Legislature(2001 - 2002)
03/18/2002 01:38 PM Senate JUD
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
SJR 37-CONST AM: HIRING FREEZE
SENATOR PETE KELLY, sponsor of SJR 37, said the measure will give
the legislature the authority to require the governor to
institute a hiring freeze if the legislature determines one is
necessary. Without that constitutional authority, the legislature
is unable to because of the separation of powers doctrine; SJR 37
provides that authority. Currently the new budget contains 858
new employees, according to the Division of Legislative Finance.
The Administration has argued that number and revised it downward
to 500 plus, but either number represents a large number of new
employees being added to the budget when the state is facing a
gap between revenues and expenditures. He said he is not trying
to place blame, as legislators may be responsible for some of
those employees; it is the nature of doing business and trying to
keep up with federal programs. The purpose of SJR 37 is to
provide a tool so that the nature of business can be structurally
changed and the people's branch of government can have more
impact into the size and scope of the budgets that have been
offered in recent years. Should this constitutional amendment
pass, it will have no impact on this Administration but will give
future legislators a tool to reduce state budgets if they find
themselves with an Administration that is unwilling to take
proactive steps to do so.
SENATOR KELLY informed members that in prior testimony on another
resolution that encourages the governor to institute a hiring
freeze, he has been asked how much this resolution will save and
to justify it. He said the fact is he does not know how much it
will save but hiring freezes are one of those self-evident truths
in businesses. He believes those who are against a hiring freeze
should justify their opinions of why this tool shouldn't be
offered.
SENATOR COWDERY asked if a [joint] resolution needs a simple
majority vote to pass.
SENATOR KELLY said that does and noted that the purpose behind
that is that the legislature is the policy maker yet, because of
the strict separation of powers rules in Alaska, the legislature
is sometimes not able to implement policy when it comes to
budgetary issues. It should be the will of the legislature to do
so without having to go through the bill process, which is why he
introduced this measure as a resolution. He does not want the
measure to be vetoed or to go through a fight on the floor.
CHAIRMAN TAYLOR said he learned while watching a television show
that 46 states are facing deficit budgets. He said he has been
shocked to see the numbers the Alaska legislature is looking at
today and the lack of any attention to any type of reductions or
prioritizations by departments.
TAPE 02-9, SIDE B
CHAIRMAN TAYLOR said he finds it hard to believe the other 45
governors are crazy because they are trying to reduce their
budgets. Several states have imposed both hiring freezes and
restrictions on travel. He recalled that Governor Sheffield
actually impounded funds and was chastised for it, but that was
his attempt to do everything he could during a deficit the state
faced in 1986. He maintained that he will be shocked if the
legislature will ever have to impose a hiring freeze in the
future. He then asked Senator Kelly if he is aware of any other
state that doesn't use this type of a tool.
SENATOR KELLY said he does not know who does or doesn't, but he
included in members' packets a copy of Governor Locke's recent
memo that imposes a hiring freeze. He agreed with Senator Taylor
that governors all over the United States have gone into "high
gear" to deal with deficit problems. He said Alaska is more
fortunate in that it does have some money in the bank and a
smaller government so it has the ability to get its hands around
the problem but it can't if it won't institute something as
simple as a hiring freeze, which does no damage to current
employees.
CHAIRMAN TAYLOR said Washington State is only facing a $1.6
billion deficit in a much larger budget.
SENATOR KELLY said Washington's total budget is $23 billion.
CHAIRMAN TAYLOR noted Alaska is facing a 43 or 46 percent
deficit.
SENATOR ELLIS asked if Senator Kelly's measure applies only to
general funds and whether he found anyway to go after positions
funded by other sources, such as fees or airport funds. He then
SENATOR KELLY'S response was inaudible.
SENATOR ELLIS said that many government positions are funded with
a combination of funds. He asked if all positions that are funded
with any general funds will be covered under this freeze.
SENATOR KELLY said he would imagine those details will be defined
in statute by a future legislature, which would then institute a
freeze by resolution when need be. SJR 37 merely gives the
authority, it does not provide the specifics.
SENATOR ELLIS asked if Senator Kelly's point is that the details
can be dealt with later and worked out in statute.
SENATOR KELLY said before a statute would be of any value at all,
the Constitution will have to be amended.
CHAIRMAN TAYLOR felt that Senator Ellis raised a good point as
the words "general fund" are not in the resolution and said he
found the answer to be fascinating. He asked, "Has the subterfuge
of the words 'other funds' now carried with it enough authority
that if your position was funded by 'other funds' that that
somehow isn't general funds?" He said that attaching that kind
of definition worries him.
SENATOR KELLY said that is possible and acknowledged that he did
not understand Senator Ellis's question at first. He explained
that SJR 37 merely provides the legislature with authority at a
later date, it does not specify which funds.
SENATOR COWDERY moved SJR 37 to its next committee of referral
with individual recommendations.
SENATOR ELLIS objected.
CHAIRMAN TAYLOR announced the motion carried with Senators
Cowdery, Therriault and Taylor voting in favor, and Senator Ellis
opposed.
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