04/17/2003 08:12 AM House STA

HB 248-SALARY OF CHIEF PROCUREMENT OFFICER                                                                                    
                                                                                                                                
Number 0030                                                                                                                     
                                                                                                                                
CHAIR WEYHRAUCH  announced that the  first order of  business was                                                               
HOUSE BILL NO. 248, "An Act  relating to the annual salary of the                                                               
chief procurement officer; and providing for an effective date."                                                                
                                                                                                                                
Number 0090                                                                                                                     
                                                                                                                                
DAN  SPENCER, Director,  Administrative  Services, Department  of                                                               
Administration (DOA), referred to the  new fiscal note [from DOA,                                                               
dated  4/16/03,  included in  the  committee  packet], which  was                                                               
provided to  the committee  in response to  a request  from Chair                                                               
Weyhrauch  [during the  House  State  Affairs Standing  Committee                                                               
meeting  on  April 15,  2003].    He  pointed to  the  [analysis]                                                               
portion of the  fiscal note, where it shows an  annual savings of                                                               
approximately $8,200  "at the  current salary  ranges of  each of                                                               
the people involved."                                                                                                           
                                                                                                                                
REPRESENTATIVE SEATON  indicated the  range [26] of  the director                                                               
"going to  zero."  He  asked if  [the legislature] needs  to take                                                               
some action to "zero that out" of the Budget Review Unit (BRU).                                                                 
                                                                                                                                
MR. SPENCER answered no.  He  explained, "What we have done is we                                                               
have re-classed that position to  this deputy director position."                                                               
In response to a follow-up  question by Representative Seaton, he                                                               
confirmed  that  because of  the  reclassification,  there is  no                                                               
[position] to be filled.                                                                                                        
                                                                                                                                
Number 0202                                                                                                                     
                                                                                                                                
REPRESENTATIVE  BERKOWITZ moved  to  amend the  fiscal note  such                                                               
that the decrement  is indicated in the  relevant portion instead                                                               
of simply in the analysis.                                                                                                      
                                                                                                                                
MR.  SPENCER stated  that the  reality is  that "this  particular                                                               
division  is getting  the charge  to do  a lot  more" within  its                                                               
existing  budget.   He mentioned  centralizing procurement.   For                                                               
example, he  indicated that  the budget  reflects that  there are                                                               
$1.5 million-worth of savings that  [the division] has to find in                                                               
leasing,  as well  as probably  "another couple  million dollars"                                                               
that the  division will  have for  all the  procurement officers.                                                               
He  stated  that although  virtually  all  of the  Department  of                                                               
Administration  has taken  reductions, it  has "tried  not to  do                                                               
that in  this particular  division because,  in fact,  their work                                                               
load is going  to go up here  over the next couple  of years, and                                                               
that wouldn't help us very much in that regard."                                                                                
                                                                                                                                
REPRESENTATIVE  BERKOWITZ stated  that it  seems to  him that  if                                                               
there's  a decrement  based on  the actions  [the administration]                                                               
takes, it ought  to be recognized.  He  added, "If, subsequently,                                                               
the agency, or any agency,  seeks additional funds, that ought to                                                               
go under the budget hopper, along with everything else."                                                                        
                                                                                                                                
MR.  SPENCER  explained  that  when  "we"  did  the  budget,  the                                                               
governor  had already  decided that  "we  were going  to go  this                                                               
route," which  he said is one  of the reasons that  the budget is                                                               
the way it is today, is  [because] we anticipated this savings in                                                               
there already."                                                                                                                 
                                                                                                                                
REPRESENTATIVE  BERKOWITZ  asked if  there  are  any other  areas                                                               
where  Mr.  Spencer  is  aware   of  where  [Governor  Murkowski]                                                               
incorporated cuts, prior to legislative approval.                                                                               
                                                                                                                                
MR. SPENCER clarified that no  legislative approval was needed to                                                               
make  the adjustment  that resulted  in the  salary savings.   In                                                               
response to  a follow-up comment by  Representative Berkowitz, he                                                               
stated the following:                                                                                                           
                                                                                                                                
     We need legislative approval on  this particular one to                                                                    
     change  the  salary  range  of  the  chief  procurement                                                                    
     officer; but in terms  of the administrative assignment                                                                    
     of positions and the salary  ranges of other positions,                                                                    
     [it] is an administrative  action, and the savings that                                                                    
     result from those  - we do these every day.   These are                                                                    
     not  situations where  an appropriation's  required for                                                                    
     us to  adjust the salary ranges,  realize some savings,                                                                    
     and  apply   that  savings  to   other  areas   of  our                                                                    
     operations.  This is [a] normal course of business.                                                                        
                                                                                                                                
REPRESENTATIVE  BERKOWITZ  stated  that  the savings  has  to  be                                                               
within the  BRU, and if  it's not, and  there's a change  in what                                                               
the BRU  is, that  savings ought  to be  returned to  the general                                                               
fund, where it's subject to appropriation by the legislature.                                                                   
                                                                                                                                
MR. SPENCER noted:  "This is  a savings in this particular salary                                                               
area,  but we're  going to  be  doing other  things within  this.                                                               
This  is  part  of  our  normal  course  of  administering  these                                                               
programs, where  we can take this  savings and apply it  to those                                                               
other areas, without asking for additional money."                                                                              
                                                                                                                                
CHAIR WEYHRAUCH said he thinks  that the general discussion comes                                                               
up in a  lot of fiscal notes  and is an issue to  be sensitive to                                                               
when addressing fiscal notes.                                                                                                   
                                                                                                                                
[The motion to amend the fiscal note was not addressed further.]                                                                
                                                                                                                                
Number 0532                                                                                                                     
                                                                                                                                
REPRESENTATIVE SEATON  moved to  report HB  248 out  of committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
notes.                                                                                                                          
                                                                                                                                
REPRESENTATIVE  BERKOWITZ  objected  for  purposes  of  making  a                                                               
comment.  He continued as follows:                                                                                              
                                                                                                                                
     This is  another example of special  interests, or very                                                                    
     specific legislation, that I  think is somewhat onerous                                                                    
     in the  legislative process, and I  would encourage the                                                                    
     administration to  seek consolidation of these  kind of                                                                    
     job-related bills, so we don't get them piece-meal.                                                                        
                                                                                                                                
REPRESENTATIVE BERKOWITZ withdrew his objection.                                                                                
                                                                                                                                
There being no further objection, HB  248 was reported out of the                                                               
House State Affairs Standing Committee.