Legislature(1999 - 2000)
07/20/1999 08:15 AM House PRI
| Audio | Topic |
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
COMMISSION ON PRIVATIZATION AND DELIVERY OF GOVERNMENT SERVICES
Anchorage, Alaska
July 20, 1999
8:15 a.m.
COMMISSION MEMBERS PRESENT
Representative Cowdery, Co-Chair
Senator Ward, Co-Chair
Representative Brice
Senator Adams
Bill Allen, Former Mayor of Fairbanks
Tom Fink, Former Mayor of Anchorage
Helvi Sandvik, President - NANA Development Corporation
Kathryn Thomas, Former Chair of Alaska State Chamber of Commerce
George Wuerch, Alaska Municipal League
Don Valesko, Business Manager of Public Employees Local 71
COMMISSION MEMBERS ABSENT
William Prosser, Chairman of the Board - Cook Inlet Region, Inc.
COMMITTEE CALENDAR
Privatization of State Government Services
PREVIOUS ACTION
No previous action to record.
WITNESS REGISTER
MARCO PIGNALBERI, Legislative Assistant
to Representative Cowdery
Alaska State Legislature
716 West 4th Avenue, Suite 320
Anchorage, Alaska 99501-2133
Telephone: (907) 268-0222
POSITION STATEMENT: Provided the commission with information and
answered questions.
MIKE ABBOTT, Economic Development Special Assistant
to Governor Knowles
3601 C Street, Suite 758
Anchorage, Alaska 99505-5990
Telephone: (907) 269-7461
POSITION STATEMENT: Offered his services and answered questions.
ANDY CLARY, Staff
to Senator Ward
Alaska State Legislature
716 West 4th Avenue, Suite 450
Anchorage, Alaska 99501-2133
Telephone: (907) 269-0106
POSITION STATEMENT: Reviewed the commission's website.
BRIAN HARRIS
7151 Chester Court
Anchorage, Alaska 99504
POSITION STATEMENT: Discussed technology.
ANDREE McLEOD
Address not provided.
POSITION STATEMENT: Suggested an anonymous mechanism for public
input.
JOSEPH HENRI, Former Commissioner of Administration
9921 Mar Point Drive
Anchorage, Alaska 99507
POSITION STATEMENT: Discussed the need to continue the momentum
of the commission.
LEO MARK ANTHONY, Prospector and Miner
Address not provided.
POSITION STATEMENT: Commented that this is about cost-benefit
analysis.
DONN LISTON, ASEA
400 Willoughby, Number 201
Juneau, Alaska 99801
POSITION STATEMENT: Commented on honoring contracts.
DAN PATTERSON
PO Box 512
Palmer, Alaska 99645
POSITION STATEMENT: Discussed privatization.
ACTION NARRATIVE
TAPE 99-1, SIDE A
CO-CHAIR WARD called the Commission on Privatization and Delivery
of Government Services meeting to order at 8:15 a.m. Members
present at the call to order were Representatives Cowdery, Brice
and Senators Ward, Adams and Commissioners Allen, Fink, Sandvik,
Wuerch, Thomas, and Valesko. Commissioner Prosser was not
present.
CO-CHAIR COWDERY explained that the purpose of the committee is
to review government overall with the possibility of
privatization in mind. Co-Chair Cowdery commended Senator Ward
on his work. He announced that the commission would be reviewing
many departments through various subcommittees that will be
formed.
CO-CHAIR WARD noted that his legislation was practically copied
word for word from the Alaska State Chamber of Commerce. This
legislation is not new, similar legislation was worked on during
the Thirteenth Alaska State Legislature and therefore. He
thanked everyone for their part in this issue. The committee
members introduced themselves and noted their affiliations.
CO-CHAIR COWDERY pointed out that Mike Abbott, Economic
Development Special Assistant to Governor Knowles was present.
He noted that Mr. Abbott would be the contact person for those on
the commission needing information from the Administration.
MIKE ABBOTT, Economic Development Special Assistant to Governor
Knowles, offered his services to those on the commission. He
commented that the Governor is interested in the outcome of this
process.
CO-CHAIR WARD noted that Ketchikan and Juneau were on
teleconference.
