Legislature(1999 - 2000)
07/20/1999 08:15 AM Senate PRI
| Audio | Topic |
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
COMMISSION ON PRIVATIZATION AND DELIVERY OF GOVERNMENT SERVICES
Anchorage, Alaska
July 20, 1999
8:15 a.m.
COMMISSION MEMBERS PRESENT
Representative Cowdery, Co-Chair
Senator Ward, Co-Chair
Representative Brice
Senator Adams
Bill Allen, Former Mayor of Fairbanks
Tom Fink, Former Mayor of Anchorage
Helvi Sandvik, President - NANA Development Corporation
Kathryn Thomas, Former Chair of Alaska State Chamber of Commerce
George Wuerch, Alaska Municipal League
Don Valesko, Business Manger of Public Employees Local 71
COMMISSION MEMBERS ABSENT
William Prosser, Chairman of the Board - Cook Inlet Region, Inc.
COMMITTEE CALENDAR
Privatization of State Government Services
PREVIOUS ACTION
No previous action to record.
WITNESS REGISTER
MARCO PIGNALBERI, Legislative Assistant
to Representative Cowdery
Alaska State Legislature
716 West 4th Avenue, Suite 320
Anchorage, Alaska 99501-2133
Telephone: (907) 268-0222
POSITION STATEMENT: Provided the commission with information and
answered questions.
MIKE ABBOTT, Economic Development Special Assistant
to Governor Knowles
3601 C Street, Suite 758
Anchorage, Alaska 99505-5990
Telephone: (907) 269-7461
POSITION STATEMENT: Offered his services and answered questions.
ANDY CLARY, Staff
to Senator Ward
Alaska State Legislature
716 West 4th Avenue, Suite 450
Anchorage, Alaska 99501-2133
Telephone: (907) 269-0106
POSITION STATEMENT: Reviewed the commission's website.
BRIAN HARRIS
7151 Chester Court
Anchorage, Alaska 99504
POSITION STATEMENT: Discussed technology.
ANDREE McLEOD
Address not provided.
POSITION STATEMENT: Suggested an anonymous mechanism for public
input.
JOSEPH HENRI, Former Commissioner of Administration
9921 Mar Point Drive
Anchorage, Alaska 99507
POSITION STATEMENT: Discussed the need to continue the momentum of
the commission.
LEO MARK ANTHONY, Prospector and Miner
Address not provided.
POSITION STATEMENT: Commented that this is about cost-benefit
analysis.
DONN LISTON, ASEA
400 Willoughby, Number 201
Juneau, Alaska 99801
POSITION STATEMENT: Commented on honoring contracts.
DAN PATTERSON
PO Box 512
Palmer, Alaska 99645
POSITION STATEMENT: Discussed privatization.
ACTION NARRATIVE
TAPE 99-1, SIDE A
CO-CHAIR WARD called the Commission on Privatization and Delivery
of Government Services meeting to order at 8:15 a.m. Members
present at the call to order were Representatives Cowdery, Brice
and Senators Ward, Adams and Commissioners Allen, Fink, Sandvik,
Wuerch, Thomas, and Valesko. Commissioner Prosser was not present.
CO-CHAIR COWDERY explained that the purpose of the commission is to
review government overall with the possibility of privatization in
mind. Co-Chair Cowdery commended Senator Ward on his work. He
announced that the commission would be reviewing many departments
through various subcommittees that will be formed.
CO-CHAIR WARD noted that his legislation was practically copied
word for word from the Alaska State Chamber of Commerce. This
legislation is not new, similar legislation was worked on during
the Thirteenth Alaska State Legislature. He thanked everyone for
their part in this issue. The committee members introduced
themselves and noted their affiliations.
CO-CHAIR COWDERY pointed out that Mike Abbott, Economic Development
Special Assistant to Governor Knowles, was present. He noted that
Mr. Abbott would be the contact person for those on the commission
needing information from the Administration.
MIKE ABBOTT, Economic Development Special Assistant to Governor
Knowles, offered his services to those on the commission. He
commented that the Governor is interested in the outcome of this
process.
CO-CHAIR WARD noted that Ketchikan and Juneau were on
teleconference.
