Legislature(2021 - 2022)BUTROVICH 205
04/28/2022 03:30 PM Senate STATE AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| SB195 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 167 | TELECONFERENCED | |
| += | SB 126 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 195 | TELECONFERENCED | |
SB 195-PAY INCREASES FOR EXEMPT EMPLOYEES
3:37:39 PM
CHAIR SHOWER announced the consideration of SENATE BILL NO. 195
"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."
3:37:58 PM
SENATOR JESSE KIEHL, Alaska State Legislature, Juneau, Alaska,
sponsor of SB 195, introduced himself and his staff, Cathy
Schlingheyde.
CHAIR SHOWER asked if there were and questions or comments.
3:38:16 PM
SENATOR HOLLAND thanked the sponsor for bringing the bill
forward and said he was comfortable with it.
SENATOR REINBOLD summarized her understanding that the bill
tries to match exempt employee pay with what has been negotiated
for general government members.
SENATOR KIEHL clarified that SB 195 brings the pay for nonunion
state employees to the pay scale that the union negotiated in
2015 for general government employees.
SENATOR REINBOLD offered her understanding that the union for
GGU employees recently negotiated a 2.5 percent cost of living
adjustment (COLA) this year, a 3 percent COLA next year, and a 5
percent COLA the third year.
SENATOR KIEHL responded that those terms are in the contract
that is currently before the legislature for approval. SB 195
does not include those negotiated increases. This bill only
catches up with the GGU raises that were negotiated and fully
implemented about seven years ago.
SENATOR REINBOLD asked if the bill had any retroactive
provisions.
3:40:04 PM
CATHY SCHLINGHEYDE, Staff, Senator Jesse Kiehl, Alaska State
Legislature, Juneau, Alaska, answered that the bill was not
retroactive.
SENATOR REINBOLD offered her understanding that the employees in
question receive step and merit increases and this would be an
additional raise. She asked if it was for cost of living
increases. She also asked for a rough estimate of the annual
cost.
SENATOR KIEHL answered that SB 195 adjusts the salary schedule
as a whole by five percent, which keeps up with what inflation
was several years ago. It does not account for inflation today.
To the second question, he explained that the bill phases in
over two years. The first year would cost about $8.6 million and
the second year the cost would be an additional $8.8 million.
Those amounts would be in the base budget going forward.
SENATOR REINBOLD recalled a similar bill in 2015 and asked
whether SB 195 addressed the geographic differential.
3:42:04 PM
SENATOR KIEHL answered that SB 195 makes no changes to the
geographic differentials in the pay scales.
SENATOR REINBOLD recalled the 2015 legislation that had
significant geographic differentials. She asked if this bill
reflects what happened in 2015.
SENATOR KIEHL answered that SB 195 does not change the
geographic differentials that currently are on the books. The
cost associated with SB 195 includes the cost of any previous
adjustments, including geographic differentials.
SENATOR REINBOLD asked whether Juneau state workers received a
five percent geographic differential.
SENATOR KIEHL said that was his recollection.
3:43:22 PM
SENATOR KAWASAKI noted that SB 195 catches up employees in
exempt services to 2015 levels. He asked what the inflation
adjustment had been since the GGU contract was implemented in
2015.
SENATOR KIEHL replied that he did not have the number with him,
but the catch up is at full implementation, so it's really from
2013. Inflation compounded from 2013 to 2022 exceeds five
percent.
SENATOR KAWASAKI asked whether the bill would affect 2,400
employees.
SENATOR KIEHL replied that was the number that came from the
Office of Management and Budget and it had not changed.
SENATOR KAWASAKI referenced Section 6 that addresses University
of Alaska employees who are in exempt service and not
represented by a union. He asked if the university would need to
take action for this to apply to those employees.
SENATOR KIEHL said the language is there but it does not affect
any University of Alaska employees because they are all on a pay
scale that is set by the university.
3:45:11 PM
SENATOR REINBOLD asked if the geographic differential is applied
on top of the COLA.
SENATOR KIEHL offered his understanding that the only official
cost of living adjustment was in the pension system. The ferry
system has a cost of living differential for employees living
out of state. None of those employees are affected by SB 195
because they are in a union and on contract. Some people call
adjustments like this a cost of living adjustment but that term
does not apply in the statutes.
MS. SCHLINGHEYDE agreed.
SENATOR REINBOLD expressed concern about the optics of a bill
like this when so many in the private sector are still
suffering. She asked Juneau people in particular not to forget
about the private sector.
3:48:51 PM
SENATOR KIEHL agreed with her comments about the difficulties
that Alaskans in the private sector face and said he looked
forward to working together to find ways to help. He noted that
the Senate worked together to put significantly more money into
small business grants to keep Alaska business doors open than
they got at the end of the process but it was a united effort to
extend help. He said he did not disagree with the fundamental
premise of Senator Reinbold's remarks. He expressed appreciation
for the committee's work on this piece as well as the work for
the private sector.
CHAIR SHOWER said he agrees with Senator Reinbold that the bill
is expensive, but he'd like to send it on to the finance
committee to reconcile that aspect.
CHAIR SHOWER found no further questions or comments and
solicited the will of the committee.
3:50:28 PM
SENATOR REINBOLD moved to report SB 195, work order 32-LS1367\A,
from committee with individual recommendations and attached
fiscal note(s).
3:50:45 PM
CHAIR SHOWER found no objection and SB 195 was reported from the
Senate State Affairs Standing Committee.
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