Legislature(1993 - 1994)
03/08/1994 08:32 AM House FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
March 8, 1994
8:37 a.m.
TAPE HFC 94-51, Side 1, #000 - end.
CALL TO ORDER
Co-Chair Larson called the House Finance Committee to order
at 8:37 a.m.
PRESENT
Co-Chair Larson
Co-Chair MacLean Representative Martin
Vice-Chair Hanley Representative Navarre
Representative Brown Representative Therriault
Representative Foster
Representative Grussendorf
Representative Hoffman and Parnell were not present for the
meeting.
ALSO PRESENT
Representative Pat Carney; Dan Spencer, Fiscal Analyst,
Office of Management and Budget, Office of the Governor;
Bruce Ludwig, Business Manager, Alaska Public Employees
Association; Eric Leegard, Alaska Community Colleges'
Federation of Teachers; Nancy Bear-Usera, Commissioner,
Department of Administration; Alison Elgee, Director of
Budget, University of Alaska; Art Chance, Labor Relations,
Division of Personnel, Department of Administration.
SUMMARY INFORMATION
HB 457 "An Act making appropriations to satisfy the
monetary terms of certain collective bargaining
agreements for certain public safety employees
under an arbitrator's decision; and providing for
an effective date."
HB 457 was HELD in Committee for further
discussion.
HB 510 "An Act making appropriations to satisfy the
agreed-upon monetary terms of a collective
bargaining agreement for certain employees of the
University of Alaska; and providing for an
effective date."
HB 510 was HELD in Committee for further
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discussion.
hb#510
HOUSE BILL NO. 510
"An Act making appropriations to satisfy the
agreed-upon monetary terms of a collective bargaining
agreement for certain employees of the University of
Alaska; and providing for an effective date."
ALISON ELGEE, DIRECTOR OF BUDGET, UNIVERSITY OF ALASKA
testified in support of HB 510. She noted that the
legislation makes an appropriation to fund the Alaska
Community Colleges' Federation of Teachers (ACCFT)
bargaining unit contract. She stated that according to
their current contract the Administration is mandated to
offer, to the ACCFT bargaining unit, the same compensation
increases offered to non union employees of the University
of Alaska. She pointed out that the COLA increase is
subject to appropriation by the Legislature, under the terms
of the contract.
Ms. Elgee reviewed sections one and two of HB 510. Section
one appropriates a 3 percent increase for union faculty
members granted by the Board of Regents, effective January
1, 1994 through the remainder of fiscal year 1994. Section
two carries the cost of the FY 94 increase into FY 95.
Representative Martin pointed out that cost increases are
taken within the budget already allocated. He maintained
that the pay raises should be taken within the system. Ms.
Alison clarified that the 3 percent increase approved in
January 1994, was an across the board increase. She
expressed doubt that the University will implement an across
the board increase in the future.
In response to a question by Representative Martin, Ms.
Elgee elucidated that the legislation will increase the
University's FY 94 appropriation. She pointed out that
under the terms of the contract the University is incumbent
to request the increase from the Legislature.
Representative Brown asked for further clarification. Ms.
Elgee stressed that the contract states that: "The
University agrees to request the same level of salary
increase for Faculty Members as is requested of the
Legislature for other University employees." She noted that
if the University does not receive an appropriation to fund
salary increases the University is directed to request a
supplemental.
Representative Brown queried how the cost increase for non
union personnel is being met. Ms. Elgee observed that the
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University will have to reallocate funds to meet increased
costs of non union personnel. She explained that
legislative action on the appropriations constitutes
ratification of the union monetary terms. She observed that
eligibility of union members is under dispute. Faculty in
extended sites are union members. Faculty in other sites
are comprised of non union and union members.
Representative Navarre questioned if the Legislature
partially funded the increase by approving the FY 94
portion, would their action constitute ratification of the
contract. He surmised that the FY 95 increase could then be
reallocated. Ms. Elgee thought that Representative Navarre
would be correct if the legislative intent was clear.
Co-Chair Larson referred to Article 12, section B of the
contract (copy on file). He asked for further definition of
legislative action. Ms. Elgee interpreted legislative
action to mean a positive action on the appropriation.
In response to a question by Representative Hanley, Ms.
Elgee observed that non union employees received a pay raise
effective January 1, 1994.
BRUCE LUDWIG, BUSINESS MANAGER, ALASKA PUBLIC EMPLOYEES
ASSOCIATION spoke in support of HB 510. He emphasized that
most other university employees received the increase
January 1, 1994. He maintained that bargaining law requires
that any monetary terms are subject to appropriation. He
stressed that the terms are void absent an appropriation.
ERIC LEEGARD, ALASKA COMMUNITY COLLEGES' FEDERATION OF
TEACHERS spoke in support of HB 510. He detailed his work
history at the University of Alaska, Southeast. He
emphasized that the contract represents equity for union
employees. He stressed that the 3 percent increase
represents contract maintenance and is "not above and beyond
any great monetary strides we have made over the last year."
