Legislature(2001 - 2002)

03/20/2001 03:10 PM Senate STA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                     ALASKA STATE LEGISLATURE                                                                                   
                  SENATE STATE AFFAIRS COMMITTEE                                                                              
                          March 20, 2001                                                                                        
                             3:10 p.m.                                                                                          
MEMBERS PRESENT                                                                                                               
Senator Gene Therriault, Chair                                                                                                  
Senator Randy Phillips, Vice Chair                                                                                              
Senator Drue Pearce                                                                                                             
Senator Bettye Davis                                                                                                            
MEMBERS ABSENT                                                                                                                
Senator Rick Halford                                                                                                            
COMMITTEE CALENDAR                                                                                                            
SENATE JOINT RESOLUTION NO. 17                                                                                                  
Relating  to requesting  that President  Bush  renounce and  reverse                                                            
Clinton Administration  anti-gun-ownership policies and reorient the                                                            
United   States  Department   of  Justice   towards  policies   that                                                            
accurately reflect the  intent of the Second Amendment to the United                                                            
States Constitution to  grant individual Americans the right to keep                                                            
and bear arms.                                                                                                                  
     MOVED CSSJR 17 (STA) OUT OF COMMITTEE                                                                                      
SENATE BILL NO. 126                                                                                                             
"An Act establishing a right of action for a legal separation; and                                                              
amending Rule 42(a), Alaska Rules of Civil Procedure."                                                                          
     MOVED CSSB 126 (STA) OUT OF COMMITTEE                                                                                      
PREVIOUS COMMITTEE ACTION                                                                                                     
SJR 17 - No previous action recorded.                                                                                           
SB 126 - See State Affairs minutes dated 3/15/01.                                                                               
WITNESS REGISTER                                                                                                              
Joe Stewart                                                                                                                     
Staff for Senator Donley                                                                                                        
Alaska State Capitol Room 508                                                                                                   
Juneau, AK  99801-1182                                                                                                          
POSITION STATEMENT: Presented SJR 17                                                                                          
Kara Moriarty                                                                                                                   
Staff for Senator Wilken                                                                                                        
Alaska State Capitol, Room 514                                                                                                  
Juneau, AK  99801-1182                                                                                                          
POSITION STATEMENT: Answered questions on SB 126                                                                              
Sharon Barton                                                                                                                   
Department of Administration                                                                                                    
PO Box 110200                                                                                                                   
Juneau, AK  99811-0200                                                                                                          
POSITION STATEMENT: Introduced Steve Goodrich                                                                                 
Steve Goodrich                                                                                                                  
President, Center of Organizational Excellence                                                                                  
Dallas, TX                                                                                                                      
POSITION STATEMENT: Gave presentation on Alaska's workforce                                                                   
ACTION NARRATIVE                                                                                                              
TAPE 01-14, SIDE A                                                                                                            
Number 001                                                                                                                      
CHAIRMAN GENE  THERRIAULT called the Senate State  Affairs Committee                                                          
meeting  to order  at  3:10  p.m. Present  were  Senators  Phillips,                                                            
Pearce, Davis and Chairman Therriault.                                                                                          
The first order of business was SJR 17.                                                                                         
                    SJR 17-FEDERAL GUN POLICIES                                                                             
JOE STEWART,  staff for Senator  Donley, said  SJR 17 requests  that                                                            
President  Bush  renounce and  reverse  the  Clinton Administration                                                             
anti-gun  ownership   policies  and   reorient  the  United   States                                                            
Department  of Justice toward policies  that accurately reflect  the                                                            
intent of  the Second Amendment  granting  the individual rights  of                                                            
Americans to keep and bear arms.                                                                                                
The legislation  stems from a 1998 district court  case in Tom Green                                                            
County, Texas  - a divorce case in which the wife  put a restraining                                                            
order on her husband.   Because he owned a firearm,  he was found to                                                            
be in violation  of Title 18, Section 922G8 of the  U.S. Code, which                                                            