MARCO PIGNALBERI, Legislative Assistant to Representative
Cowdery, Alaska State Legislature, reviewed the information book
provided to the commission members. The first item in the book
is the authorizing legislation which in Section 5 specifies the
duties of the commission to be carried out by January 2000. The
book also includes an address section for commission members.
There is a copy of the solicitation that was faxed to 700
individuals across the state. The response from that fax
resulted in the member composition of the various subcommittees
of the commission.
MR. PIGNALBERI turned to Tab 4 of the book which is a
bibliography list of a few of the many articles discussing
privatization. The first article discusses "the depth and
breadth of privatization activity not only in the United States,
but elsewhere in the world." The article entitled, "What is
Privatization?" includes the commonly accepted definitions
regarding privatization. There is also an article discussing 12
types of privatization. Privatization is most commonly thought
of as contracting out such as is the case with the radio
maintenance for the state troopers. There is a variation of that
called management contracts which would be a situation in which
the state maintains ownership of a facility while its operation
is contracted out. There is also public-private competition.
For example, the Department of Transportation & Public Facilities
(DOT/PF) could farm out its design functions. In such a case,
the in-house engineers of DOT/PF would have to compete with the
private sector engineering firms for the design work on projects.
This is being done in the Lower 48 and with the Army Corp of
Engineers. The Alaska Army Core of Engineers was not aware of
management contracts, but will forward information regarding the
areas where such is practiced.
MR. PIGNALBERI moved on to the franchise variation of
privatization. With a franchise, a firm is given exclusive
rights to provide a service in a geographical area. It could be
utilized with road maintenance. Internal markets are also a
variation of privatization. Internal markets involve a state
agency competing against the private sector. Vouchers is a form
of privatization which is being debated statewide with regards to
education. Commercialization, another form of privatization, or
service shedding can result in the elimination of services.
Another variation of privatization is self-help in which a
nonprofit or neighborhood organization takes over a service the
government now provides. He cited the Alaska State Fairs as an
example of where such self-help privatization could be utilized.
Volunteerism is also a form of privatization which is illustrated
in the litter pickup programs in the state. Corporatization is
another type of privatization which the Alaska Aerospace
Development Corporation will ultimately be an example of as it
will be funded privately. Mr. Pignalberi stated that the sale of
assets or long-term leases is another way in which the government
can eliminate assets that it shouldn't have. For example, there
has been controversy surrounding whether Alaska should own the
Alaska Railroad or other businesses such as Matanuska Maid which
the state inherited due to defaulted state loans. He moved to
the final type of privatization, private infrastructure
development in which a private entity does something the state
would do such as the Knik Arm Crossing.
MR. PIGNALBERI continued with his review of the commission's
book. The book contains several articles from the 1999
Privatization Magazine which summarizes privatization activities
at federal, state, and local levels. This would be helpful in
performing the commission's charge to discover what other levels
of government are doing. The book also includes a report
requested from the National Council of State Governments. That
report is the most comprehensive article on the trends in state
government privatization. The report includes sections with
regard to cost savings and the decision making process that
should be followed by governments in determining whether
privatization is the best course of action. The report also
addresses the barriers to privatization. There is also an
article included which speaks against privatization.
MR. PIGNALBERI pointed out that the book includes a report from
Commonwealth North which did a state-owned asset study, about a
year ago. The study intended to develop a set of unifying
principles in order to guide the management of Alaska's public
assets while maximizing the returns for Alaskans. In the
process, an appendices was developed which lists each discreet
state asset which should be helpful for the commission. The
book includes several articles of general interest and a list of
those who have volunteered for the various subcommittees.
ANDY CLARY, Staff to Senator Ward, Alaska State Legislature,
informed the commission that he was responsible for building the
web page for the commission. Mr. Clary demonstrated and reviewed
what can be found on the web page which can be accessed at
www.privatizealaska.org.
CO-CHAIR WARD invited every commissioner to review the website
and make any suggestions for changes.
MR. PIGNALBERI commented that the website has been designed such
that one link can lead to another. He requested that commission
members inform Mr. Clary of sites that they find so that those
sites can be added to the website.
CO-CHAIR WARD announced that now would be the appropriate time
for comments and questions.
