State of Alaska
Fiscal Note
Bill Version: HB 112
2019 Legislative Session
Fiscal Note Number: 1
(H) Publish Date: 3/25/2019
Identifier: 0099-DOA-DOP-3-22-19 Department: Various (for Fiscal Notes only)
Title: AMEND: PUBLIC EMPLOYEE, COMP, PAY Appropriation: Various
PERIOD Allocation: Executive Branch
Sponsor: RLS BY REQUEST OF THE GOVERNOR OMB Component Number: 0
Requester: Governor
Expenditures/Revenues
Note: Amounts do not include inflation unless otherwise noted below. (Thousands of Dollars)
Included in
FY2020 Governor's
Appropriation FY2020 Out-Year Cost Estimates
Requested Request
OPERATING EXPENDITURES FY 2020 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025
Personal Services (526.6) (526.6) (526.6) (526.6) (526.6) (526.6)
Travel
Services
Commodities
Capital Outlay
Grants & Benefits
Miscellaneous
Total Operating (526.6) 0.0 (526.6) (526.6) (526.6) (526.6) (526.6)
Fund Source (Operating Only)
1002 Fed Rcpts (Fed) (35.0) (35.0) (35.0) (35.0) (35.0) (35.0)
1003 GF/Match (UGF) (5.9) (5.9) (5.9) (5.9) (5.9) (5.9)
1004 Gen Fund (UGF) (231.7) (231.7) (231.7) (231.7) (231.7) (231.7)
1005 GF/Prgm (DGF) (40.2) (40.2) (40.2) (40.2) (40.2) (40.2)
1007 I/A Rcpts (Other) (206.7) (206.7) (206.7) (206.7) (206.7) (206.7)
1037 GF/MH (UGF) (7.1) (7.1) (7.1) (7.1) (7.1) (7.1)
Total (526.6) 0.0 (526.6) (526.6) (526.6) (526.6) (526.6)
Positions
Full-time
Part-time
Temporary
Change in Revenues
None
Total 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Estimated SUPPLEMENTAL (FY2019) cost: 0.0 (separate supplemental appropriation required)
Estimated CAPITAL (FY2020) cost: 0.0 (separate capital appropriation required)
Does the bill create or modify a new fund or account? No
(Supplemental/Capital/New Fund - discuss reasons and fund source(s) in analysis section)
ASSOCIATED REGULATIONS
Does the bill direct, or will the bill result in, regulation changes adopted by your agency? no
If yes, by what date are the regulations to be adopted, amended or repealed?
Why this fiscal note differs from previous version/comments:
Not applicable, initial version based on the 02/13/19 Governor's FY2020 request.
Prepared By: Kate Sheehan, Director Phone: (907)465-4403
Division: Department of Administration Date: 03/19/2019 12:00 AM
Approved By: Cheryl Lowenstein, Director Date: 03/22/19
Agency: Office of Management and Budget
Printed 3/25/2019 Page 1 of 3 Control Code: deUJf
HB 112 - Fiscal Note 1
FISCAL NOTE ANALYSIS
STATE OF ALASKA BILL NO. LL 0099
2019 LEGISLATIVE SESSION
Analysis
This bill sets a maximum salary of an exempt employee at $300,000 and provides that an agency or department with
exempt positions may adopt a salary schedule for those positions that would be submitted to the Director of OMB for
approval. It also requires that any salary increases and bonuses for exempt positions not subject to an approved salary
schedule be approved by the Director of OMB. Currently exempt agencies set their own salaries, raises, and bonuses. The
bill allows the Office of the Governor to be involved when determining the appropriate amount of pay.
The bill also amends the statute providing for pay increments so that employees at the final step of a pay range would be
entitled to pay increments based on job performance every three years. Currently, employees receive a pay increment
increase of 3.25% every two years. Moving it to every three years will slow down the growth of pay and implement a
natural cap.
This bill permits the Director of Personnel to establish a biweekly pay procedure. Currently, most employees are paid on a
semi-monthly basis. Therefore, pay days are spread through workweeks which makes it difficult to process pay and
difficult for employees to know when their pay will be deposited. The Division of Personnel and Labor Relations will
bargain biweekly pay with unions as well.
