04/12/2000 01:55 PM House FIN

HOUSE BILL NO. 439                                                                                                            
                                                                                                                                
     An Act  relating to the  compensation of  certain public                                                                   
     employees  and  officials   not  covered  by  collective                                                                   
     bargaining  agreements; and  providing for an  effective                                                                   
     date.                                                                                                                      
                                                                                                                                
ALISON    ELGEE,   DEPUTY    COMMISSIONER,   DEPARTMENT    OF                                                                   
ADMINISTRATION,  stated that the  bill provides  for cost-of-                                                                   
living  increases   the  same   as  those  provided   in  the                                                                   
collective bargaining agreements  that the Administration has                                                                   
reached with the twelve unions  representing State employees,                                                                   
which would be  a lump sum payment of up to  $1,200 (prorated                                                                   
at $50 per  pay period) for  fiscal year 2001, a  two percent                                                                   
increase in fiscal  year 2002, and a three  percent in fiscal                                                                   
year 2003.                                                                                                                      
                                                                                                                                
Ms.  Elgee noted  that the  bill  was modified  in the  House                                                                   
State Affairs  Committee to remove legislators.   She pointed                                                                   
out that the fiscal note accompanying  the bill, incorporates                                                                   
the  cost  of  including  the legislators.    That  cost  was                                                                   
provided to  the Committee as  part of the budget  amendments                                                                   
submitted in February 2000 from the Governor's Office.                                                                          
                                                                                                                                
PAUL LYLE,  (TESTIFIED VIA TELECONFERENCE),  FAIRBANKS, asked                                                                   
to  waive testimony  on the  bill until  amendments had  been                                                                   
proposed.                                                                                                                       
                                                                                                                                
JOHN  ATHENS,  (TESTIFIED  VIA   TELECONFERENCE),  FAIRBANKS,                                                                   
requested  to  waive his  testimony  on  the bill  until  the                                                                   
amendments had been submitted.                                                                                                  
                                                                                                                                
Representative  G.  Davis  advised   that  he  supported  the                                                                   
legislation  should the  other labor  contracts be  approved.                                                                   
Representative  Bunde stated  the only  change that  he would                                                                   
suggest would be  to draw a cut off the increase  at Range 24                                                                   
and higher.                                                                                                                     
                                                                                                                                
Representative  J. Davies  MOVED  to include  legislators  as                                                                   
well as State employees.  Representative  Austerman OBJECTED.                                                                   
He  questioned what  that action  would  really represent  in                                                                   
regard  to  pay increases.    Ms.  Elgee explained  that  the                                                                   
legislators   would  then   become   subject  to   percentage                                                                   
increases as proposed for other employees.                                                                                      
                                                                                                                                
Representative    Austerman    maintained   his    objection,                                                                   
indicating  that until  there was  a clear  message from  the                                                                   
Legislature that  the employee  contract would be  funded, he                                                                   
found it difficult to vote for such an amendment.                                                                               
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:      J. Davies, G. Davis, Foster, Moses                                                                               
OPPOSED:       Williams, Austerman, Bunde, Grussendorf                                                                          
                                                                                                                                
Representative   Phillips,  Co-Chair   Mulder  and   Co-Chair                                                                   
Therriault were not present for the vote.                                                                                       
                                                                                                                                
The MOTION FAILED (4-4).                                                                                                        
                                                                                                                                
HB 439 was HELD in Committee for further consideration.