SENATOR ADAMS turned to the laws pertaining to privatization. He
asked if there is enough political strength to change labor laws
which he believed to be a large issue. He suggested that there
should be a review of what activities being done by state
departments should be done by municipalities and the success and
failure with privatization in other states. Senator Adams
expressed concern with regard to the delivery of services under
privatization. He was also concerned with the politics of
privatization and hoped that if there is to be action with
privatization that it be done in the next legislative session.
TAPE 99-1, SIDE B
REPRESENTATIVE BRICE expressed the need to maintain the ability
to contact a commissioner when the needs of his constituents are
not met. Furthermore, the money must be spent in the best
possible way. He noted that the delivery of service, public
accountability, and the recognition that certain areas should be
maintained by the state should be addressed. There should also
be review of those areas in which the state has been successful
with privatization.
COMMISSIONER ALLEN inquired as to how the subcommittee members
were selected.
CO-CHAIR COWDERY reiterated that more than 700 e-mails were sent
out seeking subcommittee volunteers. Anyone who is interested in
serving should contact the staff. He commented that he was
pleased with the current turnout. He hoped that the commission
members will attend subcommittee meetings of interest to them
because the subcommittee will make a report to the commissioners
who will pen the final report to the legislature.
CO-CHAIR WARD pointed out that the vast majority of those present
today have volunteered for subcommittee work and he believed more
would volunteer. He thanked all the volunteers. Co-Chair Ward
noted that this process is copied from other states.
COMMISSIONER ALLEN expressed interest in the state services
provided by sources other than local residents in rural
communities. He cited the various circuit writers that provide
services to rural communities. Commissioner Allen inquired as to
the possibility of out sourcing or contracting such to local
village corporations or training and employing local residents.
COMMISSIONER SANDVIK said that it would be worthwhile, early on,
to begin with some views and recommendations from the
Administration.
CO-CHAIR COWDERY noted that he had spoken with the Governor. As
the process proceeds, he expected the subcommittee members and
the commission members to make comments and requests of the
Administration. He reiterated that Mr. Abbott will be the
contact for the Administration.
MR. ABBOTT indicated agreement with Commissioner Sandvik's
comments. He said that the departments are prepared to work with
the subcommittees. Therefore, he expected such conversations as
eluded to by Commissioner Sandvik to occur at the subcommittee
level. He noted that there has already been discussion regarding
a possible overview of the budget for the full commission.
CO-CHAIR COWDERY referred to Tab 3 of the commission booklet
which includes a memorandum from Representative Cowdery to
Governor Knowles regarding the development of this commission.
The memorandum requested a list of the agencies with services
that are already privatized. The memorandum also suggested that
the Governor designate a single point of contact as a liaison to
the commission which is Mr. Abbott.
CO-CHAIR WARD noted that there is information available from the
legislative branch as well. He acknowledged that this is a large
task.
COMMISSIONER THOMAS commented that some subcommittees have lots
of volunteers while others do not.
MR. PIGNALBERI informed everyone that there are seven departments
for which committee membership has not been filled. Those
committees are the Alaska Department of Fish & Game, the
Department of Corrections, the Department of Labor, the
Department of Law, the Department of Military & Veterans'
Affairs, the Office of Management & Budget, and the Department of
Public Safety. He predicted that those committees would be
filled over the next few weeks. Departments such as the
Department of Transportation and the Department of Health &
Social Services have a dozen or more members listed. That is
allowed so that the subcommittee can divide itself further. For
example, there has been a suggestion that the Department of
Transportation have separate subcommittees for the Alaska Marine
Highway System, airports, and one for the remainder of DOT/PF
issues. The same scenario would be utilized with the Department
of Health & Social Services.
CO-CHAIR WARD stated that this process is now in the hands of the
commissioners. As much participation as possible is necessary.
MR. PIGNALBERI commented that he had a list of interested folks
as well as their phone numbers. After one person requested that
their phone number not be publicized, it has been decided to
provide the contact list of home and work phone numbers, faxes
and e-mails of the committee members only to those in the
committee.
CO-CHAIR WARD requested that Mr. Clary contact everyone in order
to determine who would not want which particulars to be
publicized.
