Legislature(2007 - 2008)HOUSE FINANCE 519
03/13/2008 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB417 | |
| HB359 | |
| HB324 |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 194 | TELECONFERENCED | |
| + | HB 324 | TELECONFERENCED | |
| *+ | HB 417 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 359 | TELECONFERENCED | |
| += | HB 364 | TELECONFERENCED | |
HOUSE F INANCE COMMITTEE
March 13, 2008
1:46 p.m.
CALL TO ORDER
Co-Chair Meyer called the House Finance Committee meeting to
order at 1:46:04 PM.
MEMBERS PRESENT
Representative Mike Chenault, Co-Chair
Representative Kevin Meyer, Co-Chair
Representative Harry Crawford
Representative Les Gara
Representative Mike Hawker
Representative Mike Kelly
Representative Bill Thomas Jr.
Representative John Harris
MEMBERS ABSENT
Representative Bill Stoltze, Vice-Chair
Representative Reggie Joule
Representative Mary Nelson
ALSO PRESENT
Kevin Brooks, Deputy Commissioner, Department of
Administration; Chris Christensen, Deputy Administrative
Director, Alaska Court System; Bruce Ludwig, Business
Manager, Alaska Public Employees Association; Fred Yates,
Self; Annette Kreitzer, Commissioner, Department of
Administration; Chris Christensen, Staff Counsel, Alaska
Court System; Representative Jay Ramras; Suzanne Armstrong,
Staff, Co-Chair Kevin Meyer; Dan Fauske, CEO/Executive
Director, Alaska Housing Finance Corporation, Department of
Revenue and Chairman, Governor's Council on the Homeless;
Jeff Jesse, Executive Director, Alaska Mental Health Trust
Authority; Bryan Butcher, Public Affairs Director, Alaska
Housing Finance Corporation.
SUMMARY
HB 324 An Act relating to the Alaska housing trust fund
and to the Alaska Council on the Homeless; and
providing for an effective date.
HB 324 was HEARD and HELD in Committee for further
consideration.
HB 359 An Act relating to probation and the offense of
minor consuming or in possession or control of
alcohol.
CSHB 359 (FIN) was REPORTED out of Committee with
a "do pass" recommendation and with attached
fiscal note #1 by the House Judiciary Committee
and new fiscal note by the Alaska Court System.
HB 364 An Act relating to notice and consent for a
minor's abortion; relating to penalties for
performing an abortion; relating to a judicial
bypass procedure for an abortion; relating to
coercion of a minor to have an abortion; relating
to reporting of abortions performed on minors;
amending Rule 24(a), Alaska Rules of Civil
Procedure, amending Rule 220, Alaska Rules of
Appellate Procedure, and Rule 20, Alaska Probate
Rules, relating to judicial bypass for an
abortion; and providing for an effective date.
HB 364 SCHEDULED and not HEARD.
HB 417 An Act relating to the compensation for certain
public officials, officers, and employees not
covered by collective bargaining agreements;
relating to pay increments for longevity in state
service; and providing for an effective date.
HB 417 was HEARD and HELD in Committee for further
consideration.
HOUSE BILL NO. 417
An Act relating to the compensation for certain public
officials, officers, and employees not covered by
collective bargaining agreements; relating to pay
increments for longevity in state service; and
providing for an effective date.
KEVIN BROOKS, DEPUTY COMMISSIONER, DEPARTMENT OF
ADMINISTRATION, introduced HB 417 by section. The bill
addresses pay issues for non-covered state employees,
including employees in the executive, judicial and
legislative branches. The bill restates the salary schedule
to reflect a 5.5% retroactive increase and identifies
several positions that need adjustment.
· Sec. 1 adjusts pay for the members of the Limited Entry
Commission from range 26, step C to range 27 with no
step designation.
· Sec. 2 conforms HB 417 to the Alaska State Defense
Force statute.
· Sec. 3 adjusts pay for the chief procurement officer
position, which has been functioning in dual roles,
from range 24 to range 27, consistent with other
directors. Senate Bill 171 does the same.
· Sec. 4 removes a step designation for deputy
commissioners upon appointment.
· Sec. 5 restates the salary schedule effective July 1,
2007 to reflect a 5.5% increase.
· Sec. 6 provides language adjusting the schedule by 3%
for FY 09.
· Sec. 7 adjusts the schedule another 3% for FY 10.
· Sec. 8 creates pay increments computed at a rate of
3.75% for employees who have attained step F. A person
could be eligible for a merit increase every two years.