states that anyone under  a restraining order may not own a firearm.                                                            
Because this  was a federal violation,  the case was transferred  to                                                            
federal district  court where the  judge ruled Title 18 of  the U.S.                                                            
Code unconstitutional  because it violates Second  Amendment rights.                                                            
This was  appealed to  the Fifth  Circuit in New  Orleans where  the                                                            
U.S. attorney  argued  that the  Second Amendment  does not  protect                                                            
Second  Amendment  freedoms  for individuals   but gives  a  blanket                                                            
protection  to recognized  groups  such as  the National  Guard.  In                                                            
response, the National  Rifle Association (NRA) sent a letter to the                                                            
solicitor  general  asking   whether  the  attorney  had,  in  fact,                                                            
accurately represented  the position taken by the United States. The                                                            
response was, "He had indeed."  It was the opinion of the Department                                                            
of Justice  that there are no Second  Amendment freedoms  guaranteed                                                            
for individual Americans.                                                                                                       
CHAIRMAN  THERRIAULT  introduced  the  work  draft,  CS 22-LS0443\B                                                             
Luckhaupt 3/19/01, which  melds the two "whereas paragraphs" on page                                                            
2,  lines 4-9.  He asked  whether  Senator  Donley,  sponsor of  the                                                            
resolution,  had  seen the  new language  and  the position  he  was                                                            
taking on the rewording.                                                                                                        
MR. STEWART said the change is acceptable to Senator Donley.                                                                    
SENATOR PEARCE  moved the CS for SJR 17, B version  by Mr. Luckhaupt                                                            
3/19/01, as the working document.                                                                                               
CHAIRMAN THERRIAULT  added that the  committee substitute  (CS) also                                                            
directs  a copy  to  be sent  to the  minority  leader  of the  U.S.                                                            
The CS was adopted with no objection.                                                                                           
There  were  no other  amendments  offered,  no  questions,  and  no                                                            
further testimony on SJR 17.                                                                                                    
He asked for the will of the committee.                                                                                         
Number 466                                                                                                                      
SENATOR  PEARCE  moved  CSSJR  17(STA)  and zero  fiscal  note  from                                                            
committee   with   individual   recommendations.   There   were   no                                                            
            SB 126-RIGHT OF ACTION FOR LEGAL SEPARATION                                                                     
CHAIRMAN THERRIAULT  introduced the L Lauterbach 3/19/01  version of                                                            
the proposed CS for SB  126. He reminded committee members that they                                                            
had  discussed  a  requirement   for  the  court  system  to  report                                                            
information  to the  Division  of Vital  Statistics  (DVS) during  a                                                            
previous meeting.  Sections 5 and 6 on page 6 adds  language dealing                                                            
with reporting.  Information  is supplied  to the  DVS and they  are                                                            
directed to submit  a report to the legislature by  January 15, 2005                                                            
on whether  they think the statutes  need to be modified  or how the                                                            
information relating to legal separations should be organized.                                                                  
He asked whether  Senator Wilken, the bill sponsor,  had looked over                                                            
the new language.                                                                                                               
KARA  MORIARTY,  staff  for  Senator  Wilken,  said  there  were  no                                                            
objections to the new sections.                                                                                                 
CHAIRMAN THERRIAULT  said that legal counsel recommended  changes to                                                            
make it clear  that separation actions that were initiated  prior to                                                            
passage of the bill would be reported.                                                                                          
MS. MORIARTY  said the  Legislative Legal  drafter suggested  adding                                                            
the applicability  language  found on page 5,  lines 30 and  31.  In                                                            
the original bill  there was language for an effective  date for the                                                            
complaint  for legal  separation  but not  for the  order for  legal                                                            
separation  to  be  effective.   Added  is,  "and  orders  of  legal                                                            
separation issued on or after the effective date of this Act."                                                                  
SENATOR PEARCE moved the L version as the working document.                                                                     
CHAIRMAN THERRIAULT asked for amendments. There were none.                                                                      
He noted there  was a zero fiscal  note from the Attorney  General's                                                            
Office. He asked for the will of the committee.                                                                                 
SENATOR  PEARCE  moved CSSB  126 (STA)  and  zero fiscal  note  from                                                            
committee with individual recommendations.                                                                                      
CHAIRMAN THERRIAULT asked whether there was objection.                                                                          
SENATOR PHILLIPS objected.                                                                                                      
CHAIRMAN THERRIAULT called for a roll call.                                                                                     
Senators  Davis,  Pearce  and  Chairman  Therriault  voted  yea  and                                                            
Senator Phillips voted nay.                                                                                                     
