2000-05-04                     House Journal                      Page 3796
HB 3002                                                                      
HOUSE BILL NO. 3002 by the House Rules Committee by request of                 
the Governor, entitled:                                                        

2000-05-04                     House Journal                      Page 3797
HB 3002                                                                      
"An Act relating to the compensation of certain public officials,             
officers, and employees not covered by collective bargaining                   
agreements; and providing for an effective date."                              
                                                                               
was read the first time and referred to the Finance Committee.                 
                                                                               
                                                                               
The following fiscal note applies:                                             
                                                                               
Fiscal note, Office of the Governor/All Depts., 5/4/00                         
                                                                               
                                                                               
The Governor's transmittal letter dated May 4, 2000, appears below:            
                                                                               
                                                                               
"Dear Speaker Porter:                                                          
                                                                               
Following the historical practice of extending collective bargaining           
agreements to non-represented state employees, I am transmitting this          
bill relating to salaries for partially exempt and exempt employees in         
the Executive branch, as well as legislative and judicial employees.           
                                                                               
The bill provides for modest cost-of-living increases similar to those         
provided in the collective bargaining agreements that my                       
Administration negotiated: a lump sum payment of $1,200 for FY2001             
(reduced by $50 for any pay period the employee was not in pay status          
during FY2000); a 2% increase in fiscal year 2002; and a 3% increase           
in fiscal year 2003.  The bill also clarifies that the employees of the        
University of Alaska who are not members of a collective bargaining            
unit are entitled to receive salary increases according to Board of            
Regents policy.                                                                
                                                                               
I believe these modest increases are fair.  The yearly increases of            
approximately 2%, 2% and 3% are far below most federal and local               
government contracts.  In response to recent low oil revenues, last year       
state workers had no increase and for the last four years had increases        
less than half the cost of living.  We all know it is necessary to keep        
state compensation competitive in an environment where private,                
federal and local employers have made significantly larger gains.              
                                                                               

2000-05-04                     House Journal                      Page 3798
HB 3002                                                                      
These modest increases will maintain parity in state employee pay and          
help all three branches of government recruit and retain qualified             
employees.                                                                     
                                                                               
							Sincerely,                                                              
							/s/                                                                     
							Tony Knowles                                                            
							Governor"