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The State FY 2016 Operating Budget (House Bills 72 and 73) was amended by the Senate Finance Committee to strip funding for state employee wage increases in all collective bargaining agreements, including the contract covering ASEA members in the General Government Unit (GGU).

For ASEA members specifically, the budget no longer contains an appropriation for a 2.5% increase in wages as set out in the contract for July 1, 2015. That 2.5% Cost of Living Adjustment (COLA) was negotiated and approved years ago as part of your collective bargaining agreement and is important in making GGU employees whole after receiving a 1% COLA for the past two years.

HB 72 and HB 73 would also prohibit Gov. Walker from honoring the agreement, thus breaking a commitment made to you in your contract with the State.

CURRENTLY: LEGISLATURE AND GOVERNOR DISAGREE ON BUDGET, SPECIAL SESSION CALLED

April 28, 2015
Dear GGU Member,

Yesterday the Alaska Legislature passed the FY 2016 Operating Budget which included language rejecting the 2.5% COLA that was to take effect July 1, 2015. The Union and the State agreed on the 2.5% increase for the final year of our current collective Bargaining Agreement.

Your Union and Governor Walker, along with the other state employee unions, have been working long and hard in an attempt to convince the majority organizations in the Alaska Legislature to honor the negotiated agreement. However, those in charge of the House and Senate decided to not honor our contract provision. We did have strong support from Governor Walker and all the Democrats and the one Independent who comprise the minority organizations in the House and Senate.

However, the battle is not yet over. Governor Walker immediately ordered the Legislature into a Special Legislative Session to consider a new operating and capital budget for FY 2016, Medicaid expansion, and other issues. In his letter to Alaskans dated April 27 Governor Walker specifically noted that the budget must be one that “honors union contracts”. It is clear that the honoring of the 2.5% COLA will be a major part of the debate during the consideration of the operating budget during the special session. Your Union will again be actively working with Governor Walker and the House and Senate advocating for approval of the 2.5% COLA.

It is not possible at this time to predict how long the special session may last nor the outcome. But be assured ASEA will do all possible to see that the negotiated contract is honored.

In Solidarity,

Val Kenny Jim Duncan
ASEA President Executive Director

PREVIOUSLY: CONFERENCE COMMITTEE

House and Senate Conference Committees have been appointed to reconcile differences between the respective versions of the Operating Budget. Each chamber's three-member committee is made up of two lawmakers from the Legislative Majority and one from the Legislative Minority.

The House Conference Committee members are Rep. Mark Neuman (R-Big Lake), Rep. Steve Thompson (R-Fairbanks), and Rep. Les Gara (D-Anchorage). The Senate Conference Committee members are Sen. Pete Kelly (R-Fairbanks), Sen. Anna MacKinnon (R-Eagle River), and Sen. Donny Olson (D-Nome).

Please note that Sen. Kelly and Sen. MacKinnon originally introduced the motion to strip funding for state employee contracts from the budget as members of the Senate Finance Committee.

PREVIOUSLY: STATE HOUSE

The State House had already passed a version of the FY 2016 Operating Budget on March 12 that included funding for state employee contracts. The Senate version of the Operating Budget failed a concurrence vote April 7 on the House floor by 40-0. An opportunity exists for the appointed Conference Committees to restore state employee contract funding as they prepare a reconciled version of the budget for up-or-down votes in each chamber.

PREVIOUSLY: STATE SENATE

The budget bills went up for a floor vote in the State Senate on Friday, April 3 and were subject to a variety of amendments—including two motions to restore state employee contract funding. Sen. Dennis Egan (D-Juneau) and Sen. Bill Wielechowski (D-Anchorage) introduced amendments 6 and 7, respectively, to re-appropriate funds.

Both amendments to restore funding to the Operating Budget failed. Voting in favor of the amendments were Sen. Click Bishop (R-Fairbanks), Sen. Dennis Egan, Sen. Johnny Ellis (D-Anchorage), Sen. Berta Gardner (D-Anchorage), Sen. Donny Olson (D-Nome), and Sen. Bill Wielechowski.

ORIGIN: SENATE FINANCE COMMITTEE

The original amendment to strip funding from the FY 2016 Operating Budget was introduced in the Senate Finance Committee by Sen. Pete Kelly (R-Fairbanks), Sen. Anna MacKinnon (R-Eagle River), Sen. Peter Micciche (R-Soldotna), Sen. Mike Dunleavy (R-Wasilla), and Sen. Lyman Hoffman (D-Bethel).

Amendment 7, the language that stripped contract funding, was introduced a single day before the Senate Finance Committee would pass and move the modified budget bills out of committee without any public testimony on Thursday, April 2.

RESOURCES:

Conference Committee members: http://www.akleg.gov/basis/Committee/Details/29?code=HHB72
Amendment 7 to HB 72 in Senate Finance: http://www.akleg.gov/basis/get_documents.asp?session=29&docid=6025
ASEA Legislative Bill Tracking: http://afscmelocal52.org/bills