A subsection allows the same for legislative staff.
· Sec. 9 moves the Regulatory Commission of Alaska
commissioners from range 26C to 27 without steps.
· Sec. 10 repeals longevity steps and replaces them with
pay increments.
· Sec. 11 clarifies executive branch pay. Anyone
currently receiving a salary override, as well as
commissioners whose pay was adjusted three years ago,
would not receive the 5.5% or the 3%. There are
mechanisms in place that compensates those individuals
adequately; the intent is to close the gap.
· Sec. 12 provides for increments for the judicial
branch.
· Sec. 13 gives employees of the University salary
increases in accordance with the compensation policy of
the Board of Regents.
· Sec. 14 stipulates that the salary increments
identified earlier are prospective.
· Sec. 15 provides transition language so that no
individual is harmed by the bill, but credited for time
served.
· Sec. 17 makes the first 5.5% adjustment retroactive.
1:59:31 PM
Representative Gara referred to Sec. 5 and asked how many
steps were currently in place. Mr. Brooks answered A through
F. Representative Gara asked if the only additional step was
the 3.75% every two years. Mr. Brooks explained the current
longevity steps and said the bill removes limits on how far
a person can go. There was a discussion regarding details of
how the steps can be used to address recruitment difficulty.
Representative Gara did not think the longevity allowance
addressed the difficulty.
2:05:46 PM
CHRIS CHRISTENSEN, DEPUTY ADMINISTRATIVE DIRECTOR, ALASKA
COURT SYSTEM, pointed out that the judicial branch has the
largest and lowest paid group of non-covered employees in
state government outside the University. Approximately 70%
of employees are range 15 or below. This means a high
turnover rate, which translates to high training costs and
other inefficiencies. In spite of this, the employees are
hardworking and committed. He noted that over the past three
years, court employees have received cost of living
adjustments (COLA) substantially lower than the actual rate
of inflation. He thought the change in longevity pay would
help the courts keep mid-level workers longer.
Mr. Christensen spoke to two provisions in the bill that the
court system is not in accord with. First, while the bill
gives COLA to magistrates and judges, it does not give them
the retroactive pay raise for the current fiscal year, nor
does it give magistrates longevity changes. The majority of
magistrates are underpaid compared to similar workers in the
executive branch. Second, he was concerned about grouping
judges together with political appointees in the executive
branch. Judges do not get longevity increases, unlike
regular state employees, who can get step increases equal to
around 35% of their salary over an 18-year career. A judge
working for 18 years earns as much as a new judge, making
judges uniquely dependent on COLA. In two decades, Alaskan
judges have gone from being the highest paid state court
judges in the country to next to last. It has become
difficult to retain judges and to recruit new ones. He
wanted the salaries to keep up with inflation (Statement on
File).
2:12:13 PM
Representative Crawford thought the same story could be told
across all state employment.
BRUCE LUDWIG, BUSINESS MANAGER, ALASKA PUBLIC EMPLOYEES
ASSOCIATION (APEA/AFT), spoke for two groups within state
government, the state supervisors and the confidential
employees. The supervisory unit recently completed
negotiations, which he described. He referred to a handout
(On File) showing average state service. Supervisors are the
employees with the highest longevity.
Mr. Ludwig added that APEA/AFT would like to see the bill
amended so that it would not be effective for executive
branch employees until offered to classified employees as
well. The second handout (On File) shows who the bill
targets; APEA/AFT proposes amending it so that many more
people are affected.
2:18:00 PM
Representative Harris asked if the members of the groups Mr.
Ludwig listed were represented through union negotiations
and contracts. He asked if the people talked about in HB 417
had a bargaining unit. Mr. Ludwig answered that their
bargaining unit was the commissioner. He said the longevity
increases had been denied in bargaining because it was not
authorized. Representative Harris surmised that the only way
the people classified under HB 417 would get increases is
through statute.
2:20:03 PM
Co-Chair Chenault sought clarification regarding the
offering and denying of the longevity steps. He asked if
APEA/AFT had gone to arbitration and accepted the decision.
Mr. Ludwig replied that they bargained it with the State.
2:21:07 PM
FRED YATES, SELF, testified in favor of the bill. He thought
the people covered deserve what is being offered. He asked
for the longevity steps to be included as incentive to
retain people.
2:23:14 PM
ANNETTE KREITZER, COMMISSIONER, DEPARTMENT OF
ADMINISTRATION, described the two tracks for state
employees: those represented by collective bargaining and
those who are not. The bill is for the later group.
