Legislature(2017 - 2018)BUTROVICH 205
03/14/2017 03:30 PM Senate STATE AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| Confirmation Hearing: Alaska Public Offices Commission|| Confirmation Hearing: Alaska Police Standards Council | |
| SB31 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| *+ | SB 31 | TELECONFERENCED | |
| + | TELECONFERENCED |
SB 31-NO STATE EMPLOYEE PAY INCREASE FOR 2 YEARS
4:19:38 PM
CHAIR DUNLEAVY called the committee back to order. He announced
the consideration of SB 31.
4:20:04 PM
LESLIE RIDLE, Deputy Commissioner, Alaska Department of
Administration, Juneau, Alaska, provided an overview of SB 31 as
follows:
· Pay increases could occur in non-covered employees in the
form of:
o Cost of Living Allowance (COLA),
o Merit increases (3.5 percent every year for 5 years),
o Pay increments (3.25 percent every other year),
o Bonuses.
· Allows the governor to reduce his salary.
· Effective for 2 years: July 1, 2017 - June 30, 2019.
SENATOR COGHILL asked that Ms. Ridle explain "non-exempt" and
the difference between "merit" and "pay increases."
MS. RIDLE explained that "non-classified" is everybody in state
government who is not in a union and "classified" are in a
union. She specified that SB 31 would only affect the non-
classified employees whereas bargaining would have to occur with
classified employees and that is why through statute the state
could only work with the non-classified employees.
She explained that merit increases are the first-five years for
every year and pay increments are every-other year. She said
merit increases occur when going from one step to the next one
every year for five years at 3.5 percent and pay increments
occur every other year at 3.25 percent.
SENATOR COGHILL commented that term "merit" should mean
increased value and not automatic. He stated that he is probably
going to agree with the bill, but noted that he does not always
agree with the definitions.
4:23:27 PM
MS. RIDLE addressed the two types of non-classified employees:
exempt and partially exempt:
· Exempt:
o Can only be exempt through statute, (AS 39.25.110);
o Exempt from Personnel Act and statutory pay plan;
o Examples: Governor's Office, Legislative staff.
· Partially Exempt:
o Through statute or Personnel Board;
o Subject to Personnel Act and statutory pay plan;
o Examples: Deputy commissioners, directors.
MS. RIDLE addressed who the bill includes as follows:
· Employees not covered under a collective bargaining
agreement in the executive branch, including: employees of
boards, commissions, authorities, and executive officers;
· Employees in the legislative branch;
· Employees not covered under a collective bargaining
agreement of the University of Alaska;
· The governor, lieutenant governor, department heads, and
legislators.
· Does not include the court system.
SENATOR COGHILL asked if corporations are included in the bill
and noted that some corporations are very independent.
MS. RIDLE answered that the corporations are included in the
bill.
She set forth that SB 31 was introduced as part of the
administration's ongoing effort to lead by example to:
· Reduce state expenditures,
· Address serious budget shortfalls.
4:25:59 PM
She detailed the estimated savings from SB 31 as follows:
· Employees affected:
o 5,000 state employees are in the executive and
legislative branches.
o 23 percent of state employees are in the executive and
legislative branches.
· Savings:
o FY2018: $2.3 million ($1 million UGF),
o FY2019: $1.9 million ($0.8 billion UGF),
o Total: $4.2 million ($1.8 million UGF).
SENATOR GIESSEL asked if the governor was imposing a pay freeze
on the next administration through mid-2019 to capture every-
other-year people.
MS. RIDLE answered yes.
SENATOR GIESSEL inquired if pay increases occur throughout the
year on date-of-hire anniversaries.
MS. RIDLE answered yes. She explained that everyday someone has
a merit anniversary date. She said going from a fiscal year to
the next fiscal year seemed to be the cleanest to the
administration.
SENATOR COGHILL remarked that his biggest criticism is the
bill's intent language. He said the governor is saying the
"legislature intends" rather than the "governor finds." He said
he would not stop the bill, but noted that he would flag the
intent language for the Senate Finance Committee to review and
encouraged the administration to think of a different way of
formulating the bill's intent language.
4:29:32 PM
CHAIR DUNLEAVY opened public testimony on SB 31.
4:29:53 PM
JAKE METCALFE, representing self, Anchorage, Alaska, testified
in opposition to SB 31. He noted that he is the executive
director of the Public Safety Employees Association, but
emphasized that he was speaking on his own behalf. He opined
that the legislation is a governor's bill which is setting
legislative pay and that seemed to him to be a separation of
powers issue. He added that the bill does not apply to the court
system as well. He opined that the legislation will have
unintended consequences such as running good people off.
CHAIR DUNLEAVY closed public testimony on SB 31. He noted that
constituents have asked him to address salary overrides. He
asked that the concept of salary overrides be explained.
