Legislature(2009 - 2010)BUTROVICH 205

03/17/2009 05:00 PM House RULES


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05:04:49 PM Start
05:05:20 PM HB158
05:40:38 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
* HB 158 REJECT RECOMMENDATION OF COMP. COMMISSION
Heard & Held
                    ALASKA STATE LEGISLATURE                                                                                  
                 HOUSE RULES STANDING COMMITTEE                                                                               
                         March 17, 2009                                                                                         
                           5:04 p.m.                                                                                            
                                                                                                                              
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative John Coghill, Chair                                                                                              
Representative Bob Herron, Vice Chair                                                                                           
Representative Charisse Millett                                                                                                 
Representative Mark Neuman                                                                                                      
Representative Kurt Olson                                                                                                       
Representative Berta Gardner                                                                                                    
Representative Beth Kerttula                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 158                                                                                                              
"An Act  disapproving all recommendations  of the  State Officers                                                               
Compensation Commission  relating to the  compensation, benefits,                                                               
and allowances of state officers;  and providing for an effective                                                               
date."                                                                                                                          
                                                                                                                                
     -HEARD & HELD                                                                                                              
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 158                                                                                                                  
SHORT TITLE: REJECT RECOMMENDATION OF COMP. COMMISSION                                                                          
SPONSOR(s): RULES                                                                                                               
                                                                                                                                
02/27/09       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/27/09       (H)       RLS                                                                                                    
03/17/09       (H)       RLS AT 5:00 PM BUTROVICH 205                                                                           
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
RICK HALFORD, Chair                                                                                                             
Alaska State Officers Compensation Commission                                                                                   
Chugiak, Alaska                                                                                                                 
POSITION STATEMENT:  During hearing of HB 158, presented the                                                                  
findings and recommendations of the Alaska State Officers                                                                       
Compensation Commission.                                                                                                        
                                                                                                                                
KARLA SCHOEFIELD, Deputy Director                                                                                               
Legislative Affairs Agency                                                                                                      
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:     During  hearing  of   HB  158,  answered                                                             
questions.                                                                                                                      
                                                                                                                                
RICK KOCH, Member                                                                                                               
Alaska State Officers Compensation Commission                                                                                   
Kenai, Alaska                                                                                                                   
POSITION STATEMENT:  Provided remarks during hearing of HB 158.                                                               
                                                                                                                                
MIKE MILLER, Member                                                                                                             
Alaska State Officers Compensation Commission                                                                                   
North Pole, Alaska                                                                                                              
POSITION  STATEMENT:   During  hearing  of  HB 158,  opined  that                                                             
increasing legislators' salaries is the right thing to do.                                                                      
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
5:04:49 PM                                                                                                                    
                                                                                                                                
CHAIR  JOHN COGHILL  called the  House  Rules Standing  Committee                                                             
meeting to order  at 5:04 p.m.   Representatives Coghill, Herron,                                                               
Olson, Neuman, Millet, Kerttula, and  Gardner were present at the                                                               
call to order.  Also in attendance was Representative Johnson.                                                                  
                                                                                                                                
HB 158-REJECT RECOMMENDATION OF COMP. COMMISSION                                                                              
                                                                                                                                
5:05:20 PM                                                                                                                    
                                                                                                                                
CHAIR COGHILL announced that the  only order of business would be                                                               
HOUSE BILL NO.  158, "An Act disapproving  all recommendations of                                                               
the  State  Officers  Compensation  Commission  relating  to  the                                                               
compensation,  benefits, and  allowances of  state officers;  and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
CHAIR COGHILL  announced that he  doesn't intend on  reporting HB
158 from  committee today.   However,  he informed  the committee                                                               
                                                          th,                                                                   
that  if the  legislature doesn't  act  prior to  March 28    the                                                               
Alaska State  Officers Compensation  Commission's recommendations                                                               
go into effect.                                                                                                                 
                                                                                                                                
