2000-02-28                     Senate Journal                      Page 2443
SB 282                                                                       
SENATE BILL NO. 282 BY THE SENATE RULES COMMITTEE                              
BY REQUEST OF THE GOVERNOR, entitled:                                          
                                                                               
An Act relating to the monthly salary for heads of                            
principal executive departments; and providing for                             
an effective date.                                                             
                                                                               
was read the first time and referred to the State Affairs and Finance          
Committees.                                                                    
                                                                               
Zero fiscal note published today from Office of the Governor.                  
                                                                               
                                                                               

2000-02-28                     Senate Journal                      Page 2444
SB 282                                                                       
Governors transmittal letter dated February 25:                                
                                                                               
Dear President Pearce:                                                         
                                                                               
Present and past administrations have been fortunate to find capable           
men and women willing to leave far more lucrative jobs to serve the            
public in demanding positions as heads of principal state                      
departments. In fact, over the years many candidates have declined             
offers and commissioners have left after a short tenure because they           
could earn so much more in other public and private jobs. While                
public service can be personally fulfilling, the state cannot expect to        
continue to attract or retain talented people unless there is a fair           
salary commensurate with the responsibilities of the job.                      
                                                                               
I am transmitting to you a bill that would permit some flexibility in          
setting the salary of a principal department head. Under existing law          
enacted over 20 years ago, commissioner salaries are set at Range              
28, Step E with no opportunity for step or range increases regardless          
of how long the person remains in the job. This bill allows setting            
a commissioners salary at a higher step and range--no more than                
Range 30, Step F--to recognize special skill or experience. This               
approach is identical to the method under existing law for setting the         
salary of deputy department heads.                                             
                                                                               
The current salary of Commissioners is not in line with positions of           
similar authority and responsibility in the private sector or even             
larger municipalities within Alaska. Ironically, deputies and other            
managers often make more than their commissioners do because they              
are permitted salary increases over time. Salaries of the directors of         
the states quasi-independent agencies such as AHFC, AIDEA, and                 
the Permanent Fund, which compete most closely with the private                
sector, substantially exceed those of Commissioners. Despite lower             
costs of living, the salaries of department heads in many other states,        
including those on the West Coast, exceed those of Alaska                      
commissioners.                                                                 
                                                                               
                                                                               

2000-02-28                     Senate Journal                      Page 2445
SB 282                                                                       
While this proposal would permit only a modest salary increase for             
department heads, the flexibility afforded could help attract                  
candidates from the private sector and could encourage qualified               
appointees to remain in service to the public. Recognizing that there          
is never a good time to raise salaries for our public officials, this          
action is long overdue. I urge your favorable action this session.             
                                                                               
					Sincerely,                                                                
					/s/                                                                       
					Tony Knowles                                                              
					Governor