JUNEAU — Alaska legislative leaders are urging Gov. Sean Parnell to negotiate no raises in union labor contracts amid concerns about state budget costs.
Senate President Charlie Huggins, House Speaker Mike Chenault and the leaders of the House and Senate Finance committees signed the letter. It comes as the administration is involved in negotiations affecting nearly two-thirds of the state workforce.
The lawmakers said in the letter they will consider the private sector, the state’s ability to pay, and the best interests of all Alaskans as they prepare to vote on the contracts and write the budgets that will be affected by them.
They asked Parnell to convey to the state’s employees that they value their service.
“However, in this fiscal environment we are concerned that increases in wages and benefits may necessarily squeeze budgets and put employees’ jobs at risk,” says the letter, dated Feb. 18. “The loss of any job, public or private, is a tragedy. For this reason, we encourage you to hold the monetary terms of the contracts at zero.”
Even if oil prices remain high, the state likely will still be forced into deficit spending — “even under a disciplined budget plan,” the lawmakers noted. And overshadowing all long-term budget issues is an unfunded state pension liability estimated at about $11 billion, they said.
The lawmakers said they appreciate the value of Alaska’s public employees but must balance the input from other constituents, who say wages, benefits and other terms of state employment “are often quite generous compared to their counterparts in the private sector.”
The contracts will be considered in the context of “our duty to provide education, infrastructure, public safety and some level of health care,” the lawmakers wrote. The governor and legislative leaders have discussed the need for fiscal restraint amid declining oil production. The state relies heavily on oil, but higher prices in recent years have helped mask the decline’s effect.
The finance committees, which deal with the state operating and capital budgets, have heard presentations from the administration on labor costs as part of their deliberations.
Republican Rep. Alan Austerman of Kodiak, co-chairman of the House Finance Committee, said the letter’s objective was to bring focus to the state government’s overall cost of operations.
“That’s the whole gist of what we’re looking at over the next few years, is how we get total government costs under control,” he said Thursday. “We can’t just leave one part of the cost out of the picture.”
Parnell had no comment on the letter, his spokeswoman said. Nicki Neal, director of the state Division of Personnel and Labor Relations, said she couldn’t disclose what has been discussed as part of negotiations.
Jim Duncan, executive director of the Alaska State Employees Association/AFSCME Local 52, said he respects lawmakers’ right to express their opinion but said the union negotiates with the administration and is doing so in good faith.
The union is aware of the state’s concerns about the budget and personnel costs.
“We are taking that into consideration as we offer proposals and as we consider the state’s position,” Duncan said. “But we’re also aware that in order to deliver services in this state, you have to adequately compensate the employees.”
Duncan said he’s hopeful the two sides will reach a fair agreement in the next few weeks.
Curtis Thayer, a deputy commissioner of administration, recently told the Senate Finance Committee that the department’s bargaining priorities and concerns include “fiscally prudent” cost-of-living increases and reducing the cost of things like “leave liability.” He said the unions are aware of this.
Merit increases and pay increments for the general government unit next fiscal year could be about $15 million, but cumulative over three years $105 million, according to Thayer’s presentation. Employees can bank leave, and there was a leave liability of $164 million in fiscal year 2012, up from $140 million in 2009, he told the panel.
Comments (25)
Add commentPaid too much
I agree with Parnell. Why wold we want public employees to be paid so much? They're just leaches on society and provide zero value.
Take State Troopers for instance - they get paid a fortune and get a fat early retirement, but just ride around in their cars eating donuts. They should get the same pay and benefits as a mall security officer.
And those Permanent Fund employees. Why would we want the best and brightest watching over that fund? Get rid of em and hire some cashiers from Walmart. Good enough.
The most useless State employees have got to be the ones overseeing oil revenue. Look, we all know that the oil companies are simply part of state government - been that way since Governor Parnell took office. So why do we need one part of the state government overseeing another part of state government? It's redundant and wasteful. Get rid of that entire division and just let the oil companies self report their earnings. It'll be much more efficient, and the oil companies are less likely to miss things - they'll deliver far more revenue than those slacker state employees ever would.
We've already outsourced our governor and legislature to the private sector, and you can see how well that's working out (for...Alaskans?).
Being responsible
Our legislators are being responsible Lat. They're handling business today so our kids aren't burdened with indebtedness they can never overcome without some type of default and bankruptcy. Yes, this runs counter to King Obama's spend, spend, spend, and let others be the bad guys. Our Legislators are like parents telling the kids they have to eat vegetables, do homework, and go to bed early. They can't eat candy and play video games all night (Obama).