CSSB 126(STA) moved from  committee with individual recommendations.                                                            
SHARON  BARTON,   Director  of  Personnel  for  the  Department   of                                                            
Administration, testified  that the number one management problem in                                                            
state  agencies   is  recruitment   and   redemption  of   qualified                                                            
employees.  Given  the  state  demographics  and  strong  state  and                                                            
national  economies,  "What we  see today  is  just the  tip of  the                                                            
iceberg." Workforce  planning and  development must be addressed  in                                                            
earnest  so  that  necessary  State  services  can  continue  to  be                                                            
provided to Alaskans.                                                                                                           
Steve  Goodrich,   President  of   the  Center  for  Organizational                                                             
Excellence in Washington,  was invited for a two-day consultation to                                                            
help the State start on an action plan.                                                                                         
He was asked:                                                                                                                   
   · To put Alaska's workforce situation in perspective relative to                                                             
     the other 49 states.                                                                                                       
   · To identify the issues that compel workforce planning.                                                                     
   · To describe actions other state and federal organizations are                                                              
     taking to resolve or mitigate workforce issues.                                                                            
   · To describe the workforce planning process and how it should                                                               
     fit into other statewide agency and planning activities.                                                                   
   · To help develop a strategic action plan.                                                                                   
STEVE  GOODRICH said  that  workforce planning  is  no longer  about                                                            
transactional  lines in trying to  fill a given position  or dealing                                                            
with a vacancy.  Workforce planning is the strategic  perspective of                                                            
a workforce  that is viewed as an  asset that needs to be  grown and                                                            
maintained. Growth refers  to the quality of the workforce that must                                                            
be maintained and therefore  addresses retention and making sure the                                                            
right people are doing the right job at the right time.                                                                         
He asked  committee  members their  ideas on the  major issues  that                                                            
will be impacting the State of Alaska in coming years.                                                                          
CHAIRMAN  THERRIAULT said one  issue is finding  the revenue  to pay                                                            
for projects.                                                                                                                   
SENATOR PHILLIPS  said there  needs to be  a ten-year plan  of which                                                            
this is part. K-12 and  post secondary education, vocational schools                                                            
and apprenticeship  programs, gas line and Arctic  National Wildlife                                                            
Reserve  (ANWR) needs  must be projected  out ten  years then  "move                                                            
everything back and do it in two year increments."                                                                              
MR. GOODRICH said  this is how to plan for needs and  figure out how                                                            
to  pay for  it  all.   It's  an interesting  concept  because  many                                                            
organizations  have  traditionally  treated  their workforce  as  an                                                            
expense rather  than as an asset. "This changes the  mind set in how                                                            
we focus on that."                                                                                                              
Whether you're  dealing with  a pipeline  or unemployment issues  or                                                            
with an initiative  to deal with alcoholism  in the state,  you must                                                            
determine the  kind of workforce you  need as well as ensuring  that                                                            
they are there when you need them.                                                                                              
Alaska has  a retirement rate that  will approach 19 percent  in the                                                            
next several  years. This tends to  be a bit lower than some  states                                                            
and  organizations.   For  instance,   the  federal  government   is                                                            
approaching 50  percent retirement in the next three  or four years.                                                            
It's the "baby bust" from  the baby boomer generation. This needs to                                                            
be combined with how to  get a pipeline in and what a pipeline means                                                            
to  the state  in  terms  of  court systems  and  road  systems  and                                                            
schools. How do you get there?                                                                                                  
At the  same time,  there's  a leveling  of the  playing field  with                                                            
private  industry.  At  one  time,  private   sector  employees  and                                                            
government  employees  were considered  separately  and they  didn't                                                            
necessarily  compete with  one another.  However,  with tight  labor                                                            
markets they compete fairly heavily.                                                                                            
Although there  is much written about a downturn in  the economy and                                                            
about layoffs,  this country is still adding about  150,000 jobs per                                                            
month. This shows  that the economy is still in a  growth spurt and,                                                            
in some cases, there are  still labor shortages. The big question is                                                            
how we deal with those kinds of issues.                                                                                         
To get  to Senator  Phillip's point,  it's in  a strategic model  at                                                            
