AUTHORITY TO APPROVE OR DISAPPROVE ON A PIECE MEAL BASIS REVISION OF SALARY SCHEDULE OF CIVIL SERVICE EMPLOYEES BY PERSONNEL BOARD

OFFICES AND OFFICERS - STATE - BUDGET DIRECTOR - AUTHORITY TO APPROVE OR DISAPPROVE ON A PIECE MEAL BASIS REVISION OF SALARY SCHEDULE OF CIVIL SERVICE EMPLOYEES BY PERSONNEL BOARD.

When the state personnel board makes a revision of the salary schedule for classified employees under the state civil service system, which revision effects changes in the salaries attached to several classes of positions, the budget director does not have the authority to approve or disapprove, on a piece meal basis, specific items in such revised salary schedule.

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                                                                  March 21, 1967

Honorable Robert H. Boysen
Acting Director
Department of Personnel
General Administration Building
Olympia, Washington

                                                                                                                 Cite as:  AGO 1967 No. 10

Dear Sir:

            By letter previously acknowledged you have requested an opinion of this office on a question which we have paraphrased as follows:

            When the state personnel board makes a revision of the salary schedule for classified employees under the state civil service system, which revision effects changes in the salaries attached to several classes of positions, does the budget director have authority to approve or disapprove, on a piece meal basis, specific items in such revised salary schedule?

            We answer your question in the negative as explained in our analysis.

                                                                     ANALYSIS

            Preliminarily, we should note that there is at present no actual dispute concerning the powers of the budget director in regard to the question which you have raised.  However,  [[Orig. Op. Page 2]] uncertainties and misunderstandings which have arisen in the past necessitate some clarification for future guidance.

            Our present civil service system for state employees was adopted by the people of the state of Washington, through their approval of Initiative 207, at the November, 1960, state general election.  The act thus adopted is now codified as chapter 41.06 RCW.  The general purpose of the act is set forth in RCW 41.06.010, as follows:

            "The general purpose of this chapter is to establish for the state a system of personnel administration based on merit principles and scientific methods governing the appointment, promotion, transfer, layoff, recruitment, retention,classification and pay plan, removal, discipline and welfare of its civil employees, and other incidents of state employment.  All appointments and promotions to positions, and retention therein, in the state service, shall be made on the basis of policies hereinafter specified."  (Emphasis supplied.)

            In order to achieve this result, a separate and independent department of personnel was created.  Pursuant to RCW 41.06.030, the department is headed by a three member personnel board, and is administered by a director.  The subject matter over which the personnel board is required to exercise administrative responsibility is set forth in RCW 41.06.150.  That section, in so far as is pertinent to your inquiry, provides as follows:

            "The board shall adopt and promulgate rules and regulations, consistent with the purposes and provisions of this chapter and with the best standards of personnel administration, regarding the basis for, and procedures to be followed for, . . .adoption and revision of a state salary schedule to reflect not less than the prevailing rates in Washington state private industries and other governmental units for positions of a similar nature, such adoption and revision subject to approval by the state budget director in accordance with provisions of chapter 328, Laws of 1959 [chapter 43.88 RCW]; . . ."  (Emphasis supplied.)

             [[Orig. Op. Page 3]]

            Those personnel boards having existence under prior law were abolished.  See, RCW 41.06.230.  The authority which the budget director previously exercised with respect to salaries of subordinate state officers and employees was repealed.  See, § 32, chapter 1, Laws of 1961 (RCW 43.41.020), which deleted from law the provisions of RCW 43.41.020 (4).1/

             Thus, it is to be seen that responsibility for the promulgation and revision of a state salary schedule covering all positions in the classified service is now vested in the state personnel board rather than in the office of the budget director.  As we have noted, the personnel board is required, by RCW 41.06.150, supra, to adopt a state salary schedule providing salaries for state employment at least equal to the prevailing rates in Washington state private  [[Orig. Op. Page 4]] industries and in other governmental units for positions of a similar nature.  See, also, AGO 65-66 No. 74, copy enclosed.

            However, the adoption and revision of this salary schedule is,

            ". . . subject to approval by the state budget director in accordance with provisions of chapter 328, Laws of 1959 (chapter 43.88 RCW); . . ."

