Legislature(1999 - 2000)
05/05/2000 06:15 AM House FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
May 5, 2000
6:15 P.M.
rd
TAPE HHC-00 3 SS - 1, Side 1
rd
TAPE HFC 00 3 SS - 1, Side 2
CALL TO ORDER
Co-Chair Mulder called the House Finance Committee meeting
to order at 6:15 p.m.
PRESENT
CO-CHAIR: Representative Mulder
CO-CHAIR: Representative Therriault
VICE-CHAIR: Representative Bunde
Representative Davis Representative Phillips
Representative Austerman Representative Williams
Representative Foster Representative Davies
Representative Grussendorf Representative Moses
ALSO PRESENT
Representative Beth Kerttula; Annalee McConnell, Director,
Office of Management and Budget, Office of the Governor;
Robert Poe, Commissioner, Department of Administration;
Alison Elgee, Deputy Commissioner, Department of
Administration; Wendy Redman, Vice President, Statewide
Programs, University of Alaska.
SUMMARY
HB 3001 "An Act appropriating amounts to cover the fiscal
year 2001 monetary terms of the collective
bargaining agreements for employees of the
University of Alaska and the fiscal year 2001
salary and benefit adjustments for university
employees who are not members of a collective
bargaining unit; appropriating amounts to cover
the fiscal year 2001 monetary terms of all
executive branch collective bargaining agreements
and the fiscal year 2001 salary and benefit
adjustments for elected officials, officers, and
employees of the legislative, judicial, and
executive branches who are not members of a
collective bargaining unit; and providing for an
effective date."
CS HB 3001 (FIN) out of Committee with a "do pass"
recommendation.
HB 3002 "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."
CS HB 3002 (FIN) out of Committee with a "do pass"
recommendation and with a zero fiscal note by the
House Finance Committee.
HOUSE BILL NO. 3001
"An Act appropriating amounts to cover the fiscal year
2001 monetary terms of the collective bargaining
agreements for employees of the University of Alaska
and the fiscal year 2001 salary and benefit adjustments
for university employees who are not members of a
collective bargaining unit; appropriating amounts to
cover the fiscal year 2001 monetary terms of all
executive branch collective bargaining agreements and
the fiscal year 2001 salary and benefit adjustments for
elected officials, officers, and employees of the
legislative, judicial, and executive branches who are
not members of a collective bargaining unit; and
providing for an effective date."
HOUSE BILL NO. 3002
"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."
Co-Chair Mulder provided members with a proposed committee
substitute for HB 3001, 1-GH2084\D, 5/5/00 (copy on file).
He explained that HB 3001 is the appropriation bill.
Co-Chair Mulder provided members with a proposed committee
substitute for HB 3002, 1-GH2085\K, 5/5/00 (copy on file).
He explained that HB 3002 codifies law for employees not
covered by a bargaining unit. The pay for non-covered
employees is set out in statute and requires statutory
changes. All state employees, except legislators are covered
by the legislation. Non-covered statutory changes are paid
for through HB 3001. The total obligation of funds is
$19,051,000 dollars. He observed that the Administration
assisted the Committee in locating funding sources.
Co-Chair Mulder provided members with a spreadsheet
detailing the funding sources (copy on file). He reviewed
the spreadsheet. The appropriation includes lapsing balances
from the Department of Environmental Conservation,
Department of Education and Early Development, fuel
adjustments in the Department of Transportation and Public
Facilities, Disaster Fund balance in AHFC, Investment Loss
Trust Fund, Longevity Bonus overstatement for FY00, school
debt reduction, and tobacco receipts. He pointed out that $2
million dollars for school debt retirement were not needed.
There was also $2 million dollars in excess tobacco
receipts, which were dedicated for school debt reduction.
There were $900 thousand dollars in excess commercial
fisheries entry receipts. Medicare pro share savings were
also used. The amount from the above funding sources
amounted to $14,338,800 dollars. The FY01 budget goal was
exceeded by $4,712.2 million dollars, which was added.
Vice Chair Bunde MOVED to ADOPT proposed committee
substitute for HB 3001, 1-GH2084\D, 5/5/00. There being NO
OBJECTION, it was so ordered.
ANNALEE MCCONNELL, DIRECTOR, OFFICE OF MANAGEMENT AND
BUDGET, OFFICE OF THE GOVERNOR spoke in support of the
legislation. She observed that the numbers are accurate.
Representative Grussendorf referred to page 7. Ms. McConnell
explained that the additional funding sources are made up of
unexpended balances among seven projects. The projects have
been completed. The Department of Environmental Conservation
submitted the appropriations.
Vice Chair Bunde referred to page 3, line 6, which
identified $1.586 million dollars in additional funds. Ms.
