Legislature(2005 - 2006)CAPITOL 106
02/28/2006 08:00 AM House STATE AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| Conference of Young Alaskans Presentation | |
| HB485 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | HB 485 | TELECONFERENCED | |
| += | HB 475 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE STATE AFFAIRS STANDING COMMITTEE
February 28, 2006
8:05 a.m.
MEMBERS PRESENT
Representative Paul Seaton, Chair
Representative Carl Gatto, Vice Chair
Representative Bob Lynn
Representative Jay Ramras
Representative Berta Gardner
MEMBERS ABSENT
Representative Jim Elkins
Representative Max Gruenberg
OTHER LEGISLATORS PRESENT
Representative John Coghill
Senator Bettye Davis
COMMITTEE CALENDAR
CONFERENCE OF YOUNG ALASKANS PRESENTATION
- Heard
HOUSE BILL NO. 485
"An Act amending the State Personnel Act to place in the exempt
service pharmacists and physicians employed in the Department of
Health and Social Services or in the Department of Corrections
and corporate income tax forensic auditors employed by the
division of the Department of Revenue principally responsible
for the collection and enforcement of state taxes who specialize
in apportionment analysis and tax shelters of multistate
corporate taxpayers; and providing for an effective date."
- HEARD AND HELD
HOUSE BILL NO. 475
"An Act describing contributions to the health reimbursement
arrangement plan for certain teachers and public employees;
clarifying eligibility for membership in that health
reimbursement arrangement plan; relating to the 'administrator'
of the Public Employees' Retirement System of Alaska; and
providing for an effective date."
- SCHEDULED BUT NOT HEARD
PREVIOUS COMMITTEE ACTION
BILL: HB 485
SHORT TITLE: STATE PHARMACISTS/DOCTORS: EXEMPT SERVICE
SPONSOR(s): RULES BY REQUEST
02/15/06 (H) READ THE FIRST TIME - REFERRALS
02/15/06 (H) STA, FIN
02/23/06 (H) STA AT 8:00 AM CAPITOL 106
02/23/06 (H) Scheduled But Not Heard
02/28/06 (H) STA AT 8:00 AM CAPITOL 106
WITNESS REGISTER
IAN-MICHAEL HEBERT, Chair
Steering Committee
Conference of Young Alaskans
Fairbanks, Alaska
POSITION STATEMENT: Presented speakers and answered questions
during the Conference of Young Alaskans presentation.
LIEUTENANT GOVERNOR LOREN LEMAN
Juneau, Alaska
POSITION STATEMENT: Offered opening remarks for the Conference
of Young Alaskans presentation.
JOSEPH HARDENBROOK, Coordinator
Creating Alaska Project
Fairbanks, Alaska
POSITION STATEMENT: Offered a brief history of the Creating
Alaska Project during the Conference of Young Alaskans
presentation.
PAT RACE, Member
Steering Committee
Juneau, Alaska
POSITION STATEMENT: Read a resolution passed by the members of
the Alaska Constitutional Convention.
ANDY MODEROW, Delegate
Conference of Young Alaskans
Anchorage, Alaska
POSITION STATEMENT: Spoke about speakers Vic Fischer and Katy
Hurley - both delegates to the original Alaska Constitutional
Convention - during the Conference of Young Alaskans
presentation.
TIFFANY ZULKOSKY, Delegate
Conference for Young Alaskans
Bethel, Alaska
POSITION STATEMENT: Highlighted a portion of a PowerPoint
presentation related to leadership, during the Conference of
Young Alaskans presentation.
RICK WYSOCKI, Delegate
Conference of Young Alaskans
Koliganek, Alaska
POSITION STATEMENT: Read the vision statement regarding
education, during the Conference of Young Alaskans presentation.
CHRISTY BERGMAN, Delegate
Conference of Young Alaskans
Juneau, Alaska
POSITION STATEMENT: Cited some of the education goals set by
the delegates of the Conference of Young Alaskans.
HELENA HOFFMAN, Delegate
Conference of Young Alaskans
Fairbanks, Alaska
POSITION STATEMENT: Read the actions taken in regard to
education, during the Conference of Young Alaskans presentation.
COURTENAY PIERCE, Delegate
Conference of Young Alaskans
Koliganek, Alaska
POSITION STATEMENT: Was co-presenter of issues related to
natural resources during the Conference of Young Alaskans
presentation.
GALEN POSPISIL, Delegate
Conference of Young Alaskans
Anchorage, Alaska
POSITION STATEMENT: Was co-presenter of issues related to
natural resources during the Conference of Young Alaskans
presentation.
MARA EARLY, Delegate
Conference of Young Alaskans
Juneau, Alaska
POSITION STATEMENT: Cited the vision statement for the healthy
communities and families focus, during the Conference of Young
Alaskans presentation.
JENNA GRUENSTEIN, Delegate
Conference of Young Alaskans
Anchorage, Alaska
POSITION STATEMENT: Addressed the delegates' conference topic
of Alaska spirit, during the Conference of Young Alaskans
presentation.
MICHAEL CIPRIANO, Delegate
Conference of Young Alaskans
Juneau, Alaska
POSITION STATEMENT: Cited selected actions related to the
Alaska spirit issue, during the Conference of Young Alaskans
presentation.
ALEX NELSON, Delegate
Conference of Young Alaskans
Juneau, Alaska
POSITION STATEMENT: Related his experience at the Conference of
Young Alaskans.
JANET SEITZ, Staff
to Representative Norm Rokeberg
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 485 on behalf of the House
Rules Standing Committee, sponsor by request, which is chaired
by Representative Rokeberg.
VIRGINIA SMILEY, Director
Division of Alaska Pioneer Homes
Department of Health and Social Services (DHSS)
Juneau, Alaska
POSITION STATEMENT: Put the issue of the pharmacists' salaries
in context, by giving the committee an overview of the pharmacy
in the Alaska Pioneer Homes and the pharmacists' duties, during
the hearing on HB 485.
JANET CLARKE, Assistant Commissioner
Central Office
Finance and Management Services
Department of Health and Social Services (DHSS)
Juneau, Alaska
POSITION STATEMENT: Testified in support of HB 485.
MILA COSGROVE, Director
Division of Personnel
Department of Administration
Juneau, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
485.
JERRY BURNETT, Director
Administrative Services
Department of Revenue
Juneau, Alaska
POSITION STATEMENT: Offered clarity during the hearing on HB
485.
ROBYNN WILSON, Director
Anchorage Office
Tax Division
Department of Revenue
Anchorage, Alaska
POSITION STATEMENT: Testified during the hearing on HB 485.
ACTION NARRATIVE
CHAIR PAUL SEATON called the House State Affairs Standing
Committee meeting to order at 8:05:09 AM. Representatives
Gatto, Lynn, Gardner, and Seaton were present at the call to
order. Representative Ramras arrived as the meeting was in
progress.