Being responsible
Being responsible would include getting the most revenue from our oil resource, as well as not allowing the cruise industry to pollute our pristine waters which are the greatest treasure we have to pass down to our children and grandchildren. If the Gov and his pals want to make cuts, they could start with their own salaries and "office expense" accounts. Surely those could use some trimming. And while they are at it, cut the costs of incarceration by using alternatives (such as electronic monitoring) for the 1/3 of prisoners who do not actually need to be in jail. That would save the state a bundle. Of course, the private prison industry wouldn't like it, since they are banking on laws that put more and more people behind bars, so they can profit. And so it goes . . .
No profit in jails
I won't argue the fact that our gov't is top heavy. There are a lot of gov't employees making $100K+ per year. Travel, food/lodging, per diems, all this needs review. Don't knock the jails though. Let this 1/3 out and havoc will ensue. This means more PD overtime, more public defender, judges, transporting, etc. Believe me, once an inmate is out they don't want them back, but reappear they do.
Although I do agree that our
Although I do agree that our gov is top heavy, I will point out the fact that the geo diff for state employees in communities such as Juneau, Sitka, Ketchikan, Nome, Barrow, and Kotzebue are far behind the trend in terms of inflation. Anyoingly enough, within todays paper, our elected officals are rallying for tax breaks for oil companies for the very same reason - inflation. Now, if State employees will be a liability of $15M or $13M over a three year time, what is the value of the tax break for Exxon Mobil and Con Phill worth? It is worth over $5B over 3 years. Its seems State employees are asking for crumbs while Big Oil is asking for the whole dang dinner table.
Let us See who gets the biggest raise this year
BP or State employees or BP shareholders.
My bet is the state employees get the least,
Wonder what kind of bonus BP folks will get from the Oil Royalty giveaway?
cutting cost of incarceration
In 2011, I sat in a legislative hearing room when top Corrections officials were asked for suggestions on how to cut the state's prison costs. Their response included the statement that "1/3 of the people who are locked up do not to be in jail. The state could save a huge amount by using alternatives to incarceration for nonviolent offenders. These would include electronic monitoring and community service." I am not advocating that we let rapists, murderers, or any violent criminals on the street. But corrections officials (as well as many others) recognize that we are locking up people who do not need to be in jail. The cost of this is enormous, and growing.
@akexpat
How about this for an 'alternative' that would save some money; Go to a federal auction and buy a gross of GP Medium tents and a couple of old mobile kitchen units. buy a bunch of razor wire for an enclosure and call it good. Matter of fact, while we are at it, let's get some of those prisoners out along Egan to pick up trash and trim the grass in the summer. In the winter they can shovel out every single bus stop and work on keeping sidewalks clear.
great math
How does a 15 mill per year liability? increase to 105 million after 3 years? The math doesn't add up unless you are adding in the waste of money given to the oil companies.....Unless the state is going to increase its payroll drastically those numbers are pure bs, which is something that seems to come from this administration in copius amounts. Maybe if Huggins and his cohorts cut their own salaries and perks they would have a principle to stand on. And the argument that private sector is paid less......if the companies that bid on state contracts would pay their employees more instead of over bidding and keeping the $ in their own pockets, maybe those wages would go up. Things like 1.8 million per mile to pave a road is insane, especially if the 6 guys that are doing it are getting paid chump wages while the business owner is comtemplating whether or not to buy a new Hummer.
Legislative Pay
Well I hope to see all those lawmakers that signed the letter oppose any legislative pay raises for the next three years!
Legislature's pay raise
They already gave themselves a pay raise, but they call it "recharacterization of income", by taking office account money and giving it to themselves instead. Funny how they are always the first to point fingers at State employees and act so indignant, all the while picking your pockets without you even knowing it. Even the infamous ex-biblical family counselor, GOP Coghill said he took $16,700 left over from last year and said it amounted to "a bump in his pay". Pretty sweet "bump", I'd say.
http://www.newsminer.com/news/alaska_news/article_2bcf00de-7860-11e2-aae...
Why are government employees
Why are government employees in a union anyway? They should follow the example set by the governor and be non-exempt.
If he is really serious....
If Governor Parnell and the Legislature were serious about limiting benefits they should start with their own employees. Their exempt employees are not covered by collective bargaining agreements and their benefits could be changed easily; limiting benefits like pay and leave. This would serve as an example and what better way to lead than example.
Great point, AKNUT
Start by reducing the Governor's and legislative staff's pay by 10%, and cutting their leave in half. Also reduce their healthcare benefits.