McConnell explained that pieces were gathered from lapses
and updates on supplemental allocation to offset the new
general funds that would be needed. This is the remaining
amount needed to fund the contracts for the executive branch
next year.
Vice Chair Bunde reviewed page 8. He noted that Fish and
Game appropriations were changed to other funds. Ms.
McConnell observed that they would be commercial fisheries
entry commission receipts (CFEC). A portion of the deferred
maintenance in the capital budget was funded with CFEC
receipts. The amendment takes the remaining fish and game
general funds and replaces them with CFEC funds where
appropriate. It is a one-time appropriation.
Co-Chair Mulder estimated that CFEC receipts could be
redirected to pay increased costs for the personnel costs in
the Department of Fish and Game.
Co-Chair Therriault expressed concern that use of the
longevity bonus surplus would not trigger the need for a
supplemental. Ms. McConnell observed that the original
estimate was that $1.4 million in general fund dollars would
be needed to fund the program. She assured Co-Chair
Therriault that the current estimate is accurate and added
that there is an excess in Y2K funding.
Representative Phillips referred to page 9 and questioned
funding for mariculture development. Ms. McConnell explained
that the appropriations were made from CFEC receipts.
Representative Foster asked if the reappropriation projects
were completed. Ms. McConnell clarified that the projects
have been completed. The reappropriation amount is generally
used to fund the following year's projects. Funding has
already been directed to the next year's projects. No
project is at a disadvantage.
Vice Chair Bunde MOVED to report CSHB 3001 (FIN) out of
Committee with the accompanying fiscal note. There being NO
OBJECTION, it was so ordered.
CS HB 3001 (FIN) was reported out of Committee with a "do
pass" recommendation.
Vice Chair Bunde MOVED to ADOPT 1-GH2085\K, 5/5/00. There
being NO OBJECTION, it was so ordered.
Co-Chair Mulder observed that sections 1 and 2 pertain to
the non-covered employees. Section 3 is the salary schedule.
He explained that a separate statute pertains to
legislator's pay (and is not affected by the legislation).
Representative Foster referred to page 4, line 13. He
observed that legislators have not received any raises. He
pointed out that state workers in Nome get 38% COLA.
Representative Grussendorf emphasized that legislators spend
long hours and felt that it was a shame that salaries were
reduced due to political pressures. Representative Moses
agreed that legislative salaries are not high enough.
Representative G. Davis observed that commissioner's
salaries are low.
Representative J. Davies questioned if a fiscal note would
be needed to provide compensation for non-covered university
personnel. Co-Chair Mulder clarified that they would be
covered under HB 3001, page 6, lines 11 -25. There is no
fiscal note for HB 3001 since it is an appropriation bill.
Co-Chair Mulder continued to reviewed the legislation.
Representative Phillips pointed out that legislators do not
receive the bonus. Representative G. Davis noted employees
would receive $50 dollars for every per pay period that they
were in employment.
Co-Chair Mulder observed that commissioners would receive
the bonus and the adjustments that keeps them on track with
the collective bargaining agreements.
Co-Chair Therriault questioned if the legislature's action
would obligate future legislatures.
Co-Chair Mulder clarified that a separate appropriation
would not be needed to fund the contracts in the future. A
statement in the language section would be needed indicating
that the contracts are being accepted or rejected during the
second and third years. The allocation would be included in
the personal service line. Contracts would be evaluated and
revisited each year by each legislature.
Co-Chair Mulder clarified that employees would not receive
court leave unless they were on jury duty or called to
testified.
Representative J. Davies asked if the Department was
comfortable with the bill.
ALISON ELGEE, DEPUTY COMMISSIONER, DEPARTMENT OF
ADMINISTRATION acknowledged that the department is
comfortable with HB 3002.
WENDY REDMAN, VICE PRESIDENT, STATEWIDE PROGRAMS, UNIVERSITY
OF ALASKA spoke in support of the legislation. She stressed
the importance of the contracts in the recruitment of new
employees.
Co-Chair Mulder noted that the titles of the bills are
sufficiently tight to only pertain to the issues contained
in the bill.
Representative J. Davies asked about the effective date
change. He referenced page 10, HB 3001. Discussion ensued
regarding the retroactive date. Ms. McConnell clarified that
the retroactive date assures that the Medicaid pro-share is
included. Co-Chair Mulder noted that it clarifies that the
legislation would be retroactive immediately.
Representative Grussendorf MOVED to report CS HB 3002 (FIN)
out of Committee with the attached fiscal note. There being
NO OBJECTION, it was so ordered.
CS HB 3002 (FIN) out of Committee with a "do pass"
recommendation and with a zero fiscal note by the House
Finance Committee.
ADJOURNMENT
The meeting was adjourned at 6:55 p.m.
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