Legislature(1993 - 1994)

04/18/1994 03:00 PM House HES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
           HOUSE HEALTH, EDUCATION AND SOCIAL SERVICES                         
                       STANDING COMMITTEE                                      
                         April 18, 1994                                        
                            3:00 p.m.                                          
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
  Rep. Cynthia Toohey, Co-Chair                                                
  Rep. Con Bunde, Co-Chair                                                     
  Rep. Gary Davis, Vice Chair                                                  
  Rep. Al Vezey                                                                
  Rep. Pete Kott                                                               
  Rep. Harley Olberg                                                           
  Rep. Irene Nicholia                                                          
  Rep. Tom Brice                                                               
                                                                               
  MEMBERS ABSENT                                                               
                                                                               
  Rep. Bettye Davis                                                            
                                                                               
  OTHER LEGISLATORS PRESENT                                                    
                                                                               
  Rep. Bill Hudson                                                             
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
  *HB 522:  "An Act relating to unemployment compensation for                  
            persons employed by educational institutions in                    
            other than educational, research, or principal                     
            administrative capacities."                                        
                                                                               
            HEARD AND HELD                                                     
                                                                               
  CONFIRMATION HEARINGS:                                                       
                                                                               
            Board of Barbers and Hairdressers                                  
            State Medical Board                                                
            Board of Nursing                                                   
            Board of Pharmacy                                                  
                                                                               
  (* First public hearing.)                                                    
                                                                               
  WITNESS REGISTER                                                             
                                                                               
  JOAN WILKERSON, Southeast Regional Manager                                   
  Alaska Public Employees Association                                          
  American Federation of Teachers                                              
  211 N. Fourth St., Ste. 306                                                  
  Juneau, Alaska 99801                                                         
  Phone:  (907) 586-2334                                                       
  Position Statement:  Testified in support of HB 522                          
                                                                               
  PAULA CLAYTON, Employee                                                      
  Mount Edgecumbe High School                                                  
  102 Sharon Dr.                                                               
  Sitka, Alaska 99835                                                          
  Phone:  (907) 747-8236                                                       
  Position Statement:  Testified in support of HB 522                          
                       (spoke via teleconference)                              
                                                                               
  DUANE GUILEY, Director                                                       
  Division of Education Finance and Support Services                           
  Department of Education                                                      
  801 W. 10th St., Suite 200                                                   
  Juneau, Alaska 99801-1894                                                    
  Phone:  (907) 465-2891                                                       
  Position statement:  Answered questions on HB 522                            
                                                                               
  VERNON MARSHALL, Executive Director                                          
  National Education Association/Alaska                                        
  114 Second St.                                                               
  Juneau, Alaska 99801                                                         
  Phone:  (907) 586-3090                                                       
  Position Statement:  Testified in support of HB 522                          
                                                                               
  ROSE SMITH, Member                                                           
  Mat-Su PTA                                                                   
  1150 Gail Dr.                                                                
  Wasilla, Alaska 99654                                                        
  Phone:  (907) 376-2517                                                       
  Position Statement:  Testified in support of HB 522                          
                       (spoke via teleconference)                              
                                                                               
  BILL MONROE                                                                  
  2950 Mariann's Way                                                           
  Wasilla, Alaska 99654                                                        
  Phone:  (907) 376-4269                                                       
  Position Statement:  Testified in support of HB 522                          
                       (spoke via teleconference)                              
                                                                               
  LEN MURRAY                                                                   
  P.O. Box 870523                                                              
  Wasilla, Alaska 99654                                                        
  Phone:  (907) 376-5063                                                       
  Position Statement:  Testified in support of HB 522                          
                       (spoke via teleconference)                              
                                                                               
  ED FLANAGAN, Southeast Representative                                        
  Alaska State District Council of Laborers                                    
  710 W. Ninth St.                                                             
  Juneau, Alaska 99801                                                         
  Phone:  (907) 586-2860                                                       
  Position Statement:  Testified in support of HB 522                          
                                                                               
  NIKKI PEARSON                                                                
  190 Trumpeter                                                                
  Soldotna, Alaska 99669                                                       
  Phone:  (907) 262-9214                                                       
  Position Statement:  Testified in support of HB 522                          
                       (spoke via teleconference)                              
                                                                               
  CARL ROSE, Executive Director                                                
  Association of Alaska School Board                                           
  316 W. 11th                                                                  
  Juneau, Alaska 99801                                                         
  Phone:  (907) 586-1083                                                       
  Position Statement:  Testified in opposition to HB 522                       
                                                                               
  SCOTT BIDWELL                                                                
  2118 S. Cushman                                                              
  Fairbanks, Alaska 99709                                                      
  Phone:  (907) 452-2123                                                       
  Position Statement:  Testified in support of HB 522                          
                       (spoke via teleconference)                              
                                                                               
