1997-07-10                     Senate Journal                      Page 2099
SB 150                                                                       
Message dated and received June 20, stating:                                   
                                                                               
                                                                               

1997-07-10                     Senate Journal                      Page 2100
SB 150                                                                       
Dear President Miller:                                                         
                                                                               
Under the authority of art. II, sec. 15 of the Alaska Constitution, I          
have vetoed the following bill:                                                
                                                                               
HOUSE CS FOR CS FOR SENATE BILL NO.                                           
150(FIN) am H                                                                  
An Act relating to moving expenses of state                                   
employees, to compensatory time for state                                      
employees, and to calculation of compensation for                              
the public employees retirement system.                                        
                                                                               
Implementation of this bill would create inequities among state                
employees and require complex changes to the state's payroll and               
retirement systems that do not appear to be justified by cost savings,         
efficiencies, or other tangible benefits.                                      
                                                                               
This legislation would prevent us from managing the state's                    
workforce to maximum efficiency by producing higher administration             
costs, more cumbersome bureaucracy, and greater difficulty recruiting          
and retaining employees in already difficult areas of state                    
government.                                                                    
                                                                               
While the legislation seeks to curb travel costs associated with               
transfers and to address legislative concern about manipulation of             
overtime to increase retirement benefits, our analysis indicates these         
problems are not widespread.  At most, the problems may occur in               
isolated incidents.                                                            
                                                                               
In fact, one of the problems this bill is designed to remedy is                
employees voluntarily moving to areas with high geographic pay                 
differentials for the final years of employment to increase their              
retirement benefits.  This problem was addressed in 1986 changes to            
the retirement system.  Employees hired after July 1986 must earn              
at least half their credited service in the higher geographic                  
differential area in order to count that service toward higher benefits.       
These changes appear to be working to their intended purpose.                  
                                                                               
                                                                               

1997-07-10                     Senate Journal                      Page 2101
SB 150                                                                       
If our experience demonstrates that problems or abuses actually exist          
in the areas covered by this bill, we will take administrative actions         
to correct them and, where necessary, pursue changes to our                    
collective bargaining agreements.  My Administration stands ready              
to work with the legislature to identify and remedy any such                   
problems.                                                                      
                                                                               
						Sincerely,                                                               
						/s/                                                                      
						Tony Knowles                                                             
						Governor