03/06/2023 01:30 PM House FINANCE

SENATE BILL NO. 86                                                                                                            
                                                                                                                                
     "An  Act  disapproving  recommendations   of  the  State                                                                   
     Officers   Compensation  Commission   relating  to   the                                                                   
     salaries  of  state  officers;   and  providing  for  an                                                                   
     effective date."                                                                                                           
                                                                                                                                
Co-Chair Foster reviewed the meeting agenda.                                                                                    
                                                                                                                                
1:35:42 PM                                                                                                                    
                                                                                                                                
KEN  ALPER, STAFF,  SENATOR DONNY  OLSON, introduced  himself                                                                   
and the  bill. He  explained that the  bill would  reject the                                                                   
recommendations  of the  Alaska  State Officers  Compensation                                                                   
Commission  (ASOCC). The  underlying  statutes that  governed                                                                   
ASOCC stated that  any changes recommended by  the commission                                                                   
would  take  effect  60  days after  the  submission  of  the                                                                   
report, unless  a bill was  enacted within the  60-day period                                                                   
rejecting the recommendations.  He relayed that  the bill was                                                                   
passed by the Senate in the prior week.                                                                                         
                                                                                                                                
Co-Chair Foster asked  Mr. Alper to summarize  the report and                                                                   
explain who would receive the increases.                                                                                        
                                                                                                                                
Mr.   Alper   responded   that  the   report   analyzed   the                                                                   
compensation  of the governor,  the lieutenant governor,  and                                                                   
the executive  department heads,  and it summarized  that the                                                                   
individuals  had not  received  raises in  several years.  He                                                                   
relayed  that the  last time  the governor  received a  raise                                                                   
was  in  2011.  The  report  recommended  that  the  governor                                                                   
receive  a  compounding 2  percent  raise  per year.  If  the                                                                   
recommendations  were  to  be  followed,  the  aforementioned                                                                   
individuals would  receive a 2  percent raise per  year going                                                                   
back to  the year during which  the position had last  seen a                                                                   
raise. The  numbers were not  precise because there  was some                                                                   
compound  math that  was  yet to  be calculated,  however  he                                                                   
would offer the  estimates. The governor's current  salary of                                                                   
$145,000 per  year would increase  to $176,000 per  year. The                                                                   
lieutenant  governor's salary  would  increase from  $125,000                                                                   
per year to  approximately $140,000 per year.  The department                                                                   
heads made  $141,160.50 per  year and  would receive  a raise                                                                   
to  $168,000 per  year.  He highlighted  that  ASOCC made  no                                                                   
changes related to legislative salaries and per diems.                                                                          
                                                                                                                                
1:38:47 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster OPENED public testimony.                                                                                        
                                                                                                                                
Co-Chair Foster CLOSED public testimony.                                                                                        
                                                                                                                                
1:40:02 PM                                                                                                                    
                                                                                                                                
Co-Chair  Edgmon  reviewed  the   previously  published  zero                                                                   
fiscal  note by  various departments  with  the control  code                                                                   
meTPM. He  noted that  Mr. Neil  Steininger, the director  of                                                                   
the Office  of Management  and Budget  (OMB), and Mr.  Alexei                                                                   
Painter,  director   of  the  Legislative   Finance  Division                                                                   
(LFD),  were  both  available   to  speak  to  any  questions                                                                   
relating to the fiscal note.                                                                                                    
                                                                                                                                
Co-Chair Foster  noted that  there were  no questions  on the                                                                   
fiscal note.                                                                                                                    
                                                                                                                                
1:41:13 PM                                                                                                                    
                                                                                                                                
Co-Chair Johnson  MOVED to report SB 86 out of committee with                                                                   
individual recommendations and the  accompanying fiscal note.                                                                   
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
SB  86  was  REPORTED  out of  committee  with  a  "do  pass"                                                                   
recommendation  and  with  one  previously  published  fiscal                                                                   
note: FN1 (DEPT/Various).                                                                                                       
                                                                                                                                
Co-Chair Foster  reviewed the agenda for the  following day's                                                                   
meeting.