^Conference of Young Alaskans Presentation
8:06:59 AM
CHAIR SEATON announced that the first order of business was the
Conference of Young Alaskans Presentation.
8:07:05 AM
IAN-MICHAEL HEBERT, Chair, Steering Committee, Conference of
Young Alaskans, expressed his appreciation for the warm
reception received in Juneau. He explained that the purpose of
the presentation is to share what took place during the
Conference of Young Alaskans in January 2006, and how that event
reflects on "the historic gathering 50 years ago."
8:07:49 AM
LIEUTENANT GOVERNOR LOREN LEMAN relayed that he was the opening
speaker for the conference. He opined that a remarkable group
of young people gathered for that conference, and he said he
fully expects many of them to be involved with government in
various positions of leadership in the future.
8:09:10 AM
LIEUTENANT GOVERNOR LEMAN indicated that the purpose of the
conference was to allow youths to emulate an experience similar
to that shared by the participants of the original
constitutional convention held 50 years ago." The result of the
original convention was the Constitution of the State of Alaska.
Lieutenant Governor Leman said he recommended to the youth the
importance of doing the following: getting started, building
teamwork, and standing strong. He said he saw those
recommendations acted on at the conference. He stated that even
though he supported the process the youth went through, he did
not agree with all their ideas.
8:12:27 AM
LIEUTENANT GOVERNOR LEMAN emphasized the importance of outreach
to youth, and he cited the recent conference as "an example of
what we ought to be doing." He told the committee to anticipate
a high level of intelligence from the ensuing speakers, and he
stated his belief that "our best 50 years are ahead of us."
8:14:20 AM
MR. HEBERT related the efforts involved in putting together the
conference, citing Joseph Hardenbrook as instrumental in those
efforts.
8:15:17 AM
JOSEPH HARDENBROOK, Coordinator, Creating Alaska Project,
explained that the project was designed by the University of
Alaska to commemorate the Fiftieth anniversary of the Alaska
Constitutional Convention. He offered a brief history of the
project, noting that the commemoration period began in November
2005, and will run through April 2006. He related that one of
the main projects worked on was a documentary entitled, "The
Forty-Ninth Star; Creating Alaska," which was produced by Alaska
One Television and debuted February 6, 2006.
MR. HARDENBROOK said the Creating Alaska Project embraced the
Conference of Young Alaskans. The conference was designed to
spread awareness among the youth of Alaska about the 55 Alaskans
who gathered together in Fairbanks in the winter of 1955-56 to
craft Alaska's constitution. He relayed that UAF President
Hamilton assembled a steering committee consisting of: four
university students, a high school student, and four young
business leaders. The steering committee put together the
conference, selecting the delegates and setting the agenda. He
announced that three of the steering committee members were
present to testify: Patrick Race, Megan Gleason, and Ian
Hebert. Mr. Hardenbrook said the spirit of the original
drafters of the constitution was the inspiration for the
conference, but it was modeled on the Conference of Alaskans
hosted by Governor Frank Murkowski in 2002. He listed the
contributors to the conference, noting that many of them
approached the steering committee to offer their support, free
of any agenda.
8:18:15 AM
MR. HARDENBROOK listed the delegates heard at the conference:
Victor Fisher - delegate to the original Constitutional
Convention; Katy Hurly - chief clerk for the convention;
Lieutenant Governor Loren Leman; former Governor Walter Hickel;
and Fairbanks North Star Borough Mayor Jim Whitaker. He
emphasized that "this hearing today" was organized by the
delegates, with assistance from the Juneau Economic Development
Council, and he extended thanks to the council on behalf of the
university. He stated that the university has not taken a
position on the findings of the conference; the conference was
entirely driven by the delegates, with the agenda and focus
areas set by the steering committee. Notwithstanding that, he
reported that the university was enthusiastic about the conduct
and findings of the delegates and the "remarkable diligence that
they brought to the table as they espoused their views on some
of the challenges facing our state."
MR. HARDENBROOK announced that a short video would be played to
illustrate what happened at the Conference of Young Alaskans.
8:20:41 AM
[The video was played at this time.]
8:26:30 AM
MR. HEBERT noted that the short video presentation shown, as
well as a full-length video, will be available mid-March. The
videos were made by a group of six high schools students in
Anchorage, as part of the Media Education and Development
Institute of Alaska (MEDIAK).
MR. HEBERT said the steering committee was charged with choosing
55 young Alaskans from a pool of approximately 400 applicants
and creating the format for the conference. The applicants each
wrote an essay describing their dream for Alaska and how that
dream fits into the following topic areas: education, natural
resources, Alaskan spirit, leadership development, and healthy
communities and families. He said the political preference of
each applicant was not important; the decision was based upon
how cogent and coherent the argument was in each essay. He said
the makeup of the conference was different than the original
convention, being comprised of: 24 communities, 13 ethnicities,
24 men, and 30 women.
MR. HEBERT related that the conference was facilitated by Brian
Rogers of Information Insights. He offered an overview of what
happened in the four days of the conference, [referring to a
PowerPoint presentation not included in the committee packet].
The focus of the conference, he explained, was to "go through
... a procedure of visions, goals, and action items," and
determine how they all relate to each other. He noted that over
20 percent of the delegates were present to testify. He said
groups of 11 worked on action items that could be included in
the final report. Some of the items were challenged through
debate.
MR. HEBERT emphasized the civility and quality of the arguments
that were heard, stating that many people's ideas and
perspectives were changed. He mentioned "the urban/rural split"
on some issues, and the fact that after hearing one side of the
story, those on the other side were affected. He said the
reason that the young participants' statements were so powerful
is because they were speaking from their own life experiences.
MR. HEBERT said possibly the most valuable part of the whole
conference was when each delegate was given the opportunity to
reflect on the four days and say what he/she thought was
positive and what could have been done differently.
8:34:49 AM
PAT RACE, Member, Steering Committee, read a resolution passed
by the members of the Alaska Constitutional Convention [at the
University of Alaska, February 5, 1956], which read as follows:
You are Alaska's Children. We bequeath to you a state
that will be glorious in her achievements, a homeland
filled with opportunities for living, a land where you
can worship and pray, a country where ambitions will
be bright and real, an Alaska that will grow with you
as you grow. We trust you; you are our future. We
ask you to take tomorrow and dream; we know that you
will see visions we do not see. We are certain that
in capturing today for you, you can plan and build.
Take our constitution and study it, work with it in
your classrooms, understand its meaning and the facts
within it. Help others to love and appreciate it.
You are Alaska's children...