COMMISSIONER THOMAS suggested that a mailing address be added to
the list because volunteers would probably prefer receiving
letters of opinion versus phone calls. Commissioner Thomas
commented that consideration should be given to the concern
regarding "whether business in the private sector is taking an
offensive position against government employees and the
bureaucracy of government." She expressed the need to remember
that private sector employees view this as an opportunity for
jobs. Some of these jobs may not be eliminated, but may merely
change ownership. There may be some shifts in the business
sector due to privatization. As a contractor, Commissioner
Thomas acknowledged that at times the concept of a project may be
different from the scope of the work and the ability to build the
project. Upon completion of this task, she emphasized the need
to reflect on how it can be successfully implemented. Although
the commission may determine what can be privatized, if the scope
of the privatization is not written correctly it will not happen.
A third party to review or help write contract specifications or
consult the agencies may be a recommendation of the commissioner.
COMMISSIONER VALESKO expressed the need for the commission to be
cautious in the recommendations that are made. He commented that
basically privatization is profitization in that government
services are turned over to someone in order to make a profit on
those services. Such will not work unless the situation is
profit-making for private organizations. He stressed the need
for protections to be written in so that Alaskans are not
overcharged for items. Commissioner Valesko commented, "My main
concern ... that the working people of Alaska are protected, the
people that take these jobs ... that they're able to make a
living to support their family and educate their kids and we have
a standard of living in this state that we can look up to. And
I'm very sad and disappointed to say in the last six, seven,
eight years the standard of living for Alaskans, and I'm part of
the system that is trying to do something about it and failing,
has gone down hill in comparison to ... most of the rest of the
states in the United States." He suggested the need to review
legislation because there are laws that apply to public employees
such as the requirement for public employees to receive health
insurance and retirement benefits. If there is to be a change
from public sector employees to private sector employees, the
aforementioned benefits should be protected no matter who
performs the job. Commissioner Valesko stressed that he did not
want a work force of temporary employees. He noted that there
are those in privatization who profit tremendously. Why should
one person reap all the profits? Commissioner Valesko used the
snow removal system in Anchorage as an example of the state
working in tandem with the private sector. In conclusion,
Commissioner Valesko stated that he supported reviewing those
places where privatization would make sense. Furthermore, there
should be review of those areas where privatization has already
occurred in order to determine if it is working.
COMMISSIONER WUERCH commented that the Alaska Municipal League is
very appreciative of being included in this commission. The
league has offered to be a resource for the commission. He
acknowledged the trend of local governments having to provide
some of the services previously provided by the state. Through
this commission, there is the opportunity to open up new
partnerships between state and local government to deliver
services. However, there are obstacles. Therefore, Commissioner
Wuerch expressed the need to uncover common solutions. One such
solution would be to allow local governments to bid on state
work.
COMMISSIONER WUERCH thanked all the volunteers and the staff
recruiting these volunteers. He offered his services in helping
to fill in the gaps. He asked if there would be a point during
which the commission would meet with each subcommittee.
MR. PIGNALBERI noted that there is a sign up sheet for advisory
councils. It is anticipated that each commissioner will be on at
least one of the subcommittees. Therefore, there should be some
continuity between the work of the subcommittees and the
commission. With regard to Commissioner Wuerch's question, Mr.
Pignalberi believed that to be up to the discretion of the
commission. He turned to the outline of subcommittee reports
which is fairly standard, but can be changed by the commission.
COMMISSIONER ALLEN inquired as to the role the commissioners
would play sitting on the subcommittees.
MR. PIGNALBERI clarified that the commissioners would be a
working member of the committee.
CO-CHAIR WARD noted that a proposed schedule was being provided
to the members and that teleconferencing is available. He
explained the need to begin work in the subcommittees as efforts
continue to fill up those subcommittees not yet full. He
announced that the next proposed meeting of the full commission
is on August 16, 1999. He explained that there should be
subcommittee work that happens between this meeting and the
proposed August 16, 1999 commission meeting. The individual
chairs of the subcommittees will decide upon a meeting time and
utilize the room and teleconference network. Then the
subcommittee representatives would present the commission with a
progress report at the August meeting.
CO-CHAIR COWDERY clarified that there are a few rooms available
to the subcommittees, but those rooms must be scheduled ahead of
time. He urged the commissioners to attend as many subcommittee
meetings as possible.
COMMISSIONER WUERCH inquired as to how the subcommittee chairs
will be chosen.
CO-CHAIR WARD informed everyone that names are being accepted for
more volunteers. He explained that the first person that
requested to be the chair of a subcommittee was made so.