  JACKIE NELSON-LAZARDI, Teacher's Aide                                        
  Special Education Department                                                 
  Fort Greeley Elementary School                                               
  HC 60 Box 4180                                                               
  Delta Junction, Alaska 99737                                                 
  Phone:  (907) 895-4217                                                       
  Position Statement:  Testified in support of HB 522                          
                       (spoke via teleconference)                              
                                                                               
  SANDY PEVAN, Teacher's Aide                                                  
  Special Education Department                                                 
  Mat-Su School District                                                       
  P.O. Box 871256                                                              
  Wasilla, Alaska 99654                                                        
  Phone:  (907) 373-6198                                                       
  Position Statement:  Testified in support of HB 522                          
                       (spoke via teleconference)                              
                                                                               
  MARK BROWN                                                                   
  P.O. Box 520783                                                              
  Wasilla, Alaska 99654                                                        
  Phone:  (907) 892-6010                                                       
  Position Statement:  Testified in support of HB 522                          
                       (spoke via teleconference)                              
                                                                               
  PAM CONRAD, President                                                        
  Mat-Su Education Association                                                 
  P.O. Box 2776                                                                
  Palmer, Alaska 99645                                                         
  Phone:  (907) 745-2015                                                       
  Position Statement:  Testified in support of HB 522                          
                       (spoke via teleconference)                              
                                                                               
  PREVIOUS ACTION                                                              
                                                                               
  BILL:  HB 522                                                                
  SHORT TITLE: UNEMPL'T COMP: NONCERTIFICATED SCH. EMPS.                       
  SPONSOR(S): LABOR & COMMERCE                                                 
                                                                               
  JRN-DATE    JRN-PG                     ACTION                                
  03/09/94      2683    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  03/09/94      2683    (H)   HES, STATE AFFAIRS, FINANCE                      
  04/18/94              (H)   HES AT 03:00 PM CAPITOL 106                      
                                                                               
                                                                               
  ACTION NARRATIVE                                                             
                                                                               
  TAPE 94-67, SIDE A                                                           
  Number 000                                                                   
                                                                               
  CHAIR BUNDE called the meeting to order at 3:05 p.m., noted                  
  members present and announced the calendar.  He brought HB
  522 to the table.                                                            
  HB 522 - UNEMPLOYMENT COMPENSATION:  NONCERTIFICATED SCHOOL                  
  EMPLOYEES                                                                    
                                                                               
  Number 031                                                                   
                                                                               
  REP. BILL HUDSON addressed HB 522.  He stated that he                        
  introduced the legislation upon the request of the                           
  noncertified school district employees.  He indicated that                   
  he was unaware that this was one category of state employees                 
  that works nine months of the year and are precluded by law                  
  from drawing unemployment insurance.  He explained that                      
  these individuals are not organized, therefore they have no                  
  job protection, and it is difficult for them to find                         
  employment for 10 weeks of the year.  He asserted that the                   
  legislation would modify the existing laws and allow those                   
  seasonal workers to receive unemployment benefits.                           
                                                                               
  REP. HUDSON further indicated that there is a "hefty" fiscal                 
  note and the cost would be incurred by the school districts.                 
  He urged the committee that to support the legislation is                    
  the right thing to do.  He stated that the legislation would                 
  provide equity for those employees who currently are not                     
  eligible for unemployment benefits.                                          
                                                                               
  Number 126                                                                   
                                                                               
  (Chair Bunde indicated that Rep. Olberg arrived at 3:07                      
  p.m.)                                                                        
                                                                               
  CHAIR BUNDE acknowledged the sizable fiscal note and                         
  indicated that it was not his intention to pass the bill                     
  out.                                                                         
                                                                               
  REP. VEZEY asked if he was missing a fiscal note and pointed                 
  out that his bill packet had two zero fiscal notes attached.                 
                                                                               
  REP. HUDSON explained that the zero fiscal notes reflect                     
  that there is no cost to the Department of Labor (DOL).  He                  
  said there would be a shared cost between the employee and                   
  employer when the employees are placed in the unemployment                   
  system.  He indicated that the school districts would incur                  
  the additional costs.                                                        
                                                                               
  Number 163                                                                   
                                                                               
  REP. OLBERG indicated that page 2 of the Department of Labor                 
  fiscal note reflects very large sums of money.                               
                                                                               
  CHAIR BUNDE asserted that the figures are in the $3 million                  
  to $5 million range.                                                         
                                                                               
  REP. VEZEY added that page 2 of the Department of Education                  
  (DOE) also has very large figures.                                           
                                                                               
  REP. HUDSON indicated that the fiscal notes "are one in the                  
  same, or should be."  He reiterated that the cost falls on                   
  the school districts, not the DOE or the DOL.                                
                                                                               