He discussed the lack of pay raises for union employees over
the past six years.
In response to a question by Representative Martin, Ms.
Elgee clarified that the University's request of funding for
graduate students attending the University of Alaska,
Anchorage was not approved by the Governor. The request is
not included in any legislation before the Legislature.
Representative Hanley queried the correlation of pay between
union and non union faculty members. Ms. Elgee observed
that there is no consistency in pay for either union or non
union faculty members with equivalent work experience.
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In response to a question by Co-Chair Larson, Ms. Elgee
clarified that the legislation does not effect part time
adjunct teachers. It was established that Co-Chair Larson
did not have a conflict of interest as a adjunct teacher.
Co-Chair Larson referred to the inefficient workload of full
time professors. Ms. Elgee assured members that faculty
productivity is a high priority of the Board of Regents.
Improved workload assumptions are being incorporated into
future planning.
HB 510 was HELD in Committee for further discussion.
HOUSE BILL NO. 457
"An Act making appropriations to satisfy the monetary
terms of certain collective bargaining agreements for
certain public safety employees under an arbitrator's
decision; and providing for an effective date."
NANCY BEAR-USERA, COMMISSIONER, DEPARTMENT OF ADMINISTRATION
testified in support of HB 457. She explained that HB 457
is the result of an arbitrator's finding. The arbitrator's
agreement resolves negotiations between the state of Alaska
and the Public Safety Employees Association (PSEA).
Commissioner Usera provided members with a memorandum, dated
2//07/94, enunciating typographical errors contained in HB
457 (copy on file).
Representative Martin asked for a separation of FY 94 and FY
95 requested amounts.
DAN SPENCER, FISCAL ANALYST, OFFICE OF MANAGEMENT AND
BUDGET, OFFICE OF THE GOVERNOR provided members with three
charts summarizing PSEA COLA provisions by year (copies on
file). Commissioner Usera reiterated that the contract
negotiation is retroactive. The contract will expire prior
to January 1995.
Mr. Spencer reviewed the breakdown of COLA expenses by year.
He observed that the legislation does not break out FY 92 to
FY 94 amounts. Commissioner Usera emphasized that the
legislation delineates between retroactive amounts and
prospective FY 95 amounts. Sections one and three contain
retroactive appropriations. Sections 2 and 4 contain
prospective appropriations for FY 95.
In response to a question by Representative Hanley,
Commissioner Usera explained that the retroactive raise was
3.6 percent initiated in FY 92. There is a COLA increase
effective January 1, 1994. A portion of the COLA increase
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will be deposited into the Health and Welfare Fund. The
portion deposited into the Health and Welfare Trust will be
continued forward for each succeeding year of the contract.
The health benefit level to the trust is increased from $385
to $470 hundred dollars a month per employee.
In response to a question by Representative Navarre,
Commissioner Usera reiterated that the legislation was the
result of arbitration. She added that 7 of the last 11
contracts of this bargaining unit have been resolved through
arbitration. She noted that the Administration prefers
prospective contracts. She further explained that a one
time lump sum payment equal to 1.5 percent of the calendar
1994 regular wages for the bargaining unit is to be made to
the PSEA Health and Welfare Trust.
BRUCE LUDWIG, BUSINESS MANAGER, AFL-CIO spoke in support of
HB 457. He emphasized that the agreement is the result of
protracted negotiations. He maintained that Alaska State
Troopers, Fish and Wildlife Officers and Airport Safety
Officers paid their increased health costs from their wages,
during negotiations. He noted that PSEA lost a floating
holiday in the negotiations. He observed that management
gained the flexibly to schedule officers in order to
minimize overtime.
Representative Brown asked for clarification of criminal
investigation indemnification of employees.
ART CHANCE, LABOR RELATIONS, DIVISION OF PERSONNEL,
DEPARTMENT OF ADMINISTRATION discussed provisions regarding
the indemnification of employees. He stressed that the
bargaining unit has had an indemnification provision in
cases where an employee may be charged in a civil action if
the action was taken within the normal scope of duties and
authority.
Mr. Chance noted that the arbitrated contract states "if the
member is charged criminally or is the target of a criminal
investigation for acts occurring during the course of his or
her employment, the member shall be entitled to
reimbursement of reasonable cost of attorney fee if the
member is not charged or is acquitted. Any dispute
regarding fees shall be submitted to agreements arbitration
proceedings."
In response to a question by Co-Chair Larson, Commissioner
Usera did not think that an officer who was injured buying
groceries on their way home would be eligible for workman's
compensation.
HB 457 was HELD in Committee for further discussion.
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ADJOURNMENT
The meeting adjourned at 9:20 a.m.
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