8:36:04 AM
ANDY MODEROW, Delegate, Conference of Young Alaskans, said a
source of inspiration at the conference was the presence of
speakers Vic Fischer and Katy Hurley - both delegates to the
original Alaska Constitutional Convention. He said Ms. Hurley
related that those at the 1955 convention were careful "not to
legislate within the constitution." Mr. Moderow indicated that
Mr. Fischer was the youngest at that convention, but his
eloquence helped him to be taken seriously. He stated, "We know
we have big shoes to fill, following in the footsteps of people
like Vic Fischer and Katy Hurley, and for many of us, this was
our first step in following that."
8:38:37 AM
REPRESENTATIVE RAMRAS revealed that his business hosted the
young delegates in Fairbanks. He expressed dismay over learning
that the recent conference cost $130,000, because he said he
hoped it could be replicated with some regularity. He asked Mr.
Hebert for his thoughts regarding the ability to produce the
event in the future at a lower cost.
8:40:15 AM
MR. HEBERT responded that it is the intent of the university to
continue the creation of the Alaska Project. Furthermore, it is
the intent of the delegates in the steering committee to build a
partnership with the university "and with other entities" to
"continue this movement." He offered his belief that the end
dollar amount for the recent conference was approximately
$100,000. He related that the plan is to hold another historic
gathering in 2009 to celebrate statehood. He stated his hope is
that the university will champion that "movement" with the
support of the steering committee, the delegates, and other
young Alaskans. Mr. Hebert also revealed that one of the
resolutions made in January was to hold a Conference of Young
Alaskans every five years, following the fiftieth anniversary of
statehood. He said that interval would not only be less of a
financial burden, but also would allow "a new pool of applicants
to be presented." He said there was overwhelming support from
both the public and private sector, from which he concluded that
[getting support in the future] would not be a challenge.
8:41:58 AM
MR. HEBERT, in response to a question from Representative Ramras
regarding the university's involvement with the expenses, said
he would research the matter.
8:42:57 AM
MR. HEBERT imparted the mission statement of the Conference of
Young Alaskans as follows:
We the delegates of the Conference of Young Alaskans
will inherit the responsibility for caring for our
great land. We are thankful to the men and women who
have come before us. We understand that as Alaska's
next generation, it's our task to begin shouldering
the responsibility of making this state a better place
for its entire people. With this in mind, it's the
vision of this conference and its delegates to build
upon current progress, as well as to find creative new
solutions in the following ... five focus areas:
leadership, education, natural resources, healthy
communities and families, and reviving the Alaska
spirit.
MR. HEBERT stated that the focus of the Conference of Young
Alaskans was creating one vision, five goals, and ten action
items.
8:43:51 AM
TIFFANY ZULKOSKY, Delegate, Conference for Young Alaskans,
highlighted a portion of a PowerPoint presentation related to
leadership. She said some of the goals for leadership included:
providing mentorship, taking ownership of the state's wellbeing,
developing leadership in rural and minority groups, and
strengthening communication and interaction between urban and
rural communities.
MS. ZULKOSKY said the delegates would like to see the
legislature and the Alaska Commission on Post-Secondary
Education initiate debt forgiveness, lower loan interest rates,
and reduced monthly payments of loans as an incentive to
students to pursue a post-secondary education. The delegates
would also like to see the university system provide a larger
variety of educational opportunities, by creating more law
programs, as well as additional degree programs.
8:47:07 AM
MS. ZULKOSKY, in response to a question from Chair Seaton,
confirmed that the loan program would serve as an incentive for
those students given a loan to attend out-of-state universities
to return to work in Alaska. Regarding the action that would be
taken to implement the aforementioned goal of strengthening
interaction between urban and rural communities, Ms. Zulkosky
said the delegates support an urban and rural exchange, which
would create a better understanding of "both sides." She offerd
further details.
MS. ZULKOSKY stated, "As you can see, this entire package was
adopted by overwhelming support; 98 percent of the delegates
felt that all of these were very important issues."
8:48:24 AM
RICK WYSOCKI, Delegate, Conference of Young Alaskans, addressed
the next of five topics covered at the conference: education.
He directed attention to the vision statement regarding
education [shown on page 5 of the report], which read as follows
[original punctuation provided]:
Alaska will continue supporting and developing higher
quality educational opportunities that are relevant in
urban and rural Alaska in order to secure and sustain
our future, and the futures of our children. We will
attract, retain, and strengthen educators and students
who are proactive and innovative in their teaching and
learning while being engaged with their communities.
8:49:10 AM
CHRISTY BERGMAN, Delegate, Conference of Young Alaskans, cited
some of the education goals set by the delegates, which read as
follows [original punctuation provided]:
1. Alaska will create, recruit, and retain quality
educators invested in Alaska's future.
2. Alaska will recognize individual needs and provide
support for Alaskan students in their diverse ways of
learning.
3. Alaska will strive to understand and close the
achievement gap between demographics and increase
graduation rates in Alaskan schools.
4. Alaska will provide incentives and opportunities to
attract and retain educated Alaskans.
5. Alaska will develop and implement interactive,
culturally relevant and appreciative curricula for all
age groups.
8:50:16 AM
HELENA HOFFMAN, Delegate, Conference of Young Alaskans, read
[items 6-10 on page 9 of the report], which related to actions
taken toward the delegates' vision for education. They read
[original punctuation provided]:
6. The state will provide regional counselors that
promote post secondary education and job training.
7. All school boards will have student representation
by the 2006-07 school year.
8. The university will adopt and promote PITAS
(Preparing Indigenous Teachers for Alaska Schools) as
a degree program at all campuses.
9. The state will fully fund early childhood
development programs by 2007.
10. The state will require an Alaska history class,
and in other curriculum, include an Alaska Native
studies unit and a locally developed unit focusing on
the history, culture and government of the local
community and involve elders and knowledge bearers as
essential educational resources to be developed by
2009.
8:52:04 AM
MS. HOFFMAN, in response to a question from Representative
Gardner, explained that PITAS is currently a program at the
University of Alaska Southeast, but has not yet been adopted by
the University of Alaska Anchorage or the University of Alaska
Fairbanks.
8:52:13 AM
COURTENAY PIERCE, Delegate, Conference of Young Alaskans,
together with Galen Pospisil, addressed the issue of Natural
Resources. Ms. Pierce cited the delegates' vision toward
natural resources [shown on page 6 of the report], which read as
follows [original punctuation provided]:
Alaskans will responsibly manage, develop and conserve
our land and natural resources while protecting the
long-term benefit for all.
8:52:58 AM
GALEN POSPISIL, Delegate, Conference of Young Alaskans, noted
two of the natural resource goals [listed on page 6 of the
report], which read as follows [original punctuation provided]:
3. Alaska will promote responsible resource use now
and in the future to provide for all generations.
4. Alaska will empower its people in the decision
making process regarding the use and development of
its natural resources.
5. Alaska will protect subsistence and personal use of
natural resources.
