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," read 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, reads 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 MCRC 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," read 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.

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, says it is the fourth 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 MCRC described 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 the salaries were "fair," the MCRC 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 news 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.