MARCO PIGNALBERI, Legislative Assistant to Representative Cowdery,
Alaska State Legislature, reviewed the information book provided to
the commission members. The first item in the book is the
authorizing legislation which in Section 5 specifies the duties of
the commission to be carried out by January 2000. The book also
includes an address section for commission members. There is a
copy of the solicitation that was faxed to 700 individuals across
the state. The response from that fax resulted in the member
composition of the various subcommittees of the commission.
MR. PIGNALBERI turned to Tab 4 of the book which is a bibliography
list of a few of the many articles discussing privatization. The
first article discusses "the depth and breadth of privatization
activity not only in the United States, but elsewhere in the
world." The article entitled, "What is Privatization?" includes
the commonly accepted definitions regarding privatization. There
is also an article discussing 12 types of privatization.
Privatization is most commonly thought of as contracting out such
as is the case with the radio maintenance for the state troopers.
There is a variation of that called management contracts which
would be a situation in which the state maintains ownership of a
facility while its operation is contracted out. There is also
public-private competition. For example, the Department of
Transportation & Public Facilities (DOT/PF) could farm out its
design functions. In such a case, the in-house engineers of DOT/PF
would have to compete with the private sector engineering firms for
the design work on projects. This is being done in the Lower 48
and with the Army Corp of Engineers. The Alaska Army Core of
Engineers was not aware of management contracts, but will forward
information regarding the areas where such is practiced.
MR. PIGNALBERI moved on to the franchise variation of
privatization. With a franchise, a firm is given exclusive rights
to provide a service in a geographical area. It could be utilized
with road maintenance. Internal markets are also a variation of
privatization. Internal markets involve a state agency competing
against the private sector. Vouchers is a form of privatization
which is being debated statewide with regards to education.
Commercialization, another form of privatization, or service
shedding can result in the elimination of services. Another
variation of privatization is self-help in which a nonprofit or
neighborhood organization takes over a service the government now
provides. He cited the Alaska State Fairs as an example of where
such self-help privatization could be utilized. Volunteerism is
also a form of privatization which is illustrated in the litter
pickup programs in the state. Corporatization is another type of
privatization which the Alaska Aerospace Development Corporation
will ultimately be an example of as it will be funded privately.
Mr. Pignalberi stated that the sale of assets or long-term leases
is another way in which the government can eliminate assets that it
shouldn't have. For example, there has been controversy
surrounding whether Alaska should own the Alaska Railroad or other
businesses such as Matanuska Maid which the state inherited due to
defaulted state loans. He moved to the final type of
privatization, private infrastructure development in which a
private entity does something the state would do such as the Knik
Arm Crossing.
MR. PIGNALBERI continued with his review of the commission's book.
The book contains several articles from the 1999 Privatization
Magazine which summarizes privatization activities at federal,
state, and local levels. This would be helpful in performing the
commission's charge to discover what other levels of government are
doing. The book also includes a report requested from the National
Council of State Governments. That report is the most
comprehensive article on the trends in state government
privatization. The report includes sections with regard to cost
savings and the decision making process that should be followed by
governments in determining whether privatization is the best course
of action. The report also addresses the barriers to
privatization. There is also an article included which speaks
against privatization.
MR. PIGNALBERI pointed out that the book includes a report from
Commonwealth North which did a state-owned asset study, about a
year ago. The study intended to develop a set of unifying
principles in order to guide the management of Alaska's public
assets while maximizing the returns for Alaskans. In the process,
an appendices was developed which lists each discreet state asset
which should be helpful for the commission. The book includes
several articles of general interest and a list of those who have
volunteered for the various subcommittees.
ANDY CLARY, Staff to Senator Ward, Alaska State Legislature,
informed the commission that he was responsible for building the
web page for the commission. Mr. Clary demonstrated and reviewed
what can be found on the web page which can be accessed at
www.privatizealaska.org.
CO-CHAIR WARD invited every commissioner to review the website and
make any suggestions for changes.
MR. PIGNALBERI commented that the website has been designed such
that one link can lead to another. He requested that commission
members inform Mr. Clary of sites that they find so that those
sites can be added to the website.
CO-CHAIR WARD announced that now would be the appropriate time for
comments and questions.
