Legislature(1999 - 2000)

04/26/2000 09:12 AM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
     SENATE BILL NO. 298                                                                                                        
     "An Act relating to the compensation of certain public                                                                     
     employees and officials not covered by collective                                                                          
     bargaining agreements; and providing for an effective                                                                      
     date."                                                                                                                     
                                                                                                                                
ALISON   ELGEE,    Deputy   Commissioner,    Department   of                                                                    
Administration,  stated  that  SB   298  was  introduced  to                                                                    
provide non  covered employees of the  Executive Branch, the                                                                    
Legislature  and the  Judicial Branch  similar increases  to                                                                    
the collectively  bargained contracts before  the Committee.                                                                    
She noted  that the  legislation would provide  employees in                                                                    
FY 2001, a benefit of $1200  dollars payable on a $50 dollar                                                                    
per pay  period to employees  employed in the year  prior to                                                                    
2000 for  each pay period  that they  were employed.   In FY                                                                    
2002, the bill  includes a wage increase of 2%;  FY 2003, an                                                                    
increase  of 3%.   She  referred to  the sectional  analysis                                                                    
included in member's packets.                                                                                                   
                                                                                                                                
Senator Adams  inquired if the  work draft was  supported by                                                                    
the Administration.  [Copy on File].                                                                                            
                                                                                                                                
Ms. Elgee  commented that  she had just  received a  copy of                                                                    
the  committee  substitute.    It  appears  that  there  are                                                                    
substantive changes.   The draft  proposes a 2%  increase in                                                                    
FY  2003 rather  than the  3% recommended.   The  draft also                                                                    
proposes  a  benefit  payment of  $800  dollars  instead  of                                                                    
$1200.   The  draft version  appears to  limit the  employee                                                                    
contribution  to  health  insurance  in FY  2003  from  $630                                                                    
proposal to $600 dollars.                                                                                                       
                                                                                                                                
Co-Chair  Parnell  referenced  Section   8,  Page  4,  which                                                                    
addresses the lump  sum payment.  He asked  if the Governor,                                                                    
Lt.  Governor,  and legislators  would  be  included in  the                                                                    
increase for health benefits.                                                                                                   
                                                                                                                                
Ms. Elgee  explained that health  benefits were set  for all                                                                    
members of the select benefits  plan by the Commissioner and                                                                    
included everyone  that participates.  It is  necessary that                                                                    
there is  a statutory  change regarding  pay increases.   SB
298  does  provide  for pay  increases  for  legislators  in                                                                    
future years.                                                                                                                   
                                                                                                                                
Co-Chair Parnell  questioned when  pay increases  would take                                                                    
affect.                                                                                                                         
                                                                                                                                
Ms. Elgee reiterated that the  first pay raise would be July                                                                    
1, 2001 at 2%; the next would be at 3% in July 2002.                                                                            
                                                                                                                                
Co-Chair  Parnell stated  that the  "lump sum  distribution"                                                                    
was not considered a pay raise.                                                                                                 
                                                                                                                                
PAUL  LYLE,   (Testified  via   Teleconference),  Fairbanks,                                                                    
advised  that the  committee  substitute  was not  available                                                                    
through the  Legislative Information  Office. He  noted that                                                                    
he did not  object to any of the  changes proposed, however,                                                                    
requested information on changes made to the work draft.                                                                        
                                                                                                                                
JOHN  ATHENS,  (Testified  via  Teleconference),  Fairbanks,                                                                    
inquired  if  the  work  draft   had  been  adopted  by  the                                                                    
Committee.   He  requested time  to give  testimony on  that                                                                    
version.                                                                                                                        
                                                                                                                                
Co-Chair Torgerson  indicated that  the work draft  had just                                                                    
been faxed to all Legislative Information Offices.                                                                              
                                                                                                                                
DON ETHERIDGE, Lobbyist, AFL-CIO,  Juneau, spoke in favor of                                                                    
the  proposed  legislation.    He  noted  that  the  AFL-CIO                                                                    
believes  that  all  public  employees  should  receive  the                                                                    
proposed  increases.    He  acknowledged  that  Legislator's                                                                    
should also receive the proposed increase.                                                                                      
                                                                                                                                
SENATOR   TIM  KELLY   spoke  to   the  proposed   committee                                                                    
substitute.  He commented that  the work draft was a counter                                                                    
proposal to that submitted by the Governor.                                                                                     
                                                                                                                                