Commissioner Kreitzer clarified some of Mr. Ludwig's
remarks. She said the entire offer had to be accepted, which
is what the union did. There are many components to a labor
contract; it's dangerous to separate one out. The State has
the same challenges as any other employer dealing with
recruitment and retention. The Department wants to be
equitable.
Representative Gara talked about the difference between
union and non-union employees. He understood that collective
bargaining governs union pay and the bill should govern non-
union pay. He stated that the place where the two groups are
the same relates to longevity, and thought it made sense for
everyone to have a two year increase after reaching the
final step.
Commissioner Kreitzer described her job as looking at the
full cost of each negotiated contract and judging whether
the cost was sustainable.
Representative Gara restated his concern regarding longevity
as a problem that applied to union as well as non-union
employees. He wanted the bill to address the problem for
both groups.
Commissioner Kreitzer maintained that she would not separate
out one piece of a contract. Representative Gara asked if
union employees had the same problem with getting stuck
after reaching the final step. Commissioner Kreitzer
acknowledged that they did.
2:30:35 PM
Commissioner Kreitzer commented that the union had accepted
the agreement. Representative Gara questioned whether the
employees meant to convey that they were satisfied with the
longevity situation. Commissioner Kreitzer reiterated that
she had to keep union and non-union issues separate.
Representative Kelly pointed out that union members pay dues
to get someone to bargain. He thought it would be a serious
mistake to legislate that process.
2:33:55 PM
Representative Hawker tried to find a broader perspective.
Although he thought non-union employees deserved the
recognition proposed in the bill, he understood the State
had to prioritize financially. He talked about important
human service workers who have endured pay freezes for many
years and wondered how Commissioner Kreitzer prioritized
giving a raise to the highest paid state employees.
2:37:17 PM
Commissioner Kreitzer disagreed that the people targeted in
the bill were the highest compensated employees. She
stressed that the bill is about non-covered employees. She
described the aging of the workforce and the pressures to
solve the retention and recruitment problems as soon as
possible. She suggested moving one step at a time. She
thought HB 417 was a reasonable step forward.
2:39:53 PM
Representative Hawker stated that he was not comfortable
with the legislation, given the resources available to the
State in relationship to the State's greatest needs.
Representative Kelly said he could support a bargaining/non-
bargaining wage freeze, but he could not support saving
money on just one group. He did not want the Legislature to
interfere with union activity.
2:43:23 PM
Representative Crawford asked about the 40-hour work week
and wondered if what was given up for that. Commissioner
Kreitzer responded that many state employees are already
working more than 40 hours. The service steps were the
inducement for the 40-hour work week. Her goal was to move
towards the 40-hour work week for non-union employees and
later for management, although it would be expensive.
2:47:06 PM
PUBLIC TESTIMONY CLOSED.
Co-Chair Meyer MOVED to ADOPT Amendment #1.
Page 5, line 3: Following "employees", Insert "and
magistrates"; Page 5, line 4: Following "than":, Delete
"magistrates and judicial officers", Insert "justices
and judges"; Page 5, line 11: Following "employees",
Insert "and magistrates"; Following "than":, Delete
"magistrates and judicial officers", Insert "justices
and judges"; Page 5, line 13: Following "courts":,
Insert "and"; Page 5, line 14: Following "courts":,
Delete ",and magistrates"; Page 5, line 16: Following
"AS 22.15.220":, Delete "(b) and".
Representative Hawker OBJECTED.
Mr. Christensen said the Amendment would allow the judicial
branch magistrates to get the retroactive pay and to
participate in the longevity step increases.
Co-Chair Chenault asked if the new fiscal note would be
adjusted to the Amendment. Mr. Christensen said the size of
the note would increase by $217,000.
2:49:16 PM
Representative Thomas asked for clarification regarding the
Amendment.
Representative Hawker WITHDREW his OBJECTION.
There being no further OBJECTION, Amendment #1 was ADOPTED.
Co-Chair Meyer referred to the changes needed in the fiscal
notes.
HB 417 was HEARD and HELD in Committee for further
consideration.
2:51:33 PM
HOUSE BILL NO. 359
An Act relating to probation and the offense of minor
consuming or in possession or control of alcohol.
Representative Hawker MOVED to ADOPT Amendment #1.
Page 2, line 11: After "AS 12.55.051;", insert "and";
Page 2, line 13: After "probation", Delete "; and",
Insert "."; Page 2, line 14-15, Delete "(5) continuance
of the probation would interfere with the
rehabilitation and growth of the person."