  REP. G. DAVIS clarified by saying that the workers are not                   
  currently eligible for unemployment insurance and are not                    
  paying for it now, and neither is the employer paying for                    
  it.                                                                          
                                                                               
  REP. HUDSON said the employees are ineligible to receive                     
  unemployment.  He reiterated that the legislation would make                 
  these particular seasonal workers eligible for unemployment                  
  benefits.                                                                    
                                                                               
  Number 202                                                                   
                                                                               
  CHAIR BUNDE stated that testimony would be heard via                         
  teleconference from Sitka, Mat-Su, Fairbanks, Kenai, and                     
  Soldotna.  He asked for testimony in Juneau.                                 
                                                                               
  Number 205                                                                   
                                                                               
  JOAN WILKERSON, Southeast Regional Manager, Alaska Public                    
  Employees Association, American Federation of Teachers,                      
  testified in Juneau in support of HB 522.  She stated that                   
  she represents a broad spectrum of public employees                          
  including over 230 classified school district employees in                   
  Juneau.  She said over half are employed for nine to ten                     
  months of the year and would be directly affected by the                     
  bill.  She explained that the employees are non-teachers who                 
  work with or around students; i.e., teacher's aides,                         
  secretaries, nurses, and custodians.  She stated that most                   
  of the employees earn $11.00 to $15.00 per hour for only 10                  
  months of the year.  In the summer they receive no                           
  insurance, no retirement benefits, and are presently                         
  ineligible for unemployment insurance.  She asserted that                    
  the issue is one of fairness.                                                
                                                                               
  MS. WILKERSON asserted that federal law permits states to                    
  award unemployment insurance to these individuals.  She                      
  maintained that there is no fiscal note attached to the                      
  bill.  She further argued that the proposal would better the                 
  working conditions for the lowest paid segment of public                     
  employees who devote their working lives to working with and                 
  around Alaska school children.  She urged the committee to                   
  support HB 522.                                                              
                                                                               
  Number 275                                                                   
                                                                               
  CHAIR BUNDE mentioned that he had a 23 year teaching career                  
  and worked 22 summers.  He acknowledged that seasonal work                   
  does involve multiple jobs.                                                  
                                                                               
  REP. G. DAVIS referred to the zero fiscal note and asked if                  
  the current unemployment system is paying for itself.  He                    
  asked if revenues are covering expenses.  He said if the                     
  current system is paying for itself and the legislation is                   
  taken on as an additional program, he would agree that the                   
  legislation is cost neutral.  But if the current system is                   
  not paying for itself, an additional program would "make us                  
  go further in the red."                                                      
                                                                               
  MS. WILKERSON asked if Rep. G. Davis was asking if the                       
  current system was paying for itself.                                        
                                                                               
  REP. G. DAVIS said yes.                                                      
                                                                               
  MS. WILKERSON stated that she did not have the answer to                     
  that question.                                                               
                                                                               
  Number 324                                                                   
                                                                               
  REP. BRICE said he believed the current unemployment                         
  insurance system does pay for itself, for the STEP program,                  
  and for various other employment programs.                                   
                                                                               
  (Chair Bunde indicated that Rep. Toohey arrived at 3:11                      
  p.m.)                                                                        
                                                                               
  CHAIR BUNDE asked for testimony from Sitka.                                  
                                                                               
  Number 330                                                                   
                                                                               
  PAULA CLAYTON, Employee, Mount Edgecumbe High School,                        
  testified via teleconference in support of HB 522.  She                      
  stated that she is a seasonal worker and does not receive                    
  benefits and is unable to collect unemployment.  She                         
  asserted that yearly seasonal employees must reevaluate                      
  whether or not they should keep their job, as it is                          
  difficult to find a summer job for such a short period of                    
  time.  She urged the committee to support the legislation.                   
                                                                               
  CHAIR BUNDE indicated that there would be a decrease in                      
  wages to support contributions to unemployment insurance.                    
                                                                               
  MS. CLAYTON said to her knowledge she has been paying into                   
  unemployment through her paycheck.  She said she was unsure                  
  as to whether the school pays into unemployment for her.                     
                                                                               
  CHAIR BUNDE said he would research the issue as that was not                 
  his understanding.                                                           
                                                                               
  CHAIR BUNDE asked Duane Guiley to address the issue.                         
                                                                               
  Number 400                                                                   
                                                                               
  DUANE GUILEY, Director, Division of Education Finance and                    
  Support Services, Department of Education, testified in                      
  Juneau on HB 522.  He stated that there are two choices for                  
  unemployment compensation coverage that each employer in the                 
  public school districts has.  One choice is called the                       
  reimbursable method where the district pays each dollar of                   
  unemployment claims that are filed on behalf of the                          
  districts by their prior employees.  The second choice is                    
  the percentage of payroll method where the district pays a                   
  fixed percentage of their payroll based upon their claims                    
  history.  He said school district employees are not paying                   
  for unemployment compensation coverage out of their                          
  paychecks.  He indicated that the coverage was being paid                    
  for directly by their employer.                                              
                                                                               