MR. POSPISIL and MS. PIERCE directed attention to the delegates'
proposed actions related to the natural resource goals [shown on
page 10 of the report], from which they alternately cited the
following [original punctuation provided, with some formatting
changed]:
1. By 2009, Alaska will create an
alternative/renewable energy research institute by
soliciting funds from the Department of Energy and
private industry, which will appropriate funds and
collaborate with communities, boroughs, and the
federal government to achieve 20% renewable energy
production by 2020.
3. Alaska shall consider primary ownership and shall
have preferential access to the proposed Alaska gas
[pipeline].
5. The state will direct a Permanent Fund Dividend-
level percentage of natural gas pipeline proceeds to
an endowment, with the interest from that endowment
going to the general fund.
11. The state will partner with Alaska Natives by
forming a permanent advisory committee by 2008, which
will be composed of social scientists and Native
leaders, elders, and youth to ensure the protection of
subsistence lifestyles for future generations.
8:54:19 AM
MS. PIERCE noted that three ideas were challenged, including a
proposed - and subsequently adopted - action [from the
aforementioned page 10], which read as follows:
Alaska will work with the federal government to
develop the Arctic National Wildlife Refuge and a
natural gas pipeline by 2011, which will cut energy
costs, and reduce dependence and related risks on
importing foreign oil.
MS. PIERCE said the second idea was related to aerial wolf
hunting, while the third idea, was a proposal that the state
immediately regain control over University of Alaska endowment
lands, and she said neither of those ideas passed.
8:54:54 AM
REPRESENTATIVE GARDNER observed that most of the issues approved
by the delegates passed by a wide margin; however, the issues
that were challenged appear to have a close margin. She
requested that a delegate come before the committee to discuss
"the issues that were disagreement points on the [Arctic
National Wildlife Refuge (ANWR)] ... portion."
8:56:02 AM
MR. MODEROW suggested that some of the delegates may have been
concerned about connecting ANWR to the national gas pipeline.
He indicated that other factors that may have swayed the
delegates' stance one direction or the other were related to
protecting the coastal plain and the need for further economic
development of the state's resources.
8:57:12 AM
MR. MODEROW, in response to follow-up questions from
Representative Gardner, said the urban/rural divide among
delegates was more evident in the matter of the wolf-hunting
proposal than regarding the issue of ANWR. Regarding the
latter, he stated, "I think the deadline didn't have as much to
do with it; it was more the connecting of the two issues."
8:57:47 AM
MS. PIERCE, in response to a question from Chair Seaton, said
the challenged natural resource topics show on pages 11-12 in
the report.
8:58:07 AM
MR. MODEROW, in response to Chair Seaton, explained that the
delegates chose which topics to highlight for the committee.
8:58:20 AM
REPRESENTATIVE GATTO said he heard someone mention that the idea
of the conference was to come up with some broad goals, but he
said he sees a lot of specific goals in the report. He asked if
the delegates spent as much time contacting people [outside the
conference] to find out why they opposed certain issues as they
did listening to those in support of them.
8:59:31 AM
MR. MODEROW explained that the conference focused on the
interactions of the 54 delegates who were a part of it [rather
than gathering opinions from others].
9:00:40 AM
MARA EARLY, Delegate, Conference of Young Alaskans, cited the
vision statement for the healthy communities and families focus
[shown on page 13 of the report], which read as follows
[original punctuation provided]:
Alaska's families and communities will be healthy and
safe, and will enjoy a high quality of life, civic
participation, education, culture, and community
connectedness and collaboration.
MS. EARLY said the group involved with the issue of healthy
communities and families emphasized a holistic approach to its
goals. She highlighted three of the five goals [shown on page 6
of the report], which read as follows [original punctuation
provided]:
1. All Alaskans will have essential community and
civil services.
2. All Alaskans will have quality health care that is
accessible and affordable.
3. All Alaskans will be civically informed and engaged
to better our families, our communities, our
government, and ourselves.
MS. EARLY said she chose to work on the issue of healthy
communities and families, but had not realized just how broad
the spectrum of discussion would be pertaining to the issue.
She highlighted 3 of the 10 action items, which read as follows
[original punctuation provided]:
3. Alaskans will enhance mental health services by: a)
building, staffing and maintaining affordable mental
health clinics, b) US will provide financial aid
incentives for students who work in mental health in
Alaska, and c) Alaska schools will provide mental
health screenings and prevention programs in all
schools.
7. Alaska will stop importation of illegal drugs and
alcohol to dry villages that leads to sexual,
physical, emotional abuse and suicide by providing
additional airport and boat security.
9. School districts will introduce service learning
and civic engagement (in age-appropriate curricula) in
K-12.
The state will require all communities receiving local
government funding to develop a ten year economic
stimulus and stability plan (including concrete action
items.) Plans will be updated every two years.
9:04:06 AM
JENNA GRUENSTEIN, Delegate, Conference of Young Alaskans,
addressed the delegates' conference topic of Alaska spirit, and
she cited the vision [shown on page 6 of the report), which read
as follows [original punctuation provided]:
We will endeavor to build a sustainable and vibrant
Alaska, united by our commitment to the Alaska Spirit,
which celebrates not only the unique history of our
state, but the rich heritage stemming from the diverse
culture that each person brings to the Last Frontier.
MS. GRUENSTEIN said the group of delegates, of which she was a
part, argued the issues long and hard to determine exactly what
it means to be an Alaskan, the result of which she said comes as
close as possible without actually hitting the mark. She said
the five goals that the Alaska spirit team formulated were meant
to be broad and encompass anything that could be addressed.
Conversely, the action items were made to be specific and
address specific issues.
MS. GRUENSTEIN directed attention to some of the goals for
Alaska spirit [shown on page 6 of the report], which read as
follows [original punctuation provided]:
1. Alaskans will know about Alaska.
2. Alaskans will be engaged in government.
3. Alaskans will celebrate our diversity and frontier
spirit as a means to unify the state.
9:06:50 AM
MICHAEL CIPRIANO, Delegate, Conference of Young Alaskans, cited
selected actions related to the Alaska spirit issue [shown on
page 14 of the report], which read as follows [original
punctuation provided]:
2. Election day in Alaska will be a state holiday.
4. Because it directly inhibits the rights of
individuals, the Alaska Legislature shall repeal the
25th Amendment to the Alaska Constitution defining
marriage.
10. We support the required Alaska history class and
proposed curriculum. Those developing this curriculum
should include a locally developed section focusing on
the history, culture and government of the local
community using factual accounts from primary sources.
MR. CIPRIANO said there was a lot of debate over the issue of
repealing the Twenty-Fifth Amendment.
9:08:15 AM
CHAIR SEATON remarked that the challenged items of discussion
that the delegates addressed are relevant to the discussions
currently taking place in the Alaska State Legislature.
9:08:18 AM
REPRESENTATIVE GARDNER pointed out that some of the ideas put
forth by the delegates are wonderful, but "the delegates had the
opportunity to create ... a dream and a vision without regard to
the cost ...."