SENATOR ADAMS turned to the laws pertaining to privatization. He
asked if there is enough political strength to change labor laws
which he believed to be a large issue. He suggested that there
should be a review of what activities being done by state
departments should be done by municipalities and the success and
failure with privatization in other states. Senator Adams
expressed concern with regard to the delivery of services under
privatization. He was also concerned with the politics of
privatization and hoped that if there is to be action with
privatization that it be done in the next legislative session.
TAPE 99-1, SIDE A
REPRESENTATIVE BRICE expressed the need to maintain the ability to
contact a commissioner when the needs of his constituents are not
met. Furthermore, the money must be spent in the best possible
way. He noted that the delivery of service, public accountability,
and the recognition that certain areas should be maintained by the
state should be addressed. There should also be review of those
areas in which the state has been successful with privatization.
COMMISSIONER ALLEN inquired as to how the subcommittee members were
selected.
CO-CHAIR COWDERY reiterated that more than 700 e-mails were sent
out seeking subcommittee volunteers. Anyone who is interested in
serving should contact the staff. He commented that he was pleased
with the current turnout. He hoped that the commission members
will attend subcommittee meetings of interest to them because the
subcommittee will make a report to the commissioners who will pen
the final report to the legislature.
CO-CHAIR WARD pointed out that the vast majority of those present
today have volunteered for subcommittee work and he believed more
would volunteer. He thanked all the volunteers. Co-Chair Ward
noted that this process is copied from other states.
COMMISSIONER ALLEN expressed interest in the state services
provided by sources other than local residents in rural
communities. He cited the various circuit writers that provide
services to rural communities. Commissioner Allen inquired as to
the possibility of out sourcing or contracting such to local
village corporations or training and employing local residents.
COMMISSIONER SANDVIK said that it would be worthwhile, early on, to
begin with some views and recommendations from the Administration.
CO-CHAIR COWDERY noted that he had spoken with the Governor. As
the process proceeds, he expected the subcommittee members and the
commission members to make comments and requests of the
Administration. He reiterated that Mr. Abbott will be the contact
for the Administration.
MR. ABBOTT indicated agreement with Commissioner Sandvik's
comments. He said that the departments are prepared to work with
the subcommittees. Therefore, he expected such conversations as
eluded to by Commissioner Sandvik to occur at the subcommittee
level. He noted that there has already been discussion regarding
a possible overview of the budget for the full commission.
CO-CHAIR COWDERY referred to Tab 3 of the commission booklet which
includes a memorandum from Representative Cowdery to Governor
Knowles regarding the development of this commission. The
memorandum requested a list of the agencies with services that are
already privatized. The memorandum also suggested that the
Governor designate a single point of contact as a liaison to the
commission which is Mr. Abbott.
CO-CHAIR WARD noted that there is information available from the
legislative branch as well. He acknowledged that this is a large
task.
COMMISSIONER THOMAS commented that some subcommittees have lots of
volunteers while others do not.
MR. PIGNALBERI informed everyone that there are seven departments
for which committee membership has not been filled. Those
committees are the Alaska Department of Fish & Game, the Department
of Corrections, the Department of Labor, the Department of Law, the
Department of Military & Veterans' Affairs, the Office of
Management & Budget, and the Department of Public Safety. He
predicted that those committees would be filled over the next few
weeks. Departments such as the Department of Transportation and
the Department of Health & Social Services have a dozen or more
members listed. That is allowed so that the subcommittee can
divide itself further. For example, there has been a suggestion
that the Department of Transportation have separate subcommittees
for the Alaska Marine Highway System, airports, and one for the
remainder of DOT/PF issues. The same scenario would be utilized
with the Department of Health & Social Services.
CO-CHAIR WARD stated that this process is now in the hands of the
commissioners. As much participation as possible is necessary.
MR. PIGNALBERI commented that he had a list of interested folks as
well as their phone numbers. After one person requested that their
phone number not be publicized, it has been decided to provide the
contact list of home and work phone numbers, faxes and e-mails of
the committee members only to those in the committee.
CO-CHAIR WARD requested that Mr. Clary contact everyone in order to
determine who would not want which particulars to be publicized.
COMMISSIONER THOMAS suggested that a mailing address be added to
the list because volunteers would probably prefer receiving letters
of opinion versus phone calls. Commissioner Thomas commented that
consideration should be given to the concern regarding "whether
business in the private sector is taking an offensive position
against government employees and the bureaucracy of government."