  Number 437                                                                   
                                                                               
  CHAIR BUNDE asked if the employer was paying for                             
  unemployment insurance currently.                                            
                                                                               
  MR. GUILEY specified that it was currently being paid by the                 
  reimbursable method by most employers in the school                          
  districts.  He explained that for the employees that file                    
  claims, the district is billed quarterly by the Unemployment                 
  Division and then they cut a check and pay back the claims.                  
  He reiterated that the employees do not pay for the coverage                 
  out of their paychecks.                                                      
                                                                               
  CHAIR BUNDE asked, if the legislation passed, would the                      
  seasonal employees be required to pay for coverage out of                    
  their paychecks.                                                             
                                                                               
  MR. GUILEY answered no.  He said the employer would pay the                  
  total price tag out of their "existing foundation dollars."                  
                                                                               
  CHAIR BUNDE asked if the state charge for unemployment                       
  compensation would increase if the seasonal employees were                   
  allowed to be compensated.                                                   
                                                                               
  MR. GUILEY said yes.                                                         
                                                                               
  CHAIR BUNDE observed that there would be less money going to                 
  salaries.                                                                    
                                                                               
  MR. GUILEY agreed.                                                           
                                                                               
  Number 477                                                                   
                                                                               
  REP. BRICE asked if the school districts are currently                       
  paying for unemployment coverage.                                            
                                                                               
  MR. GUILEY indicated that districts pay actual claims under                  
  the reimbursable method, but there may still be some                         
  districts that use the percentage of payroll method, in                      
  which case the DOL would determine an experience rating and                  
  would adjust the premium for the percentage of total payroll                 
  based on the actual number of claims filed.  The districts                   
  would only pay for the claims being made by their prior                      
  employees.                                                                   
                                                                               
  CHAIR BUNDE added that if the bill passes, the claims would                  
  go up significantly.                                                         
                                                                               
  Number 516                                                                   
                                                                               
  REP. NICHOLIA asked if under the percentage of payroll                       
  method, would the employees be paying for unemployment                       
  coverage from their paycheck.                                                
                                                                               
  MR. GUILEY explained that under the percentage of payroll                    
  method, employees are not paying a specific share.  The                      
  employer is paying a specific share based on their                           
  experience.  He said then the employer must balance their                    
  total resources between all their expenditures, which are                    
  salaries and benefits.                                                       
                                                                               
  REP. NICHOLIA referred to Ms. Clayton's testimony and asked                  
  if she and others were paying for unemployment insurance.                    
                                                                               
  MR. GUILEY said it was not his understanding that those                      
  employees were paying for unemployment out of their                          
  paychecks.                                                                   
                                                                               
  Number 539                                                                   
                                                                               
  VERNON MARSHALL, Executive Director, National Education                      
  Association/Alaska (NEA-AK), testified in Juneau in support                  
  of HB 522.  He stated that the legislation corrects an                       
  inequity.  He indicated that the problem started in the                      
  early 1970's when educational support or seasonal employees                  
  qualified for unemployment during the summer months.  He                     
  said that policy changed in the 1970's as a disqualifier was                 
  provided for where an individual would not qualify to file                   
  if there was a break in service or a period of time between                  
  two successive academic years.  He stated that in 1991,                      
  President Bush signed the Emergency Employment Compensation                  
  Act that lifted the prohibition and provided opportunity for                 
  states to further explore the issue again.                                   
                                                                               
  MR. MARSHALL further stated that there have been exemptions                  
  made for noncertificated employees, which are listed in the                  
  position statement that the NEA-AK provided to the committee                 
  in their bill packets.  For example, those who taught                        
  indigenous languages were given an opportunity to qualify                    
  for unemployment benefits if they were employed by a school                  
  district.                                                                    
                                                                               
  MR. MARSHALL indicated that noncertificated employees do not                 
  accrue retirement credit or compensation from the school                     
  district during the summer.  He explained that it is                         
  difficult for a cafeteria worker, secretary, teacher's aide,                 
  custodian, or a mechanic to secure limited one to three                      
  month employment opportunities in the private or public                      
  sectors.  He explained that the reality of the situation is                  
  that these individuals must stretch personal and family                      
  budgets in order to pay for twelve months of family                          
  expenses.  He felt that noncertificated school employees are                 
  permanent Alaska residents.  Benefits provided them would be                 
  spent in local economies.                                                    
                                                                               
