Legislature(1999 - 2000)
05/18/1999 08:46 PM 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
HOUSE BILL NO. 199
"An Act relating to compensation for certain state
employees; and providing for an effective date."
CS FOR HOUSE BILL NO. 199(STA)
"An Act relating to compensation for certain state
employees; and providing for an effective date."
CS FOR HOUSE BILL NO. 199(FIN)
"An Act relating to compensation for certain state
employees; and providing for an effective date."
MIKE TIBBLES, staff to REPRESENTATIVE GENE THERRIAULT was
invited to join the committee.
He explained that the bill was an establishment of a new
pay differential. It would freeze current employees at
their current pay until through COLAS it would all catch
up.
Mr. Tibbles continued. The change to the SBS program
reduces the State's contribution.
The final point was that the bill placed a cap on the
amount of wages against which contributions were made. It
would set the cap at the 1998 level. He said this was in
section five on page three. The cap related to all
employees.
Co-chair Torgerson asked if there were employees above
that? Mr. Tibbles responded that the 1998 cap was $68,400.
Senator Adams asked about municipalities and if they were
exempted under sections one and two? Mr. Tibbles said
sections one and two referred to the pay differential.
Senator Adams again asked if this only related to State
employees? Mr. Tibbles said he was not sure if the pay
differential was used by municipalities.
Senator Wilken read into the record a letter from a
constituent who had laid out the whole program cut.
ALISON ELGEE, Deputy commissioner, Department of
Administration was invited to join the committee. She said
they supported the amended version of the bill. Bargain
contracts were in an amendment based on differential pay
districts in the 1980's. Disparity has occurred in areas
where there are union and non-union employees. This bill
would correct a long-standing disparity and bring everyone
under one schedule. In response to Senator Torgerson she
said the differential applies to non-union members.
Senator Wilken asked about the written testimony of his
constituent. She explained that the 3.75 was the
differential for longevity. They differ by step as she
continued to explain. Upon completing the length of
services one qualifies for longevity steps which is 3.75.
Ms. Elgee identified "J", "K", "L" and "M" as longevity
steps. Senator Wilken said it was his understanding that
it takes three years to go from step K" to step "L". Ms.
Elgee said that was also her understanding. In response to
Senator Wilken, she explained the merit portion was steps
"A" through "F". Adjustments could occur to the wage scale
due to the cost of living allowance.
Senator Donley asked about page two, line thirty. Ms.
Elgee said this represented the current schedule in place
for the union employees. She said this was the last
version the Senate Finance committee had before themselves
a few years ago.
The Governor is concerned about the implications of
reducing benefits to state employees especially with the
passage of SCR 11 last night.
Co-chair Torgerson said he would now take up public
testimony from Fairbanks, offnet.
JOHN ATHENS, Assistant Attorney General, Fairbanks
testified from Fairbanks. Cuts are based on a 1986 study.
Why is the administration in such a hurry to pass this bill
so the differential can reflect this 1986 study? In answer
to his own question, he stated it was because they want
parity with the union workers. Perhaps a more recent study
should be used. He felt that the geographical differential
change was specifically targeting Fairbanks individuals.
PAUL LYLE, testified from Fairbanks. He said this bill was
a lot better than in previous versions. It still has some
fundamental disparities that need to be fixed, however. He
said he would acquire no pay raise until he is 55 years
old. It was not fair that employees will never see a pay
increase. Legislators get a raise in their per diem
however state employees get no pay raise. This needs to be
fixed in this bill. "Grandfathering" also needed to be
looked at. "Why should our pay be frozen for ten years?"
He referred to the change to SBS and also Article XII,
Section 7 of the Alaska Constitution. He felt they were
falling behind the private sector. The idea of freezing
pay and reducing SBS was not a good one.
Senator Phillips commented on the per diem. He said it
dropped several dollars a few years ago. When he brought
it up to the press they considered it an unimportant issue.
Senator Wilken asked about the letter that he received and
commented briefly on it. Senator Wilken further said he
would have his staff contact Mr. Lyle and have him fax his
written testimony.
CAROL ALDERMAN, paralegal, Department of Law, Fairbanks,
testified via offnet. She explained that she was a
classified employee. These were the employees needed the
most. She said their situation was only going to get
worse. Another area of concern was the change in SBS for
new people. They should all be treated the same.
ANTON JOHANSEN, Regional Director, Northern Region,
Department of Transportation and Public Facilities in
Fairbanks, testified via offnet. The bill would have no
personal effect on him. His concern was with the
geographical pay differential.
Senator Donley said he supported the geographical
differential but had concerns with the SBS.
Senator Donley MOVED amendment #1 to delete sections six
and seven regarding SBS. By a roll call vote of 1 yea
(Donley) and 7 nays (Torgerson, Parnell, Phillips, Green,
Adams Wilken, Leman) (P.Kelly absent) amendment #1 FAILED.
Senator Parnell MOVED CS HB 199(FIN) and WITHOUT OBEJCTION
it was REPORTED OUT with individual recommendations and
accompanying fiscal note "All" ($652.5). He also noted the
new fiscal note from the Alaska Court System in the amount
of $55.7. The major difference was the savings reflected
in the out years of the new Court fiscal note that were not
reflected in the original published one.
ADJOURNMENT
Co-chair Torgerson recessed the committee until 9:00 a.m.
and said he would hear bills previously scheduled/heard.
SFC-99 (1) 5/18/99
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