See how that works out for a couple years. If it has no impact on recruitment or retention, propose doing likewise to the rest of State workers.
They have their own laboratory - experiment with it.
So its ok for our Reps to
So its ok for our Reps to give businesses tax cuts and more tax write-offs but no wage increases for employees? State wages - union wages keep all other wages high in this community.
If their wages do not keep up with inflation neither will yours.
Alaska
Needs to downsize the legislature. Surely it could be ran by 12 really smart people not idiots Huggies, and Churnuts.
Exempt Employees
Don't really use a ton of leave. And those that work for the legislature and Governor's office do vastly more work than those at Admin or DOT. Having worked in all of those departments, I have firsthand knowledge of this.
excellent point -
about the disparity between give away funds in the billions to BP, which leaves the state immediately, and millions in pay to workers who live here, your neighbors and friends.
I think it would be alright to NOT have a pay increase every year - - but, banditrider, if the legislature were responsible, they would be putting a solid plan in place to pay down the indebtedness for retirement NOW, prior to baby boomers retiring. That is a no-brainer. People work, they pay into the system, their contract is work for x number of years and receive retirement in return. Everyone knows what the bill is and when it comes due. Not keeping up with the payments, then pulling the rug out from under someone who worked 20-30 years because we'd rather give a couple billion to an out of state company is not only amoral, it's criminal.
Correction:
Headline should read: "REPUBLICANS Urge Gov. Sean Parnell To Negotiate No Raises In Union Labor Contracts" If you're gonna talk about it, get your dang headline straight Empire. Vote democrat and restore a semblance of sanity.
@fdubzOU
You supported the argument that Governor Parnell should reduce the leave accrual for exempt employees because they don't need it.
You having worked for 4 departments hardly qualifies you as an expert on workload. I will however agree that some Departments/Divisions need to reduce their employee numbers. Technology has made business more efficient. Some divisions are experiencing an increased workload others a dwindling workload. Those with a dwindling workload need to reduce their positions.
I can appreciate what Governor Parnell is trying to do but I still think he should lead by example in cutting his own employees' benefits first that aren't contractually negotiated. The legislature can follow his lead if they see fit.
Go Sean Go!!!
Keep up the good work Sean. Continue to lead. No matter what you do there will always be nay-Sayers out there. Sure seems to be a bunch here... One wonders if this collection are disgruntled state workers on a collective gripe session?
Spin or Stupidity?
You never know with these things how much is spin and how much is stupidity. When I was working for the Leg back in the '90s, we did a bunch of resolutions telling the Knowles Administration not to send us a Personal Services increment. They, being union chattel, always characterized that as "no wage increases." The real issue from a running the government perspective as opposed to a "get me elected" perspective is how much the personal services cost. Nobody much cares how much an individual employee gets paid unless they get themselves into the poster child category.
You can make up a 2% - 3% general increase in vacancy factor. You can just not do some stuff. You can make some appointees fire their Temporary Exempt bed warmer. There are lots of things you can do to not increase the Line 100 budget while still giving enough of an increase to keep unionized State employees sullen but not mutinous.
Miss me yet?
selective inflation
It is interesting to watch the legislature selectively use inflation. Legislative per diem always needs an increase due to inflation while inflation does not affect selected employees. Legislative travel gets increased due to inflation but school district fixed cost are not affected. The list of what is affected today is just about endless and centers on the whims of the legislature on any given issue.
exempt employees are not the problem
Exempt employees are not covered by collective bargaining. This does not mean they make more money. It means they have no protections; they can be fired at any time, for any reason, or no reason. They are expected to work overtime without compensation. I could go on, but hopefully you get the point.
Is this Wisconson?
Sure seems like it. Parnell, the current state employees did not create the unfunded retirement problem. They should not be punished for it. In fact, considering the fact that the new employees since tier 4 began will not recieve either a pension from the state nor social security ( the state opted out of that years ago) I think those people need buckets of money to invest in a retirement plan. Otherwise they will just join the homeless after their pathetic nest egg is gone.
A minor rate increase of 2-3 percent does not even keep up with the inflation of oil and medical expenses. AELP gets a 22% increase, but state employees can suck eggs. Alaska is ROLLING in money. Pay these people what they are worth. By the way, I am not a state employee and I am not related to any state employee.
@akexpat
Don't talk unless you know what you're talking about. There are many exempt employees who have bargaining rights, e.g., marine highway employees and State teachers. Exempt employees are only exempt from the State Personnel Act, not from other State labor laws to which the State is subject.