Legislature(2023 - 2024)BELTZ 105 (TSBldg)
02/08/2023 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| Presentation(s): a Changing Workforce: Local Government Perspective | |
| Presentation(s): Workforce Challenges in Alaska | |
| Presentation(s): Workforce Challenges and Initiatives Juneau Perspective | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
February 8, 2023
1:35 p.m.
MEMBERS PRESENT
Senator Jesse Bjorkman, Chair
Senator Elvi Gray-Jackson
Senator Kelly Merrick
Senator Forrest Dunbar
MEMBERS ABSENT
Senator Click Bishop, Vice Chair
COMMITTEE CALENDAR
PRESENTATION(S): A CHANGING WORKFORCE: LOCAL GOVERNMENT
PERSPECTIVE FROM THE CITY OF SOLDOTNA
- HEARD
PRESENTATION(S): WORKFORCE CHALLENGE FROM THE CITY OF KENAI
PERSPECTIVE
- HEARD
PRESENTATION(S): WORKFORCE CHALLENGES AND INITIATIVES FROM THE
CITY AND BOROUGH OF JUNEAU PERSPECTIVE
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
STEPHANIE QUEEN, City Manager
City of Soldotna
Soldotna, Alaska
POSITION STATEMENT: Delivered a presentation on the changing
workforce from the perspective of the City of Soldotna.
TERRY EUBANK, City Manager
City of Kenai
Kenai, Alaska
POSITION STATEMENT: Delivered a presentation on the workforce
challenges in Alaska from the perspective of the City of Kenai.
JEFF ROGERS, Finance Director
City and Borough of Juneau (CBJ)
Juneau, Alaska
POSITION STATEMENT: Delivered a presentation on workforce
challenges and initiatives from the City and Borough of Juneau
perspective.
ACTION NARRATIVE
1:35:13 PM
CHAIR JESSE BJORKMAN called the Senate Labor and Commerce
Standing Committee meeting to order at 1:35 p.m. Present at the
call to order were Senators Dunbar, Gray-Jackson, Merrick, and
Chair Bjorkman. Senator Bishop arrived shortly thereafter.
^PRESENTATION(S): A CHANGING WORKFORCE: LOCAL GOVERNMENT
PERSPECTIVE
PRESENTATION(S): A CHANGING WORKFORCE: SOLDOTNA PERSPECTIVE
1:36:24 PM
CHAIR BJORKMAN announced the consideration of a presentation
from the City of Soldotna on the changing workforce.
1:36:33 PM
STEPHANIE QUEEN, City Manager, City of Soldotna, Soldotna,
Alaska, delivered a presentation on the changing workforce from
the perspective of the City of Soldotna.
1:37:00 PM
SENATOR BISHOP joined the meeting.
MS. QUEEN began the presentation, stating Soldotna as a
municipality does not yet have an employee hiring and retention
crisis. She noted that her peers around the state might be
experiencing this issue more acutely than she is. She intends to
present the city's current and anticipated challenges during
this slideshow.
1:38:30 PM
MS. QUEEN summarized slide 2, Overview - City of Soldotna:
• Home Rule City
• Council/Manager Form of Government
• Centrally located in Kenai Peninsula Borough
• 75 Full Time Equivalent (FTE) Employees
• $15 million Annual Operating Budget
MS. QUEEN said a three percent sales tax generates most of the
city's revenue, totaling about $9.6 million last year. In
contrast, property tax generated just over $320,000. The city
has a low millage rate of half a mill. She surmised that the
municipality's focus and decisions on quality of life and
economic projects are primarily sales tax informed and driven.
1:40:22 PM
MS. QUEEN summarized slide 3, Overview - Full Time Equivalent
(FTE) Employees by Department:
• Soldotna Police Department (17 FTE)
• Parks + Recreation (16.09)
• Streets/Bldg /Airport/Shop (11.35)
• Library (7.81)
• Water / Wastewater Utility (6)
• Finance / HR (5.73)
• Public Works Admin (4)
• City Clerk (2)
• City Manager (2)
• Economic Dev + Planning (2)
• IT (2)
MS. QUEEN said city employees in leadership positions are
professional. The city organization is small but high
performing. She expressed concern that the city is more
sensitive to changes in its workforce due to its size. The city
might have difficulty absorbing and cross-training employees
moving forward.
