(SitNews) Juneau, Alaska – Governor Sean Parnell today signed Senate Bill 125, legislation rejecting proposed pay increases for the governor, lieutenant governor and department heads. SB 125 is sponsored by Senators Pete Kelly and Kevin Meyer.

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“Given the current budget restraints, this is a sensible piece of legislation,” Governor Parnell said. “I respect the work of the bill’s sponsors and their commitment to rein in spending.”

Governor Parnell announced in December he would decline the pay increase for himself recommended by the Alaska State Officers Compensation Commission. The Compensation had recommended the governor’s salary be $150,872.79 per annum effective July 1, 2014 with an additional increase of 2.5% effective July 1, 2015. The governor's salary currently is $145,000 and will remain at this level.

The Alaska State Officers Compensation Commission is directed by law to “review the salaries, benefits, and allowances of members of the legislature, the governor, the lieutenant governor, and each principal executive department head and prepare a report on its findings at least once every two years, but not more frequently than every year.”

The last pay increase review was January 10, 2009, at which time the Alaska State Officers Compensation Commission recommended salary adjustments for legislators and department heads and on January 26, 2011, the commission recommended salary adjustments for the governor and lieutenant governor.  These salary increases were not rejected by the legislature.

On October 15, 2013 and November 6, 2013 the Alaska State Officers Compensation Commission again met in Anchorage to consider pay increase recommendations for 2014.  With regard to legislative salaries, the commission decided not to make any recommendations.  With regard to executive salaries, the commission adopted their preliminary findings and recommendations at their November 6, 2013 meeting.  A report was issued on November 14, 2013.  The commission then held a public hearing on December 4, 2013, and at the close of that public hearing the commission convened a meeting and adopted their final findings and recommendations. 

The commission found that a pay increase to $119,657.73 in 2014 was warranted for the office of the lieutenant governor. The lieutenant governor's salary is currently $115,000 and will remain at that level. 

The Office of Management and Budget calculated the additional cost of the commission’s recommendations for salary increases for the governor, lieutenant governor and principal executive department heads to be $227,515 for fiscal year 2015 and $8,675 for fiscal year 2016. These proposed pay increases were rejected by the legislature. Senate Bill 125 rejecting the proposed pay increases for the governor, lieutenant governor and department heads was signed by the governor today.

The governor’s Fiscal Year 2015 budget proposal also eliminates 150 vacant positions in state government.

On the Web:

Salary Survey - Alaska State Officers Compensation Commission

Executive Pay - Alaska State Officers Compensation Commission

Preliminary Findings & Recommendations 2014 - Alaska State Officers Compensation Commission

Final Findings & Recommendations Alaska State Officers Compensation Commission

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