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COMPENSATION OF JUSTICES, JUDGES, AND MAGISTRATES STUDY COMMITTEE

MINUTES

December 13, 1996
First and only Meeting

MEMBERS PRESENT

MEETING IN BRIEF

Minutes prepared by Jan Simmons, Legal Counsel,
Organizational staffing by Leslie Hickey, Senior Legal Counsel

  1. Procedural Business.
  2. Presentation of the Iowa Association of Magistrate Judges.
  3. Presentation of the Iowa Judges Association.
  4. Presentation of the Iowa Trial Lawyers Association (ITLA).
  5. Presentation of Mr. Ronald Pearson.
  6. Presentation of the Iowa Bar Association.
  7. Committee Discussion.
  8. Written Material on File With the Legislative Service Bureau.

COMMITTEE BUSINESS

1. Procedural Business.
The meeting of the Interim Study Committee on the Compensation on Justices, Judges, and Magistrates was called to order by Acting Co-chairperson Senator Fraise, at 10:20 a.m., Friday, December 13, 1996, in Room 22, State Capitol, Des Moines, Iowa.
Election of Permanent Chairs. Representative Sukup made a motion that Representative Lamberti and Senator Fraise be elected as permanent chairs of the Interim Committee. The motion was seconded by Senator Hedge. The motion was adopted.
Adoption of Rules. Representative Sukup made a motion that the Committee adopt the proposed rules presented to the Committee, and Senator Hedge seconded the motion. The motion was adopted.
Opening Comments. Co-chairperson Lamberti reviewed the purpose of the Committee, noting a need to focus on the ability to recruit and retain qualified judges. Co-chairperson Fraise noted the past problem of retaining good judges.
Adjournment. Co-chairperson Lamberti adjourned the meeting at 2:27 p.m.
2. Presentation of the Iowa Association of Magistrate Judges.
Introduction. The views of the Iowa Association of Magistrate Judges was presented by Mr. William Thatcher, President, and Mr. James Mefferd, Vice President. Mr. Thatcher noted concern for retaining magistrates, and stated his belief that the increase in collection of fines over the past few years can fund an increase in compensation for magistrates.
Presentation. Mr. Mefferd next spoke on behalf of Iowa's 135 magistrates, emphasizing that magistrates provide cost-effective access to the courts. Cases handled by magistrates represent the largest percentage of cases handled in Iowa courts. Most magistrates are lawyers, though there is no statutory prerequisite that magistrates must be attorneys. He reviewed the number of magistrate appointments over the past few years, as well as the historical comparative salary information of judges and magistrates. He stated his belief that compensation for magistrates not only needs to be competitive with private sector opportunities available to those who serve as magistrates, but that magistrate compensation has not kept pace with the increased demands placed on magistrates.
Magistrates have experienced a 47 percent increase in cases in the last three years. Among other matters, magistrates hear initial appearances, which have increased in number in the last three years. Magistrates also hear matters involving domestic abuse and mental health commitments. ddThese types of cases require more time and involvement than the statutory fine cases.
Lawyer Magistrates. Magistrates are held to the same ethical standards as judges, except that they may continue to maintain a private law practice or other business, because the magistrate position is not full-time. However, the increased workload of magistrates, and the fact that a magistrate cannot represent a client before other lawyer magistrates or pursue certain other business development opportunities, limits the opportunity for magistrates to earn as much from their private practice as they once were able to earn. In addition, Mr. Mefferd stated that compensation for magistrates should also take into account the need for magistrates to be available for hearings on a continuous 24-hour basis, which is especially burdensome in rural counties that have only one magistrate.
Salary Difference. Representative Sukup asked about the requested difference in salaries for lawyer magistrates and nonlawyer magistrates. Mr. Thatcher replied that it represents the difference in workload. Lawyer magistrates consider more complex matters, such as mental health commitments, that require more time investment.
Full-Time Magistrates. Senator Hedge asked about full-time magistrates. Mr. Mefferd explained that the magistrates that were formerly full-time are now district associate judges. Mr. Thatcher added that you cannot easily differentiate pay according to workload for part-time magistrates.
Nonlawyer Magistrates. Co-chairperson Fraise asked about the necessary criteria for nonlawyer magistrates. Mr. Thatcher noted that there are no criteria. Senator Fraise asked if all magistrates should be lawyers. Mr. Thatcher said there is a movement toward this result, but that it would probably be impossible to require in some rural counties.
Allocation of Positions. Representative Sukup asked about the allocation of the 135 magistrates across the state. Mr. Mefferd explained they are allocated according to population, and explained that counties may individually or together "trade" three magistrate positions for one district associate judge position.
3. Presentation of the Iowa Judges Association.
Introduction. Judge James Kelley, President of the Iowa Judges Association, noted that experience over the last 15 years has shown that if judicial salaries are not competitive with private sector salaries, judges will resign. The judicial nominating committees have noted that qualified applicants are difficult to attract when salaries do not keep pace with private sector opportunities. The Legislature has done a good job in the last few years of making judicial salaries more competitive, but needs to continue its efforts.
