Paying for Justice

by Forrest on February 1, 2008 · 2 comments

in Law

Upon taking his seat at the center of the bench, Chief Justice John Roberts assumed the cause embraced by his predecessor—a judicial pay raise. In December, the House Judiciary committee voted 12-5 to raise the pay of judges on the U.S. District Courts to $218,000 (increasing it from its current level of $169,300), U.S. Courts of Appeals judges to $231,100 (currently $179,5000), and Supreme Court justices to $267,900 (currently $208,100). Yesterday, the Senate Judiciary committee approved a comparable bill giving federal judges a 29% pay raise.

The bills would restore judicial pay to the same level that judges would have received if Congress had granted them the same cost-of-living pay adjustments that other federal employees have received since 1989—not a full restoration but a significant one. Why did federal judicial pay fall behind other federal salaries? A large part of the explanation is that judicial pay raises since 1989 have typically been tied to pay raises for members of Congress.

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A number of members of Congress and justices have argued that judges are retiring because of the failure of their pay to keep pace. Justice Scalia noted that “More and more, we cannot attract the really bright lawyers. It’s too much of a sacrifice” (here). My colleague Paul Wahlbeck and Jim Spriggs studied retirements from the Federal Court of Appeals and discovered that “increases in salary reduce the expected number of Democrat and Republican retirements….” (1994, 589-560, gated here). A similar finding (for district courts) was reached by Deborah Barrow and Gary Zuk (gated, here).

Although Democrats have historically supported attempts to raise judicial salaries, there now appears to be bipartisan support for raising judicial salaries. Why? One possibility is that the bench is now dominated by jurists appointed by Republican presidents and the upcoming election may provide a Democrat with a large number of judicial vacancies. Such fear would inevitably be reinforced by the recent high-profile retirements of conservative judges (here, here) who left the bench and secured significantly higher salaries. Also note that there is an important provision in the bill that would create a disincentive to leaving the bench for higher paying private sector jobs: The bill reduces the pension benefit of a retired judge by $1 for every $2 he or she earns above the old salary. Why include this provision? Research by David Nixon and J. David Haskin shows that once judicial pensions became tied to current salary levels, raising judicial salaries induced retirements (gated here).

A second and very cynical explanation for the pay raise is that historically congressional salaries have been tied to judicial salaries. Is it possible that next year members of Congress will point out that they are paid much less than members of the executive and legislative branches and thus deserve a pay raise? Nah. That would be too crass. I am sure there is a good third explanation––it is the right thing to do. Perhaps, but let’s see first what Congress does next year with their own pay.

{ 2 comments }

Bill Harshaw February 2, 2008 at 1:29 pm

What’s the proper reference point? Just watched the last episode of Sopranos on DVD last night and Meadow might get $170,000 in the law firm!! Given the increase in salaries at the high end of professions, an average of Federal workers probably isn’t fair. What do top law professors make these days?

Forrest February 2, 2008 at 2:59 pm

Your ask a good question regarding what the proper reference group should be. In his 2006 annual report, the Chief Justice compared judicial salaries to law school salaries. While judicial salaries were once better than law faculty salaries, they have lost relative ground. For more recent data on law school faculty salaries, go to: http://taxprof.typepad.com/taxprof_blog/2007/02/how_many_law_pr.html . The bottom line seems to be that top tier schools pay their top professors over 200K. I would be shocked if there was not a small contingent of top tier law faculty earning above 300K. I am not sure what the proper reference group one should employ. But, the Chief Justice has frequently used federal salaries as a reference. Many top tier federal employees (scientists, economists, etc…) have very impressive credentials and are paid less then they would earn in the private sector and should earn in the public sector. Yes, I live inside the beltway. Yes, some of my friends are federal employees. Yes, some of them are federal judges.

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