Legislature(2017 - 2018)BARNES 124
03/05/2018 03:15 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HB353 | |
| Adjourn | |
| HB353 | |
| HB277 | |
| HB309 |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 309 | TELECONFERENCED | |
| += | HB 277 | TELECONFERENCED | |
| *+ | HB 353 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 309-REJECT OFFICERS COMP. COMMISSION REPORT
4:44:32 PM
VICE-CHAIR WOOL announced that the next order of business would
be HOUSE BILL NO. 309, "An Act disapproving all recommendations
of the State Officers Compensation Commission relating to the
compensation, benefits, and allowances of state officers; and
providing for an effective date."
4:45:03 PM
ALLIANA SALANGUIT, Staff, Representative David Guttenberg,
Alaska State Legislature, introduced HB 309 on behalf of
Representative Guttenberg, prime sponsor. She stated
Representative Guttenberg had introduced the proposed bill as he
was concerned with the process leading up to the final
recommendations made by the state's officers compensation
commission. She said he believes the commission was enacted to
depoliticize legislators' salaries and that he believes the
recommendations failed to meet the obligation to recommend an
equitable rate for legislators.
4:46:03 PM
REPRESENTATIVE BIRCH asked whether the only issue is the per
diem for Juneau legislators.
MS. SALANGUIT said Representative Guttenberg's concern is the
process leading up to that recommendation but that the proposed
bill would affect legislators working within 50 miles of their
residence.
REPRESENTATIVE BIRCH restated his question that the only issue
at play is that anyone within 50 miles would not receive per
diem.
MS. SALANGUIT said that was a result of the findings but that
Representative Guttenberg was primarily concerned that "there
wasn't enough data, facts, and figures" and that it was
political.
4:47:27 PM
REPRESENTATIVE KNOPP commented that he also felt the first
ruling was completely arbitrary. He added that he thought the
second go-around was not arbitrary and asked why that was also
considered arbitrary.
MS. SALANGUIT referenced the January 17 [2018] meeting and urged
Representative Knopp to listen to the proceedings.
4:48:45 PM
REPRESENTATIVE JOSEPHSON moved to adopt CS for HB 309 as the
working document.
VICE-CHAIR WOOL objected for the purpose of discussion.
4:49:10 PM
CHAIR KITO stated he would give a brief PowerPoint presentation
[included in committee packet]. He underlined it was entirely
his work and not the work of the committee or of the bill
sponsor.
CHAIR KITO presented a series of slides on "ASOCC History" on
slides 1-6. He began by addressing slide 1, "Compensation
Methods." The slide shows a map of the United States with each
state's compensation method indicated with a color key.
4:50:53 PM
CHAIR KITO moved to slide 2, "ASOCC History":
Alaska Officers Compensation Commission
Authorized under AS 39.
Passed as House Bill 417 during the 25th Alaska
Legislature (2008).
2009 was the first issued report.
4:51:19 PM
CHAIR KITO addressed slide 3:
2009 Report Recommended:
Legislator Salary of $50,400
An additional $500 for President of the Senate
and Speaker of the House
Per Diem, Office Expenses and Moving Expenses to
be set by Legislative Council
4:51:31 PM
CHAIR KITO continued to slide 4:
2011 Recommended an increase to salaries of
Governor ($125k to $145k)and Lt. Governor ($100k
to $115k). Recommendation was not rejected.
2014 Recommended an increase to salaries for
Governor, Lt. Governor and Department Heads.
Recommendation was rejected by Legislature and
Governor.
CHAIR KITO spoke to slide 5:
ASOCC recommended salary increases for the
Governor and Lt. Governor on two occasions and
for department heads on one occasion,
2017 was the first recommended change to
legislative compensation since 2009, and that
recommendation was to decrease Juneau legislators
compensation.
4:53:09 PM
VICE-CHAIR WOOL commented that legislative council recommends
per diem, but the commission chose to reduce the Juneau, Alaska,
legislators' compensation.
CHAIR KITO added that in 2009 the compensation commission said
that it would not address per diem and that it should be in the
remit of Legislative Council.
4:54:00 PM
REPRESENTATIVE BIRCH remarked that Chair Kito had used the term
"compensation" as it relates to per diem. He asked whether he
considered per diem as part of the compensation.
CHAIR KITO said he would address the issue further along.
4:54:44 PM
CHAIR KITO moved on to slide 6:
In 10 years of existence, the ASOCC has failed
to engage in a periodic review of legislative
compensation, however, has on two occasions
recommended increases to executive compensation.
CHAIR KITO spoke to the slides on equitable compensation. He
began with slide 8, "Current Compensation":
Base Salary $50,400
Per diem based on federal short-term rate
Relocation expenses provided
Travel per diem provided
Non-Juneau Base = $75,150
Juneau Base = $68,692.5
Total All Legislators Base = $4.49 Million
4:56:30 PM
REPRESENTATIVE SULLIVAN-LEONARD shared her understanding that
per diem is calculated by the [U.S.} Department of Defense. She
asked about the process.
CHAIR KITO answered that per diem is adopted by Legislative
Council, but since the original determination, there is nothing
in the record that explains why the type of per diem or the
adjustment for Juneau legislators was adopted.
REPRESENTATIVE SULLIVAN-LEONARD asked whether the Legislative
Council had looked at per diem on a yearly basis.
CHAIR KITO answered that the discussion had come up during his
time on Legislative Council in April [2017].
4:59:12 PM
VICE-CHAIR WOOL asked for confirmation that the Juneau-based
legislators are getting 75 percent of the federal short-term
rate, but Juneau legislators pay tax on it as income.
CHAIR KITO answered that it is correct that per diem is counted
as taxable income for Juneau legislators.
4:59:56 PM
REPRESENTATIVE BIRCH offered the observation that Anchorage,
Alaska, or over half of legislators would receive no per diem
for a local special session so it would be considerable savings.
CHAIR KITO answered that it had been calculated out for a
special session, and the Anchorage peridium rate is
significantly higher than the rate for Juneau, Alaska, meaning a
special session in Anchorage, Alaska, would cost much more.
5:01:20 PM
REPRESENTATIVE KNOPP answered Representative Sullivan-Leonard's
question saying that the Department of Defense does calculate
per diem.
5:02:11 PM
VICE-CHAIR WOOL held over HB 309.