2000-05-04                     Senate Journal                      Page 3740
SB 3002                                                                      
SENATE BILL NO. 3002 BY THE SENATE RULES COMMITTEE                             
BY REQUEST OF THE GOVERNOR, entitled:                                          
                                                                               
An Act relating to the compensation of certain                                
public officials, officers, and employees not covered                          
by collective bargaining agreements; and providing                             
for an effective date.                                                         
                                                                               
was read the first time and referred to the Finance Committee.                 
                                                                               
Fiscal note published today from Office of the Governor.                       
                                                                               
Governors transmittal letter dated May 4:                                      
                                                                               
Dear President Pearce:                                                         
                                                                               
Following the historical practice of extending collective bargaining           
agreements to non-represented state employees, I am transmitting this          
bill relating to salaries for partially exempt and exempt employees            
in the Executive branch, as well as legislative and judicial                   
employees.                                                                     
                                                                               
The bill provides for modest cost-of-living increases similar to those         
provided in the collective bargaining agreements that my                       
Administration negotiated: a lump sum payment of $1,200 for                    
FY2001 (reduced by $50 for any pay period the employee was not                 
in pay status during FY2000); a 2% increase in fiscal year 2002; and           
a 3% increase in fiscal year 2003. The bill also clarifies that the            
employees of the University of Alaska who are not members of a                 
collective bargaining unit are entitled to receive salary increases            
according to Board of Regents policy.                                          
                                                                               
I believe these modest increases are fair. The yearly increases of             
approximately 2%, 2% and 3% are far below most federal and local               
government contracts. In response to recent low oil revenues, last             
year state workers had no increase and for the last four years had             
increases less than half the cost of living. We all know it is                 
necessary to keep state compensation competitive in an environment             
where private, federal and local employers have made significantly             
larger gains.                                                                  

2000-05-04                     Senate Journal                      Page 3741
SB 3002                                                                      
These modest increases will maintain parity in state employee pay              
and help all three branches of government recruit and retain qualified         
employees.                                                                     
                                                                               
					Sincerely,                                                                
					/s/                                                                       
					Tony Knowles                                                              
					Governor