Legislature(2001 - 2002)
04/05/2001 03:35 PM Senate STA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SB 34-COMMISSIONERS' SALARIES
CHAIRMAN THERRIAULT informed committee members that the bill would
be heard but there would be no final action taken that day.
MIKE ABBOTT, legislative director in the Office of the Governor,
was particularly appreciative of the hearing in light of the fact
that legislation putting in place pay raises for public officials
is not easy legislation.
Pay ranges for cabinet officers are set in statute with no merit
increase opportunities. SB 34 would change that and make it
possible for the governor to set a range of $86,800 to $96,200 for
cabinet level salaries. Functionally, this would provide a range
from 28, step E to range 30, step F. The specific salary within the
range would be set at the discretion of the governor.
Senator Halford joined the meeting.
MR. ABBOTT said this is the second legislature in which Governor
Knowles has introduced this legislation. The justification is that
the salaries were set in the current range and step more than 20
years ago, in 1980. Although compensation for the positions has
gone up as a result of collective bargaining, it has not kept up
with inflation. If the 1980 salaries had been adjusted for
inflation, they would be approximately $46,000 higher now than they
were then.
There are many state employees who make more than their department
heads. Last year, more than 90 Department of Transportation and
Public Facilities (DOTPF) employees earned more than their
commissioner. In the Department of Law there are 50 employees with
a higher step and range than the attorney general. It is
appropriate for commissioners to make more that those individuals
working for them.
Federal salaries for positions with similar duties and
responsibilities pay substantially more. The salary for the state
director of the Bureau of Land Management is between $110,000 and
$125,000 per year plus 25 percent tax exempt cost of living
allowance (COLA); the administrator for the federal highways office
makes somewhere between $80,000 and $100,000 per year plus COLA and
the director of the National Marine Fisheries Service makes in
excess of $100,000 per year plus COLA. There is attrition from
state ranks to federal positions because state compensation simply
is not competitive.
Number 786
He called attention to correspondence from former attorneys
general, former commissioners of commerce and labor and chiefs of
staff from previous administrations all lending support to the
proposed increase. Compensation offered to some of the most
important individuals in state government is, in fact, a
disincentive to serve or remain in service.
CHAIRMAN THERRIAULT asked for a repeat of the salary ranges and Mr.
Abbott obliged.
He asked why the range was offered and how it would be decided
which commissioners were paid at the lower range and which would be
offered the top range.
MR. ABBOTT said the governor's rationale in suggesting the range is
to give the chief executive the opportunity to respond to
excellence and seniority of service. Currently, the status quo is
$86,000. The governor's intent is to review the service and
performance of the existing cabinet and would make compensation
decisions on that basis. It would be this governor's intent to use
$86,000 as the base but another governor might have a different
idea.
SENATOR PHILLIPS indicated a lack of sympathy for the legislation.
He said that money is part of it but it is a public service
position and those individuals should be ready and willing to give
to the state.
MR. ABBOTT didn't disagree, but said it's a multifaceted challenge
to encourage quality individuals to relocate to Juneau and join the
cabinet. Clearly, public service is the single greatest reason most
individuals accept cabinet positions. Even at the highest level
requested, nearly every one of the individuals is taking a pay cut
from what they could earn in the private sector. This bill gives
the governor the opportunity to reward service and recognize
contributions and to provide slightly more competitive pay for
important state officials.
CHAIRMAN THERRIAULT said he agrees with the concept of rewarding
excellence but he's unsure that governors would offer commissioners
salaries at the bottom end of the scale. They might all
automatically start at the top.
MR. ABBOTT said the legislation was written in the context of the
current administration but if it's the committee's pleasure to
amend the bill to require starting at the lower end of the scale
that would be generally consistent with Governor Knowles' intent in
promoting this legislation.
SENATOR DAVIS asked whether all commissioners serving under
Governor Knowles were hired at the same level or whether their
salaries were dependent upon the department they would head.
MR. ABBOTT said they were all paid the same as set forth in
statute.
SENATOR DAVIS asked whether there is any other way to raise those
salaries.
MR. ABBOTT read from the statutes: "The monthly salary of the head
of each principle executive department of the state is step E,
range 28."
SENATOR DAVIS said she thought the salaries are low and need to be
raised. She'd like to see this legislation moved from committee, if
not today, at least soon.
CHAIRMAN THERRIAULT said all individuals serving now signed on
knowing about the statutory language. He asked about the
administration's position if this became effective with the next
administration and not the current one.
MR. ABBOTT said clearly there is not a lot of time left for this
administration. They proposed a retroactive effective date to the
beginning of the year so, if approved and funded, the salary
increase would be effective January 1, 2001. Governor Knowles feels
strongly that he would like to take this opportunity to recognize
and reward individuals who have served for an extended period of
time. It would be a slap in the face to those individuals if they
were not given a raise while their successors were so rewarded.
There is an amended fiscal note that although not large, is
meaningful. The Governor feels very strongly that it is an
opportunity that should be available to the current administration
as well as future ones.
CHAIRMAN THERRIAULT said the fiscal note he has is dated 2/26/01
for $78,100.
MR. ABBOTT said that is the correct one; February reflects the
amended note.
CHAIRMAN THERRIAULT asked for questions or other testimony. There
was none.
He said the bill may come up again under bills previously heard and
he will notify Mr. Abbott if there is intent to do so. If there is
a desire to move the bill he would talk about changing certain
language.
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