1:41:59 PM
MS. QUEEN displayed slide 4 and discussed recruitment:
RECRUITMENT:
Recent Observations
Fewer Applicants
Hiring Managers often frustrated with the overall
number of applicants, and qualifications/experience of
those who applied
Positions Vacant Longer
Some positions had to be re-posted multiple times,
after initial attempts were unsuccessful
Highly Competitive Labor Market
Job Seekers are in a strong bargaining position with
many employment options
MS. QUEEN said the city is making some changes. The city is
lowering many of its minimum qualifications, is more flexible
with what a prospective, successful employee might look like,
and is letting positions sit longer. So far, this strategy has
been adequate but it is cause for concern.
1:44:40 PM
MS. QUEEN displayed slide 5 to discuss difficult-to-fill
positions in Soldotna:
Utility Operator
Utility Manager
MS. QUEEN said the utility department is experiencing high
turnover. A six-person team runs the water and wastewater
department, a manager, a lead operator, and four additional
operators. Two of the utility operator positions were vacated
recently. One was vacant for about five months and the other for
eight months. She said the city would have been in a bind if
these vacancies had occurred simultaneously. She expressed this
theme is heard from her peers statewide about utilities. They
have gotten creative to ensure adequate oversight, which could
mean partnering with neighboring municipalities or contracting
with an engineering firm.
City Clerk
MS. QUEEN said filling the city clerk position took almost a
year.
Police Officer*
Department Directors*
MS. QUEEN said she expects a lot of director-level turnovers.
She anticipates that it will be challenging to fill these and
police officer positions.
1:46:48 PM
MS. QUEEN advanced to slide 6, expressing her understanding that
the worker shortage at the local level is rooted in changes at
the state and national levels. She pointed out these economic
trends:
Alaska Economic Trends January 2023
Demographic Shift"
• 10 years net outmigration
• "Baby Boomers" aging out of the workforce
• State economy is growing
- adding jobs
• State and National worker shortage
Simply put: there are more jobs than people available
to do them
1:47:55 PM
MS. QUEEN displayed slide 7 to explain worker shortages
contribute to retention efforts:
RETENTION:
More critical than ever
Competitive Market = More Flexibility
Our highly valued employees are the targets of our
peers' recruitment and attraction efforts
71% of City Workforce is now in PERS [Public Employees
Retirement System] Tier IV
After 5 years, retirement account is portable and can
not only leave the City, can leave the PERS system
entirely
Soldotna Does Not Participate in Social Security, or
SBS
City employees cannot rely on supplemental retirement
from Social Security
MS. QUEEN said PERS is the only retirement option as the city
does not participate in Social Security or a supplemental
benefit system (SBS) other than a voluntary 457 deferred
compensation plan with no employer match.
1:49:23 PM
SENATOR MERRICK asked about Social Security and SBS. She
wondered who decided to opt out of Social Security and SBS
programs.
MS. QUEEN said she had not researched the history of this
decision. She said she would collect information about it for
the committee.
1:50:51 PM
MS. QUEEN displayed slide 8 to discuss generational employment
briefly:
"More than the millennial and Gen X generations before
them, Gen Z views employment as transactional in
nature"
Employers beware: Even your 'loyal' Gen Z workers may
still be looking for another job.
[Article excerpt from FastCompany, dated 1-17-23.]
MS. QUEEN speculated that these statements pertain to Gen Z, but
broadly apply to millennials and Gen X too. She expressed her
thought that these employees view jobs as transactional, a means
to an end. She clarified that this is not a critique on
generations; it comes from a position of self-awareness. Whether
in the public or private sector, employment has fundamentally
changed since moving away from pension-based systems. It is not
surprising that employees are perceived as less loyal; Tier IV
employees are more mobile.
1:52:17 PM
MS. QUEEN summarized the chart on slide 9, Retirement:
Projections, Looking Ahead. She said Soldotna was in a unique
position with its police department last year. It had been fully
staffed for seven years and no recruitment was done for that
period. It resulted in a lot of stability, but a senior
department. Including last year and projecting out five more,
the chart shows a 60 percent turnover rate in the police
department; 40 percent due to retirement. The chart includes
other departments and is concerning because the turnover rates
due to retirement are substantial and don't even include
turnover for other reasons.