4:35:01 PM
KATE SHEEHAN, Director, Division of Personnel and Labor
Relations, Alaska Department of Administration, Juneau, Alaska,
explained that there are misperceptions on salary overrides. She
noted that an individual hired at a higher step gets confused as
a salary override, but the practice is in the personnel rules
and is bargained into collective bargaining agreements. She
detailed various scenarios for salary overrides as follows:
· People hired above the entry-level step because they have
exceptional qualifications;
· Recruitment difficulties;
· Geographical differential rate changes, but an employee's
higher salary is held harmless and frozen;
· Position is reclassified to a lower range, but an
employee's higher salary is held harmless and frozen.
MS. SHEEHAN disclosed that in 2013, Senate Bill 95 allowed the
governor's office to certify hiring at a step higher than the
entry level step due to a policy reason. She noted that the hire
is usually for a high-level position where a director-level
salary would not be high enough to attract somebody due to the
type of work that needs to be performed.
CHAIR DUNLEAVY asked that Ms. Sheehan supply the committee with
information on all the salary overrides that have occurred over
the last two years. He asked if the number of overrides is
expansive or just a handful.
MS. SHEEHAN replied that she would investigate and get back to
the committee. She noted that there were a lot of salary
overrides, primarily due to geographical-differential rate
changes.
4:37:48 PM
CHAIR DUNLEAVY asked that override information be delineated
over the past two years by department, division, and the
governor's office that includes details on: override salaries,
what the salaries would have been without overrides, and an
explanation. He noted that some of his constituents are laid off
and are asking him why the government is hiring with a salary
override and is potentially on the verge of reaching into their
pockets via an income tax.
SENATOR WILSON asked why the court system was left out of the
bill.
MS. RIDLE answered that the exclusion was due to a separation of
powers and detailed as follows:
Because the governor has a chance to make a decision
on this bill, if it does pass in some form, the
Legislature has a chance to weigh in on the bill
through the committee process and the floor process,
but the courts would not have any way to have a say
other than public testimony and, so we left them out
because of the separations of power because they
weren't able to participate in the bill.
SENATOR EGAN commented that he appreciated what the governor was
trying to do, but did not agree how he was going about it. He
opined that targeting employees not covered under collective
bargaining will drive them to get into collective bargaining.
CHAIR DUNLEAVY asked for an explanation why the governor is
putting his salary in the bill for a limited time. He inquired
why the governor did not consider donating part of his salary
back to the treasury.
MS. RIDLE answered that the cleanest way was to reduce his
salary rather than having to pay for benefits and taxes prior to
denoting back to the treasury.
4:41:36 PM
At ease.
4:43:38 PM
CHAIR DUNLEAVY called the committee back to order.
SENATOR COGHILL addressed page 2, line 2 in SB 31, "The
legislature is 'eliminating' general pay increases." He remarked
that "eliminating" seemed like a strong word to him because it
is eliminating for 2 years, fiscal years 2018 and 2019. He
opined that the use of the word "suspending" be considered. He
asked that legal counsel provide some insight.
4:44:47 PM
WILLIAM MILKS, Senior Assistant Attorney General, Civil
Division, Labor and State Affairs Section, Alaska Department of
Law, Juneau, Alaska, replied that perhaps the word "suspending"
is a better word, but the intent was not to introduce any
ambiguity that a retroactive situation creates. He said the use
of the word "suspend" or another term would be taken under
advisement as better than "eliminating."
SENATOR COGHILL commented that the plain language in the bill is
clear regarding a salary suspension for two years, but voiced
that he did not like the governor speaking for the Legislature
just yet.
4:46:17 PM
SENATOR GIESSEL moved to report SB 31, version 30-GS1018\A, from
committee with individual recommendations and attached fiscal
note.
4:46:28 PM
CHAIR DUNLEAVY announced that hearing no objection, SB 31 moved
from the Senate State Affairs Standing Committee.
4:46:42 PM
At ease.
4:47:05 PM
CHAIR DUNLEAVY called the committee back to order. He reiterated
that SB 31, version A, has moved out of committee with
individual recommendations and attached fiscal note.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 31 Fiscal Note.pdf |
SSTA 3/14/2017 3:30:00 PM |
SB 31 |
| SB 31 Sectional Analysis.pdf |
SSTA 3/14/2017 3:30:00 PM |
SB 31 |
| SB 31 Sponsor Statement.pdf |
SSTA 3/14/2017 3:30:00 PM |
SB 31 |
| SB 31, Version A.pdf |
SSTA 3/14/2017 3:30:00 PM |
SB 31 |
| SB 31_DOA Presentation_STA_3.14.17.pdf |
SSTA 3/14/2017 3:30:00 PM |
SB 31 |