9:09:04 AM
MR. HEBERT said he thinks the delegates kept that in mind,
particularly in regard to ANWR, the natural gas pipeline, and
resource development. Some action items, he said, were regarded
as investments. He stated, "Some of the things in education,
some of the recommendations on what we do with loan programs,
those are considered by many, I believe, to be investments and
things that wind up driving Alaska to be a strong state in the
future."
REPRESENTATIVE GARDNER said, "I'd agree with that."
9:09:46 AM
REPRESENTATIVE LYNN offered his understanding, based upon the
presentation, that the delegates garnered information on any
particular subject by talking amongst themselves, rather than
going to outside sources. He indicated that he would like to
know if that is the way things worked during the original
constitutional convention.
9:10:17 AM
MR. HEBERT responded that those involved with the original
convention got a lot of input from outside sources. He said the
youth delegates also heard from representatives who spoke to the
five aforementioned issues.
REPRESENTATIVE LYNN expressed the importance of getting outside
information.
9:11:30 AM
CHAIR SEATON stated that he thinks the delegates did a marvelous
job in four days and produced an impressive report that will be
viewed by many legislators.
9:12:08 AM
MR. HEBERT said the comments of the committee will be taken in
to consideration when planning the next Conference of Young
Alaskans for 2009.
9:12:55 AM
MR. HEBERT, in response to a previously asked question from
Representative Ramras regarding the future of the conference,
outlined some steps being taken by the university, as well as
other ideas. He said an idea has hatched among the delegates
and steering committee members to create a Society of Young
Alaskans.
9:14:10 AM
REPRESENTATIVE GATTO said he would like the delegates to develop
a fiscal plan for the state, take a look at the existing budget
and identify "the fat" in it, and consider how they would treat
all their ideas under three different scenarios with varying oil
prices.
MR. HEBERT indicated that that challenge from Representative
Gatto could be addressed by the upcoming Society of Young
Alaskans.
9:15:17 AM
CHAIR SEATON asked the delegates to autograph copies of the
reports for the committee and for Representative Foster.
MR. HEBERT said some of the delegates would like to offer final
statements.
9:16:12 AM
MS. GRUENSTEIN said she walked away from the conference
impressed with the knowledge that the delegates brought to the
table.
9:17:32 AM
MS. ZULKOSKY related that what she took away from the experience
is knowing she has the opportunity to be involved in Alaska
politics. She stated, "Leaders that go before us know that
they're going to have to build up leaders to come after them."
9:18:42 AM
ALEX NELSON, Delegate, Conference of Young Alaskans, stated that
he was part of the Alaska Dream Group. He said he is a high
school student who started out skeptical about how the group
would progress. He said, "We ended up at the end of the
conference being one of the most functional groups." He
expressed appreciation at being able to take part in the
conference and to the committee for hearing the presentation.
9:19:58 AM
MS. EARLY related that although many of the issues discussed at
the conference were controversial, none of the discussion was
derisive. She said the delegates were united in their desire to
discover what would be best for Alaska, and she encouraged those
in the legislature to focus on being united, as well.
CHAIR SEATON thanked the delegates for their presentation.
9:22:21 AM
REPRESENTATIVE LYNN encouraged the delegates to contact their
representatives. He stated, "The better the communication, the
better the representation."
HB 485-STATE PHARMACISTS/DOCTORS/AUDITOR EXEMPT
9:23:27 AM
CHAIR SEATON announced the last order of business was HOUSE BILL
NO. 485, "An Act amending the State Personnel Act to place in
the exempt service pharmacists and physicians employed in the
Department of Health and Social Services or in the Department of
Corrections and corporate income tax forensic auditors employed
by the division of the Department of Revenue principally
responsible for the collection and enforcement of state taxes
who specialize in apportionment analysis and tax shelters of
multistate corporate taxpayers; and providing for an effective
date."
The committee took an at-ease from 9:23:44 AM to 9:27:05 AM.
9:27:18 AM
JANET SEITZ, Staff to Representative Norm Rokeberg, Alaska State
Legislature, presented HB 485 on behalf of the House Rules
Standing Committee, sponsor by request, which is chaired by
Representative Rokeberg. She said the House Rules Standing
Committee introduced the bill at the request of the Departments
of Health & Social Services and Revenue. The bill proposes to
move two job [categories] from their current position to exempt
status. Those two categories are: pharmacists and corporate
income tax forensic auditors. She noted that the committee
packet includes the sponsor's statement, which describes some of
the recruitment and retention problems that the departments are
experiencing with those two job categories and an explanation of
why it would relieve those problems if the jobs were made
exempt. She noted that the representatives of the departments
were present to answer technical questions, and she urged the
committee to support the bill.
9:28:47 AM
CHAIR SEATON, in regard to moving forensic auditors to an exempt
category, said he believes one of the people working in that
position is currently representing the unions on the Alaska
Retirement Management (ARM) Board. He asked if changing that
job category to exempt status would prevent that person from
being able to serve on the board.
MS. SEITZ said she doesn't have the answer at hand, but will
find out.
9:29:15 AM
VIRGINIA SMILEY, Director, Division of Alaska Pioneer Homes,
Department of Health and Social Services (DHSS), put the issue
of the pharmacists' salaries in context, by giving the committee
an overview of the pharmacy in the Alaska Pioneer Homes and the
pharmacists' duties. She said the six homes are located in
Ketchikan, Sitka, Juneau, Anchorage, Palmer, and Fairbanks, and
they all rely on receiving the medications for their residents
from the division's central pharmacy located in the Anchorage
Pioneer Home. As mandated by state and federal law, the
pharmacy must be under the oversight of a licensed pharmacist.
She said the division does use School of Pharmacy interns and
pharmacy assistants; however, three pharmacists are necessary to
supervise staff, determine appropriateness and dosage of each
medication, and - for the specialized geriatric population -
track and respond to the possibility of drug interactions. She
stated that the pharmacists perform highly specialized
consultant duties by spending much of their time giving consult
to physicians, family, and staff.
MS. SMILEY continued:
With the introduction of Medicare Part D, the Pioneer
Home pharmacists have designed and are about to
implement a resident chart assessment that requires a
complete review of each resident's medication regimen
every 30 days. Based on our current occupancy, that's
going to be approximately 450 resident chart reviews a
month. That's a substantial amount of work. In the
quarter ending December 1, 2005, the pharmacy packaged
and dispensed ... 353,821 individual doses of
medications out of our pharmacy in Anchorage.
Dispensing that volume of medications requires a full
staff that are present and working.
MS. SMILEY stated that for almost a full year, the division has
been losing its pharmacists to higher paying jobs and has not
been able to attract new pharmacists to fill those vacancies.