1:54:41 PM
SENATOR GRAY-JACKSON asked if Soldotna has a fire department.
MS. QUEEN replied Soldotna participates in a regional fire
service area. It consolidated with the borough into a service
area decades ago.
1:55:22 PM
MS. QUEEN advanced to slide 10, which compared the number of
staff enrolled in a defined benefit retirement plan against
those enrolled in a defined contribution plan. She reviewed the
significance of the numbers shown on slide 10:
CURRENT WORKFORCE:
Defined Benefit vs. Defined Contribution
$98,438 $78,613
Average salary of 18 City Average salary of 44 City
employees in PERS Tiers I III employees PERS Tier IV
19.25 <6
Average Years of Service Average Years of Service
(high is 45) (high is 16)
29 percent 71 percent
Of our current workforce Of our current workforce
1:56:49 PM
MS. QUEEN displayed slide 11. She said the city's employment
strategies focus more on increasing recruitment for the years
ahead. The City of Soldotna is exploring the following nine
strategies. They are doable on a local level, practical,
effective, and provide flexibility. She noted some strategies
are already in use on an ad hoc basis:
• Recruitment Bonuses
• Relocation Assistance
• Employee Referral Program
• Administrative Leave for Salaried Employees
• Paid Parental Leave
• Additional Paid Holidays
• Employee Sabbatical (unpaid)
• Increase Employer share of Health Insurance Premiums
• Employer Match into a Deferred Compensation Plan (457(b) or
401(a))
1:59:35 PM
SENATOR DUNBAR asked whether she sees the option of working
remotely as a viable tool to increase recruitment and retention.
MS. QUEEN said it's one of the city's most effective tools and
probably one of the most cost-effective. Soldotna quickly moved
to work schedule and location flexibility during the pandemic.
It had some pros and cons. The city allows flexibility on an ad
hoc basis. She authorized one department to change its hours of
operation for summer and winter and another department to work
four 10-hour days. She said it requires making good position
decisions and establishing evaluation methods to determine
whether the changes work.
2:02:06 PM
SENATOR BISHOP asked whether the city does exit surveys and, if
it does, what the trends are for employees leaving jobs. He
asked whether good childcare is available in Soldotna for
single-working parents.
MS. QUEEN replied that exit surveys are not administered
consistently. A lot more information could be gained by
formalizing the exit survey procedure. Childcare is challenging.
She speculated the community offers less than is needed. The
pandemic amplified the need for childcare. The city could not
figure out how to fix the lack of childcare even with all the
available Coronavirus Aid, Relief, and Economic Security (CARES)
Act funds. Childcare is an issue that affects people's ability
to join the workforce.
2:03:41 PM
MS. QUEEN advanced to slide 12, Additional Considerations. This
slide discusses ways to maintain a viable level of services when
understaffed:
Additional
Considerations
The future will force local governments to change,
faster than we are comfortable with:
• Interagency partnerships for service delivery
• Mutual aid agreements
• Letting go of old processes that no longer serve us
• Provide flexible work arrangements/schedules
• Getting more creative and intentional with recruitment
• Continuity-of-Operations Planning (COOP) for unavoidable
tight spots
2:06:15 PM
MS. QUEEN moved to slide 13 to address recruitment and retention
from the perspective of employees who want to live in a quality
community. Employees have many workplace options in Alaska and
the Lower 48. Investing in the community is another piece of
improving retention and recruitment:
Continue Investing in Quality of Place and Community
• Keep our young people here (or bring them back after
outside education/experience)
• Attract new talent to Alaska and our area
• Support other local employers in their recruitment
efforts
MS. QUEEN expressed hope that this conversation would continue.
MS. QUEEN thanked the committee for the opportunity to discuss
the workforce challenges.
2:08:15 PM
SENATOR BISHOP asked whether the two employees on slide 9, with
over 50 combined years of experience, are in a defined benefit
plan.
MS. QUEEN replied that the employee with the longest work
history is currently in Tier I with 45 years of service.
SENATOR BISHOP directed attention to the third bullet on slide
13, "Support the other local employers in their recruitment
efforts," and asked whether the Dairy Queen is still open in
Soldotna.
