01/18/2001 08:00 AM House STA
| Audio | Topic |
|---|
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE STATE AFFAIRS STANDING COMMITTEE
January 18, 2001
8:00 a.m.
COMMITTEE CALENDAR
OVERVIEW: Department of Administration
TAPES
01-3, SIDES A & B
01-4, SIDE A
CALL TO ORDER
REPRESENTATIVE JOHN COGHILL, Chair, called the House State
Affairs Standing Committee meeting to order at an unspecified
time.
PRESENT
Committee members present were Representatives Coghill, James,
Fate, Stevens, Wilson, Crawford, and Hayes.
SUMMARY OF INFORMATION
COMMISSIONER JIM DUNCAN, Department of Administration (DOA),
reviewed the organizational chart of the department with the
committee. He then introduced Alison Algee, Deputy
Commissioner, Department of Administration; and Roxanne Stewart,
Special Assistant/Legislative Liaison, Office of the
Commissioner, DOA. He also announced the retirement of Karen
Boorman and the appointment of Brook Miles as the new executive
director of the Alaska Public Offices Association (APOC).
COMMISSIONER DUNCAN outlined the accomplishments for FY0l. He
said the Y2K Project was a success. He informed the committee
that DOA took over the management of all the state-owned
buildings in Juneau as well as the Fairbanks Regional Office
Building and the Atwood Building in Anchorage. Furthermore, the
department also successfully negotiated 12 cost-effective labor
contracts. Objectives for the next year include the completion
of review of RFP's (Request for Proposals) by March in order to
develop a partnership with the private sector for better
telecommunications services. The department also has a proposal
to change the Pioneer's Home into a combination Pioneer's and
Veteran's Home.
COMMISSIONER DUNCAN pointed out that most state agencies are
having problems recruiting and retaining [a strong state
employee] workforce. He has appointed a Retention Committee
chaired by Sharon Barton to look at potential legislation or
other means of recruiting and retaining a strong state employee
workforce.
COMMISSIONER DUNCAN informed the committee that the payroll
system is 12 years old and is going to have to he changed
because the state is losing the support system. The change in
software will require a database conversion of the current
system. Therefore, there is a request for a $400,000 capital
appropriation so that a consultant can design a new system.
REPRESENTATIVE JAMES expressed concerned about the rapid
turnover in technology. She asked if the department had thought
of a system that could be updated on an annual basis.
COMMISSIONER DUNCAN said he feels he is being proactive by
hiring a consultant to determine the best route. He noted that
the federal tax rates on the payroll system were updated
annually by Tesecret, but they will no longer be providing that
service.
COMMISSIONER DUNCAN gave an overview of General Services which
transfers access state property, operates the central mail
system, and manages state facilities as well as the Public
Building Fund.
COMMISSIONER DUNCAN said the Division of Personnel hires and
retains qualified workforce. Also, the division represents the
Administration in labor negotiations, responds to labor
grievances, administers negotiated contracts, and runs the
Workplace Alaska Program for which regulations have been
adopted. He highlighted the division's number one priority,
which is recruitment and retention.
REPRESENTATIVE STEVENS inquired as to the number of bargaining
units.
COMMISSIONER DUNCAN said there are 12 unions - the smallest
being the 25 employees of AVTEC and the largest being the
General Government with 8,000 employees. There are a total of
16,000 employees and the department has 1,700 employees. The
university employees are not included in these figures because
the university negotiates its own workforce.
COMMISSIONER DUNCAN turned to the Division of Retirement and
Benefits, which is managed by Guy Bell. Retirement programs
managed by the division in addition to the Public Employees
Retirement System include the judicial retirement program,
National Guard and Navy Militia, the Teachers Retirement System,
municipal employees through PERS, and retirees. He informed the
committee that Tier II of PERS was enacted in 1986 and Tier III
was enacted in 1996. The Supplemental Benefits System replaced
social security in the early 1970s. The rate is 6.13 percent up
to the social security limit and it is a pre-tax deduction.
Commissioner Duncan noted that health care coverage is third
party administered by Aetna.
REPRESENTATIVE JAMES recalled that the transition from one
carrier to another was terrible. She asked about insurance
companies stalling payments to draw interest on funds.
COMMISSIONER DUNCAN said insurance companies no longer hold a
reserve so that isn't an issue.
ALISON ELGEE, Deputy Commissioner, Department of Administration,
said that compensation to Aetna by the state is a flat rate per
person per month plus reimbursement for paid claims. The
company is fronted one or two week payments for cash flow
purposes.
COMMISSIONER DUNCAN discussed the Division of Senior Services.
REPRESENTATIVE JAMES said seniors don't want to receive services
from the Department of Health & Social Services (DHSS) because
that associates them with welfare.
ALISON ELGEE said the department is working with DHSS to
consolidate all the senior programs in DOA for one stop
shopping.
COMMISSIONER DUNCAN said the labor contract approved last
session was a three year contract with provisions for two, one-
year extensions.
COMMISSIONER DUNCAN said Risk Management is funded from
interagency funds alone. Furthermore, workers' compensation for
state employees is competitively procured through risk
management. He noted that the Port Plaza cleanup cost is
covered by self-insurance up to $1 million dollars.
REPRESENTATIVE JAMES, on the issue of workers' compensation,
expressed concerned about the issue of outside advice from
physicians preventing medical care when they don't even know the
injured worker.
CHAIR COGHILL asked if Brad Thompson of Risk Management could
come discuss workers' compensation with the committee [some
time].
COMMISSIONER DUNCAN turned to the Information Technology
Services, which is directed by Larry Walsh. The division is
developing a partnership with the private sector in order to
deliver telecommunication services to Alaska. The project will
cost $100 million over the next four years. The department is
currently evaluating three bids with four teams doing the
evaluation work. The department expects a recommendation by
March 15. He explained that this bid is occurring because
private enterprise has new technology faster. He said the
department talked with the labor unions and have a letter of
agreement with them. The 40 employees impacted by the move
would have one of three options: 1) go to work as a non-state
employee for the bidder; 2) get another job in state government;
or 3) be a state worker managed by the bidder. In the third
case, when the position becomes vacant, the bidder would decide
how to fill the vacancy.
COMMISSIONER DUNCAN discussed the Public Broadcasting system and
further discussed the Veterans' Home concept.
ANNOUNCEMENTS
CHAIR COGHILL announced that the next overviews scheduled were
regarding OPA and the Public Defender's office.
COMMITTEE ACTION
The committee took no action.
ADJOURNMENT
There being no further business before the committee, the House
State Affairs Standing Committee meeting was adjourned at 10:00
a.m.
NOTE: The meeting was recorded and handwritten log notes were
taken. A copy of the tape(s) and log notes may be obtained by
contacting the House Records Office at State Capitol, Room 3,
Juneau, Alaska 99801 (mailing address), (907) 465-2214, and
after adjournment of the second session of the Twenty-Second
Alaska State Legislature this information may be obtained by
contacting the Legislative Reference Library at (907) 465-3808.
| Document Name | Date/Time | Subjects |
|---|