2001-01-16                     House Journal                      Page 0095
HB 62                                                                                             
HOUSE BILL NO. 62 by the House 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.                                                                                         
                                                                                                    
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Zero, Office of the Governor/All Depts.                                                         
                                                                                                    
The Governor's transmittal letter dated January 12, 2001, appears                                   
below:                                                                                              
                                                                                                    
"Dear Speaker Porter:                                                                               
                                                                                                    
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 and 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                                 
commissioner's 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.                                                                  
                                                                                                    

2001-01-16                     House Journal                      Page 0096
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 the state.  Ironically, deputies and other                                    
managers often make more than their commissioners because they are                                  
permitted salary increases over time.  Salaries of the directors of the                             
state's quasi-independent agencies such as Alaska Housing Finance                                   
Corporation, Alaska Industrial Development and Export Authority,                                    
and the Alaska Permanent Fund Corporation, 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.  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"