MS. QUEEN answered yes, it is alive and well.
2:09:26 PM
SENATOR GRAY-JACKSON asked about cultural diversity in Soldotna.
MS. QUEEN replied that Soldotna views itself as slightly
progressive, welcoming, and diverse. The city is trying to
broaden diversity in the community. The picture on slide 13
shows the Music in the Park series that runs every sunny
Wednesday from June to August. She expressed her belief that
Soldotna is probably similar to adjacent urban areas.
2:10:41 PM
CHAIR BJORKMAN brought up the subject of the city's decision to
opt out of Social Security and SBS in the 1970s and earlier. He
asked if she believes the city did not opt-in because the state
provided a defined benefit option to employees.
MS. QUEEN answered that she could not adequately speak to that.
She knows it was considered in the past but does not know why
the program lacked support at that time.
CHAIR BJORKMAN emphasized that PERS is a pension system that no
longer gets new participants. He asked whether sufficient
resources would be freed-up to offer retirement benefits to
employees if the city did not have to contribute 22 percent for
each PERS employee.
MS. QUEEN replied absolutely. The city's workforce is
transitioning entirely into Tier IV; those PERS investments do
not serve Tier IV employees. The city could invest more in the
current workforce without that level of unfunded liability.
CHAIR BJORKMAN asked whether she would consider supporting a
system that reduced Soldotna's unfunded liability and supported
future retirements.
MS. QUEEN replied the city would be interested.
2:13:37 PM
At ease
^PRESENTATION(S): WORKFORCE CHALLENGES IN ALASKA
PRESENTATION(S): WORKFORCE CHALLENGES IN ALASKA KENAI
PERSPECTIVE
2:14:14 PM
CHAIR BJORKMAN reconvened the meeting and announced the
consideration of a presentation on workforce challenges in
Alaska from the Kenai perspective.
2:14:27 PM
TERRY EUBANK, City Manager, City of Kenai, Kenai, Alaska,
introduced himself and provided his background. He said he had
not seen the magnitude of current workforce challenges facing
local governments in his 25-year career in Alaska. These
significant challenges include:
1. Recruitment and Retention
2. Position Flexibility
3. Legal and Regulatory Challenges
4. Escalating and Unsustainable Employee Healthcare Costs
5. Inflationary Pressure
2:16:04 PM
MR. EUBANK discussed the recruitment and retention issues
covered in his handout:
• Increase in recruitments by 40 percent
• Positions vacant for longer periods
• Average number of applicants decreased by 65 percent
MR. EUBANK said the number of applicants decreased to an
average of nine per position, with many positions receiving
0 - 4 applications. Individuals from outside of Alaska
filled thirty-three percent of city director positions in
the last five years, including three of the previous five
director hires.
• Fewer applicants meet minimum job qualifications
• 78 percent of PERS eligible employees are Tier IV
participants
• Number of Tier IV employees projected to grow to 92
percent
MR. EUBANK said Tier IV employees are projected to grow to
92 percent over the next five years.
• 20 percent of City employees are eligible to retire
MR. EUBANK reported the retirement system factors into Tier IV
employee turnover.
MR. EUBANK said he is the city manager and the acting finance
director. The assistant to the city manager is the acting human
resources director. The city is hiring for the human resources
director position. It is the 2nd recruitment for the finance
director, with a salary range of $111,000 to $146,000 annually.
The position closes this Friday, and the city has not received
any applications.
2:18:04 PM
MR. EUBANK discussed work environment and position flexibility.
There has been an increase in employee requests for flexible
work hours and working remotely, which is challenging
traditional work models and creating unique employer challenges:
• Worker's Compensation challenges
• Employment tax requirements for remote workers
working in other states.
• Reimbursement agreements for home offices provided
by remote workers.
MR. EUBANK said local governments face a variety of legal and
regulatory challenges, including:
• Cost of PERS Termination studies
• Limitation on the ability to hire temporary or rehire
PERS retired employees to fill temporary vacancies
• Affordable Care Act requirements
MR. EUBANK said the Affordable Care Act requires the city to
provide health insurance to part-time and temporary employees
who work a prescribed number of hours in a twelve-month period.