5:06:43 PM                                                                                                                    
                                                                                                                                
RICK   HALFORD,  Chair,   Alaska   State  Officers   Compensation                                                               
Commission,  began by  relating that  he agreed  to serve  on the                                                               
Alaska State  Officers Compensation Commission  ("Commission") in                                                               
part because he  didn't act on the need  to increase legislator's                                                               
salaries when  he was a legislator.   He reviewed the  members of                                                               
the Commission.   Mr. Halford  explained that because  this issue                                                               
is unique in  the way in which statute treats  it, the Commission                                                               
determined  it would  only  make  recommendations upon  unanimous                                                               
support.   He reviewed  the process  the Commission  went through                                                               
that   resulted  in   the   preliminary   recommendation.     The                                                               
preliminary  recommendation included  raising the  salary of  the                                                               
governor,  who declined  to accept  and thus  that recommendation                                                               
was dropped.  Increasing the  governor's salary isn't as critical                                                               
as   increasing   legislators'    salary   schedule,   which   he                                                               
characterized  as an  emergency.   He noted  that a  legislator's                                                               
salary is  so low  that the legislator  qualifies for  welfare as                                                               
the  legislators' salary  schedule is  from 1991.   Although  the                                                               
long-term per  diem is  used by  some to  offset that  loss, it's                                                               
subject to many  problems with regard to public  perception.  Mr.                                                               
Halford  clarified that  it's not  the Commission's  intention to                                                               
restrict Legislative Council's ability to  provide per diem.  The                                                               
Commission only addressed per diem  when the legislature isn't in                                                               
session and the  legislator is at home.  Mr.  Halford then opined                                                               
that the  salary of the  board of directors, the  legislators, of                                                               
the state should be higher  than what's recommended.  However, he                                                               
said he believes  what was recommended is as high  as possible at                                                               
this time.   He  noted that  the Commission  is ongoing  and will                                                               
continue to review  and provide recommendations.   He opined that                                                               
legislators are worth  an increase in salary  as legislators deal                                                               
with "some  of the toughest  single-minded interests on  the face                                                               
of the earth."                                                                                                                  
                                                                                                                                
5:13:30 PM                                                                                                                    
                                                                                                                                
CHAIR COGHILL remarked  that [the legislature] tried  to put this                                                               
issue at an  arm's length from the political  process while still                                                               
receiving public input.   He asked if Mr.  Halford felt satisfied                                                               
with the public input.                                                                                                          
                                                                                                                                
MR.  HALFORD relayed  that the  Commission  tried as  best as  it                                                               
could to  obtain public  input.  Although  there were  few people                                                               
who were interested in coming  to the public hearings, the public                                                               
testimony  that was  received was  included  in the  report.   To                                                               
date, the  hearings have been beneficial  because nothing elicits                                                               
more focus, he opined, than a legislative hearing.                                                                              
                                                                                                                                
5:15:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KERTTULA related her  belief that the Commission's                                                               
initial report seems to understand  the inequity in the long-term                                                               
per diem.   She highlighted  that there are many  legislators who                                                               
work hours  that could be turned  in for long-term per  diem, but                                                               
choose not  to do  so.   She inquired as  to what  the Commission                                                               
found regarding long-term  per diem.  She related  that her sense                                                               
of the situation is that  there are legislators who under collect                                                               
and legislators  who actually worked  the long-term per  diem and                                                               
requested it, which  results in an odd  disparity in legislators'                                                               
pay.                                                                                                                            
                                                                                                                                
MR. HALFORD  related his belief  that more often  legislators are                                                               
under collecting long-term per diem.   He opined that legislators                                                               
spend  a   lot  of  time   responding  to   constituent  matters.                                                               
Legislators   are  on-call   continuously,  which   shouldn't  be                                                               
changed.  One  of the problems in the past  has been unreasonable                                                               
public expectations from  a citizen legislature.   He opined that                                                               
the expectations  with regard  to conflict  of interest  so limit                                                               
what a  legislator can do that  it's very difficult to  support a                                                               
family  and lead  an  average  family life.    "The  vision of  a                                                               
citizen  legislature  is different  than  the  reality of  today;                                                               
legislators  are in  session more  than  half the  year when  one                                                               
includes  the weekends,  special sessions,  and etcetera.   "It's                                                               
not a realistic  expectation that people could  serve for $24,000                                                               
a year  and represent a full  spectrum of the people  of Alaska,"                                                               
he said.                                                                                                                        
                                                                                                                                
