|
Dear Friends and Neighbors,
On March 1, I was pleased to offer Senate Bill 88. This bill, if it passes, will establish a new Defined Benefit Pension system for Alaska public employees.
Why would I offer this bill?
Alaska has a problem called “Recruitment and retention” of employees.
· Ferry system has no spring ferry schedule yet because there is inadequate staff to allow the ships to sail
· Food stamps for families – inadequate staff to do the data entry and approvals.
· Teachers - many schools opened a few months ago without a teacher in every classroom
· School bus driver shortage - barrier for children getting to school.
· Mechanics shortage to keep the buses running.
· Professional Licenses required for Alaskans to work are short of staff, delaying licenses for months.
· Basic state and local services are affecting everyday families:
· Inadequate heavy equipment operators to effectively clear snow from roads, and mechanics of all kinds to keep equipment running.
· Letter from Anchorage Transportation Planning organization, asking for competitive compensation plan for DOT recruitment & retention.
· Public defenders – many vacancies
· Office of Management and Budget (the Governor’s department) opened the Legislative session with a presentation that included the subject of “vacancies.”
· Multiple private sector business and industry organizations have spoken to Senate Labor & Commerce committee, repeatedly telling the committee that slow or absent state services are affecting their private sector businesses and industries.
Attempts to solve the Problem.
Hiring bonuses
· State Troopers ($20,000),
· Corrections $10,000
· Dept of Law attorneys (20% salary increase).
· At the same time, losing employees.
$25,000 invested cost of training and experience for each fire fighter, state trooper and others but they are leaving after 5 years of vesting in the Defined Contribution plan.
· 19% turnover in Dept of Law Prosecutors
· Office of Children’s Services (foster care): for every staff turnover-lost cost est. $54,000. 2022: 92 staff departed in 2022=nearly $5 million lost investment in these employees
Alaska, with no DB plan or Social Security for teachers, is simply not competitive.
Is SB 88 the solution?
Previous Defined Benefit plan was sinking Alaska’s fiscal ship with huge financial cost.
SB 88 is the result of long hours of work, analysis, revision, analysis, more revision…to reach a middle ground.
We believe it’s a fiscally sound and affordable middle ground.
This new system has a cost and risk sharing structure for both employees and employers.
Going forward…
SB 88 will go through a very thorough committee process of rigorous review and analysis and revision.
We believe this is a sound solution to recruitment and retention of a workforce
· Bring a significant piece of stability to Alaska’s economy,
· Attract working families back to our state and
· Restore a healthy Alaska work environment and communities.
Items in this Newsletter:
· Legislative Town Hall Invite
· News from Alaska trails
· Senate Committee Meetings
· State Ombudsman Job Opening
· Press Release on Pension Goals
· Current topics, economy, healthcare, energy
· Alaska History
· Oil and Permanent Fund Resources
|