  MR. MARSHALL stated that the book "Unemployment Insurance                    
  Actuarial Study and Finance" published in 1992 indicated                     
  that Alaska provided interstate unemployment benefits.  He                   
  said approximately $25.5 million in benefits went out of                     
  Alaska to virtually every state in the country and Canada.                   
  He asserted that it is unfair to provide benefits in that                    
  manner while noncertificated school employees are being                      
  denied unemployment benefits.  He further explained that the                 
  book indicates that the maximum salary that benefits are                     
  calculated on is $22,000 and above.  That would be $212.00                   
  per week plus $24.00 for dependents, providing for up to                     
  three dependents.  He felt that the money would provide for                  
  basic family necessities.  He also felt that the level of                    
  benefits would not cause a person to choose unemployment                     
  over the opportunity to work.                                                
                                                                               
  MR. MARSHALL said that it is difficult to estimate the                       
  direct financial cost to the school districts.  Since some                   
  employees will likely not apply for benefits for numerous                    
  reasons and other employees will not be available for work                   
  during the summer, it's difficult to calculate use.                          
                                                                               
  MR. MARSHALL further stated that these individuals are                       
  forced to rely on another working spouse or another short                    
  term job during the summer months.  The extension of                         
  benefits would simply protect those who are unable to find                   
  work and want to work.  He also indicated that if a                          
  noncertificated employee is fired, they would qualify for                    
  unemployment benefits.                                                       
                                                                               
  Number 808                                                                   
                                                                               
  REP. TOOHEY indicated that a mother of two children whose                    
  salary is $17,000 per year would qualify for welfare                         
  benefits while she's working.                                                
                                                                               
  MR. MARSHALL said that there are many noncertificated school                 
  employees that qualify for food stamps and welfare.  He                      
  indicated that many of those people want to work and do not                  
  ask for public assistance.                                                   
                                                                               
  CHAIR BUNDE clarified that teachers do not collect                           
  unemployment because of the reasonable expectation of                        
  unemployment.                                                                
                                                                               
  MR. MARSHALL concurred.                                                      
                                                                               
  CHAIR BUNDE said, "I also hear you saying that because of                    
  the financial difference, teachers make more money, so they                  
  shouldn't qualify.  But, these people make less than they                    
  should."                                                                     
                                                                               
  MR. MARSHALL explained that there are many variables.  He                    
  said many teachers continue to go to school to improve their                 
  credentials.                                                                 
                                                                               
  CHAIR BUNDE observed that there is a reasonable expectation                  
  for reemployment for school secretaries, as some have been                   
  working for the school district for 20 years.                                
                                                                               
  MR. MARSHALL asserted that currently a person can work for                   
  nine months on the North Slope and then collect a $212.00                    
  weekly benefit in Arkansas for a couple of months and return                 
  when the opportunity arises.  He felt the same opportunity                   
  should be offered to noncertificated school employees.                       
                                                                               
  Number 891                                                                   
                                                                               
  CHAIR BUNDE referred to the problems facing the state budget                 
  and school funding.  He asked if Mr. Marshall knew that                      
  school funding would not increase next year and that any                     
  money for the program would be taken out of other school                     
  programs, would he still support the legislation.                            
                                                                               
  Number 900                                                                   
                                                                               
  MR. MARSHALL maintained that the issue is one that he would                  
  like to take back to his membership and let them debate the                  
  issue.                                                                       
                                                                               
  CHAIR BUNDE asked for further questions.                                     
                                                                               
  Number 905                                                                   
                                                                               
  REP. VEZEY asked what the dollar amount was for unemployment                 
  benefits that are paid to people out-of-state.                               
                                                                               
  MR. MARSHALL said the figure is $25.4 million.                               
                                                                               
  Number 917                                                                   
                                                                               
  ROSE SMITH, Member, Mat-Su PTA, testified via teleconference                 
  in support of HB 522.  She stated that she is a nine month                   
  employee with the Mat-Su School District.  She stated that                   
  she does have the option of continuing her health coverage                   
  over the summer for one-half the cost to herself.  She said                  
  if she does not have a job, she cannot cover that cost.  She                 
  explained that summer jobs are difficult to come by as                       
  employers are reluctant to hire a person for such a short                    
  period of time.  She indicated that she does plan to return                  
  to her job in September.                                                     
                                                                               
  Number 944                                                                   
                                                                               
  BILL MONROE, concerned citizen, testified via teleconference                 
  in support of HB 522.  He stated that fire fighters and                      
  other state seasonal workers are entitled to unemployment                    
  insurance.  He regarded the bill as an equity issue for                      
  school district employees who are paid much less than most                   
  seasonal workers.  He further indicated that fire fighters                   
  and various other seasonal workers have the opportunity to                   
  work overtime and noncertificated school employees do not.                   
  He encouraged the committee to address the equity issue.                     
                                                                               