Average savings of $526.6 thousand in all funds are anticipated statewide as a result of increasing the amount of time
between pay increments. Currently the cost of providing pay increments to employees is offset by the savings resulting
from staff turnover. By extending the amount of time between pay increments it is assumed that turnover would remain
stable but the cost of pay increments would decrease resulting in a net savings. These savings would be spread across all
agencies with exempt employees and across fund sources as detailed below.
Decrements by fund code:
Fund Code Fund Type Description Savings
1002 Fed Federal Receipts (35.0)
1003 UGF General Fund Match (5.9)
1004 UGF General Fund Receipts (231.7)
1005 DGF General Fund/Program Receipts (4.7)
1007 Other Interagency Receipts (126.4)
1017 Other Benefits Systems Receipts (1.1)
1018 Other Exxon Valdez Oil Spill Settlement (2.3)
1023 Other FICA Administration Fund Account (0.0)
1024 Other Fish and Game Fund (1.9)
1026 Other Highways/Equipment Working Capital Fund (0.3)
1027 Other International Airport Revenue Fund (3.4)
1029 Other Public Employees Retirement System Fund (1.6)
1034 Other Teachers Retirement System Fund (0.5)
1037 UGF General Fund / Mental Health (7.1)
1039 DGF U/A Indirect Cost Recovery (5.0)
1040 DGF Real Estate Surety Fund (0.1)
1042 Other Judicial Retirement System (0.0)
1045 Other National Guard & Naval Militia Retirement System (0.0)
1052 DGF Oil/Hazardous Prevention/Response Fund (0.6)
1055 Other Interagency/Oil & Hazardous Waste (1.4)
1061 Other Capital Improvement Project Receipts (6.6)
(Revised 11/19/18 OMB/LFD) Page 2 of 3
0099-DOA-DOP-3-22-19 Page 2 of 3 Control Code: deUJf
HB 112 - Fiscal Note 1
FISCAL NOTE ANALYSIS
STATE OF ALASKA BILL NO. LL 0099
2019 LEGISLATIVE SESSION
Analysis
Fund Code Fund Type Description Savings
1066 DGF Public School Trust Fund (1.1)
1076 DGF Marine Highway System Fund (2.7)
1081 Other Information Services Fund (8.6)
1101 Other Alaska Aerospace Development Corporation Receipts (0.9)
1102 Other Alaska Industrial Development & Export Authority Receipts (9.3)
1103 Other Alaska Housing Finance Corporation Receipts (30.2)
1105 Other Alaska Permanent Fund Corporation Receipts (5.7)
1108 Other Statutory Designated Program Receipts (5.6)
1141 DGF RCA Receipts (7.3)
1156 DGF Receipt Supported Services (5.9)
1157 DGF Workers Safety and Compensation Administration Account (1.0)
1162 DGF Alaska Oil & Gas Conservation Commission Rcpts (4.7)
1166 DGF Commercial Passenger Vessel Environmental Compliance Fund (0.0)
1168 DGF Tobacco Use Education and Cessation Fund (0.5)
1169 DGF PCE Endowment Fund (0.1)
1201 DGF Commercial Fisheries Entry Commission Receipts (6.5)
1205 DGF Berth Fees for the Ocean Ranger Program (0.0)
1220 Other Crime Victim Compensation Fund (0.8)
1230 Other Alaska Clean Water Administrative Fund (0.1)
1231 Other Alaska Drinking Water Administrative Fund (0.0)
1244 Other Rural Airport Receipts (0.0)
Grand Total (526.6)
(Revised 11/19/18 OMB/LFD) Page 3 of 3
0099-DOA-DOP-3-22-19 Page 3 of 3 Control Code: deUJf
Statutes affected: HB0112A, AM HB 112, introduced 03/25/2019: 18.56.070, 24.10.060, 39.27.011, 31.25.065, 39.25.110, 39.25.120, 39.25.130, 33.30.071, 33.36.130, 39.27.012, 23.40.070, 23.40.260