present.  This means  that when  you look  at any  organization  you                                                            
examine  - purpose,  performance, customers  and  how you deal  with                                                            
external  influences - where  does the workforce  figure in  and how                                                            
does it connect  to the strategic  imperatives of the organization?                                                             
The  workforce   isn't  an   isolated  activity   and  it's   not  a                                                            
transactional activity,  it's a transformational activity. First you                                                            
must decide  what you want  to achieve with  a workforce plan.  This                                                            
can be  very comprehensive  and a large component  of the  strategic                                                            
plan or narrowly  focused. A narrowly focused plan  is successful in                                                            
a narrow area.                                                                                                                  
If  the  workforce  is  treated  as  a  strategic  asset  it's  more                                                            
involved.  This is more than  having the right  people in the  right                                                            
place at the  right time; it is creating  an integrated and  ongoing                                                            
strategy  for ensuring  that an  organization is  prepared with  the                                                            
appropriate  human capital.  The term  capital is  used rather  than                                                            
resources because  it's about knowledge capacity.  Part of the "baby                                                            
bust"  is also  part  of the  brain drain.  Many  organizations  are                                                            
losing their knowledge bank at a very rapid rate.                                                                               
Workforce planning is used  for everything from budget justification                                                            
to looking  at creating a  virtual organization.  It is making  sure                                                            
the resources  are available  and understanding  the quality  of the                                                            
assets in the workforce.                                                                                                        
The average  age of new employees  in this  state is 38. This  means                                                            
those individuals are entering  the workforce with 16 to 18 years of                                                            
experience.  Do they  apply some of  those same  competencies  or do                                                            
they have  other competencies  that  can be tapped?  Do we know  the                                                            
capacity of the  workforce? You certainly want to  go through hiring                                                            
and  retention  and  developing  strategies   around  those  issues.                                                            
Management  strategies should allow  department managers  to look at                                                            
their workforce  as an asset and get the most out  of that workforce                                                            
while providing a good  workplace environment. Attention should also                                                            
be paid  as to whether there  is a more  flexible way to manage  the                                                            
workforce. Instead of hiring  additional personnel, ask whether it's                                                            
possible  to borrow  from  another division  or department  to  meet                                                            
temporary needs. How do  you find those people? How do you deal with                                                            
a nursing shortage? Are  there stopgap measures while you're working                                                            
on a more long-term strategy?                                                                                                   
The process  of going  through workforce  planning is multi-stepped                                                             
and can  be rather  involved.  First, you  need an  overview of  the                                                            
current organization to identify key issues such as:                                                                            
   · Is there a stable mission and series of functions in the                                                                   
     organization and are they clearly defined?                                                                                 
   · What is the current scope and distribution of staff?                                                                       
   · What is the source and quality of data on the workforce?                                                                   
Leadership commitment  is very important because workforce  planning                                                            
isn't a  human resources  or personnel endeavor;  it's a  leadership                                                            
function  within  an organization.  They  set  up the  purpose,  the                                                            
direction,  what  they  want  to  achieve   and  make  sure  they're                                                            
Workforce planning  looks at technology and introduces  the planning                                                            
concept to  the staff. Sometimes  staff views  the planning  as some                                                            
type  of  adverse   action  when  it's  really  about   growing  and                                                            
strengthening the workforce.                                                                                                    
Next, you profile the existing  workforce. You look at competencies,                                                            
distribution,  demographics, age,  length of service, attrition  and                                                            
accession  patterns, in house  versus outsourcing.  How much  of the                                                            
work of core government  functions is provided in  house and what is                                                            
being  outsourced   to   contractors?  Staffing   ratios,  such   as                                                            
supervisory  and  support  staff,   must  be  examined.  Work  force                                                            
planning  cannot  be separated  from  how work  gets  done. If  it's                                                            
inefficient,  it  won't be  possible  to  optimize or  maximize  the                                                            
workforce. The  performance and productivity within  an organization                                                            
must be understood.                                                                                                             
Future requirements are  addressed next. For instance, what is a new                                                            
pipeline going to demand?  What are some of the initiatives that are                                                            
internal  to the state  such as  the current  nursing shortage?  Are                                                            