Employers are forced to choose between terminating their
employment or providing healthcare. Healthcare is the single
most expensive benefit for local government employers, second
only to salaries in personnel costs.
2:20:31 PM
MR. EUBANK discussed escalating and unsustainable employee
healthcare costs:
• Employee healthcare costs are 18.60 percent of total
personnel costs and 14.05 percent of total
expenditures for the City's General Fund
• Health insurance premium increases despite cost
saving changes in employee benefits and two provider
switches.
MR. EUBANK discussed inflationary pressure, stating inflation in
the nation and Alaska are at unprecedented 40-year levels.
Businesses, local governments, and employees face escalating
costs for goods and services. He reviewed these points:
• Inflation increases, as measured by the change in the
annual Anchorage Consumer Price Index for All Urban
Consumers (CPI-U), was 4.88 percent for 2021 and 8.11
percent for 2022
• Municipal revenue growth rates are slower than the rate of
growth [in expenditures] for personnel, goods and services
2:23:13 PM
MR. EUBANK discussed ideas and solutions. Proposed solutions
require creativity and stretch traditional thinking. He said the
following ideas are his and do not necessarily reflect the
position of the City of Kenai:
• Reconsider the 80th Percentile Rule [for healthcare].
MR. EUBANK said there are concerns this rule contributes to
increased state healthcare costs. The rule was meant to protect
consumers from hefty charges from out-of-network providers by
requiring carriers to cover a certain amount. There are concerns
that this rule contributes to increased healthcare costs.
• Examine the current PERS Tier IV and TRS Tier III
retirement benefit for improvements and to determine if it
is meeting its objection.
• Enact legislation to lessen the disproportionate burden
placed on Alaska's smaller local governments by PERS
termination studies.
• Create programs to increase Alaska's skilled workforce.
MR. EUBANK expressed his belief that the state should reexamine
and potentially reinstate programs to incentivize skilled
workers to remain in, move to, and return to Alaska after
completing their education and skills training. He said the
state should review PERS regulations regarding temporary
employment and retired employee rehire when qualified applicants
are limited. He said the state should reexamine workers'
compensation laws, focusing on the new challenges posed by
remote workers. He stated that the City of Kenai remains
optimistic despite all these challenges. The City of Kenai is a
financially strong city that remains an attractive place to work
and raise a family.
2:26:25 PM
CHAIR BJORKMAN asked Mr. Eubank whether he was aware of a
regulation change to repeal the 80th percentile rule; it is out
for comment.
MR. EUBANK said he was aware of it but did not know the
specifics. He said it was a step in the right direction.
CHAIR BJORKMAN explained that the regulation changes that the
Division of Insurance proposed are out for comment. The
regulations propose to repeal the 80th percentile rule. The
committee intends to hear more about this subject in upcoming
meetings.
CHAIR BJORKMAN asked how changing the retirement and benefits
system for public employees would affect the city's ability to
meet its mission.
MR. EUBANK said employees need to see a benefit in the system to
stay. Retaining employees long-term is significantly diminished
if employees see no benefit. Whether it is a new tier in a
defined benefit plan or enhancements to the contribution plan,
employees must find value in it to stay. He said the City of
Kenai does exit interviews. One of the major comments departing
employees make is that they do not see value in the defined
contribution and retirement system.
2:28:26 PM
CHAIR BJORKMAN asked whether employees find jobs that offer
defined benefit retirement programs.
MR. EUBANK answered in some cases, but those opportunities are
somewhat limited. He knew about police officers that found
employment out of state that offered defined benefit plans.
CHAIR BJORKMAN asked whether similar lateral movements occur
within the Kenai Fire Department.
MR. EUBANK said the fire department is relatively stable. The
police department was not fully staffed until this last year.
Most movement is in the police and public works departments,
similar to the City of Soldotna.
2:30:07 PM
CHAIR BJORKMAN asked why public works employees move on from
city employment.
MR. EUBANK replied that the supply of licensed workers is
extremely limited, and many have left for higher-paying or
advanced positions in other municipalities. Some have taken
positions in oilfields on the North Slope. It's an employee's
market.
CHAIR BJORKMAN asked whether Kenai's pay and benefits package
can compete at market level.