CO-CHAIR COWDERY interjected that these positions may change.
CO-CHAIR WARD explained that the chair of the subcommittee will
decide when meetings occur and conduct those meetings. The only
vote that determines what will be recommended to the legislature
will come from the commission.
TAPE 99-2, SIDE A
UNIDENTIFIED SPEAKER expressed the need to include topics of
interest for the subcommittee on the home page in order to spur
subcommittee discussion on those.
CO-CHAIR WARD agreed that would be appropriate and noted that it
would be up to the subcommittees.
COMMISSIONER THOMAS suggested that the chairs of the advisory
councils be used for organizational purposes. This would allow
them to choose their own chair which would be advantageous to
all.
CO-CHAIR WARD stated that nothing precludes the commission from
anything. The subcommittees can break down further, but the
current structure allows for the process to begin. He indicated
that the subcommittees have much flexibility.
COMMISSIONER THOMAS asked if the commission would have the
capability to have listen-only teleconference hook-ups.
CO-CHAIR COWDERY answered yes. He mentioned that the need for
those interested in the Alaska Marine Highway to be from
Southeast Alaska.
COMMISSIONER FINK inquired as to when the commission would meet
again.
CO-CHAIR WARD announced that the intention was for the commission
to meet once a month.
SENATOR ADAMS clarified that the commission will be meeting as
will the subcommittees. Each commissioner will sign up for an
agency for which he/she will attend those subcommittee meetings.
He hoped that time would be spent on the subcommittee report
outline in order to develop an outline format for each agency.
The committee took a brief at-ease to 9:50 a.m.
CO-CHAIR WARD called the committee back to order and announced
that Fairbanks was also on teleconference.
MR. PIGNALBERI explained the subcommittee report outline is based
on his experience with past reports. The outline is an attempt
to place the subject before the subcommittees in order to think
about what the end product would be from the subcommittees.
SENATOR ADAMS referred to number five on the outline which speaks
to identifying constitutional and statutorial provisions
governing agency operations. He agreed that each subcommittee
should understand their agency, however statutory changes also
need to be reviewed because that needs to be included in the
recommendation from the subcommittee.
SENATOR ADAMS referred to number nine on the outline which speaks
to listing existing agency contracts and the procurement methods.
He recommended the need to have a time line on the contracts and
the benefits. He turned to the next number nine which speaks to
identifying existing privatization practices, if any. Senator
Adams agreed with Commissioner Valesko that review of whether
current privatization is working or not should be evaluated by
the subcommittees.
COMMISSIONER WUERCH commented that a question comes to mind
regarding the balance of effort; how much effort will come from
subcommittee members and from the Administration.
MR. PIGNALBERI explained that each departmental commissioner will
be given this outline so as to provide the subcommittee with the
information prior to its first meeting.
SENATOR ADAMS anticipated that the co-chairs' staff will obtain
the resource contact for each agency. He noted that each agency
has been audited and therefore, there will be a contact with
Legislative Budget & Audit. He pointed out that each agency has
a legislative liaison that can be utilized as a resource for the
statutory guidelines, missions, goals, objectives, and contracts.
CO-CHAIR WARD said that he believed there would be a great deal
of cooperation between the commission and the Administration.
COMMISSIONER ALLEN indicated that it would be appropriate for the
subcommittees to ask departmental commissioners to provide the
subcommittee with a briefing on the department. Furthermore, the
departmental commissioner could provide any recommendations with
regards to privatization. He also agreed with Commissioner
Valesko's and Commissioner Sandvik's comments.
CO-CHAIR WARD agreed that could be part of the subcommittee
presentation.
CO-CHAIR COWDERY interjected that the Governor fully intends for
the commissioners to fully participate with the subcommittees.
COMMISSIONER SANDVIK pointed out that many agency activities are
governed by their funding sources. Therefore, she suggested that
the subcommittees consider the limitations placed on the agencies
by the funding sources. That should be included in the
subcommittee report as well as recommendations in that area.
COMMISSIONER ALLEN commented that those agencies receiving
enterprise funds within a department would stand out during
subcommittee review. He hoped those would be highlighted.
COMMISSIONER THOMAS suggested that the subcommittee should define
which grant money could be administered by the private sector.
CO-CHAIR COWDERY emphasized that there are certain mandates in
the union contracts which will be honored, although there could
be changes in future negotiations.