She said both the federal government and private sector pay
wages that are competitive with that of the division and offer
"signing bonuses" and forgiveness of student loans. She
continued:
For eight months of last year, we had a single
pharmacist on our payroll. It was necessary for us to
sign contracts with two temp agencies, and we were
able to fill many but not all of the vacant shifts.
We paid the contract agencies $70/hour for their
pharmacists. At this critical point, we finally
placed the pharmacists' PCN [position control number]
into a temporary higher paying category in order to
recruit and hire more competitively; however, the
Division of Personnel told us that we would have to
seek a permanent solution for this issue, and that's
why we're here today.
The problem is that under the present wage scale for
pharmacist positions in the state system, we're not
competitive with other employers - either the federal
government or the private sector. We're asking to
have pharmacists moved into the exempt service with
other professional classifications, as it will provide
the needed flexibility to be competitive in our
current market place.
9:33:28 AM
JANET CLARKE, Assistant Commissioner, Central Office, Finance
and Management Services, Department of Health and Social
Services (DHSS), said she thinks Ms. Smiley's testimony
highlights the personal difficulties that have been experienced
with "some of our most vulnerable populations" in dealing with
this issue. She urged the committee's strong support of HB 485.
She stated that DHSS has eight pharmacists positions: three of
the positions are in the Division of Pioneer Homes, two are in
the Alaska Psychiatric Institute [within the Division of
Behavioral Health], and one is in [the Epidemiology Section
within the Division of Public Health]. She stated that while
there are not many positions, each is critical in the state
services being performed. For example, she said, they are
either providing direct dispensing services to clients who are
in great need of that expertise, or they are providing highly
specialized consulting services that would be cost prohibitive
to obtain through a contracting service. She indicated that
another problem with contracting services is in regard to issues
of employee/employer relationships and guidance.
MS. CLARKE warned that the risks are great to the state if the
core group of expert pharmacists cannot be maintained. She
said, "I'm not sure what we would do if we did not have the
required pharmacy support for our vulnerable pioneers; it's just
critical in this day and age related to their own medical
needs." Therefore, she said, it is necessary to be able to
compete in the market place for these critical positions. Ms.
Clarke said under the current classified salary, the department
can pay $32/hour, whereas contracted pharmacists are paid double
that amount. She concluded:
It's clear to us that these highly professional,
licensed pharmacists no longer really fit in the
classified service. Physicians [and] psychiatrists
are exempt, as you know, in the statute, and ... this
group of ... workers clearly more readily meets that
test of being these kind of specialized medical
professionals that we need to have in the exempt
service."
9:37:38 AM
REPRESENTATIVE GATTO mentioned other occupations that are in
short supply in the state. He questioned what is going on that
Alaska is experiencing so many shortages across the board.
9:38:04 AM
MS. CLARKE responded that she thinks that is a complex question
and recommended that a representative of the Division of
Personnel may be able to offer that division's view.
Notwithstanding that, she proffered that in the '90s the state-
negotiated salary increases were half of the Consumer Price
Index (CPI), so state wages did not keep up at that point. In
regard to pharmacists, she emphasized, the market is so far out
of realm with what the state pays that she said she doesn't
think there is any study or market-based pay system that could
accommodate "what we're seeing with pharmacists." She mentioned
national shortages and said, "There's a whole lot going on for
these other job classes that you talked about." She offered
further examples.
9:39:44 AM
REPRESENTATIVE GARDNER said there was a lot of testimony last
year about people taking state jobs because of the benefit
package, even though salaries were not equivalent [to those in
the private sector]. She said, "Now that the benefit package is
no longer the strength that it used to be, salaries are maybe
more important across the board." She suggested that it may be
necessary to restructure the entire structure of state
employment, rather than addressing individual job categories in
a piecemeal fashion.
9:41:02 AM
MS. CLARKE deferred to Ms. Cosgrove.
9:41:26 AM
CHAIR SEATON mentioned a study and pay ranges between 22 and 27.
He asked how much a range 27 is paid.
9:41:55 AM
MS. CLARKE said she doesn't know the exact amount; however, she
said when the pharmacist classification study came out, the
results were dismaying. She explained that when a
classification study is done, there is no comparison to external
market; only internal comparisons are made. She explained that
means there was no comparison to what pharmacists were being
paid in the private sector.
9:43:11 AM
CHAIR SEATON stated his understanding that both internal and
external markets can be used in a study. He suggested there may
be a difference in the interpretation of the regulations, and he
called on Ms. Cosgrove to answer that question so that everyone
would be on the same track.
9:45:36 AM
MILA COSGROVE, Director, Division of Personnel, Department of
Administration, explained that the current State of Alaska
classification plan is based on nine occupational families. She
explained that in a telescoping level of duties there are
groups, within which are families, and within which are series
"and so on." She continued:
The state Personnel Act contemplates the concept of
like pay for like work, which has for the past 15-20
years been interpreted to mean that job
classifications are aligned internally for salary
purposes. In other words, when you do a
classification study, you contemplate the eight
classification factors - it's a whole job
classification system based on a federal model. We
look at [those] duties and we say, "Does this work
equate to a range 14 or a range 16?" And we try to
make sure that professional level positions and one
job class family are compensated equitably as other
professionals in other job class families. So, in
other words, they're internally aligned; there's a
sense that range 16 in the State of Alaska has a
certain kind of responsibility and duty, and has a
certain level of education and experience necessary to
perform the duties of their jobs. And that's what's
meant by the concept of internal alignment.
9:47:36 AM
MS. COSGROVE noted that those working at range 21-22 are high-
level, professional, technical experts with "a fairly broad
scope of responsibility and consequence of error." In response
to a question from Chair Seaton, she said the division tries to
weigh each job against a series of eight factors; it is an
established methodology of position classification and a
legitimate system in the broad scheme of things.
9:49:31 AM
CHAIR SEATON said, "The internal alignment is then only within
state job classifications within the ... state-provided jobs."
9:49:43 AM
MS. COSGROVE answered that's correct.
9:50:29 AM
CHAIR SEATON offered his understanding that regulation allows
both internal and comparative [studies].
9:50:40 AM
MS. COSGROVE responded that it is not regulation to which Chair
Seaton is referring. She stated that the Division of Personnel
has policies related to classification, and her description of
how the division introduces market-based pay is a description of
how the division's operations have operated. When in doubt, she
said, the division refers to the Personnel Act, which
contemplates, under the merit system of personnel, the concept
of like pay for like work. She offered her recollection that
this is articulated in AS 39.25.150. She said there are issues
regarding being competitive, especially in the higher levels of
the state's professional ranks. She added, "It's a complicated
scenario." She continued:
At this point, we have discussed with the Department
of Law and our labor relations folks, and we are
comfortable that we can begin to introduce more
elements of market-based pay without violating the
statute, or the classification plan, or the pay plan.
