CSSCR 16(FIN) - NO INCREASE IN COST OF STATE EMPLOYEES Number 0015 CHAIRMAN KOTT announced the committee would address CSSCR 16(FIN), "Urging the state executive branch administration, University of Alaska administration, and Alaska Court System administration to negotiate collective bargaining agreements that result in a net zero cost increase." Number 0041 REPRESENTATIVE GAIL PHILLIPS referred to the "Whereas" clause on page 1, line 10, and recommended that the wording be changed to read, "WHEREAS the legislature acknowledges that recurring revenues continue to fall short of recurring expenditures in the long term;". Currently, it stated, "WHEREAS the legislature realizes that recurring revenues fall dramatically short of recurring expenditures in the long term;". Representative Phillips moved the amendment. Number 0204 CHAIRMAN KOTT asked whether there was discussion on the conceptual amendment. There being none, he asked whether there was an objection to it. Hearing none, Amendment 1 was adopted. Number 0225 REPRESENTATIVE PHILLIPS referred to line 14 and said she thinks that "Whereas" clause needs to be rewritten to make the language more palatable. Number 0256 REPRESENTATIVE BRIAN PORTER suggested using the wording "not advisable" rather than "irresponsible." Number 0319 CHAIRMAN KOTT said it would read, "WHEREAS the legislature finds it not advisable to increase the cost of personal services in a time of deficit spending;". He asked whether there was an objection. Hearing none, Amendment 2 was adopted. Number 0339 REPRESENTATIVE PHILLIPS indicated the next amendment would be on page 2, line 21, "FURTHER RESOLVED that the Alaska State Legislature will disapprove the monetary terms of any collective bargaining agreement that results in an increased cost of personal services". She said the words "will disapprove" give her a problem, as there could be plenty of money and thus no problem. If the situation dramatically changed, they would be able to fund. "But we don't want to fund if we don't have any more revenues coming in," she said. REPRESENTATIVE KIM ELTON suggested striking that "resolved" section, as everyone has acknowledged that a future legislature can't be bound to anything. CHAIRMAN KOTT said "disapprove" was the objectionable word. REPRESENTATIVE PHILLIPS said, "Because I think `will disapprove' is closing our door and won't give us any options." REPRESENTATIVE PORTER suggested using the wording, "could disapprove." REPRESENTATIVE PHILLIPS said the legislature can already do that. Number 0620 REPRESENTATIVE ELTON said he doesn't believe that resolve makes sense. "Either we're binding a future legislature or we're doing something we're already doing," he stated. REPRESENTATIVE PORTER asked, "Now how many times have we heard, Mr. Chairman, if I may, `Why didn't you tell us?'" Number 0647 REPRESENTATIVE ELTON said, "I think what we're talking about is prospectively here. We're not talking about anything that has happened in the past. We're talking about negotiations that occur in the future. I mean, I think the question before this committee and then before the House is going to be, `Are we going to ...?' I mean, if you want to say that we're going to do something differently than we're doing, the only thing that we can say that's different is that we're going to disapprove." Number 0718 REPRESENTATIVE PHILLIPS suggested the wording, "the legislature will recommend disapproval." She said, "So he knows exactly right now where we're going to come from if there isn't increased revenues coming in." REPRESENTATIVE PORTER suggested using the wording, "FURTHER RESOLVED that if revenues remain below expenditures, the Alaska State Legislature will disapprove the monetary terms of any collective bargaining agreement that results in an increased cost of personal services." REPRESENTATIVE PHILLIPS said with that caveat included, the legislature's hands are not tied if there are adequate revenues. Number 0818 REPRESENTATIVE ELTON said if the committee does this, the word "revenues" will need to be defined. He said the earnings of the CBR and permanent fund are revenues. REPRESENTATIVE PHILLIPS indicated it would be better to identify the revenues as "general fund revenues." REPRESENTATIVE ELTON indicated he doesn't agree with the resolution. REPRESENTATIVE PHILLIPS said, "But at the same time we want to send a very strong message to the Governor, `Don't bring us contracts that are above what they are right now because we don't have the money for them.' ... Everybody blames us for disapproving the contracts ahead of time. This way, we're sending to him a message saying, `Don't do it.'" Number 0948 REPRESENTATIVE PORTER repeated the amendment: "FURTHER RESOLVED that if general fund revenues remain below expenditures, the Alaska State Legislature will disapprove the monetary terms of any collective bargaining agreement that results in an increased cost to personal services." CHAIRMAN KOTT asked whether there was an objection to the amendment. Hearing none, Amendment 3 was adopted. Number 1023 REPRESENTATIVE PHILLIPS referred to the "resolved" section on page 2, line 24, and said it appears to her to be the same as the first "resolved" section. She suggested asking a representative from the sponsor's office whether there is a reason for duplication. Number 1114 KRAG JOHNSON, Administrative Assistant to Senator Drue Pearce, Alaska State Legislature, said it is a further statement. CHAIRMAN KOTT agreed with Representative Phillips that it is included in the first "resolve" section verbatim. Number 1133 CHAIRMAN KOTT moved that lines 24 through 27 be deleted. He asked whether there was an objection. Hearing none, Amendment 4 was adopted. Number 1159 REPRESENTATIVE BILL WILLIAMS made a motion to move CSSCR 16(FIN), as amended, out of committee. Number 1216 REPRESENTATIVE ELTON objected. He said what bothers him is the resolution accomplishes nothing. He is offended by the notion of telling a future legislature what they should be doing. In addition, there are many ways of addressing budgeting. Costs can be lowered by reducing a number of personnel. General fund draws can be reduced by reducing programs. He said this focuses on a very narrow way of reducing their overall budget in the future. REPRESENTATIVE ELTON stated, "And what we're doing is we're taking away from the people who are supposed to be involved in the bargaining process, the employer and employee, and we're telling them what they must accomplish. And I think that does a grave disservice to the process of sitting down and two parties that are most closely involved working out a beneficial arrangement." Number 1349 REPRESENTATIVE PHILLIPS said she would take exception to one comment made by Representative Elton. She stated, "This isn't doing anything to a future legislature; this is us. The Governor and the Administration are going to start negotiating on contracts this coming year. We are the legislative sitting body. We are telling them, `Don't bring us in contracts that are way above the amount of revenues that would come in.'" REPRESENTATIVE PHILLIPS continued, "By doing it prospectively rather than retrospectively, as we did the last go-around on contracts, we can save a lot of grief for the state employees having to think they have reached a negotiated contract, come back to the legislature and then the legislature saying, `No, we can't fund that; go back to the table.' This way, we can save at least a year and a half of heartache for our state employees by sending this message from us. This is the legislature that's dealing with this, with this Administration, saying, `Don't do it; don't do that to the state employees. Come back with something that the legislature is going to be able to accept.' And I think this is absolutely within our purview and we have the responsibility, ahead of time, to send a message like this to the Administration." Number 1504 CHAIRMAN KOTT asked Representative Elton whether he still maintained his objection. REPRESENTATIVE ELTON said yes. Number 1511 A roll call vote was taken. Representatives Williams, Phillips, Porter and Kott voted in favor of moving the resolution. Representative Elton voted against moving the resolution. So HCS CSSCR 16(RLS) moved out of the House Rules Standing Committee on a vote of 4 to 1.