,542$221,477 #4 New Magistrate 1/1/2026 $106,542$221,477 Total: $477,546$714,217 Additional Information - The salaries of circuit and superior court judges and 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. HB 1319 1 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 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. LSA uses the five-year average of normal costs between FY 2019 and FY 2023 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 judicial officers. Normal cost is defined as the present value of benefits accruing for a particular plan year. Explanation of State Revenues: Explanation of Local Expenditures: Effect on Elkhart County: The bill will result in an estimated cost savings of $40,077 in CY 2025 and $80,153 in each subsequent year based on current salaries of magistrates. No other staffing changes, expenses, or space will be necessary to facilitate this change. Elkhart County will convert the juvenile magistrate and Title IV-D commissioner positions to full-time magistrates. The Title IV-D commissioner receives $114,401 annually, with a federal reimbursement of two-thirds of the salary. Juvenile court magistrates receive the same compensation as general court magistrates, and current law requires the county to pay $41,393 while the state pays the remaining salary. Explanation of Local Revenues: State Agencies Affected: Indiana Supreme Court. Local Agencies Affected: Elkhart County. Information Sources: IC 31-31-4-4; Indiana Supreme Court, Trial Court Fee Manual, https://www.in.gov/courts/publications/reports/; Indiana Public Retirement System website, https://www.in.gov/inprs/publications/actuarial-valuation-reports/; Indiana State Budget Agency, Policy Instructions, https://www.in.gov/sba/files/FY25-Reserve-Memo-and-Supplementary-Budget-Instructions.pdf. Fiscal Analyst: Corrin Harvey, 317-234-9438. HB 1319 2