She expressed the need to remember that private sector employees
view this as an opportunity for jobs. Some of these jobs may not
be eliminated, but may merely change ownership. There may be some
shifts in the business sector due to privatization. As a
contractor, Commissioner Thomas acknowledged that at times the
concept of a project may be different from the scope of the work
and the ability to build the project. Upon completion of this
task, she emphasized the need to reflect on how it can be
successfully implemented. Although the commission may determine
what can be privatized, if the scope of the privatization is not
written correctly it will not happen. A third party to review or
help write contract specifications or consult the agencies may be
a recommendation of the commissioner.
COMMISSIONER VALESKO expressed the need for the commission to be
cautious in the recommendations that are made. He commented that
basically privatization is profitization in that government
services are turned over to someone in order to make a profit on
those services. Such will not work unless the situation is profit-
making for private organizations. He stressed the need for
protections to be written in so that Alaskans are not overcharged
for items. Commissioner Valesko commented, "My main concern ...
that the working people of Alaska are protected, the people that
take these jobs ... that they're able to make a living to support
their family and educate their kids and we have a standard of
living in this state that we can look up to. And I'm very sad and
disappointed to say in the last six, seven, eight years the
standard of living for Alaskans, and I'm part of the system that is
trying to do something about it and failing, has gone down hill in
comparison to ... most of the rest of the states in the United
States." He suggested the need to review legislation because there
are laws that apply to public employees such as the requirement for
public employees to receive health insurance and retirement
benefits. If there is to be a change from public sector employees
to private sector employees, the aforementioned benefits should be
protected no matter who performs the job. Commissioner Valesko
stressed that he did not want a work force of temporary employees.
He noted that there are those in privatization who profit
tremendously. Why should one person reap all the profits?
Commissioner Valesko used the snow removal system in Anchorage as
an example of the state working in tandem with the private sector.
In conclusion, Commissioner Valesko stated that he supported
reviewing those places where privatization would make sense.
Furthermore, there should be review of those areas where
privatization has already occurred in order to determine if it is
working.
COMMISSIONER WUERCH commented that the Alaska Municipal League is
very appreciative of being included in this commission. The league
has offered to be a resource for the commission. He acknowledged
the trend of local governments having to provide some of the
services previously provided by the state. Through this
commission, there is the opportunity to open up new partnerships
between state and local government to deliver services. However,
there are obstacles. Therefore, Commissioner Wuerch expressed the
need to uncover common solutions. One such solution would be to
allow local governments to bid on state work.
COMMISSIONER WUERCH thanked all the volunteers and the staff
recruiting these volunteers. He offered his services in helping to
fill in the gaps. He asked if there would be a point during which
the commission would meet with each subcommittee.
MR. PIGNALBERI noted that there is a sign up sheet for advisory
councils. It is anticipated that each commissioner will be on at
least one of the subcommittees. Therefore, there should be some
continuity between the work of the subcommittees and the
commission. With regard to Commissioner Wuerch's question, Mr.
Pignalberi believed that to be up to the discretion of the
commission. He turned to the outline of subcommittee reports which
is fairly standard, but can be changed by the commission.
COMMISSIONER ALLEN inquired as to the role the commissioners would
play sitting on the subcommittees.
MR. PIGNALBERI clarified that the commissioners would be a working
member of the committee.
CO-CHAIR WARD noted that a proposed schedule was being provided to
the members and that teleconferencing is available. He explained
the need to begin work in the subcommittees as efforts continue to
fill up those subcommittees not yet full. He announced that the
next proposed meeting of the full commission is on August 16, 1999.
He explained that there should be subcommittee work that happens
between this meeting and the proposed August 16, 1999 commission
meeting. The individual chairs of the subcommittees will decide
upon a meeting time and utilize the room and teleconference
network. Then the subcommittee representatives would present the
commission with a progress report at the August meeting.
CO-CHAIR COWDERY clarified that there are a few rooms available to
the subcommittees, but those rooms must be scheduled ahead of time.
He urged the commissioners to attend as many subcommittee meetings
as possible.
COMMISSIONER WUERCH inquired as to how the subcommittee chairs will
be chosen.
CO-CHAIR WARD informed everyone that names are being accepted for
more volunteers. He explained that the first person that requested
to be the chair of a subcommittee was made so.