  MR. MONROE also indicated that teachers receive retirement                   
  credit for twelve months, whereas seasonal school employees                  
  only receive them for the number of months worked.  He                       
  explained that an attempt was made to rectify that matter                    
  with SB 187.  He said that he and co-workers feel that if                    
  they cannot have equity regarding retirement, then they                      
  should have equity regarding unemployment insurance.  He                     
  further indicated that the Supplemental Interim Benefits                     
  (SIB) program was available when "times were better."  He                    
  felt that if times do get better in the near future, that                    
  program could be utilized.  He acknowledged the economic                     
  problems facing the state, but urged the committee to                        
  support HB 522.                                                              
                                                                               
  Number 990                                                                   
                                                                               
  CHAIR BUNDE asked if Mr. Monroe was referring to wild fire                   
  fire fighters in his testimony.                                              
                                                                               
  MR. MONROE said, "If they're state workers, they're eligible                 
  for unemployment insurance.  That's all I know.  So, to                      
  answer your question, yes."                                                  
                                                                               
  CHAIR BUNDE added that those fire fighters are the ones that                 
  are hired in the summer and are laid off in the winter.                      
                                                                               
  MR. MONROE said yes.                                                         
                                                                               
  CHAIR BUNDE asserted that this issue may be part of the                      
  problem.  He asked for further testimony.                                    
                                                                               
  Number 995                                                                   
                                                                               
  LEN MURRAY, concerned citizen, testified via teleconference                  
  in support of HB 522.  He stated that many of the                            
  noncertificated school employees work for wages that only                    
  support their housing, food, and small bills throughout the                  
  nine or ten month period.  He said their wages do not allow                  
  for them to save money that would cover their expenses                       
  during the summer.  He explained that many of the workers                    
  must find jobs at minimum wage, but that amount does not                     
  cover their expenses.  He indicated that this year the                       
  unemployment rate was between eight and nine percent.  He                    
  asked how many of these people will be able to find jobs for                 
  the summer.                                                                  
                                                                               
  Number 026                                                                   
                                                                               
  CHAIR BUNDE asked for further testimony.                                     
                                                                               
  Number 027                                                                   
                                                                               
  ED FLANAGAN, Southeast Representative, Alaska State District                 
  Council of Laborers, testified in Juneau in support of HB
  522.  He stated that he represents Public Employees Local                    
  71.  He explained that Local 71 represents 300 maintenance                   
  employees in the Anchorage school district, primarily                        
  janitorial and light maintenance building officers.  He                      
  indicate that when the supplemental benefits were terminated                 
  it had a devastating effect on many people.  He asserted                     
  that those employees work in the summer when they can, but                   
  he questioned what their fate will be when they are unable                   
  to find work.                                                                
                                                                               
  MR. FLANAGAN indicated that teacher's salaries are                           
  annualized.  He explained that many of the noncertificated                   
  employees used to be 12 month employees but have been cut                    
  back.  He said, "I think the department's fiscal note,                       
  there's no explanation of how they arrived at the 65%                        
  figure.  But, $3.9 million is nearly twice what the cost was                 
  when the state was reimbursing under general funds for this,                 
  when they stopped doing it in approximately 1985, and                        
  unemployment insurance has only gone up between six and                      
  twelve percent in that time.  So, I think this is a high                     
  number.  I think the folks, when they can, work or go on                     
  unemployment, they have to, if they can find work.  It's not                 
  only that they have to be available, they have to be out and                 
  seek employment.  And, our folks will do that because the                    
  wages they make are just not enough to sustain them on a                     
  year when they're only working nine months a year."  He                      
  acknowledged that correcting inequities costs money, but the                 
  cost would be spread amongst the districts.                                  
                                                                               
  Number 075                                                                   
                                                                               
  CHAIR BUNDE asked for further testimony.                                     
  Number 076                                                                   
                                                                               
  NIKKI PEARSON, Kenai Peninsula Education Support Association                 
  (KPESA), testified via teleconference in support of HB 522.                  
  She stated that she has been a member of the Kenai Peninsula                 
  School District for 15 years, and at one time she worked 12                  
  months of the year.  She indicated that she was cut back to                  
  nine months, which is the equivalent of 320 hours lost                       
  annually.  She said the decrease brought her down close to                   
  the poverty level.  She asserted that during summer months                   
  bills still have to be paid and she knows many people who                    
  have taken out loans because they were unable to find summer                 
  work.  She expressed how serious a problem the issue is and                  
  urged the committee to pass HB 522.                                          
                                                                               
  Number 116                                                                   
                                                                               
  CHAIR BUNDE asked what Ms. Pearson's position was in the                     
  school district.                                                             
                                                                               
  MS. PEARSON said she is the head custodian for an elementary                 
  school, which is a ten month position.                                       
                                                                               
  CHAIR BUNDE asked for further testimony.                                     
                                                                               
  TAPE 94-67, SIDE B                                                           
  Number 000                                                                   
                                                                               