And we're in the process of developing guidelines and
analyzing data that will allow us to do that. And
simply, what we're looking at is: when there's a
demonstrated history of recruitment difficulty and our
turnover rate exceeds our hire rate, and when we're
looking outward at projections for increased demands
in certain occupational fields, we will go out and do
a market survey. And if the market survey indicates
that we're not competitive, we will look at adjusting
salary ranges one or two ranges, depending on what
that market data looks like - so ... that's roughly
7.5-15 percent. And we're in the process of
developing those guidelines, getting it approved by
the Personnel Board, and we expect to be able to role
that out on July 1, absent any other unseen hurdles at
this point. I don't anticipate that there will be
any, but we still have some administrative hoops to
jump ... through.
So, that will allow us, in a fair and equitable
manner, and in an objective manner, to apply market
pay data, but we still won't do it by individual job
class. We want to be able to do it by job class
family, because we still have to care for the other
part of the personnel rules. In the Personnel Act
they talk about internal alignment and a clear career
progression. So, within a job class family, we need
to make sure that things are still aligned. So,
pharmacists don't sit alone in the world as a job
class family; they're in with some other medical
professionals, like occupational therapists,
recreational therapists, et cetera. If we were to
raise pharmacists under this new scheme, all of those
other job classes would go up as well.
9:53:29 AM
CHAIR SEATON asked if Ms. Cosgrove is saying that the only way
to solve the problem with the pharmacists is to change to an
exempt category and that the system of classification really
doesn't function at this point in time to "get us to where we
need to be ...."
9:53:48 AM
MS. COSGROVE replied that she reluctantly came to that
conclusion. She stated that she is a big proponent of the
system of employment. She said she thinks it's there for a
reason and she doesn't think it's a "light action to remove
people from the classified service." However, even if
pharmacists are raised to the top of the pay scale, they still
would not be "competitive." She offered her understanding that
currently the Department of Health & Social Services is paying
pharmacists the equivalent of a range 29 A, which she added, "Is
just to get people in the door." She pointed out that that pay
scale is not even contemplated on the General Government Unit
(GGU) or Supervisory Unit (SU) pay scales; "that's pegged at the
partially exempt pay scale." She said this is not dissimilar to
what occurred with physicians and medical doctors, which are
exempt. She said, "We can't pay them enough to be competitive.
With some professions over time I think we may find that that's
true." She mentioned the national crisis in the medical
professions - the shortage of skilled workers and the increase
in demand. She stated, "I very reluctantly agreed to the
establishment of a ... temporary exempt position for the
pharmacists, because the option was closing down the pharmacy,
and that didn't seem like a viable option to us, and it
certainly wasn't a viable option to the Department of Health &
Social Services."
9:55:33 AM
MS. COSGROVE, in response to a question from Chair Seaton, said
once something becomes exempt, she has no administrative
authority over where the salary range gets set; that would be at
the discretion of the Office of the Governor. However, she
added that "for these types of positions" the Office of the
Governor generally consults with the Division of Personnel to
ask about its findings and for its recommendation.
9:56:14 AM
REPRESENTATIVE GARDNER queried, "You've talked about a national
crisis, the medical professions, and the difficulty for
pharmacists specifically. Does that apply also to the forensic
auditors?"
9:56:28 AM
MS. COSGROVE replied, "There are other issues with the auditor
positions. Obviously they're not medical professions. So, the
answer to that would be no."
9:57:08 AM
REPRESENTATIVE GARDNER asked what other job categories the state
is having trouble filling.
9:57:24 AM
MS. COSGROVE said her staff is doing a study; therefore, she
cannot answer that question today with 100 percent accuracy. In
general, however, she said the difficulty in recruiting is due
to the lack of competitive wages for high-level positions,
nurses, engineers, auditors, and possibly others.
9:58:23 AM
REPRESENTATIVE GARDNER said she would rather wait to address the
issue until all the data is available.
9:58:47 AM
MS. COSGROVE said the study will be completed within the next
30-60 days. Although all the data is not available at present,
she said there is salary data which shows that if [pharmacists]
are brought "competitive to market" they will be "beyond the
currently negotiated pay scale." She indicated that the ranges
in which a pharmacist can fall are paid roughly between $60,648-
$75,000. She indicated that a cross independent study done by
Milliman, Inc. shows that "we're looking at a fairly
conservative seventy-fifty percentile, which is a fairly
conservative average wage of $100.000 a year." She said,
"That's a big difference; that's difficult for us to make up in
our current salary schedule. And, to me, that's what pushes
them over the threshold."
10:00:21 AM
REPRESENTATIVE GARDNER asked what the commonalities in job
classes are.
10:00:45 AM
MS. COSGROVE listed the three basic types of employment in the
executive branch: classified, partially exempt, and exempt.
Those in classified service are fully subject to personnel
rules, and the majority of them are covered by collective
bargaining. She described three ways a person may be partially
exempt: through statute through the authority vested in the
legislature; because they are policy-level decision makers; or
because of some odd recruitment threshold that would lead the
personnel board to believe that filling those positions could
only be done by direct appointment. Partially exempt employees
are exempt from the portions of the personnel rules that are
related to recruitment and hiring. If they are dismissed, they
do not have a grievance "avenue" under the personnel rules. In
response to a question from Chair Seaton, she said partially
exempt employees are subject to the classification and pay plan
articulated in AS 39.27. She noted that AS 39.25.110 is the
statute related to exempt service. Legislative action is
required in order to be in exempt service. She indicated that
the jobs that are in exempt status are there because they can't
be legitimately placed on the salary schedule. Medical
professionals are one example of that, she said. She offered
other examples. Exempt employees are, technically, "at will
employees," and they are exempt from the personnel rules. From
a human resource standpoint, she said, "you still need to have a
reason to dismiss them from their employment; you can't just do
that willy-nilly."
10:05:11 AM
JERRY BURNETT, Director, Administrative Services, Department of
Revenue, regarding the previous question about service on the
ARM Board, said Michael Williams was appointed by the governor
from a list recommended by the bargaining unit representatives.
He stated, "It does not require that he be a member of the
union. It does not require that he be a member of the PERS or
TRS systems. It only requires that he is recommended on that
list." He indicated that the proposed legislation would have no
effect on that.