there  issues such  as individuals  leaving  the  state after  being                                                            
educated  at  the  state universities?   What will  be  the  driving                                                            
issues?  What will  be the  mission  or strategy  changes,  workload                                                            
changes,  productivity   or new  program  initiatives?   What's  the                                                            
conventional thinking?  They've done some scenario  planning because                                                            
you don't  want to plan  against anything  that doesn't have  a long                                                            
Labor market influences  and issues will also be examined. Is  there                                                            
a labor  pool decline  or any  reform that's  going  on? You try  to                                                            
understand the  market that you're in. To meet workforce  needs, you                                                            
can develop people's  skills, you can hire new personnel  or you can                                                            
borrow them  from another  department or  agency. Your strategy  may                                                            
include all three methods.  For example, if you need many geologists                                                            
for a short  time for pipeline work  do you put them on the  payroll                                                            
or borrow them from another state?                                                                                              
This is  all gathering  and understanding  data about the  workforce                                                            
and understanding those  strategic issues that are going to be faced                                                            
and how you build a workforce to support them.                                                                                  
Sometimes   it  is  necessary   and  desirable   to  benchmark   the                                                            
organization  against factors such  as process, staffing  levels and                                                            
ratios and costs  so that when you enter into strategy  work you can                                                            
do  analysis  against  others.  You  work  into  strategic  planning                                                            
activity  that  is similar  to  business  planning.  Information  is                                                            
grouped according  to process,  issues that  affect the size,  scope                                                            
and distribution of the  workforce, development and competencies and                                                            
then there are hiring recruitment  and retention issues. It takes an                                                            
involved  and  strategic   session  to  come  out  with  a  specific                                                            
implementation and communication plan.                                                                                          
Ideally,  you ensure  that  technology tools  are  available so  you                                                            
don't have  to repeat everything.   It becomes  live data.  Managers                                                            
may therefore  make real time decisions on a case-by-case  basis for                                                            
program planning, budget planning and so forth.                                                                                 
The   forgoing  was   a   fairly  comprehensive   process   for   an                                                            
organization.  For a state  the size of Alaska,  this process  would                                                            
take between  a year  and 15  months to  complete.  If the State  is                                                            
interested in a comprehensive  plan, they should do some of the data                                                            
analysis  that's  the  top  level  and  then  provide  this  to  the                                                            
individual  departments  and  agencies  and let  them  do their  own                                                            
strategy.  Strategy should  be done at the  local level because  you                                                            
know what the  needs are against what's  coming; they know  how work                                                            
is  currently  done.   With  consultant  help,  this   is  the  most                                                            
CHAIRMAN THERRIAULT  asked whether he understood that  this activity                                                            
is  specifically  undertaken  for  an organization,  which  in  this                                                            
instance is  the State or a department.  When members say  there's a                                                            
need for a gas  line, he wonders whether we're looking  at the needs                                                            
of the State  and the State economy  or State government  and how it                                                            
is going to support that economic activity.                                                                                     
MR. GOODRICH said it could  be both, and that's what the State needs                                                            
to decide. What  is the focus of workforce planning?  Looking at the                                                            
statistics,  you may determine that  you have trouble recruiting  in                                                            
the State  government. There's  a 5.8 percent  unemployment  rate in                                                            
the State.  You ask whether the labor  pool is there and  qualified.                                                            
Is it  a desirable  place to work  and, if not,  what could  make it                                                            
He was reading  that the pipeline was going to create  735,000 jobs.                                                            
How many  will be State  jobs? Obviously it's  desirable to  hire as                                                            
many Alaskans  as possible. How you  make that happen could  be part                                                            
of the strategy. Are the  universities and technical schools getting                                                            
ready for this and is there  an incentive for graduating students to                                                            
stay in State? This is part of an overall workforce plan.                                                                       
The following  Power Point presentation  included random  statistics                                                            
from previous  workforce  planning activities  and was presented  to                                                            
illustrate several points.                                                                                                      
They  first  looked  at  average  ages  within   departments  of  an                                                            
organization.  It showed  the "baby bust"  with individuals  leaving                                                            
service and few coming  on board. This was a federal agency and less                                                            
than 2  percent of federal  employees are  under 30 years old.  This                                                            
will be a very big issue  in the next two to three years. Retirement                                                            