  CARL ROSE, Executive Director, Association of Alaska School                  
  Board (AASB), testified in Juneau in opposition to HB 522.                   
  He stated that it is very difficult to estimate what the                     
  cost of the legislation would be.  He observed that school                   
  district budgets are currently inadequate to perform under                   
  status quo.  He referred to the passage of HB 505 and                        
  thanked the committee members for their consideration.  He                   
  explained that currently many school districts choose the                    
  reimbursement method of unemployment.  He said if the bill                   
  were to pass they would have to reconsider which method to                   
  use.                                                                         
                                                                               
  MR. ROSE said that the legislation includes additional costs                 
  that cannot be covered.  He asserted that the districts                      
  cannot keep pace with inflation.  He said it would cost a                    
  considerable amount to address the fairness issue and that                   
  if the state would be willing to help, "we would appreciate                  
  the help."  He stated that as things stand now, he opposes                   
  the legislation.                                                             
                                                                               
  Number 055                                                                   
                                                                               
  REP. VEZEY indicated that unemployment benefits were set up                  
  as insurance for those people who could not predict when                     
  they would lose their jobs.  He explained that individuals                   
  would pay into a pool that would pay a stipend to them while                 
  they were temporarily unemployed.  He asserted that this                     
  issue is very predictable.  He said there would be no                        
  difference in writing a law requiring school districts to                    
  give their employees a pay raise.  He said there would be no                 
  difference in paying the individuals for the 12 weeks that                   
  they are unemployed and paying them 25% more wages during                    
  the time that they are employed.  He maintained that the                     
  legislature is being asked to grant a pay raise through                      
  statute, not to insure those who unexpectedly lose their                     
  jobs.                                                                        
                                                                               
  MR. ROSE asserted that if the bill passed, it would increase                 
  costs without any additional revenue.  He stated that if                     
  there were mandates from the state, districts would expect                   
  financial assistance.  He felt the legislation is a good                     
  idea, but under status quo it is not economically feasible,                  
  as there would be no additional revenue to cover the                         
  expense.                                                                     
                                                                               
  CHAIR BUNDE suggested that another option would be to                        
  increase local contribution.                                                 
                                                                               
  MR. ROSE chose not to address that issue but indicated that                  
  it is another area of concern for the AASB.                                  
                                                                               
  CHAIR BUNDE asked for further testimony.                                     
                                                                               
  Number 139                                                                   
                                                                               
  SCOTT BIDWELL, concerned citizen, testified via                              
  teleconference in support of HB 522.  He stated that                         
  noncertified school employees have incurred numerous cuts in                 
  hours and pay.  He explained that many individuals in                        
  Fairbanks now work for 82% of what they made six years ago                   
  as they were cut back from 12 to nine or ten months.  He                     
  explained that those workers have tried to obtain a 12 month                 
  pay option, which means that a person is paid over a 12                      
  month period for nine or ten months of work.  He maintained                  
  that there has been no cooperation from the district in that                 
  regard.  He further explained that there are approximately                   
  380 nine or ten month employees and most have not chosen to                  
  work that length of time as they used to be 12 month                         
  employees.                                                                   
                                                                               
  Number 191                                                                   
                                                                               
  CHAIR BUNDE observed that districts often allow teachers the                 
  option of taking their salary over a 12 month period.  He                    
  asked if Mr. Bidwell's district allows seasonal employees to                 
  take their salaries over a 12 month period.                                  
                                                                               
  MR. BIDWELL said no.  He indicated that the district said                    
  that method would be more costly.                                            
                                                                               
  CHAIR BUNDE suggested that if Mr. Bidwell needed legislative                 
  support for that issue, he would volunteer Rep. Brice to                     
  address the problem.  He asked for further testimony.                        
                                                                               
  Number 219                                                                   
                                                                               
  JACKIE NELSON-LAZARDI, Teacher's Aide, Special Education                     
  Department, Fort Greeley Elementary School, testified via                    
  teleconference in support of HB 522.  She stated that                        
  noncertificated employees are selected first when there are                  
  budget crunches in school districts.  She said there is a                    
  history of discrimination against seasonal employees in the                  
  areas of benefits, retirement credit, job security,                          
  contracting out, the right to bargain, and unemployment                      
  compensation.  She asserted that noncertificated employees                   
  have no employment or unemployment compensation for up to                    
  one-fourth of each year.                                                     
                                                                               
  MS. NELSON-LAZARDI stated that even the most aggressive job                  
  seekers among them cannot find an employer who wishes to                     
  hire an employee for a period of only two or three months.                   
  She indicated that any employment that is found is                           
  traditionally filled by students.  She further explained                     
  that she is a single mother with two children and has been                   
  forced to take such positions and has then had to pay a                      
  babysitter 60% or more of her wages.  Although she does                      
  qualify for public assistance during those times, her pride                  
  does not allow her to take advantage of the benefits.                        
  Instead, she has opted to take the first three to four                       
  months of each school year to try and "catch up" and repeat                  
  the same scenario year after year.  She felt the legislation                 
  would help to enhance her family's quality of life through                   
  an "earned" benefit and not a "hand-out."  She strongly                      
  urged the passage of HB 522.                                                 
                                                                               
