Juneau -- The Alaska Legislature's House and Senate Finance Committee's Thursday introduced companion bills designed to address the state's critical $1 billion budget shortfall through government cost savings and efficiencies. The bills are part of the Republican Commitment to bring about structural changes in state government that will produce long-term reductions in operating expenses.

House Bill 199 and Senate Bill 152 relate to benefits for exempt state employees - employees who are not members of bargaining units. These bills accomplish the following:

• Addresses the step pay system, which has effectively become a schedule of automatic pay raises. House Bill 199 eliminates the longevity steps and several intermediate pay steps. Senate Bill 152 establishes a true merit system based on exceptional performance rather than automatic merit increases;
• Reduces the geographical differential that recognizes the cost of living differences between various regions of Alaska and adopts a single standard differential for all state employees;
• Eliminates the Supplemental Benefit System (SBS) for new hires only. Current employees' SBS packages will not be changed.

House Bill 200 and Senate Bill 151 will give municipalities the option of exempting senior citizens and disabled veterans from local property taxes. Municipalities have urged this step be taken for years. HB 200 and SB 151 will have no direct effect on senior citizens' property taxes. Rather, the bills turn over to local governments the decision whether or not to tax property owned by seniors and disabled vets.

Broadcasters note: Audio comments are available on the Majority Actuality line, 1-800-478-6540
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