2000-02-28                     House Journal                      Page 2332
HB 423                                                                       
HOUSE BILL NO. 423 by the House Rules Committee by request of                  
the Governor, entitled:                                                        
                                                                               
"An Act relating to the monthly salary for heads of principal                 
executive departments; and providing for an effective date."                   
                                                                               
was read the first time and referred to the State Affairs and Finance          
Committees.                                                                    
                                                                               
The following fiscal note applies:                                             
                                                                               
Zero fiscal note, Office of the Governor/All Depts., 2/28/00                   
                                                                               
The Governor's transmittal letter dated February 25, 2000, appears             
below:                                                                         
                                                                               
"Dear Speaker Porter:                                                          
                                                                               
Present and past administrations have been fortunate to find capable           
men and women willing to leave far more lucrative jobs to serve the            
public in demanding positions as heads of principal state departments.         
In fact, over the years many candidates have declined offers and               
commissioners have left after a short tenure because they could earn           
so much more in other public and private jobs.  While public service           
can be personally fulfilling, the state cannot expect to continue to           
attract or retain talented people unless there is a fair salary                
commensurate with the responsibilities of the job.                             
                                                                               
I am transmitting to you a bill that would permit some flexibility in          
setting the salary of a principal department head.  Under existing law         
enacted over 20 years ago, commissioner salaries are set at Range 28,          
Step E  with no opportunity for  step or range  increases  regardless of       

2000-02-28                     House Journal                      Page 2333
HB 423                                                                       
how long the person remains in the job.  This bill allows setting a            
commissioner's salary at a higher step and range--no more than Range           
30, Step F--to recognize special skill or experience.  This approach is        
identical to the method under existing law for setting the salary of           
deputy department heads.                                                       
                                                                               
The current salary of Commissioners is not in line with positions of           
similar authority and responsibility in the private sector or even larger      
municipalities within Alaska.  Ironically, deputies and other managers         
often make more than their commissioners do because they are                   
permitted salary increases over time.  Salaries of the directors of the        
state's quasi-independent agencies such as AHFC, AIDEA, and the                
Permanent Fund, which compete most closely with the private sector,            
substantially exceed those of Commissioners.  Despite lower costs of           
living, the salaries of department heads in many other states, including       
those on the West Coast, exceed those of Alaska commissioners.                 
                                                                               
While this proposal would permit only a modest salary increase for             
department heads, the flexibility afforded could help attract candidates       
from the private sector and could encourage qualified appointees to            
remain in service to the public.  Recognizing that there is never a good       
time to raise salaries for our public officials, this action is long           
overdue.  I urge your favorable action this session.                           
                                                                               
							Sincerely,                                                              
							/s/                                                                     
							Tony Knowles                                                            
							Governor"