CO-CHAIR COWDERY interjected that these positions may change.
CO-CHAIR WARD explained that the chair of the subcommittee will
decide when meetings occur and conduct those meetings. The only
vote that determines what will be recommended to the legislature
will come from the commission.
TAPE 99-2, SIDE A
AN UNIDENTIFIED SPEAKER expressed the need to include topics of
interest for the subcommittee on the home page in order to spur
subcommittee discussion on those.
CO-CHAIR WARD agreed that would be appropriate and noted that it
would be up to the subcommittees.
COMMISSIONER THOMAS suggested that the chairs of the advisory
councils be used for organizational purposes. This would allow
them to choose their own chair which would be advantageous to all.
CO-CHAIR WARD stated that nothing precludes the commission from
anything. The subcommittees can break down further, but the
current structure allows for the process to begin. He indicated
that the subcommittees have much flexibility.
COMMISSIONER THOMAS asked if the commission would have the
capability to have listen-only teleconference hook-ups.
CO-CHAIR COWDERY answered yes. He mentioned that the need for
those interested in the Alaska Marine Highway to be from Southeast
Alaska.
COMMISSIONER FINK inquired as to when the commission would meet
again.
CO-CHAIR WARD announced that the intention was for the commission
to meet once a month.
SENATOR ADAMS clarified that the commission will be meeting as will
the subcommittees. Each commissioner will sign up for an agency
for which he/she will attend those subcommittee meetings. He hoped
that time would be spent on the subcommittee report outline in
order to develop an outline format for each agency.
The committee took a brief at-ease to 9:50 a.m.
CO-CHAIR WARD called the committee back to order and announced that
Fairbanks was also on teleconference.
MR. PIGNALBERI explained the subcommittee report outline is based
on his experience with past reports. The outline is an attempt to
place the subject before the subcommittees in order to think about
what the end product would be from the subcommittees.
SENATOR ADAMS referred to number five on the outline which speaks
to identifying constitutional and statutorial provisions governing
agency operations. He agreed that each subcommittee should
understand their agency, however statutory changes also need to be
reviewed because that needs to be included in the recommendation
from the subcommittee.
SENATOR ADAMS referred to number nine on the outline which speaks
to listing existing agency contracts and the procurement methods.
He recommended the need to have a time line on the contracts and
the benefits. He turned to the next number nine which speaks to
identifying existing privatization practices, if any. Senator
Adams agreed with Commissioner Valesko that review of whether
current privatization is working or not should be evaluated by the
subcommittees.
COMMISSIONER WUERCH commented that a question comes to mind
regarding the balance of effort; how much effort will come from
subcommittee members and from the Administration.
MR. PIGNALBERI explained that each departmental commissioner will
be given this outline so as to provide the subcommittee with the
information prior to its first meeting.
SENATOR ADAMS anticipated that the co-chairs' staff will obtain the
resource contact for each agency. He noted that each agency has
been audited and therefore, there will be a contact with
Legislative Budget & Audit. He pointed out that each agency has a
legislative liaison that can be utilized as a resource for the
statutory guidelines, missions, goals, objectives, and contracts.
CO-CHAIR WARD said that he believed there would be a great deal of
cooperation between the commission and the Administration.
COMMISSIONER ALLEN indicated that it would be appropriate for the
subcommittees to ask departmental commissioners to provide the
subcommittee with a briefing on the department. Furthermore, the
departmental commissioner could provide any recommendations with
regards to privatization. He also agreed with Commissioner
Valesko's and Commissioner Sandvik's comments.
CO-CHAIR WARD agreed that could be part of the subcommittee
presentation.
CO-CHAIR COWDERY interjected that the Governor fully intends for
the commissioners to fully participate with the subcommittees.
COMMISSIONER SANDVIK pointed out that many agency activities are
governed by their funding sources. Therefore, she suggested that
the subcommittees consider the limitations placed on the agencies
by the funding sources. That should be included in the
subcommittee report as well as recommendations in that area.
COMMISSIONER ALLEN commented that those agencies receiving
enterprise funds within a department would stand out during
subcommittee review. He hoped those would be highlighted.
COMMISSIONER THOMAS suggested that the subcommittee should define
which grant money could be administered by the private sector.
CO-CHAIR COWDERY emphasized that there are certain mandates in the
union contracts which will be honored, although there could be
changes in future negotiations.