BRIAN HARRIS informed the committee that he is a Communications
Engineer with MicroAge Corporation (ph), although he is not
present representing that corporation. However, he is present to
provide the committee with information regarding a report he is
doing for Commissioner Poe, Department of Administration. The
report is reviewing the infrastructure of the Anchorage based
telecommunications system and how to utilize technology to
redirect some telecommunication costs. One of the items to be
reviewed is with regard to who would be the best to manage and
run such a system. He informed the committee that a 1994 Wolfe &
Associates (ph) study found that the state is basically its own
telephone company. If that is correct, the state would need to
be prepared to move into the new century with the technology to
do so. As a private citizen, Mr. Harris expressed concern with
the incredible pace of technology. The state needs to view
technology as a potential asset for savings or privatization.
ANDREE McLEOD pointed out that this commission is the Commission
of Privatization and Delivery of Government Services. She hoped
that the delivery of government services is not over looked. She
expressed the need to have a nonretaliatory, anonymous mechanism
for citizens and employees to provide some information to this
commission. Ms. McLeod was concerned that this is a "top down
type of commission." She suggested that viewing this from the
bottom up may be advantageous. Ms. McLeod stressed that the
outline does not include the legislature or the Administration.
Although some services are statutory, some of those services may
be privatized. Perhaps, the ombudsman's office could be
privatized.
CO-CHAIR COWDERY disagreed with the suggestion that comments
could be anonymous.
CO-CHAIR WARD interjected that he sponsored the first whistle-
blower law in the 1980s. There are legitimate circumstances in
which people fear reprisal.
UNIDENTIFIED COMMISSIONER said that she did not believe the
request for anonymous input to be bad. There should be a
mechanism in which people feel comfortable providing ideas.
CO-CHAIR WARD acknowledged that anonymous comments and
suggestions will inevitably be received. He noted that when he
receives anonymous comments and suggestions, he performs a
double-blind verification before coming forward. He also noted
that he receives comments from those who request that their name
not be involved.
COMMISSIONER WUERCH asked if it was expected that the
subcommittees would have time to take public comments and input
or would the public comment only occur before the commission.
CO-CHAIR WARD anticipated that the subcommittees would take
public comments and hold meetings for such.
JOSEPH HENRI informed the committee that he served as the
Commissioner of Administration under Governor Egan's third term.
With regard to changing statutes, there is less than five months
to do this job with volunteers. He doubted if that could be
accomplished in the projected time frame. Mr. Henri hoped the
commission would address how to continue this work beyond what is
currently in statute.
CO-CHAIR WARD announced that the commission will accomplish what
the legislature set out for it to do. At that point, the
presentation will be the beginning of another process in which
the four legislators on the commission will participate with the
entire legislature on this matter. This will provide the
legislature with direction.
MR. HENRI commented that there is the danger that some will say
that privatization has been reviewed and no more time is to be
spent on the issue. He reiterated the need to continue the
momentum of the commission.
CO-CHAIR COWDERY indicated agreement that this process should be
ongoing.
MR. PIGNALBERI informed the committee that other states which
dealt with privatization activity had a much longer life cycle
than this commission. Most privatization activity was more than
a year, often two to three years. For example, in Arkansas there
was a commission for three years and the professional staff was
kept for two years in order to monitor and follow up on the
original work. Mr. Pignalberi believed Mr. Henri's concern to be
legitimate, but he understood Co-Chair Ward to say that it is the
responsibility of the four legislators on the commission to
continue the momentum in the legislature. He assumed that if
more work is necessary, there would be another bill to continue
these efforts.
CO-CHAIR WARD indicated agreement.
UNIDENTIFIED COMMISSIONER asked if there is staff available to
assist the subcommittees in writing the report.
CO-CHAIR COWDERY noted that he and Co-Chair Ward's staff are
available.
CO-CHAIR WARD mentioned that the House and Senate Finance
Committees' subcommittee chairs may have staff to help supply
information and staff to the commission's subcommittees. He
expected the commission to expand, but perhaps not to the extent
as in Arkansas where the commission was completely funded by
private donations.
COMMISSIONER ALLEN indicated that there may be enough questions
raised and doubt with regard to some of the recommendations that
would result in a request for the continuance of this work.