            Thus, although the budget director's previous authority to set salaries has been repealed (§ 32, chapter 1, Laws of 1961, supra), it is nevertheless necessary to examine the powers of the budget director as set forth in the budget and accounting act.2/

             By that act, the legislature established a comprehensive and complete budget and accounting system for all activities of state government, which was designed to provide an efficient, modern system for management of the fiscal affairs of the state.  See,Yelle v. Bishop, 59 Wn.2d 286, 347 P.1081 (1959).3/

             [[Orig. Op. Page 5]]

            We have carefully examined the budget and accounting act for any provision which would give either authority or responsibility to the budget director to selectively approve or disapprove specific salary changes with respect to individual positions, or classes of positions, as contained in a revised salary schedule adopted by the personnel board.  We have found none.  It can, therefore, be categorically stated that there is no conflict between the provisions of the budget and accounting act and the state civil service law.  The two acts should be read together as serving different purposes.

            The budget and accounting act contains a provision (RCW 43.88.160) which requires the governor, through the office of the budget director, to issue rules and regulations for the purpose of promoting efficient public management in state government.  Subsection (1) (c) of this statute provides the office of the budget director with authority to review pay and classification plans and changes thereunderfor their fiscal impact only.  Subsections (1) (a) and (d) of this statute require the budget director to regulate theauthorized man years of employment for each agency.4/

             [[Orig. Op. Page 6]]

            A reading together, and comparison, of the provisions of RCW 41.06.150,supra, and RCW 43.88.160, supra, leads us  [[Orig. Op. Page 7]] to conclude that the authority of the budget director is simply to review the overall salary schedule as adopted, or as from time to time revised, by the state personnel board for its fiscal impact.  Based upon this criteria, the budget director may approve or disapprove the overall salary schedule as initially adopted, or the revised schedule as, from time to time, subsequently adopted by the personnel board.5/

             It is to be noted that the civil service law is not merely a grant of authority to the state personnel board.  The law specifically grants to each employee of the state of Washington (except those employees expressly exempted) a right to have the subjects listed in RCW 41.06.150, supra, acted on by the personnel board only after notice and in an open meeting.  See RCW 41.06.140, which provides as follows:

            "It shall be the duty of the board to make rules and regulations providing for employee participation in the development and administration of personnel policies.  To assure this right, personnel policies, rules, classification and pay plans, and amendments thereto, shall be acted on only after the board has given twenty days notice to, and considered proposals from, employee representatives and agencies affected.  Complete and current compilations of all rules and regulations of the board in printed, mimeographed or multigraphed form shall be available to the public in the office of the director of personnel free of charge."

             [[Orig. Op. Page 8]]

            It is a fair summary of the statutes previously noted that each employee within the classified service has a right to receive the salary payable, under the approved salary schedule, to persons occupying the class in which his position is located.  Under rules promulgated by the personnel board pursuant to RCW 41.06.140,supra, every employee, as well as employee representatives and the various state agencies subject to the civil service act, has a right to request the personnel board to review its comprehensive classification and salary plans with respect to one or more classes therein.  See also, RCW 41.06.140 41.06.140,supra.

            Personnel board rules further require that when such a request is received by the board, it has a duty to hold a hearing and to consider evidence and arguments presented by employees, their representatives or affected agencies.  Accord, RCW 41.06.140,supra.  It seems significant that the very act which provided for public meetings on salary schedule adoption and revision by the personnel board also contained the deletion, previously noted, of the budget director's previous authority to set state employees' salaries.  See § 32, chapter 1, Laws of 1961,supra.

            The office of the budget director, as an agency affected by the actions of the state personnel board, undoubtedly has the right to be notified, and to appear and be heard at the personnel board meetings which are held for the purpose of amending the state salary schedule, or changing classifications of employees.  It further is to be seen that as a result of personnel board action, the budget director may find a need for immediate and direct action to enforce his regulations pertaining to manpower.6/

             [[Orig. Op. Page 9]]

            In summary, we conclude that the budget director does not have authority to approve or disapprove, on a piece meal basis, specific items in a revised salary schedule which has been adopted by the personnel board for classified employees under civil service.  Any other result would have the effect of making the budget director, rather than the state personnel board, the state's salary setting agency, thereby nullifying so much of the civil service act (chapter 41.06 RCW) as eliminated this aspect of the budget director's previous authority.  The budget director does, however, have the authority to approve or disapprove the overall salary schedule as initially adopted or as from time to time revised by the state personnel board, pursuant to his review and determination of its fiscal impact.