Legislature(2003 - 2004)
05/08/2003 09:00 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
CS FOR SENATE BILL NO. 26(STA)
"An Act relating to state employees who are called to active
duty as reserve or auxiliary members of the armed forces of
the United States; and providing for an effective date."
This was the first hearing for this bill in the Senate Finance
Committee.
Co-Chair Wilken stated that this bill "allows State employees who
are members of a reserve military unit and who are called to active
duty, to receive their previous salary and some or all of their
State benefits. This provision in law is triggered only by an order
of the Governor and is retroactive to September 11, 2001."
SENATOR KIM ELTON, co-sponsor of the bill with Senator Taylor, gave
two examples of the benefits of this legislation. First, he told of
Master Sergeant Steve Fernandez who was called from reserve status
to serve in the Persian Gulf. Senator Elton informed that Master
Sergeant Fernandez received backfill pay and benefits from his
civilian employer Williams Petroleum in North Pole, Alaska.
Senator Elton then described the situation of an Alaska State
Trooper stationed in Ketchikan, who was also called from reserve
status, and the inability for the State to provide salary
compensation and benefits for this employee.
Senator Elton pointed out this legislation would not require the
State to pay these salaries and benefits, but rather would
authorize the governor to do so through the issuance of an
administrative order. He also indicated that the Governor could
determine the extent of the backfill pay and benefits provided.
Senator Elton listed 43 State employees enlisted in the Army
National Guard, 83 enlisted in the Air National Guard, and 12
enlisted in the State Defense Force.
Senator Elton noted the Committee considered SB 177, sponsored by
Senator B. Stevens that extended similar benefits to State
retirees.
Senator Elton also informed that if this legislation were in effect
during the previous year and the Governor had issued a pertinent
administrative order, the maximum cost to the State would have been
approximately $80,000 for the eight State employees called to
active military duty.
Senator Taylor clarified "backfill" pay as the difference in the
State employee's regular salary and the military salary paid to
that employee while called to active duty. He remarked that the
State would incur a savings, as only a portion of the employee's
regular salary would be paid.
Co-Chair Wilken expressed his only concern relates to the fiscal
impact of this legislation and that more effort is necessary.
Co-Chair Green clarified that the Governor may implement this
option and asked if a provision exists that would allow the
Governor to rescind or modify the administrative order in the event
that a conflict continued for an extended period of time.
Senator Elton assured such action would be authorized through the
issuance of another administrative order.
Senator Olson wanted to ensure no "double dipping" would occur with
State employees collecting a salary from both the military and the
State.
Senator Elton assured this would not occur and furthered that some
State employees called to active military duty actually earn a
higher salary for their military service. He stated that the
backfill pay portion of this legislation would therefore not apply
to these employees.
Senator Bunde requested a listing of those State employees who
actually earn a higher salary in military service.
Co-Chair Wilken suspected pilots, colonels, and other military
positions pay wages higher than those paid for many State
positions.
Senator Elton gave an example of a custodian working in the State
Capitol Building, who was called to active military duty and paid a
higher salary. Senator Elton emphasized that although a cost would
be incurred from this legislation, another value must be
considered. He intended some State employees would be encouraged to
join the military reserves and "serve their country".
Co-Chair Wilken noted a letter in support of this legislation from
Julie Benson [copy on file].
JULIE BENSON testified via teleconference from Ketchikan about the
importance of this legislation to herself and her husband, an
Alaska State Trooper and military reservist called to active duty
in 2002 for six months. She informed that once called for military
service, her husband's State benefits were immediately
discontinued, resulting in a loss of retirement contributions as
well as salary increases he would have received if he remained
employed by the State. She furthered that when her husband returned
to State service, his annual salary increase was denied on that
basis that he "failed to demonstrate a greater value to the State."
She challenged that this failure was due to his deployment to the
Middle East to support for Operation Enduring Freedom. She pointed
out that her husband's military salary is not comparable to his
salary as an Alaska State Trooper and qualified that they
understood this when he enlisted. However, she stated they were
unaware that he would not receive State salary advancements during
his absence.
Ms. Benson remarked that State employees serving in the military
reserves should not be penalized in this manner, particularly
during a time of "significant national crisis." She commented that
under current policy, those State employees "almost feel punished",
adding to the difficulties of being separated from family.
Senator Taylor thanked the witness for her efforts in bringing this
matter to the Legislature's attention.
Co-Chair Wilken thanked the witness and her husband for their
service to the nation.
Co-Chair Wilken announced he has requested further detail from the
Division of Personnel, Department of Administration regarding the
fiscal impacts of this legislation.
Senator B. Stevens reminded the Committee of similar legislation
relating to benefits for retired State employees. He also supported
this bill.
Co-Chair Wilken also supported the legislation, but stressed a need
to understand the fiscal implications.
Co-Chair Green referenced an article dated February 23, 2003 from
the Associated Press regarding the State of Tennessee extending
similar backfill pay benefits for its State employees called to
active military service [copy on file]. She noted the provision in
this program limiting the amount of payments to $1,000 per month
for each affected employee. She suggested this provision could be
implemented in Alaska as well if necessary.
Co-Chair Wilken told of a married couple, both of whom are State
employees called to active military service, and the impacts of
this deployment on the family.
Senator Bunde informed he has family members who serve in the
reserves, one of whom has been called to active duty. Senator Bunde
remarked that for 20 years, this relative has also received a
salary for his military service and therefore, the temporary loss
of State salary is compensated.
Co-Chair Wilken ordered the bill HELD in Committee.
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