MR. EUBANK answered that part of the problem is that upwardly
mobile employees are interested in moving into lead and
foreperson positions. As employees gain experience, they look
elsewhere for promotion opportunities because the city is a
small employer and has few opportunities for advancement. Kenai
gave employees a 6.35 percent salary adjustment in FY23. It is
the largest salary adjustment to the base salary schedule he has
seen in 25 years of working in government finance. An 8.11
percent annual cost of living increase would cost the city
nearly $900,000, almost a one-mill equivalent on property tax.
This is a significant amount of financial pressure on the city.
Kenai does not participate in Social Security. The city does not
participate in the Supplemental Benefits System (SBS) but
provides an employer match of 4 percent up to the first $37,500
in employee wages in a 401 program. The maximum annual employer
contribution is $1,500. Expanding the match is under
consideration but is far from the same level as SBS.
2:34:30 PM
At ease.
^PRESENTATION(S): WORKFORCE CHALLENGES AND INITIATIVES JUNEAU
PERSPECTIVE
PRESENTATION(S): WORKFORCE CHALLENGES AND INITIATIVES JUNEAU
PERSPECTIVE
2:35:09 PM
CHAIR BJORKMAN reconvened the meeting and announced the
consideration of a presentation from the City and Borough of
Juneau on workforce challenges and initiatives.
2:35:26 PM
JEFF ROGERS, Finance Director, City and Borough of Juneau,
Juneau, Alaska, introduced himself and thanked the legislature
for being in Juneau. He said almost 2,500 people work for the
City and Borough of Juneau: approximately one-third work for the
City and Borough proper, one-third for Bartlett Regional
Hospital, and one-third for the school district.
2:36:35 PM
MR. ROGERS began his slideshow presentation on slide 2:
Known/Perceived Workforce Challenges for the City and
Borough of Juneau.
• Availability and Affordability of Housing
• Availability and Affordability of Childcare
• Stiff competition with other employers for
• Richer retirement benefits
• Hiring bonuses
• Retention bonuses
• Flexible Workplace arrangements (i.e. telework and
remote work)
2:37:48 PM
MR. ROGERS reviewed actions the city is taking to improve
housing and childcare affordability, as shown on slide 3:
CBJ Action on the Availability and Affordability of
Housing and Childcare.
• Borough-wide property tax abatement for qualifying new
multifamily housing developments
• Multi-million dollar investment in grants and loans to
non-profit and for-profit housing developers through
competitive public process, funded by local taxes
• Direct municipal subsidy of local Juneau childcare
providers, funded by local taxes
MR. ROGERS said the city subsidizes childcare at about $1
million per year, which will increase to about $1.5 million next
year. The subsidy goes directly to childcare providers as an
incentive to stay in business, and it helps them be profitable
at rates that parents can afford.
2:39:21 PM
SENATOR MERRICK asked whether there was a lack of land or just
buildings.
MR. ROGERS said it's both. CBJ just published a map of all the
vacant and underdeveloped land in the borough. He expressed his
belief that the map has been a rallying point to show that there
is developable land. The questions are how to access it and
whether it is profitable for nonprofit or for-profit developers.
The city does what it can and has been developing in an area
called Peterson Hill near Auke Lake. The first phase was
developed, and the city is looking for nonprofit and for-profit
partners to finish developing what will eventually be many
hundreds of homes in a neighborhood.
2:40:34 PM
SENATOR DUNBAR mentioned his plans to sponsor legislation giving
local governments more flexibility for property tax abatement,
and it will address blighted properties.
SENATOR DUNBAR asked to what degree the city encounters
resistance from neighborhoods when private or public subsidized
projects try to build multi-family housing. He asked whether the
legislature could impact statutory or regulatory barriers to
building in Juneau.
MR. ROGERS replied that Juneau sees little resistance to housing
developments. It is a bit of a challenge if the development is
tailored to low-income housing. He said he did not know about
regulatory barriers, but there are many challenges to building
in a place like Juneau. He is unfamiliar with elements the
legislature could address and does not necessarily think state
regulation is hampering home construction in Juneau.
2:42:40 PM
SENATOR BISHOP commented that the housing shortage is a
statewide issue. Housing is a tall order in the state.
MR. ROGERS responded that those statements are totally
appropriate.