10:06:29 AM
ROBYNN WILSON, Director, Anchorage Office, Tax Division,
Department of Revenue, said prior to being appointed to her
current position she was a private tax auditor, thus she brings
the perspective of the auditors to the table. Ms. Wilson
reviewed that corporate income tax auditors audit all
corporations that do business in Alaska, with their main focus
on those corporations that do business in multiple states. She
added, "And these are groups of companies that have hundreds of
subsidiaries." She said the job of the auditors is to figure
out what will be taxed, what the pie is, and what Alaska's share
of the pie is. She said there are two sets of rules: one that
applies to the oil and gas taxpayers and one that applies to the
other corporations. The oil companies' pie includes their
worldwide income. Auditors look not only at the domestic income
that may show up on a company's federal income tax return, but
also at income earned in all other countries in which that
company does business. She explained, "And so, it's a real
challenge to ... quantify that income, especially the foreign
income, because the domestic income, to an extent, is quantified
by the Internal Revenue Service." She said auditors look at
foreign books of record. Some corporate groups have "foreign
parents." She offered further details of the auditors'
considerations. Ms. Wilson explained that Alaska's share is
determined, based on the level of activity a company conducts in
Alaska versus everywhere else. Comparisons are made in the
realm of: property, sales, extraction - in the case of oil and
gas companies, and payroll - in the case of companies that are
not oil and gas related. She offered an example of a property
comparison. Ms. Wilson noted that an audit usually takes a
year, between 600 and 1,000 audit hours.
10:10:50 AM
MS. WILSON said when she came on board with the state 10 or 11
years ago there were 10 income tax auditors. At that time, the
market for the auditors was out of public accounting firms, as
well as the federal government. Public accounting businesses
were recruiting people out of college and working them "to
death" - typically 70-80 hours a week, thus, working for the
state had an appeal. Historically, the state used to pay better
than the federal government, she said. Over the years, the
number of [state] auditors has been reduced to two. One factor
is that several auditors who were recruited 10-15 years ago have
retired. Another factor is that the public accounting field has
stopped working its new associates quite so hard. The public
accounting field has collapsed, meaning less firms from which
the state can recruit. Ms. Wilson offered her recollection that
there have been seven recruiting efforts made by the state for
experienced auditors in the last ten years - the last successful
recruitment occurring in 1998.
10:13:38 AM
MS. WILSON stated that "clearly auditors are not life and
death," as pharmacists are. She added, "But we have, in the
accounting profession, had our own set of forces that have
brought this sort of to a head." She said she thinks everyone
is familiar with the situation that occurred in 2001 regarding
the Enron Corporation. Since that time, she said, "auditors and
accountants have just been snatched up by companies."
Simultaneously, public accounting firms have, in last five to
seven years, made a lot of money selling tax shelters, which
means less people for the state to recruit. She said audits are
becoming increasingly complex. Tax shelters are extremely
difficult to ferret out, are very time consuming, and "the
people on the other side of the desk are becoming more and more
sophisticated in responding to them." The bottom line is that
the state has less recruits and more complex audits.
10:16:47 AM
MS. WILSON said the state has tried looking for less experienced
auditors in hopes of training them. That effort has not been
very successful. Currently, there are not enough experienced
people to train in order to get the normal amount of audits
done. She mentioned an internal study which addressed the
Auditor III level [included in the committee packet]. She said
she thinks all the auditors are underpaid and the pay issues are
even worse at the higher levels. Ms. Wilson said the state is
requesting three exempt positions. She stated her belief that
all the auditors are underpaid. She said, "I fully support the
administration's move to a market-based system." Moving the
classified positions up a range or two will not solve the
immediate problem and the situation is at a crisis point, she
said.
10:19:06 AM
REPRESENTATIVE LYNN asked if a market-based study has been done
as well.
10:19:32 AM
MS. WILSON said the study that was done by the economists was
focused on auditors and "other similar accounting [positions]."
There is a premium on auditors and a super premium on those with
income tax backgrounds. She indicated that the study made
comparisons with federal jobs and with other states' jobs "and
to put those dollars on an Alaskan basis, taking into account
cost of living."
10:20:19 AM
REPRESENTATIVE LYNN asked, "Can't you just move them up the pay
scale without going to exempt?"
10:20:39 AM
MS. WILSON responded that the division supports the effort to
move the auditors up the pay scale, but at this point the 10 or
15 percent increase that would result from moving up the pay
scale one or two ranges will not fix the problem.
10:21:35 AM
CHAIR SEATON recalled a discussion a couple years ago regarding
auditors and return on investments.
10:22:07 AM
MR. BURNETT responded as follows:
This past year ..., when we were doing the [fiscal
year (FY) 06] budget for the Department of Revenue,
there was an increment for $1 million requested ... to
increase our audit presence. There were seven
positions that were authorized by the legislature, and
we did get a $750,000 increment in the budget.
The discussion at that time and the paper work was
that for a million dollars invested in this ... we
were absolutely certain that we would produce at least
$5 million in return on an annual basis, and I think
the return possibly is higher than that. I think our
tax division ... annual report does speak to audit
effort and the effect of that. ... So, there's a
significant return to audit work.
10:23:04 AM
MS. WILSON, in response to a question from Chair Seaton,
confirmed that her previous notation that there are only two
auditors left in the state system does mean that there are eight
unfilled positions.
10:23:17 AM
CHAIR SEATON remarked, "It shows a significant problem with
recruiting - that's for sure." He asked Ms. Cosgrove if the
numbers are similar for auditors as compared with pharmacists -
that they are "outside of the classification scale" that the
state is able to provide in order to recruit personnel.
10:23:48 AM
MS. COSGROVE answered yes, based on a cursory review of the data
gathered by the Department of Revenue and "our own initial
forays into the market." She noted that she doesn't have an
independent third-party source to verify that data.
10:24:10 AM
CHAIR SEATON asked Ms. Cosgrove if she also sees the necessity
of having the aforementioned positions be made exempt.
10:24:26 AM
MS. COSGROVE said at the highest level, yes, which is the level
being considered. She reported that the Department of Revenue
has done some extremely aggressive recruiting maneuvers. The
department has a 43 percent failure rate in its job postings.
She concluded, "So, their business need is real and very
pressing."
10:24:58 AM
CHAIR SEATON asked the committee members to present any
questions they want any of the departments to address at the
next hearing of the bill.
10:25:20 AM
REPRESENTATIVE GARDNER posited that the problem encompasses more
than just the two job positions being discussed.
10:25:52 AM
MS. COSGROVE, in response to a request from Representative
Gardner, said it is not possible to prepare even a preliminary
report by the next hearing.
10:26:14 AM
REPRESENTATIVE GARDNER asked if it would be possible to find out
how many jobs in the state departments are budgeted for, but not
filled.
10:26:34 AM
MS. COSGROVE explained, "There are differences between budgeted
vacancies and difficulties in recruitment." She revealed that
she carries a vacancy factor in her own division of
approximately 7.5-9 percent, in order to meet her budget. She
explained, "I haven't tried to fill those positions, because I
simply wouldn't be able to pay for them by the end of the year."
She offered to provide Representative Gardner with a list
showing a group of job classes for which administrative service
directors said recruitment difficulties were impacting their
program areas' abilities to deliver service and meet the
missions of their agencies.
10:27:20 AM
REPRESENTATIVE GARDNER confirmed that she would like that list.
[HB 485 was heard and held.]
ADJOURNMENT
There being no further business before the committee, the House
State Affairs Standing Committee meeting was adjourned at
10:27:48 AM.
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