04/14/2010 08:30 AM House FINANCE

HOUSE BILL NO. 421                                                                                                            
                                                                                                                                
     "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."                                                                                                           
                                                                                                                                
4:05:48 PM                                                                                                                    
                                                                                                                                
KEVIN   BROOKS,    DEPUTY   COMMISSIONER,    DEPARTMENT   OF                                                                    
ADMINISTRATION,  stated  that the  bill  would  provide a  2                                                                    
percent  increase over  each  of the  next  three years  for                                                                    
employees  of  the   legislative,  judicial,  and  executive                                                                    
branches  who  are  not  covered  by  collective  bargaining                                                                    
agreements.  Approximately 800  employees would  be affected                                                                    
in the judicial  branch, 500 in the  legislative branch, and                                                                    
1,700 in the executive branch.                                                                                                  
                                                                                                                                
CHRIS  CHRISTENSEN, DEPUTY  ADMINISTRATIVE DIRECTOR,  ALASKA                                                                    
COURT SYSTEM,  testified in support  of the  legislation. He                                                                    
stated that the  court system has the largest  group of non-                                                                    
union employees. He  noted that court system  employees as a                                                                    
group are the lowest paid  branch; about 70 percent of court                                                                    
employees are range  15 or less, which  causes problems with                                                                    
turnover and  training. He stated  that court  employees are                                                                    
hard-working and dedicated.  He added that over  the past 20                                                                    
to   25    years,   non-union   employees    have   received                                                                    
substantially lower  pay increases than actual  increases in                                                                    
the  cost of  living.  For  example, a  range  10A today  is                                                                    
making more  than 20 percent  less than  a range 10A  in the                                                                    
mid-1980s (not  taking into  account reductions  in benefits                                                                    
such as health insurance).                                                                                                      
                                                                                                                                
4:09:09 PM                                                                                                                    
                                                                                                                                
Co-Chair Hawker noted  that there was a fiscal  note for the                                                                    
legislative branch and stated  his concerns regarding rising                                                                    
costs. He wanted  to zero out the  executive and legislative                                                                    
branches  as  he  did not  like  passing  additional  salary                                                                    
increments when  unemployment was so  high in the  state. He                                                                    
acknowledged that  all the employees deserved  to be treated                                                                    
equally.                                                                                                                        
                                                                                                                                
Co-Chair  Stoltze  hoped  there   would  be  a  fiscal  note                                                                    
reflecting true costs related  to a constitutional amendment                                                                    
on increasing the legislature.                                                                                                  
                                                                                                                                
Vice-Chair  Thomas MOVED  to report  HB421 out  of Committee                                                                    
with individual recommendations  and the accompanying fiscal                                                                    
notes. There being NO OBJECTION, it was so ordered.                                                                             
                                                                                                                                
HB  421 was  REPORTED  out  of Committee  with  a "do  pass"                                                                    
recommendation  and with  three attached  new fiscal  impact                                                                    
notes by the  Legislature, the Court system,  and the Office                                                                    
of the Governor.                                                                                                                
                                                                                                                                
Representative  Kelly  commented   that  he  had  difficulty                                                                    
supporting  the  bill  but  he  wanted  to  treat  the  non-                                                                    
bargaining employees  in the same  manner as  the bargaining                                                                    
ones.                                                                                                                           
                                                                                                                                
Co-Chair  Stoltze  acknowledged  the   hard  work  of  court                                                                    
employees.                                                                                                                      
                                                                                                                                
4:12:59 PM               RECESSED                                                                                             
4:20:03 PM               RECONVENED