  Number 303                                                                   
                                                                               
  CHAIR BUNDE asked Ms. Nelson-Lazardi what her job position                   
  is.                                                                          
                                                                               
  MS. NELSON-LAZARDI stated that she has been a Teacher's Aide                 
  in the Special Education Department for the past 15 years.                   
                                                                               
  CHAIR BUNDE asked for further testimony.                                     
                                                                               
  Number 310                                                                   
                                                                               
  SANDY PEVAN, Teacher's Aide, Special Education Department,                   
  Mat-Su School District, testified via teleconference in                      
  support of HB 522.  She stated that she has been working in                  
  the Mat-Su district for approximately 17 years.  She                         
  indicated that she has 9.1 years accrued in her retirement                   
  plan.  She stressed that the issue is one of equity.  She                    
  said if she cannot receive an equitable share of retirement,                 
  she should at least be able to make her house payment during                 
  the summer.                                                                  
                                                                               
  Number 347                                                                   
                                                                               
  CHAIR BUNDE asked for testimony from Mark Brown.                             
                                                                               
  Number 348                                                                   
                                                                               
  MARK BROWN, concerned citizen, testified via teleconference                  
  in support of HB 522.  He stated that many seasonal                          
  employees seek jobs elsewhere and some do stay at home                       
  during the summer.  He indicated that the money that would                   
  be paid during the summer months if the bill is passed would                 
  be spent in local economies.                                                 
                                                                               
  Number 355                                                                   
                                                                               
  PAM CONRAD, President, Mat-Su Education Association,                         
  testified via teleconference in support of HB 522.  She                      
  stated that the teachers of the Mat-Su School District                       
  support the legislation.  She asserted that noncertificated                  
  employees are living at the poverty level and that they are                  
  friends and co-workers.  She described the anxiety and pain                  
  that families go through when they anticipate and go through                 
  the financially difficult summer.  She said that many of her                 
  friends are forced to consider going on welfare, of which                    
  they "have way to much pride to accept."  She said some                      
  parents leave the town and their children to find jobs                       
  elsewhere for the summer.  She asserted that the situation                   
  is inequitable.  She stated that the Mat-Su Education                        
  Association urges the committee to pass HB 522.                              
                                                                               
  Number 412                                                                   
                                                                               
  CHAIR BUNDE asked for further testimony.  There being none,                  
  he closed public testimony.  He acknowledged that the issue                  
  was one of equity, but indicated that because of the                         
  challenges facing this year's school budget, there was no                    
  possibility that the committee would move HB 522 forward.                    
  He stated that hopefully next year's budget could facilitate                 
  the change.  He then brought the confirmation hearings to                    
  the table.                                                                   
  CONFIRMATION HEARINGS                                                        
                                                                               
  CHAIR BUNDE observed that all members had the opportunity to                 
  study the qualifications of the appointees.  He said he                      
  would read the names of the nominees into the record.  He                    
  told the committee to feel free to stop him if there were                    
  any comments or questions.  If there were no objections, he                  
  said the committee would then transmit the appointees' names                 
  to the Speaker of the House with individual recommendations.                 
                                                                               
  BOARD OF BARBERS AND HAIRDRESSERS                                            
                                                                               
  Lawrence R. Krupa             -    North Pole                                
                                                                               
  STATE MEDICAL BOARD                                                          
                                                                               
  Edward D. Spencer, M.D.       _    Palmer                                    
                                                                               
  BOARD OF NURSING                                                             
                                                                               
  Patricia "Gail" Kelley        -    Kodiak                                    
                                                                               
  BOARD OF PHARMACY                                                            
                                                                               
  Kendal L. Kaihoi, R.Ph.       -    Fairbanks                                 
                                                                               
  Number 461                                                                   
                                                                               
  REP. OLBERG indicated that he was personally acquainted with                 
  Lawrence Krupa and said he is a "fine, upstanding" person.                   
                                                                               
  CHAIR BUNDE asked the pleasure of the committee.                             
                                                                               
  REP. TOOHEY made a motion to adopt the nominations and pass                  
  them out of committee.                                                       
                                                                               
  CHAIR BUNDE suggested that they be passed out with                           
  individual recommendations.                                                  
                                                                               
  REP. TOOHEY disagreed.                                                       
                                                                               
  CHAIR BUNDE indicated that prior confirmations that were                     
  passed out had the option of do confirm, do not confirm, or                  
  no recommendation.  He asked for any objections.  There                      
  being none, the appointees were passed out of committee.                     
                                                                               
  Seeing no further business before the committee, CHAIR BUNDE                 
  adjourned the meeting at 4:00 p.m.                                           

Document Name Date/Time Subjects