Co-Chair Meyer OBJECTED for discussion purposes.
Representative Hawker explained the amendment follows up on
previous Committee conversation regarding the vagueness of
the phrase "rehabilitation and growth of the person."
REPRESENTATIVE JAY RAMRAS, SPONSOR, said the Judiciary
Committee had wrestled with the same issue. He agreed the
language was ambiguous.
Co-Chair Meyer WITHDREW his OBJECTION. There being NO
further OBJECTION, Amendment #1 was ADOPTED.
2:54:51 PM
Representative Thomas MOVED to ADOPT Amendment #2 (25-
LS1377\L.4, Luckhaupt, 3/10/08). Representative Hawker
OBJECTED for discussion purposes.
Representative Gara expressed his support for the Amendment.
Representative Thomas explained the Amendment would reduce
probation for the first and second offenses to up to a year
instead of five years mandatory. It does not change the
penalty for the third offense, which includes probation
until 21.
2:56:42 PM
Representative Ramras thought the Amendment improved the
bill.
Co-Chair Meyer expressed concern with inconsistencies in the
Amendment, especially that judges could apply it differently
and unfairly.
SUZANNE ARMSTRONG, STAFF, CO-CHAIR KEVIN MEYER, reported
that the Department of Law was concerned about setting the
probation for up to one year for the first offense.
Magistrates could give zero through up to a year. The
Department of Law felt a set standard, such as one year,
should be applied across the state.
Representative Gara reminded the Committee that the first
two violations are not a crime. This is the only finable
offense with automatic probation. He thought judges should
have the freedom to discern the length of the probation
depending on the individual situation. He also wanted
flexibility for minors who are just under 21 years old. He
stated he would vote for the bill.
3:00:19 PM
Ms. Armstrong said the Department of Law had also raised the
point of the minor's ability to petition the court for
termination of probation. It could take six months for the
minor to complete the requirements of the termination.
Representative Kelly thought there should be something in
the bill that punishes the minor. He did not want the option
of no probation. He did not support the Amendment.
3:02:40 PM
Representative Crawford related a personal story about his
son. His son did not get charged because the penalties
pertaining to probation were too harsh, but he still learned
a valuable lesson. Representative Crawford thought that the
statute as it stands is not workable and he said he
supported the bill and the Amendment.
Representative Gara wondered what should be done about
probation for someone who is nearly 21. He suggested the
Amendment could say one year or until the age of 21.
3:05:08 PM
Representative Thomas related a personal story. In smaller
towns the magistrate knows the kids involved and can apply
that knowledge when determining the length of probation.
Representative Ramras stated his concern regarding a minor
consuming that would turn 21 during the probation period. He
wanted punishment. He thought a condition of a full year's
probation should be maintained even after the legal age is
reached. He mentioned a crime bill that intends to introduce
three days of jail time for someone who contributes by
purchasing alcohol for a minor. He said he supported the
Amendment.
3:08:54 PM
Representative Hawker removed his OBJECTION.
Representative Kelly OBJECTED.
A roll call vote was taken on the motion.
IN FAVOR: Thomas, Crawford, Harris, Gara, Hawker
OPPOSED: Kelly, Chenault, Meyer
Absent from the vote: Joule, Nelson, Stoltz
The MOTION PASSED (5/3). Amendment #2 was ADOPTED.
3:10:41 PM
Representative Gara informed the Committee that when the
original bill passed, it was written so that the fine would
be as stiff as possible without requiring a public defender,
which would be too expensive. The Court said that went too
far, and put in five years probation, even though the
offense is not a crime. Now the Public Defender represents
the kids. The only way to remove the Public Defender cost is
to impose a fine of $500, with $1000 for the second offense,
for example. He did not think there should be probation with
a fine, although probation for the third offense made sense.
He preferred getting rid of the whole probation requirement.
Co-Chair Meyer thought the topic might pertain to another
bill. He wanted to deter underage drinking.
Representative Ramras commented on the seriousness of minors
consuming any amount.
Representative Gara stated for the record that he disagreed
that it was a condemnable offense for a 20-year old to have
a beer. He thought it was a family matter. Co-Chair Meyer
wanted tough laws to back parents up.
3:13:47 PM
Co-Chair Meyer referred to the new fiscal note from the
Courts.
