Legislature(2007 - 2008)
04/09/2008 10:24 AM Senate FIN
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
CS FOR HOUSE BILL NO. 417(FIN) am
"An Act relating to the compensation for certain public
officials, officers, and employees not covered by
collective bargaining agreements; relating to pay
increments for longevity in state service; and
providing for an effective date."
Co-Chair Hoffman MOVED to ADOPT SCS CSHB 417(FIN), labeled
25-GH2011\E, Wayne, 4/6/08, as the working document before
the Committee.
Co-Chair Stedman OBJECTED. He reported on a legal opinion
which declared that the amendment added to the bill on the
House Floor was a violation of the separation of powers
doctrine.
Co-Chair Stedman WITHDREW his OBJECTION.
There being NO OBJECTION, SCS CSHB 417(FIN) was adopted.
10:28:53 AM
ANNETTE KREITZER, COMMISSIONER, DEPARTMENT OF
ADMINISTRATION, commented that the bill is in front of the
Committee to provide a cost of living adjustment of 5.5
percent, 3 percent, and 3 percent for fiscal years 2008,
2009, 2010, for non-covered state employees in the
executive, legislative and judicial branches. Commissioners
and other fully exempt executive branch employees currently
on a salary override are not included in this legislation.
The intent is to address the issues of recruitment and
retention.
10:30:28 AM
KEVIN BROOKS, DEPUTY COMMISSIONER, DEPARTMENT OF
ADMINISTRATION, addressed the positions set in statute and
the sections of the bill:
Section 1 adjusts compensation for the commissioners
for the limited entry commission.
Section 2 conforms language for the Alaska State
Defense Force.
Section 3 changes the pay for the chief procurement
officer in the Division of General Services.
Section 4 removes a statutory limitation on the
appointment of deputy commissioners.
Section 5 readjusts the salary schedule for classified
and partially exempt employees to reflect a cost of
living adjustment effective July 1, 2007.
Section 6 provides for a 3 percent cost of living for
FY 2009 and Section 7 does the same for FY 2010.
Section 8 makes changes to the current longevity step
process for employees who reach Step F.
Section 9 addresses pay for Regulatory Commission of
Alaska commissioners.
Section 10 repeal the current longevity step language.
Section 11 provides salary adjustments for certain
exempt officers and employees of the executive branch.
Section 12 provides for judicial employees, including
magistrates. Judges would not receive a retroactive
adjustment.
Section 13 specifies that employees of the university
are entitled to salary increases.
Section 14 is prospective language to address the
steps.
Section 15 is transition language.
Sections 16 and 17 deal with retroactivity.
10:37:59 AM
Co-Chair Stedman addressed the three fiscal notes.
Co-Chair Hoffman voiced appreciation for the need to get
beyond a frozen pay scale. He wondered if the bill would
provide research information about which jobs are needed and
how to fund them.
Ms. Kreitzer thought there was a bill that deals with
elected officials' and commissioners' salaries. She shared
historical information about the matchup. She did not
object to Co-Chair Hoffman's suggestion of a salary survey.
Senator Elton emphasized that the bill does not increase
legislators' pay.
10:41:38 AM
Senator Huggins requested more information about
retroactivity. Mr. Brooks explained that retroactivity is
applied where appropriate with non-covered employees.
Senator Huggins asked what that costs. Ms. Kreitzer shared
the intent to keep parity between the covered and non-
covered employees. Mr. Brooks said the retroactive piece is
in another appropriation bill.
RECESSED: 10:43:40 AM
RECONVENED: 2:41:16 PM
BRUCE LUDWIG, BUSINESS MANAGER, ALASKA PUBLIC EMPLOYEES
ASSOCIATION/ALASKA FEDERATION OF TEACHERS, shared statistics
about his organization's membership. He emphasized the
difficulty of recruiting and retaining employees. He
pointed out that only exempt and partially exempt employees
will benefit from this bill. He thought it should be
applied to 85 percent of employees instead of 8 percent.
2:47:12 PM
PHILLIP TSCHERSICH, KODIAK, spoke as a member of the
supervisory unit with the Department of Fish and Game. He
said he was disappointed with contract negotiations. He
related the causes for poor retention rates in Alaska. He
testified in support of HB 417 for all unionized and non-
unionized employees.
2:50:27 PM
JOE DINNOCENZO, KODIAK, said he works for the Department of
Fish and Game. He noted poor morale as recruitment and
retention issues grew over the past 30 years. He testified
in support of HB 417.
2:52:04 PM
NICK SAGALKIN, KODIAK, reported that he also works for the
Department of Fish and Game. He agreed with the previous
testimony and spoke in support of HB 417. He reported that
a salary study in the Department of Fish and Game was
completed.
2:53:47 PM
STEVE THOMSEN, KODIAK, agreed with the previous testifiers.
He shared experience with negotiation issues such as
retention. He testified in support of HB 417.
2:54:52 PM
JEFF WADLEY, KODIAK, an employee of the Department of Fish
and Game, testified in support of HB 417.
2:55:40 PM
TONY PRICE, REGULATORY COMMISSION OF ALASKA, referred to
Section 9 of the bill, which amends Regulatory Commission of
Alaska Commissioner pay. He spoke of the expertise needed
to make rate decisions and of the need to attract qualified
applicants. He maintained that the level of pay for
commissioners needed to be raised to range 30.
Senator Dyson asked if a range 27 is high enough to attract
and retain desired employees. He requested clarification
regarding the specifics of range 27. Mr. Price discussed
steps A-F for range 27.
2:59:56 PM
BOB MURPHY, KODIAK, testified in support of HB 417 as it
applies to unionized and non-unionized employees.
3:01:49 PM
ANNETTE KREITZER, COMMISSIONER, DEPARTMENT OF
ADMINISTRATION, said Senator Dyson was correct in his
conclusion about range 27. She explained that collective
bargaining is a process. It is difficult when one piece is
turned down. She described what led to arbitration with the
union.
Senator Elton summarized his understanding of Section 9. He
described scenarios where new commissioners could come in at
varying salaries. Ms. Kreitzer thought it would free the
Governor to offer a range of salaries in order to improve
recruitment. Senator Elton thought there would be
situations where inequity results. Ms. Kreitzer saw it
differently. She reiterated that the intent was to provide
more flexibility. Senator Elton listed occupations where
recruitment is a problem. Ms. Kreitzer suggested that
disparity in salaries is acceptable. Senator Elton
requested more information about recruitment tactics and
salaries.
3:08:25 PM
Senator Dyson asked for an explanation of step M. Ms.
Kreitzer said that the salary schedule only goes through A-F
because if it were to go to step N, it would not fit in the
statute book. The language deals with that problem by
saying that every two years there will be a 3.75 percent
increase.
CSHB 417(FIN)am was HEARD and HELD in Committee for further
consideration.
3:09:38 PM
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