5:19:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KERTTULA surmised  though  that the  Commission's                                                               
recommendations aren't  suggesting that  this change  will result                                                               
in a full-time legislature.                                                                                                     
                                                                                                                                
MR. HALFORD clarified that nothing  in the Commission's report is                                                               
intended to suggest having a full-time legislature.                                                                             
                                                                                                                                
5:20:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HERRON  requested  that Mr.  Halford  reflect  on                                                               
those opposed to the Commission's recommendations.                                                                              
                                                                                                                                
MR. HALFORD  characterized this as  an odd  process, ratification                                                               
by  inaction.   He opined  that  the aforementioned  is why  it's                                                               
important to have  a hearing even if the  legislation isn't going                                                               
to be  moved.  Mr. Halford  reminded the committee that  over the                                                               
last 20  years, the  other options  have failed  and thus  no pay                                                               
raise  has been  instituted.   Therefore,  there  have been  good                                                               
people  who  couldn't  afford  to stay  in  the  legislature  for                                                               
various reasons.                                                                                                                
                                                                                                                                
5:22:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NEUMAN opined  that  the federal  per diem,  upon                                                               
which  the  state's  per  diem  is based,  is  a  moving  target.                                                               
Therefore,  it's  difficult  for legislators  to  estimate  their                                                               
costs.     He   asked   if  the   Commission  considered   making                                                               
recommendations to Legislative Council [on the per diem].                                                                       
                                                                                                                                
MR.   HALFORD  said   that  the   Commission  considered   making                                                               
recommendations  to Legislative  Council  since it  sets the  per                                                               
diem, but  chose to only address  the out of session  at-home per                                                               
diem.   However,  he clarified  that it  wasn't the  Commission's                                                               
intention to  limit Legislative Council's ability  to pay mileage                                                               
or pay  per diem if  a legislator has  to travel in  district and                                                               
stay over night.   Mr. Halford acknowledged that  the federal per                                                               
diem for Juneau  rises and falls, but noted that  it is under the                                                               
purview of Legislative Council.                                                                                                 
                                                                                                                                
5:26:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN related his  understanding that the federal                                                               
government  uses  different  Cost of  Living  Allowance  (COLAs).                                                               
Representative Neuman  then opined that although  there's nothing                                                               
wrong with getting  paid a decent salary for a  decent days work,                                                               
some legislators  may put  in more time  and energy  than others.                                                               
However,  per the  Commission's  recommendations all  legislators                                                               
will be paid the same.                                                                                                          
                                                                                                                                
MR.   HALFORD  acknowledged   that  the   recommendations  aren't                                                               
perfect.  The  Commission, he related, decided  on a transparent,                                                               
simple system.  He stressed  his belief that more legislators are                                                               
under collecting rather than over collecting.                                                                                   
                                                                                                                                
5:30:29 PM                                                                                                                    
                                                                                                                                
KARLA  SCHOEFIELD, Deputy  Director, Legislative  Affairs Agency,                                                               
explained  that because  the  recommendations  of the  Commission                                                               
become law  without action, the  salary increase was  included in                                                               
the FY 10 request.  Therefore,  passage of HB 158 would eliminate                                                               
that funding from  the FY 10 budget.  The  increase for the first                                                               
year  would only  be for  six  months, and  that salary  increase                                                               
would be  offset by taking a  portion of the long-term  per diem.                                                               
By the  time the increase  went into  effect there would  only be                                                               
two months left  in the year.  The following  year there would be                                                               
a full year  of the salary increase  and more of the  per diem is                                                               
taken away.  Currently, about  $810,000 is budgeted for long-term                                                               
per diem.   Therefore, over the course of two  years, there would                                                               
be an increase of $800,000 in  the first year and $300,000 in the                                                               
second year for a total of $1.2 million.                                                                                        
                                                                                                                                
