Report recommends $25K salary increase for MHAs, after annual salary frozen for 15 years

A new report released by the 2024 members' compensation review committee recommends MHAs make an annual salary of $120,000, about a $25,000 increase from their current salaries, which have remained frozen since 2009. 

"On its face, the failure to provide an increase to the MHA annual salary since 2009 is unfair at best; at worst, it is a detriment to our democracy by potentially discouraging diversity and excellence in the provincial legislature," reads the report, written by Heather M. Jacobs, who was appointed by the House of Assembly in November to conduct a review of members' compensation.

The more than 200-page report, titled How We Value Democracy, also recommends MHAs' annual salaries be adjusted to reflect the province's consumer price index on Dec. 31 of the previous calendar year.

Salaries should increase for eight additional-salary positions, including Speaker and leader of the Official Opposition, says the report, and 10 new additional-salary positions should also be added.

Increasing the salaries of 40 MHAs by $24,643 is forecasted to cost $985,720, which the committee says would require an increase in the legislature's budget — however, the report reads, the province is "in a strong economic and stable fiscal position," and that the economy can "withstand the increase."

"The 2024 MCRC asserts that the status quo for the MHA annual salary is not an option," reads the report.

It says the recommendations should come into force April 1. 

In an emailed statement to CBC News, Mark Jerrett, policy and communications analyst for the House of Assembly, declined an interview request on behalf of Jacobs. He said the "report is extensive and includes the rationale and assumptions that led to the recommendations."

Jerrett also said it's now up to the Management Commission to consider the recommendations.

MHA salary 'fallen behind'

The House of Assembly Accountability, Integrity and Administration Act requires an independent committee — the MCRC — to review the salaries, allowances, severance and pensions paid to MHAs once during each general assembly.

The report, released Thursday, notes it's the fourth such independent committee, and that the first three reports were delivered in 2009, 2012 and 2016.

The annual MHA salary of $95,327 has been frozen for 15 years, reads the report, something the committee describes in the report as unjust and unreasonable. According to the report, the salary ranks 10th among the 13 provinces and territories and has "dramatically" fallen behind increases in annual salaries for the executive in the core public sector.

To determine whether salaries are "fair," the committee says it considered the province's economic position and fiscal capacity — to do so, it says, it reviewed the 2023 provincial budget, including the 2023 economic update and mid-year fiscal and economic update press release.

However, while the provincial government forecast a deficit of $160 million for the fiscal year, which comes to a close at the end of March, the 2024 budget released last week revealed a $433-million deficit. 

The provincial government is projecting a budget deficit of $152 million for the coming year.

The committee also says it looked at "public opinion" on the MHA annual salary, and says it "heard no members of the public express the position that MHAs were overpaid, and all asserted a raise is necessary."

It says some public opinion suggests MHAs should have their salary doubled to attract "quality candidates" and that a salary increase would "remove barriers to diverse populations considering running for public office."

The committee also recommends the salary-adjustment formula for MHAs should reflect the consumer price index, which the report reads would "prevent politicization of MHA salary increases."

"The work of legislators is often met with criticism and disparagement, and any increases in compensation for legislators can become controversial public discourse," said Jacobs in the report's closing remarks.

"Furthermore, MHAs are in the awkward position of having to vote on salary and benefit adjustments from both a perceived conflict of interest and a political reality."

Other recommendations

The report also says the salaries of existing additional-salary positions should be adjusted, such as making the salary for the leader of the Official Opposition $55,000 and the leader of a third party $30,000.

It also says positions such as party whip, caucus chair and deputy chair of committees, which aren't currently remunerated in Newfoundland and Labrador on top of their base salaries, should be compensated.

The salary for roles such as the Speaker and deputy Speaker in Newfoundland and Labrador rank 11th out of 13 jurisdictions in the country, while the province ranks 10th out of the 11 jurisdictions who remunerate the leader of the Official Opposition. 

The report also says Newfoundland and Labrador and the Yukon are the only jurisdictions that do not remunerate committee work.

If an MHA holds an additional-salary position, a ministerial position or committee membership at the same time, reads the report, that person is entitled only to the additional salary of the highest compensated position.

Additional-salary positions should also be reflected by the consumer price index, according to the committee.

"The diverse population of Newfoundland and Labrador also deserves representation in our legislature, and compensation should not be a barrier for people from a wide variety of backgrounds who wish to serve the public good," said Jacobs in her closing remarks.

"To attract and retain these people, the MHA compensation and allowance regime must demonstrate that the role and function of an MHA is valued. Our democracy depends on it."

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