TAPE 99-2, SIDE B
MR. HENRI commented that just because some good ideas are
provided to the legislature, does not mean the legislature will
take up those ideas.
LEO MARK ANTHONY informed the committee that he has dealt with
the Department of Natural Resources(DNR) because he is a
prospector and miner. Through his experience he has felt that
DNR is a good organization. However, he realized that the
legislature is concerned with afford ability. Therefore, this is
about cost-benefit analysis. Mr. Anthony understood that as a
subcommittee, the job will be to go through the data and sort it
out. He identified the technical decisions as the responsibility
of the subcommittees while the political decisions are left to
the legislators.
MR. CLARY suggested that he or Mr. Pignalberi should be contacted
via telephone or e-mail with additional comments that people
would like to have circulated.
CO-CHAIR WARD interjected that people could go to the website and
type their comments to circulate to the commission.
COMMISSIONER THOMAS expressed concern with having each member's
e-mail address on the website because information may not be
fairly distributed to everyone. She suggested that it would be
helpful for all information to first go to Mr. Clary and Mr.
Pignalberi to be distributed back to the commissioners. That
would avoid time spent bringing people up to speed.
COMMISSIONER FINK commented that the purpose of this is to make
government more efficient not about decisions as to who should
make profits. The authorizing legislation for this commission is
driven by the fact that there is not enough money. Therefore,
the most efficient way to provide government services needs to be
determined. It should also be determined whether a particular
government service should even be performed. Still, it is of no
concern to this commission whether a contractor makes a profit.
COMMISSIONER VALESKO surmised that Commissioner Fink would like
to see Alaskans at or below minimum wage. "If we can take
nothing for the services and get it done that way, then lets have
it a citizenship here that is working for nothing .... I don't
believe in that. I believe that we have and we have laws already
that says if you're going to do a public contract, ..., you will
pay what is the prevailing wage in an area and that is when we
need to look at statutory things that say this is the wage that
we think is sufficient as citizens of Alaska, as legislators you
ought to be thinking about this; that says we want a decent
standard of living for the people that live here. I would agree,
I don't care if they make a cent of profit off of it but lets see
that the working people, ..., have a decent standard of living in
this state."
COMMISSIONER WUERCH stated that it is not his intent to take
money from anyone's pockets. As a former employer, he paid his
employees well and provided them with a full benefits package
because that gives an employer good employees. He hoped that the
commission focuses on the fundamental purposes of SB 33.
CO-CHAIR WARD mentioned that he has spoken with a number of state
employees who do fear that this is an attempt to take away jobs.
He did not believe any state employee would lose their job as a
result of this, although there will probably be a hiring freeze
and reorganizational effort. He pointed out that the legislation
includes that the subcommittees identify those state government
functions that should be transferred to nonprofit organizations,
regional profit corporations, profit corporations, federal
government, local government, or eliminated. That is quite a
charge.
COMMISSIONER (INDISC.) noted that his organization did a report
that was distributed to all legislators about four years ago
regarding the pitfalls and perils of privatization. He said that
he would like to include that in the committee book.
CO-CHAIR WARD said that he would be happy to distribute that.
CO-CHAIR COWDERY informed everyone that he has information
regarding every new program implemented since 1980 which may be
helpful to review.
CO-CHAIR WARD interjected that would also be available to the
subcommittees.
DONN LISTON, Alaska State Employees Association (ASEA), testified
via teleconference from Juneau. He informed the commission that
he was the business agent for ASEA which was involved in the
central duplicating fiasco. When there is a contract, it should
be honored.
DAN PATTERSON, testifying via teleconference from the Mat-Su
Valley, agreed with Commissioner Valesko that there will be a
race to the bottom in wages. He did not believe that
privatization of the correctional system or half-way houses
benefit Alaskans. Mr. Patterson emphasized that those
departments as well as DOT not be privatized. He requested that
the information packet be sent to the Mat-Su Legislative
Information Office(LIO).
CO-CHAIR WARD agreed that the packet would be made available and
that information forthcoming will be made available to all LIOs.
There being no further comments, Co-Chair Ward thanked everyone
for giving their time.
ADJOURNMENT
There being no further business before the commission, the
Commission on Privatization and Delivery of Government Services
meeting was adjourned at an unspecified time.
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