typically averages about  4 percent per year and about 20 percent of                                                            
those newly  eligible to retire actually  do so. Each department  in                                                            
an organization  needs to ask whether  you can bring those  retirees                                                            
back  or retain  them  longer  in order  to  transfer  the years  of                                                            
knowledge to a younger  group. It's a mistake to bring them back and                                                            
leave  them in  the  same job  but you  need  to develop  a  program                                                            
whereby they leave their knowledge.                                                                                             
Good data allows  you to make strategic decisions.  He showed graphs                                                            
that examined:                                                                                                                  
   · Supervisory & support staff ratios                                                                                         
   · Attrition and accession                                                                                                    
   · Overtime rates                                                                                                             
   · Fulltime permanent employees over time compared to workload                                                                
   · Contract labor cost performing core services                                                                               
   · Compare contract and in house labor                                                                                        
He's found that organizations  don't typically maintain this kind of                                                            
data or analyze their workforce in this manner.                                                                                 
Typical issues found in workforce planning are:                                                                                 
    · There's no commitment or involvement from agency leadership                                                               
    · Spending lots of money and getting nothing of value in return                                                             
    · Piecemeal or half-hearted planning                                                                                        
    · Expecting results too quickly                                                                                             
    · Lack of complete and accurate data                                                                                        
    · Not including agency employees                                                                                            
    · Not part of an organization's strategy                                                                                    
    · Contractor vs. agency staff                                                                                               
    · Return on workforce investment                                                                                            
Some of the best practices:                                                                                                     
   · Creating flexible compensation system                                                                                      
   · Pay    for   performance:   Specific    objectives    tied   to                                                            
     organizational results                                                                                                     
   · Hiring and retention bonuses                                                                                               
   · Human resources department                                                                                                 
   · Having a chief people officer that represents the people                                                                   
   · Organization                                                                                                               
     · Create a virtual company                                                                                                 
     · Removing "stovepipes": Can you find a certain competency                                                                 
        somewhere else in the government and borrow it?                                                                         
   · Performance based management                                                                                               
        · Clear goals                                                                                                           
        · Leadership directly involved                                                                                          
        · Management tools exist and managers have the authority to                                                             
          use them                                                                                                              
        · Accountability for people development and growth                                                                      
CHAIRMAN THERRIAULT  asked about the data from the  State of Alaska.                                                            
MR. GOODRICH said there's  a lot of good data in the system already.                                                            
CHAIRMAN THERRIAULT said  that he's aware that State government will                                                            
experience  a rapid retirement  rate in upcoming  years even  though                                                            
Alaska has a relatively  young workforce. He asked whether there was                                                            
any  indication  that Alaska  would  suffer  as large  a  retirement                                                            
exodus as other states.                                                                                                         
MR. GOODRICH said the average  age for State workers is 45, which is                                                            
low, while  the entry age  is 38 which is  older than most.  At a 19                                                            
percent retirement  eligibility rate  over the next five  years, the                                                            
State of Alaska  compares favorably  to other states. This  doesn't,                                                            
however,  mean that  this  isn't an  issue. Further  examination  is                                                            
needed  to  determine   which  departments  or  agencies   have  the                                                            
retirement  age  workers.  If there  is  a weighting  in  one  area,                                                            
decisions need to be made to retain the knowledge.                                                                              
SENATOR  PHILLIPS  asked whether  Mr.  Goodrich was  speaking  about                                                            
Alaska State workers or private and State.                                                                                      
MR. GOODRICH said  he was referring to State of Alaska  workers when                                                            
he gave statistics.                                                                                                             
SENATOR PHILLIPS said he  finds it hard to believe that the State is                                                            
having  difficulty attracting  qualified  people to  enter the  work                                                            