Co-Chair Chenault MOVED to report CSHB 359 (FIN) out of
Committee with individual recommendations and attached
fiscal note #1 by the House Judiciary Committee and new
fiscal note by the Alaska Court System.
CSHB 359 (FIN) was REPORTED out of Committee with a "do
pass" recommendation and with attached fiscal note #1 by the
House Judiciary Committee and new fiscal note by the Alaska
Court System.
There was a discussion regarding how many votes were needed
in Committee to pass an amendment.
HOUSE BILL NO. 324
An Act relating to the Alaska housing trust fund and to
the Alaska Council on the Homeless; and providing for
an effective date.
DAN FAUSKE, CEO/EXECUTIVE DIRECTOR, ALASKA HOUSING FINANCE
CORPORATION, DEPARTMENT OF REVENUE AND CHAIRMAN, GOVERNOR'S
COUNCIL ON THE HOMELESS, explained that HB 324 would create
a housing trust fund within the Alaska Housing Finance
Corporation to address homelessness in Alaska and codify the
role of the Governor's Council on the Homeless. He has
learned a great deal regarding the issue of homelessness and
the costs associated. Society is paying a heavy price for
homelessness; incarceration is more expensive than housing.
3:19:44 PM
JEFF JESSE, EXECUTIVE DIRECTOR, ALASKA MENTAL HEALTH TRUST
AUTHORITY, reviewed a few points regarding homelessness:
· 45% of the homeless in Alaska are families with
children.
· The average age is nine years.
· The price paid for homelessness includes poor
performance in school, emergency room visits, and
criminal justice system involvement.
Mr. Jesse emphasized that the most important feature of the
housing trust is the linking of support services to housing.
Over 30 states have developed housing trusts with excellent
results.
3:22:47 PM
BRYAN BUTCHER, PUBLIC AFFAIRS DIRECTOR, ALASKA HOUSING
FINANCE CORPORATION pointed out a change in a fiscal note.
Co-Chair Meyer asked if the appropriations were for one year
or five years. Mr. Butcher said one year, for projects with
a five-year cycle. Mr. Jesse restated the importance of
combining support services with housing. Out of the first
year's appropriation of ten million dollars, some of the
resources would be obligated for five to ten years of
support service funding. Otherwise, non-profit partners
would not participate in developing the services.
3:25:33 PM
Representative Hawker wanted clarification regarding the
one-time $10 million appropriation. He thought the testimony
earlier in the session indicated a sequence of $10 million
appropriations for ten years. Mr. Jesse agreed that the
intent was for the appropriation to be annual. The $10
million on the table is for the first year, but the process
is on-going. He thought $15 million per year for ten years
would better address the current homeless problem.
Mr. Fauske added that he is convinced there is a problem. He
thought the problem would grow worse as the cost of heating
oil rose. He agreed with Mr. Jesse that the problem will not
be solved with a one-time $10 million appropriation, but it
would start the trust.
3:29:45 PM
Representative Gara asked for more information. Mr. Jesse
said the trust was not being set up on an endowment model.
Mr. Fauske said there was currently a $10 million line item
in the capital budget. Mr. Butcher clarified that the item
is in the mental health bill which is within the capital
budget. Mr. Jesse said there were roughly 3500 homeless
people statewide on any given night and outlined the
strategic plan.
3:34:45 PM
Mr. Fauske said there has been $2 million in the capital
budget for homelessness for many years. He pointed out that
most people coming out of jail don't have a place to stay.
He would like better coordination to address the issues.
Representative Crawford asked for more information on how to
identify homeless people and give them a hand. Mr. Jesse
described the process of setting up housing units and then
providing case management to help people solve a wide
variety of problems that contribute to their homelessness.
He gave examples of skills that people need to learn. He
described how the Gates Foundation approached assisting
homeless families.
3:41:11 PM
PUBLIC TESTIMONY CLOSED.
HB 324 was HEARD and HELD in Committee for further
consideration.
HOUSE BILL NO. 364
An Act relating to notice and consent for a minor's
abortion; relating to penalties for performing an
abortion; relating to a judicial bypass procedure for
an abortion; relating to coercion of a minor to have an
abortion; relating to reporting of abortions performed
on minors; amending Rule 24(a), Alaska Rules of Civil
Procedure, amending Rule 220, Alaska Rules of Appellate
Procedure, and Rule 20, Alaska Probate Rules, relating
to judicial bypass for an abortion; and providing for
an effective date.
HB 364 was SCHEDULED but not HEARD.
ADJOURNMENT
The meeting was adjourned at 3:43 PM.
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