Salary Comparisons. Salary figures from surrounding states are not fully comparable (as shown in charts presented to the Committee) with Iowa salaries, because, for example, the salary survey does not show cost-of-living adjustments, bonuses, supplements, or other benefits. Iowa pensions for judges are also lower than other states' pensions.
Salary Recommendations. The Judicial Compensation Commission now reviews and recommends salary changes every two years. The Commission will soon be meeting to make current recommendations. The Iowa Judges Association has generally supported the past recommendations of the Commission and this year recommends that salaries should at least keep pace with inflation. The judiciary's workload has increased and time pressures have therefore increased, which raises concern for the future quality of written decisions. Also, Judge Kelley expressed a problem with lack of access to current legal material in some judicial districts because of budget cuts. Pension amounts should be increased to 60 percent for maximum service, in line with the changes the Legislature made to IPERS last year.
Judgeship Applications. Judge Phillip Collett, Chief Judge of the Eighth Judicial District and Chair of the Judicial Nomination Committee in his district for approximately 18 years, discussed the applicant pool in his district over the past few years, noting his opinion that the applicants are better now than when the compensation was lower. Pensions continue to be a significant issue, however, and that issue often discourages older applicants.
Technology Impact. Senator Flynn asked the judges about the impact of new technology on the judicial process. Judge Kelley indicated that some arraignments are now held via interactive television, using fiber-optic technology. This process saves transportation time and costs, and avoids the need for secure holding facilities near the court. In addition, some judges are using laptop computers, even on the bench, but there have been some technical problems in implementation. Judge Collett emphasized that the new technology overall has improved the quality of judicial services.
Retention Discussion. Co-chairperson Lamberti noted that he did not currently see a problem in the judiciary being able to retain judges, and Judge Kelley confirmed that that was true, but that judicial pensions did need more focus from the Legislature, and stated his belief that pensions would be a major issue within the next two years.
4. Presentation of the Iowa Trial Lawyers Association (ITLA).
Introduction. Mr. Dennis Chalupa spoke on behalf of ITLA, noting he believes that in general we have very qualified judges in Iowa, though some counties do not always attract the most qualified applicants, because of the salary amounts. Iowans cannot be assured that there will always be persons who greatly value public service and are willing to compromise on salary amounts to serve in the judicial branch.
Judges spend a lot of time traveling to court in their districts and put in other overtime, especially when in trial. The issue is not just whether the compensation paid to Iowa's judges is competitive with the judicial compensation in surrounding states, or even retaining judges, but also the acknowledgment of the efforts and sacrifices that are made by the judiciary.
Law Changes. The Legislature should recognize what the passage of certain laws does to burden the court process and access to the courts. One example of such a law is the domestic abuse law. It is a good law, but takes time and resources to implement.
Special Skills. Judicial salaries do not adequately compensate for and are not commensurate with the responsibilities and sacrifices of judges. Judicial life is a tough, monastic existence, without the "perks" of private practice. A good judge must be a very efficient time manager and decision maker. This is a special skill, and should be rewarded.
Travel Issues. Co-chairperson Fraise asked about the travel issues, and noted the advantage of avoiding appearance of favorites by rotating judges. Mr. Chalupa did not disagree with the reasoning behind rotation of judges throughout a district, but simply thought that such a burden should be taken into account in compensating judges.
Technology. Senator Hedge asked about use of interactive television in the conduct of hearings, expressing concern as to leaving an effective impression upon a defendant. Judges think it is effective, but acknowledged you do lose the court setting and atmosphere. The hearings are done formally, however, and save transportation time, as well as ease security issues.
5. Presentation of Mr. Ronald Pearson.
Introduction. Mr. Ronald Pearson, CEO of Hy-Vee, Inc., began his presentation by giving his business background and noting the range of lawsuits in which his company has been involved, and the importance of the legal system and judiciary to business.
Expertise Needed. Legal matters have a great impact on business, and on profitability in particular. Attorneys' fees are one facet of this impact. Matters are increasingly complex, and require increasing levels of expertise. Quality judges are needed, and compensation is the ultimate measure of the ability to attract quality candidates. Marketplace comparisons are important. The best people are attracted by the best compensation.
Compensation Level. Judicial compensation appears to be substantially less than business would pay. If government wants to attract the best people, they must compete with the private sector. The Legislature should appoint a blue-ribbon panel to study the issue of appropriate judicial compensation, and focus more on a business viewpoint of adequate compensation.