SENATOR  DAVIS   asked  whether  it   was  salaries  that   affected                                                            
employment decisions.                                                                                                           
MR. GOODRICH said he didn't know the reason.                                                                                    
SENATOR DAVIS  asked whether  he traveled from  state to state  with                                                            
the information he'd just presented.                                                                                            
MR.  GOODRICH said  he  was simply  giving  a presentation  but  his                                                            
company  does a  lot  of workforce  planning  for state,  local  and                                                            
federal governments.                                                                                                            
SENATOR DAVIS asked which states he'd assisted.                                                                                 
MR.  GOODRICH  said he's  worked  in  Maryland,  Virginia,  Vermont,                                                            
Texas, they're  beginning in  Indiana and they  do a lot of  federal                                                            
government work. Frequently they work with individual agencies.                                                                 
SENATOR PHILLIPS  asked for his observations on the  problems facing                                                            
State government.                                                                                                               
Side 2                                                                                                                          
MR. GOODRICH  said that  there might  be fairly  rigid rules  on how                                                            
people are hired,  compensated and retained in State  government. He                                                            
doesn't know whether  State institutions are producing  the kinds of                                                            
people that  will be needed  in the workforce.  He wondered  whether                                                            
the State could give certain  incentives such as loan forgiveness or                                                            
low interest rates  on loans to keep new graduates  in the State. He                                                            
believes  there's  a  nursing  shortage  but this  is  a  nationwide                                                            
shortage, not just this  State. This is primarily exacerbated by the                                                            
privatization of health care.                                                                                                   
He asked  what the  pipeline would  mean for the  court systems  and                                                            
highways and social services.  It's necessary to make sure the State                                                            
is ready for this.  What does it mean if the economy  turns down and                                                            
the tax base drops  off and the need for services  increases? Is the                                                            
State ready for this? Not  just in terms of financial resources, but                                                            
is the workforce ready?                                                                                                         
SENATOR PHILLIPS  said Alaska  is always the  opposite of the  Lower                                                            
48. When the Lower  48 is in a downturn, Alaska is  in an upturn and                                                            
vice versa.                                                                                                                     
MR. GOODRICH  said Alaska also has  one of the highest unemployment                                                             
SENATOR  PHILLIPS  said  it's  always  been   that  way.  Currently,                                                            
unemployment is the lowest it's ever been.                                                                                      
SENATOR DAVIS asked who brought Mr. Goodrich to Alaska.                                                                         
MS. BARTON  said the  Department  of Administration  invited him  to                                                            
present a base of knowledge  about the process of workforce planning                                                            
and to give  some indication of how  Alaska stands in comparison  to                                                            
other  states. He's  here to  raise awareness.  She  met him at  the                                                            
National Association for  State Personnel Executives' winter meeting                                                            
where he was giving a presentation.                                                                                             
CHAIRMAN THERRIAULT  referred to the  recommendation that  employees                                                            
should  be viewed  as a resource.  If  they've been  trained in  the                                                            
system then  the knowledge should  be retained. When school  systems                                                            
and the  State went through  the retirement  incentive programs,  he                                                            
was told  that  there was  considerable  benefit in  getting rid  of                                                            
"dead wood."  The brain drain or loss  of experience was  considered                                                            
acceptable  weighed against getting  rid of individuals that  really                                                            
weren't contributing.  He asked Mr.  Goodrich for his comments  on a                                                            
rigid  workforce where  you can't  move individuals  around and  you                                                            
can't let them go.                                                                                                              
MR. GOODRICH  suggested working  with unions  and creating  flexible                                                            
systems.  Retirement incentive  programs typically  cause a  loss of                                                            
the best and brightest  while the "dead wood" remains.  This doesn't                                                            
happen  when  a very  strong  and  powerful performance   management                                                            
system  is in place  with good  support services.  Next, let  people                                                            
retire but don't let their knowledge leave. Develop succession-                                                                 
planning systems and bring them back as trainers and mentors or                                                                 
have them operate in this capacity for the last several years on                                                                
the job.                                                                                                                        
CHAIRMAN THERRIAULT thanked Mr. Goodrich for the presentation.                                                                  
[A copy of the March 2001 State of Alaska Workforce Profile is                                                                  
available in the committee file.]                                                                                               

Document Name Date/Time Subjects