BRIAN HARRIS informed the committee that he is a Communications
Engineer with MicroAge Corporation (ph), although he is not present
representing that corporation. However, he is present to provide
the committee with information regarding a report he is doing for
Commissioner Poe, Department of Administration. The report is
reviewing the infrastructure of the Anchorage based
telecommunications system and how to utilize technology to redirect
some telecommunication costs. One of the items to be reviewed is
with regard to who would be the best to manage and run such a
system. He informed the committee that a 1994 Wolfe & Associates
(ph) study found that the state is basically its own telephone
company. If that is correct, the state would need to be prepared
to move into the new century with the technology to do so. As a
private citizen, Mr. Harris expressed concern with the incredible
pace of technology. The state needs to view technology as a
potential asset for savings or privatization.
ANDREE McLEOD pointed out that this commission is the Commission of
Privatization and Delivery of Government Services. She hoped that
the delivery of government services is not over looked. She
expressed the need to have a nonretaliatory, anonymous mechanism
for citizens and employees to provide some information to this
commission. Ms. McLeod was concerned that this is a "top down type
of commission." She suggested that viewing this from the bottom up
may be advantageous. Ms. McLeod stressed that the outline does not
include the legislature or the Administration. Although some
services are statutory, some of those services may be privatized.
Perhaps, the ombudsman's office could be privatized.
CO-CHAIR COWDERY disagreed with the suggestion that comments could
be anonymous.
CO-CHAIR WARD interjected that he sponsored the first whistle-
blower law in the 1980s. There are legitimate circumstances in
which people fear reprisal.
AN UNIDENTIFIED COMMISSIONER said that she did not believe the
request for anonymous input to be bad. There should be a mechanism
in which people feel comfortable providing ideas.
CO-CHAIR WARD acknowledged that anonymous comments and suggestions
will inevitably be received. He noted that when he receives
anonymous comments and suggestions, he performs a double-blind
verification before coming forward. He also noted that he receives
comments from those who request that their name not be involved.
COMMISSIONER WUERCH asked if it was expected that the subcommittees
would have time to take public comments and input or would the
public comment only occur before the commission.
CO-CHAIR WARD anticipated that the subcommittees would take public
comments and hold meetings for such.
JOSEPH HENRI informed the committee that he served as the
Commissioner of Administration under Governor Egan's third term.
With regard to changing statutes, there is less than five months to
do this job with volunteers. He doubted if that could be
accomplished in the projected time frame. Mr. Henri hoped the
commission would address how to continue this work beyond what is
currently in statute.
CO-CHAIR WARD announced that the commission will accomplish what
the legislature set out for it to do. At that point, the
presentation will be the beginning of another process in which the
four legislators on the commission will participate with the entire
legislature on this matter. This will provide the legislature with
direction.
MR. HENRI commented that there is the danger that some will say
that privatization has been reviewed and no more time is to be
spent on the issue. He reiterated the need to continue the
momentum of the commission.
CO-CHAIR COWDERY indicated agreement that this process should be
ongoing.
MR. PIGNALBERI informed the committee that other states which dealt
with privatization activity had a much longer life cycle than this
commission. Most privatization activity was more than a year,
often two to three years. For example, in Arkansas there was a
commission for three years and the professional staff was kept for
two years in order to monitor and follow up on the original work.
Mr. Pignalberi believed Mr. Henri's concern to be legitimate, but
he understood Co-Chair Ward to say that it is the responsibility of
the four legislators on the commission to continue the momentum in
the legislature. He assumed that if more work is necessary, there
would be another bill to continue these efforts.
CO-CHAIR WARD indicated agreement.
AN UNIDENTIFIED COMMISSIONER asked if there is staff available to
assist the subcommittees in writing the report.
CO-CHAIR COWDERY noted that he and Co-Chair Ward's staff are
available.
CO-CHAIR WARD mentioned that the House and Senate Finance
Committees' subcommittee chairs may have staff to help supply
information and staff to the commission's subcommittees. He
expected the commission to expand, but perhaps not to the extent as
in Arkansas where the commission was completely funded by private
donations.
COMMISSIONER ALLEN indicated that there may be enough questions
raised and doubt with regard to some of the recommendations that
would result in a request for the continuance of this work.