2:43:31 PM
MR. ROGERS advanced to slide 4 to review what the city is doing
in terms of workforce development:
CBJ Recruitment and Retention
Initiatives Monetary Benefits
• Dependent Care Assistance Program
• $5,000 per employee per year,
No employee contribution required
• Childcare and other dependent care expenses are
eligible
MR. ROGERS said one of the things he likes about this program is
that it disproportionately benefits lower-wage workers. Workers
who make $40,000 per year are eligible for the same $5,000 per
year in childcare [as workers who earn significantly higher
wages].
• Hiring Bonus
• Up to $40,000 per difficult-to-fill position.
MR. ROGERS surmised there would not be many $40,000 hiring
bonuses, but there will be hiring bonuses in amounts that make
difficult-to-fill positions attractive. These positions include
police officers and equipment operators in particular.
• Employer Match to 457 Deferred Compensation Plan for
Tier IV Employees
• 50% match to employee voluntary contributions
• Maximum 1 / 2 / 3 / 4 percent of annual wages at
0 / 2 / 5 / 10 years of service
MR. ROGERS said Tier IV creates a 5-year window. Once employees
fully vest at five years, they become portable and lose nothing
by moving to another employer. CBJ's deferred compensation plan
is structured at 10 years to incentivize employees to stay
beyond five years.
2:47:37 PM
SENATOR GRAY-JACKSON asked whether the hiring bonus contained
years of service stipulations to qualify.
MR. ROGERS said yes. The public safety officer retention bonus
uses a four-year eligibility system. It is a carrot approach to
get people to stay in the system. He surmised the city would use
a similar method with hiring bonuses.
2:48:42 PM
SENATOR MERRICK asked whether CBJ has to raise revenues to cover
the cost of these programs.
MR. ROGERS replied that employee turnover is very expensive.
This is particularly true of the cost of sending police officers
to the training academy. Even turnover in non-public safety
positions costs the city institutional knowledge and reduced
efficiency. Juneau has had robust revenue in recent years.
Property value in Juneau and sales tax revenue continue to grow.
Juneau expects a record cruise ship season after weathering the
pandemic. He said there are a ton of demands on city revenue,
but the revenue itself is strong.
2:50:10 PM
MR. ROGERS advanced to slide 5 to review non-monetary
recruitment and retention initiatives:
CBJ Recruitment and Retention
Initiatives Flexibility Policies
• Hybrid and Remote Work Policy
• Up to two days hybrid telework per week
• Up to two weeks fully-remote work per year
• For eligible positions/employees with supervisory
approval
• Alternate Workweek Policy
• Allows 9-workday biweekly schedule
• Infants in the Workplace Policy
MR. ROGERS said young parents could bring an infant under six
months into the office with them. The parent, human resources,
and the supervisor will develop a plan and details to make it
work. Babies are welcome in the workplace at CBJ. Strategies
like the Dependent Care Assistance Program, infants in the
workplace, and flexible work schedules target getting caregivers
back in the workplace.
2:52:37 PM
MR. ROGERS advanced to slide 6 to discuss additional ideas under
consideration:
• Enhance Internal Employee Development and Promotion
• Better Marketing of Job Recruitments
• Modernize Recruitment System
• Retention Bonuses for Non-Public Safety positions
• Student Loan Assistance
• Tuition Reimbursement
• Pets in the Workplace
• Non-monetary Workplace "Perks" (celebrations, rewards,
food/beverage)
2:54:43 PM
CHAIR BJORKMAN asked whether there are any state-level changes
the legislature could offer the borough that would improve CBJ's
ability to meet its mission.
MR. ROGERS speculated that if a defined benefit retirement
option were available to employees, many would take it. Many
employees would find it valuable. Without passing judgment on
anything before the legislature, he expressed that a defined
benefit plan specifically for public safety employees would not
help plow roads, help educate kids, and would not help clean out
the sewer pipe. He encouraged the legislature to be broad and
inclusive in developing a retirement system that works for all
municipal employees. He acknowledged the stiffest competition
for retirement benefits is with police and fire personnel;
however, the city faces recruitment and retention challenges in
all job classes.
2:56:37 PM
There being no further business to come before the committee,
Chair Bjorkman adjourned the Senate Labor and Commerce Standing
Committee meeting at 2:56 p.m.
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