SB 168-GEOGRAPHIC COLA FOR JUDGES  2:02:01 PM CHAIR FRENCH announced the consideration of SB 168, "An Act relating to geographic cost-of-living salary adjustments for justices of the supreme court and judges of the superior and district courts; and providing for an effective date." He asked for a motion to adopt the proposed committee substitute (CS), version M. 2:02:13 PM SENATOR WIELECHOWSKI moved to adopt CS for SB 168, labeled 27- LS1181\M, as the working document. CHAIR FRENCH announced that without objection, version M was before the committee. 2:02:38 PM DOUG WOOLIVER, Deputy Administrative Director, Alaska Court System, stated that the court supports the amendment and asks the committee's favorable consideration of the CS. 2:03:32 PM CHAIR FRENCH referenced page 1, line 7, and asked the fiscal impact of removing the $40,000 cap. MR. WOOLIVER explained that the original version of the bill would have cost just under $800,000, and this version would cost $249,199. Judges now receive 17.5 percent of the first $40,000 of salary for a maximum geographic differential of $7,000. Under version M, the 17.5 percent applies to the entire salary. CHAIR FRENCH summarized version M provides a smaller increase in salary but removes the $40,000 cap, thus reducing the size of the fiscal note. 2:05:38 PM SENATOR PASKVAN asked who came up with the concept in version M, and what their reasoning was. MR. WOOLIVER explained that the court's fiscal office developed a number of different scenarios, and this was among the simplest. He noted that the House was considering the same amendment. CHAIR FRENCH commented that members experienced sticker shock with the original version and found the version the House was considering more reasonable. Most legislators agree that the current system is a little too penurious for compensating judges who serve in high-cost areas like Barrow, Kotzebue, and Nome. 2:07:18 PM SENATOR COGHILL asked if Dillingham was singled out because of transportation and housing. MR. WOOLIVER explained that the governing statute was adopted in 1978 when Dillingham didn't have a superior court judge. The statute was never updated, but Dillingham gets the same geographic differential as Bethel. 2:08:14 PM CHAIR FRENCH closed public testimony and announced he would hold SB 168 in committee.