Feud reopens as Dayton hikes agency head pay

Published 10:28 am Thursday, July 2, 2015

ST. PAUL — Gov. Mark Dayton gave significant raises Wednesday to the various department heads who work under him, bumping the annual salaries of 11 executive branch commissioners to more than $150,000 while reigniting a political fight over public-sector pay that could spill into Minnesota’s 2016 legislative campaign.

Mark Dayton

Mark Dayton

The Democratic governor used temporary authority from the Legislature to boost the commissioners’ salaries, re-instituting proposed raises that lawmakers blocked earlier this year. As part of a deal to quell that February pay feud, the Legislature granted Dayton just one day to act — July 1 — before it regained approval power over such pay decisions.

Raises for more than a dozen appointees exceed $30,000. Six commissioners will earn about $155,000. Most agency commissioners were paid about $120,000 before the new boost. Dayton had the authority to go up to $165,000.

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“The salaries of high-level public officials are convenient targets for anti-government partisans, who don’t understand the sophisticated administrative skills required to provide quality government services and care even less,” Dayton said in a letter to legislative leaders.

The raises are likely to become an issue ahead of next year’s legislative elections, as Republicans try to portray Dayton and Democrats as too eager to spend taxpayer money on salaries and bureaucracy.

“The governor really is apparently more out of touch than I thought with Minnesotans,” said Republican House Speaker Kurt Daudt, who suggested there would be attempts next session to temper the raises.

The raises weren’t accounted for in the state’s new budget, which took effect Wednesday. So agencies will have to collectively find roughly $900,000 to cover the expense.

Democratic Senate Majority Leader Tom Bakk said through a spokeswoman that he was comfortable with Dayton’s decision.

The salary roster is very similar to the one Dayton sought earlier, although he authorized more for the Department of Human Rights chief ($144,991 instead of $140,000) and for the five Public Utilities Commission posts ($140,000 instead of $125,009).

Dayton contends that higher salaries will make top positions competitive with managerial posts in the private sector and local governments, which have provided steady increases in pay for superintendents and city administrators. The governor said his predecessors had avoided adjusting the state administrator pay scales out of political fear.

Speaking to reporters Wednesday, Dayton acknowledged the pay issue would be a political advantage for Republicans but he asked voters to give him the benefit of the doubt that the raises were conferred for good reason.

“I’m solely responsible for this decision to raise these salaries to what I believe are appropriate and necessary levels to make government work better for the people of Minnesota,” Dayton said.

Republicans say Dayton’s raises are out of step with slower growth in family incomes. They noted that political appointees would fare much better than unionized state employees, who recently reached contracts with the state that offer 2.5 percent salary increases.

“These commissioners are paid political appointees. They are not CEOs. They are not professionals. Professionals are the ones who report to these individuals. These commissioners are the ones who carry out the orders of the governor,” said Republican Sen. Dave Osmek of Mound. “To equate commissioners with CEOs and how much they can make in the private sector is like comparing an apple to a bowling ball.”

Senate Minority Leader David Hann, a Republican from Eden Prairie, predicted the raises would be used as ammunition against legislative Democrats on the 2016 fall ballot even though the GOP was part of the deal giving Dayton his one-day authority.

It could also factor into the public debate over a constitutional amendment before voters next fall that would establish a commission to set legislator pay.