Senator Kelly pointed out that  the work draft proposes five                                                                    
changes.   The  first change  would  be to  the salaries  of                                                                    
department  heads with  an effective  date of  January 2003.                                                                    
In  relationship to  monetary  terms, the  work draft  would                                                                    
lower the bonus  from $1200 dollars to $800  dollars, and it                                                                    
would lower the  rate in the third  year from 2% to  3%.  It                                                                    
would also cap health care  benefits in the third year, from                                                                    
$630 to  $600.  He  added that  the proposed draft  does not                                                                    
include  the Legislature,  Governor or  Lt. Governor  in the                                                                    
lump  sum pay  out.   He  proposed that  the effective  date                                                                    
occur during the next administration.                                                                                           
                                                                                                                                
Senator T. Kelly  pointed out the cost analysis  of the bid.                                                                    
[Copy on File].  The  analysis indicates that there would be                                                                    
a savings from the Governor's  bill of $1.8 million dollars,                                                                    
with  a  $2.8 million  dollar  savings  over the  three-year                                                                    
course of the  bill.  He voiced concern that  the total cost                                                                    
would be  $100.5 million dollars  over a  three-year period,                                                                    
and that would increase the fiscal gap.                                                                                         
                                                                                                                                
Senator  Adams questioned  how the  work draft  would affect                                                                    
the other contracts, asking if  those twelve contracts would                                                                    
be separate.                                                                                                                    
                                                                                                                                
Senator Tim Kelly replied that  the contracts all call for a                                                                    
$1200 dollar signing bonus.    Additionally, they call for a                                                                    
$515 dollar  health benefit  in the first  year, and  a $575                                                                    
health benefit  in the  second year.   All  twelve contracts                                                                    
max  out with  a $630  dollar  health benefit  in the  third                                                                    
year.    He continued  that  all  contracts  call for  a  2%                                                                    
increase in the  second year and a 3% increase  in the third                                                                    
year.  He outlined the differences.                                                                                             
                                                                                                                                
Senator Adams understood  the only changes made  would be to                                                                    
the Executive and Legislative Branches.                                                                                         
                                                                                                                                
Senator Tim  Kelly acknowledged that  was true and  that the                                                                    
legislation  would  not  address the  twelve  contracts  now                                                                    
before the Legislature.                                                                                                         
                                                                                                                                
Co-Chair Parnell asked the effect of Section 11.                                                                                
                                                                                                                                
Senator  T. Kelly  stated that  section  indicates that  the                                                                    
legislation,  a pay  raise  for  non-union State  employees,                                                                    
would  not go  into effect  until a  majority of  the Unions                                                                  
contract with them.                                                                                                             
                                                                                                                                
Co-Chair   Parnell   MOVED   that  work   draft   1-GS208\H,                                                                    
Lauterbach, 4/25/00, be  the version of the  bill before the                                                                    
Committee.                                                                                                                      
                                                                                                                                
Senator Adams OBJECTED.                                                                                                         
                                                                                                                                
Following  a  brief  at-ease, Senator  Adams  explained  his                                                                    
objection.  He  pointed out that the work  draft would treat                                                                    
State employees differently.                                                                                                    
                                                                                                                                
Senator  T.  Kelly responded  that  if  in fact  the  twelve                                                                    
negotiated contracts  were approved  by the  Legislature, he                                                                    
believed that the  bill would revert back  to the Governor's                                                                    
position.  At  this time, he did not believe  that there was                                                                    
sufficient   support  in   the  Legislature   to  pass   the                                                                    
negotiated contracts.                                                                                                           
                                                                                                                                
Senator  T. Kelly  suggested that  the proposed  legislation                                                                    
could  be available  to the  Unions to  help avert  a public                                                                    
employees strike.   He  argued that such  a strike  would be                                                                    
counter productive.                                                                                                             
                                                                                                                                
Senator Adams  recommended that the  contracts be  placed on                                                                    
the floor so  that the full Legislature could  vote on them.                                                                    
At  that  time,  there  would be  something  substantial  to                                                                    
negotiate.   He  noted that  action would  publicly indicate                                                                    
each legislator's position.                                                                                                     
                                                                                                                                
A roll call  vote was taken on the motion  to adopt the work                                                                    
draft.                                                                                                                          
                                                                                                                                
IN FAVOR:      Donley, Leman, Wilken, P. Kelly, Green,                                                                          
               Phillips, Parnell, Torgerson                                                                                     
OPPOSED:       Adams                                                                                                            
                                                                                                                                
The MOTION PASSED (8-1).                                                                                                        
                                                                                                                                
Co-Chair Torgerson  advised that the  bill would be  HELD in                                                                    
Committee for further discussion.                                                                                               
                                                                                                                                
SB 219 was HELD in Committee for further consideration.                                                                         

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