HOUSE BILL NO. 421 "An Act relating to the compensation of certain public officials, officers, and employees not covered by collective bargaining agreements; and providing for an effective date." 4:05:48 PM KEVIN BROOKS, DEPUTY COMMISSIONER, DEPARTMENT OF ADMINISTRATION, stated that the bill would provide a 2 percent increase over each of the next three years for employees of the legislative, judicial, and executive branches who are not covered by collective bargaining agreements. Approximately 800 employees would be affected in the judicial branch, 500 in the legislative branch, and 1,700 in the executive branch. CHRIS CHRISTENSEN, DEPUTY ADMINISTRATIVE DIRECTOR, ALASKA COURT SYSTEM, testified in support of the legislation. He stated that the court system has the largest group of non- union employees. He noted that court system employees as a group are the lowest paid branch; about 70 percent of court employees are range 15 or less, which causes problems with turnover and training. He stated that court employees are hard-working and dedicated. He added that over the past 20 to 25 years, non-union employees have received substantially lower pay increases than actual increases in the cost of living. For example, a range 10A today is making more than 20 percent less than a range 10A in the mid-1980s (not taking into account reductions in benefits such as health insurance). 4:09:09 PM Co-Chair Hawker noted that there was a fiscal note for the legislative branch and stated his concerns regarding rising costs. He wanted to zero out the executive and legislative branches as he did not like passing additional salary increments when unemployment was so high in the state. He acknowledged that all the employees deserved to be treated equally. Co-Chair Stoltze hoped there would be a fiscal note reflecting true costs related to a constitutional amendment on increasing the legislature. Vice-Chair Thomas MOVED to report HB421 out of Committee with individual recommendations and the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. HB 421 was REPORTED out of Committee with a "do pass" recommendation and with three attached new fiscal impact notes by the Legislature, the Court system, and the Office of the Governor. Representative Kelly commented that he had difficulty supporting the bill but he wanted to treat the non- bargaining employees in the same manner as the bargaining ones. Co-Chair Stoltze acknowledged the hard work of court employees. 4:12:59 PM RECESSED 4:20:03 PM RECONVENED