Legislature(1999 - 2000)
04/26/2000 09:12 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE BILL NO. 298
"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 SB 298 was introduced to
provide non covered employees of the Executive Branch, the
Legislature and the Judicial Branch similar increases to
the collectively bargained contracts before the Committee.
She noted that the legislation would provide employees in
FY 2001, a benefit of $1200 dollars payable on a $50 dollar
per pay period to employees employed in the year prior to
2000 for each pay period that they were employed. In FY
2002, the bill includes a wage increase of 2%; FY 2003, an
increase of 3%. She referred to the sectional analysis
included in member's packets.
Senator Adams inquired if the work draft was supported by
the Administration. [Copy on File].
Ms. Elgee commented that she had just received a copy of
the committee substitute. It appears that there are
substantive changes. The draft proposes a 2% increase in
FY 2003 rather than the 3% recommended. The draft also
proposes a benefit payment of $800 dollars instead of
$1200. The draft version appears to limit the employee
contribution to health insurance in FY 2003 from $630
proposal to $600 dollars.
Co-Chair Parnell referenced Section 8, Page 4, which
addresses the lump sum payment. He asked if the Governor,
Lt. Governor, and legislators would be included in the
increase for health benefits.
Ms. Elgee explained that health benefits were set for all
members of the select benefits plan by the Commissioner and
included everyone that participates. It is necessary that
there is a statutory change regarding pay increases. SB
298 does provide for pay increases for legislators in
future years.
Co-Chair Parnell questioned when pay increases would take
affect.
Ms. Elgee reiterated that the first pay raise would be July
1, 2001 at 2%; the next would be at 3% in July 2002.
Co-Chair Parnell stated that the "lump sum distribution"
was not considered a pay raise.
PAUL LYLE, (Testified via Teleconference), Fairbanks,
advised that the committee substitute was not available
through the Legislative Information Office. He noted that
he did not object to any of the changes proposed, however,
requested information on changes made to the work draft.
JOHN ATHENS, (Testified via Teleconference), Fairbanks,
inquired if the work draft had been adopted by the
Committee. He requested time to give testimony on that
version.
Co-Chair Torgerson indicated that the work draft had just
been faxed to all Legislative Information Offices.
DON ETHERIDGE, Lobbyist, AFL-CIO, Juneau, spoke in favor of
the proposed legislation. He noted that the AFL-CIO
believes that all public employees should receive the
proposed increases. He acknowledged that Legislator's
should also receive the proposed increase.
SENATOR TIM KELLY spoke to the proposed committee
substitute. He commented that the work draft was a counter
proposal to that submitted by the Governor.
Senator Kelly pointed out that the work draft proposes five
changes. The first change would be to the salaries of
department heads with an effective date of January 2003.
In relationship to monetary terms, the work draft would
lower the bonus from $1200 dollars to $800 dollars, and it
would lower the rate in the third year from 2% to 3%. It
would also cap health care benefits in the third year, from
$630 to $600. He added that the proposed draft does not
include the Legislature, Governor or Lt. Governor in the
lump sum pay out. He proposed that the effective date
occur during the next administration.
Senator T. Kelly pointed out the cost analysis of the bid.
[Copy on File]. The analysis indicates that there would be
a savings from the Governor's bill of $1.8 million dollars,
with a $2.8 million dollar savings over the three-year
course of the bill. He voiced concern that the total cost
would be $100.5 million dollars over a three-year period,
and that would increase the fiscal gap.
Senator Adams questioned how the work draft would affect
the other contracts, asking if those twelve contracts would
be separate.
Senator Tim Kelly replied that the contracts all call for a
$1200 dollar signing bonus. Additionally, they call for a
$515 dollar health benefit in the first year, and a $575
health benefit in the second year. All twelve contracts
max out with a $630 dollar health benefit in the third
year. He continued that all contracts call for a 2%
increase in the second year and a 3% increase in the third
year. He outlined the differences.
Senator Adams understood the only changes made would be to
the Executive and Legislative Branches.
Senator Tim Kelly acknowledged that was true and that the
legislation would not address the twelve contracts now
before the Legislature.
Co-Chair Parnell asked the effect of Section 11.
Senator T. Kelly stated that section indicates that the
legislation, a pay raise for non-union State employees,
would not go into effect until a majority of the Unions
contract with them.
Co-Chair Parnell MOVED that work draft 1-GS208\H,
Lauterbach, 4/25/00, be the version of the bill before the
Committee.
Senator Adams OBJECTED.
Following a brief at-ease, Senator Adams explained his
objection. He pointed out that the work draft would treat
State employees differently.
Senator T. Kelly responded that if in fact the twelve
negotiated contracts were approved by the Legislature, he
believed that the bill would revert back to the Governor's
position. At this time, he did not believe that there was
sufficient support in the Legislature to pass the
negotiated contracts.
Senator T. Kelly suggested that the proposed legislation
could be available to the Unions to help avert a public
employees strike. He argued that such a strike would be
counter productive.
Senator Adams recommended that the contracts be placed on
the floor so that the full Legislature could vote on them.
At that time, there would be something substantial to
negotiate. He noted that action would publicly indicate
each legislator's position.
A roll call vote was taken on the motion to adopt the work
draft.
IN FAVOR: Donley, Leman, Wilken, P. Kelly, Green,
Phillips, Parnell, Torgerson
OPPOSED: Adams
The MOTION PASSED (8-1).
Co-Chair Torgerson advised that the bill would be HELD in
Committee for further discussion.
SB 219 was HELD in Committee for further consideration.
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