TAPE 99-2, SIDE B
MR. HENRI commented that just because some good ideas are provided
to the legislature, does not mean the legislature will take up
those ideas.
LEO MARK ANTHONY informed the committee that he has dealt with the
Department of Natural Resources(DNR) because he is a prospector and
miner. Through his experience he has felt that DNR is a good
organization. However, he realized that the legislature is
concerned with afford ability. Therefore, this is about cost-
benefit analysis. Mr. Anthony understood that as a subcommittee,
the job will be to go through the data and sort it out. He
identified the technical decisions as the responsibility of the
subcommittees while the political decisions are left to the
legislators.
MR. CLARY suggested that he or Mr. Pignalberi should be contacted
via telephone or e-mail with additional comments that people would
like to have circulated.
CO-CHAIR WARD interjected that people could go to the website and
type their comments to circulate to the commission.
COMMISSIONER THOMAS expressed concern with having each member's e-
mail address on the website because information may not be fairly
distributed to everyone. She suggested that it would be helpful
for all information to first go to Mr. Clary and Mr. Pignalberi to
be distributed back to the commissioners. That would avoid time
spent bringing people up to speed.
COMMISSIONER FINK commented that the purpose of this is to make
government more efficient not about decisions as to who should make
profits. The authorizing legislation for this commission is driven
by the fact that there is not enough money. Therefore, the most
efficient way to provide government services needs to be
determined. It should also be determined whether a particular
government service should even be performed. Still, it is of no
concern to this commission whether a contractor makes a profit.
COMMISSIONER VALESKO surmised that Commissioner Fink would like to
see Alaskans at or below minimum wage. "If we can take nothing for
the services and get it done that way, then lets have it a
citizenship here that is working for nothing .... I don't believe
in that. I believe that we have and we have laws already that says
if you're going to do a public contract, ..., you will pay what is
the prevailing wage in an area and that is when we need to look at
statutory things that say this is the wage that we think is
sufficient as citizens of Alaska, as legislators you ought to be
thinking about this; that says we want a decent standard of living
for the people that live here. I would agree, I don't care if they
make a cent of profit off of it but let's see that the working
people, ..., have a decent standard of living in this state."
COMMISSIONER WUERCH stated that it is not his intent to take money
from anyone's pockets. As a former employer, he paid his employees
well and provided them with a full benefits package because that
gives an employer good employees. He hoped that the commission
focuses on the fundamental purposes of SB 33.
CO-CHAIR WARD mentioned that he has spoken with a number of state
employees who do fear that this is an attempt to take away jobs.
He did not believe any state employee would lose their job as a
result of this, although there will probably be a hiring freeze and
reorganizational effort. He pointed out that the legislation
includes that the subcommittees identify those state government
functions that should be transferred to nonprofit organizations,
regional profit corporations, profit corporations, federal
government, local government, or eliminated. That is quite a
charge.
COMMISSIONER (INDISC.) noted that his organization did a report
that was distributed to all legislators about four years ago
regarding the pitfalls and perils of privatization. He said that
he would like to include that in the committee book.
CO-CHAIR WARD said that he would be happy to distribute that.
CO-CHAIR COWDERY informed everyone that he has information
regarding every new program implemented since 1980 which may be
helpful to review.
CO-CHAIR WARD interjected that would also be available to the
subcommittees.
DONN LISTON, Alaska State Employees Association (ASEA), testified
via teleconference from Juneau. He informed the commission that he
was the business agent for ASEA which was involved in the central
duplicating fiasco. When there is a contract, it should be
honored.
DAN PATTERSON, testifying via teleconference from the Mat-Su
Valley, agreed with Commissioner Valesko that there will be a race
to the bottom in wages. He did not believe that privatization of
the correctional system or half-way houses benefit Alaskans. Mr.
Patterson emphasized that those departments as well as DOT not be
privatized. He requested that the information packet be sent to
the Mat-Su Legislative Information Office(LIO).
CO-CHAIR WARD agreed that the packet would be made available and
that information forthcoming will be made available to all LIOs.
There being no further comments, Co-Chair Ward thanked everyone for
giving their time.
ADJOURNMENT
There being no further business before the commission, the
Commission on Privatization and Delivery of Government Services
meeting was adjourned at an unspecified time.
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