5:31:50 PM                                                                                                                    
                                                                                                                                
CHAIR  COGHILL   inquired  as  to   the  annual  budget   of  the                                                               
legislators' salaries.                                                                                                          
                                                                                                                                
MS.  SCHOFIELD answered  that  it  would be  $4.6  million.   Ms.                                                               
Schofield then related that  legislators' salaries, which haven't                                                               
changed since  1991, are equivalent  to a  range 5 on  the salary                                                               
schedule.    There are  only  three  employees within  the  three                                                               
branches  of  government  who  are  at  range  5.    Furthermore,                                                               
legislator's  salaries aren't  tied  to the  salary schedule  any                                                               
longer and  the legislators don't  receive the COLA.   Therefore,                                                               
in  July when  the COLA  goes  into effect  for state  employees,                                                               
legislators' salaries  will no longer  be able to be  compared to                                                               
the state's salary schedule.                                                                                                    
                                                                                                                                
5:33:05 PM                                                                                                                    
                                                                                                                                
CHAIR  COGHILL surmised  that the  starting salary  for an  entry                                                               
level clerk at the Department  of Health and Social Services must                                                               
be a range 8 or 10.                                                                                                             
                                                                                                                                
5:33:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MILLETT inquired as to what the range 5 jobs are.                                                                
                                                                                                                                
MS. SCHOFIELD suggested that perhaps  a high school student would                                                               
be paid to help out in an office.                                                                                               
                                                                                                                                
5:34:39 PM                                                                                                                    
                                                                                                                                
CHAIR  COGHILL  related  his  belief  that  the  proposed  salary                                                               
increase along  with the  elimination of  the long-term  per diem                                                               
"washes out the inequity question."                                                                                             
                                                                                                                                
5:34:50 PM                                                                                                                    
                                                                                                                                
MR. HALFORD  pointed out that if  one takes the average  of every                                                               
legislator's  per diem  and added  it  to the  current salary  of                                                               
$24,000  it amounts  to about  $36,000.   The  difference in  the                                                               
$36,000 plus  benefits and costs for  the 60 members is  what the                                                               
fiscal  note is  based  upon.   The  high side  of  per diem  was                                                               
$46,000-$48,000.   Therefore, even those collecting  the most per                                                               
diem receive a slight bump by the change.                                                                                       
                                                                                                                                
5:35:52 PM                                                                                                                    
                                                                                                                                
RICK   KOCH,   Member,   Alaska   State   Officers   Compensation                                                               
Commission,  reiterated the  fact  that all  the  actions of  the                                                               
Commission were unanimously agreed upon.                                                                                        
                                                                                                                                
5:36:58 PM                                                                                                                    
                                                                                                                                
MIKE   MILLER,  Member,   Alaska   State  Officers   Compensation                                                               
Commission, echoed  Mr. Halford's  assertion that an  increase in                                                               
legislator's salaries is  the right thing to do.   He opined that                                                               
increasing legislators' salaries is  a critical step in obtaining                                                               
qualified individuals in the legislature.                                                                                       
                                                                                                                                
5:38:00 PM                                                                                                                    
                                                                                                                                
CHAIR COGHILL  related his  belief that  the legislators  who are                                                               
elected are  qualified.  However,  he acknowledged that  the lack                                                               
of salary has  made it difficult for many people  to seek office.                                                               
He then reminded  the committee that he doesn't  intend on moving                                                               
HB  158  from  committee.    If  the  intent  is  to  reject  the                                                               
Commission's recommendations, action  must be taken on  HB 158 by                                                               
        th                                                                                                                      
March 28.    At this point, there isn't  enough support to reject                                                               
the  Commission's  report, he  related.    If that  changes,  the                                                               
committee  will have  to  meet on  HB  158 to  report  it out  of                                                               
committee.                                                                                                                      
                                                                                                                                
[HB 158 was held over.]                                                                                                         
                                                                                                                                
5:40:38 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Rules Standing Committee meeting was adjourned at 5:40 p.m.                                                                     
                                                                                                                                

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