Legal Complexity. Co-chairperson Fraise asked about Mr. Pearson's satisfaction with the courts. Mr. Pearson expressed concern about complex legal matters. In his opinion, the judicial system does not always adequately deal with the legal complexity of certain business issues, though it adequately handles routine matters.
Government vs. Business. Representative Sukup asked about the comparison of government with business on the performance side. Mr. Pearson stated that business needs quick resolution of legal matters, but that he could not really compare Iowa to other states on that issue.
Co-chairperson Lamberti asked about Hy-Vee's employment of attorneys. Mr. Pearson indicated that Hy-Vee has two in-house attorneys and also employs outside counsel for a number of matters.
6. Presentation of the Iowa Bar Association.
Overview. Mr. Roger Stetson, President of the Iowa Bar Association, gave an overview of his group's membership and the history of merit selection of judges in Iowa.
Judicial performance is important in effective dispute resolution. The pressures are increasing on judges. Caseloads have dramatically increased, especially for juvenile and domestic abuse cases. These kinds of cases and caseloads take a toll on judges, causing burnout. Mr. Stetson also reviewed some of the projections of the 21st Century Court Commission (a planning commission created by the Iowa Supreme Court) regarding future needs for the judiciary.
The quality of performance by Iowa judges is high, but Iowa judges no longer have the time to give the same detailed, thoughtful consideration to matters that they once did. Comparative information on salaries from other states is important, but is not the most important information for comparison purposes. The most important figure is what the judge could make as an attorney in private practice. Judged by these standards, judicial salaries lag behind what the best group of lawyers earns.
Salary Effects. When his firm increased starting salaries, they were able to attract much better quality attorneys. Salary increases should be beyond cost-of-living increases, and the salaries of magistrates should especially be increased to reflect their increased responsibilities.
Judge Retention. Representative Sukup asked about the 21st Century Commission's concerns regarding the retention of judges. Mr. Stetson explained that the group looked at the increasing pressures on the courts, and made a number of recommendations, though no specific ones were made on the issue of compensation, other than that Iowa should continue to keep compensation high.
7. Committee Discussion.
Court Administrator's Office. Mr. David Boyd, Deputy State Court Administrator, was asked about the retirement and pension issues, and gave certain information to the interim committee about the state's contribution to the judicial pension system and the plans to make the system actuarially sound in approximately five years. He also explained that 191 statutory positions for magistrates are allocated, but the actual number of magistrates is different due to the ability of counties to convert three magistrate positions into one district associate judge position. The total number of magistrates has not changed since 1971.
Committee Recommendations. Co-chairperson Lamberti presented the following recommendation for discussion: The General Assembly should consider increasing the salaries for magistrates by more than just the regular cost-of-living adjustments, and should consider whether the salaries for magistrates should reflect both the differences in duties of lawyer magistrates and nonlawyer magistrates, and the differences in magistrates' workloads across the state.
In discussing the recommendation, Senator Flynn noted the need to address the increased workload in terms of compensation, and that magistrate salaries did not appear to have kept pace with other judicial salaries over time. Co-chairperson Fraise noted that it would be difficult to address the compensation in terms of hours worked, but that differences in workload do need to be addressed in the compensation levels, if possible.
Co-chairperson Fraise moved, and Representative Sukup seconded, that the recommendation be accepted. The Committee unanimously approved the motion.
Co-chairperson Lamberti then presented the following recommendation for discussion: The General Assembly should continue in its efforts to assure that judicial compensation remains competitive, and should specifically consider the adequacy of judicial pensions, including the issues of ensuring and maintaining the solvency of the Judicial Retirement Fund, as well as the level of the pension provided.
In discussing the recommendation, Senator Flynn asked how the justice system appropriation bill addresses the amortization issue associated with the Judicial Retirement Fund, and suggested that it be a long-term commitment, not just a year-to-year approval of the funding. Senator Hedge clarified, through questions to Mr. Boyd, that the unfunded pension amount will be corrected in five years, and that it can then be maintained at regular contribution levels if judicial salaries do not increase.
Co-chairperson Fraise moved, and Senator Hedge seconded, that the recommendation be accepted. The Committee unanimously approved the motion.
8. Written Material on File With the Legislative Service Bureau.
a. Agenda.
b. Proposed Rules of the Committee.
c. Written Testimony of the Iowa Association of Magistrate Judges, including an outline of comments made by Mr. James Mefferd.
d. Written Testimony of the Iowa Judges Association, including an outline of comments made by Judge Phillip Collett.
e. Written Testimony of the Iowa State Bar Association.
f. Background Material prepared for the Interim Committee by the Legislative Service Bureau.

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