Alaska State Legislature

News From The House Majority

Ken Freeman, Press Secretary
State Capitol
Juneau, AK 99801
phone: (907) 465-3804
web site: http://www.akrepublicans.org
Actuality line: 1-800-478-6540

Legislature Announces Unexpected Windfall for Alaska Cities

For Immediate Release: May 8, 1997 Contact: Rep. Mark Hanley (907) 465-4939 or Senator Drue Pearce (907) 465-4993

JUNEAU - To assist local government in Alaska, legislative leaders Thursday announced that Municipalities will realize a cost savings of over $15 million from the state's retirement system.

Due to changes the legislature made in the retirement law last session and capital gains in the stock market, the Public Employee Retirement System (PERS) governing board recently decided to decrease the employer contribution percentage.

"This decision, which followed our action in 1996, will provide a tremendous windfall to the state and local governments participating in PERS," said Senate Finance Co-Chair Drue Pearce. "This reduces the amount Municipalities will have to contribute to employee retirements by more than 30%."

In addition to over $15 million in savings for local government, state payroll costs will decrease by approximately $16 million.

"This news on PERS will hold most communities harmless from any adverse revenue impacts in this fiscal year and will actually result in more money for local governments," said House Finance Co-Chair Mark Hanley.

"This windfall also will provide more money for the classroom," said Hanley.

"Many school districts participate in the PERS program and will experience cost savings from lower employer contributions to retirement programs. This savings can be used to provide extra instructors, supplies, etc. for our schools."

Over 100 local governments will save a total of $15.9 million from PERS employer contribution reduction. Some examples include:

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Broadcast Note: Radio actualities will be available by calling 800/478-6540.
= 213 K

Savings by Community

Employer

Original Employer Rate

Revised Employer Rate

 Difference

Annual Salary
(per FY96 Actuarial Val)

 Savings

Southwest Region S.D.

0.00%

0.00%

0.00%

1,994,367

-

Annette Island S.D.

0.00%

0.00%

0.00%

772,111

-

Bering Straits S.D.

0.00%

0.00%

0.00%

5,035,440

-

Chatham S.D.

3.97%

3.97%

0.00%

601,798

-

AK Municipal League

27.67%

23.90%

-3.77%

488,049

18,399

Valdez, City of

7.91%

4.01%

-3.90%

4,869,417

189,907

Juneau Borough S.D.

11.30%

7.40%

-3.90%

7,064,455

275,514

Mat-Su Borough

10.49%

6.59%

-3.90%

5,926,960

231,151

Mat-Su S.D.

10.49%

6.59%

-3.90%

14,017,608

546,687

Anchorage S.D.

12.33%

8.43%

-3.90%

52,706,488

2,055,553

Copper River S.D.

5.33%

1.43%

-3.90%

875,672

34,151

Haines, City of

11.78%

7.88%

-3.90%

875,144

34,131

Kenai, City of

6.88%

2.98%

-3.90%

4,017,591

156,686

Fairbanks Borough

0.00%

0.00%

0.00%

11,508,486

-

Fairbanks S.D.

8.60%

6.19%

-2.41%

18,385,539

443,091

Denali Borough S.D.

5.63%

5.63%

0.00%

584,835

-

City & Borough of Sitka

14.94%

11.04%

-3.90%

4,914,371

191,660

Chugach Regional S.D.

0.51%

0.00%

-0.51%

341,653

1,742

Ketchikan Borough

9.52%

7.02%

-2.50%

2,020,299

50,507

Soldotna, City of

11.23%

7.54%

-3.69%

1,879,524

69,354

Iditarod S.D.

6.58%

5.00%

-1.58%

1,591,227

25,141

Kuspuk S.D.

7.06%

5.89%

-1.17%

1,256,867

14,705

Juneau, City of

10.72%

6.82%

-3.90%

20,052,588

782,051

Kodiak, City of

3.89%

0.00%

-3.89%

4,197,836

163,296

Fairbanks, City of

20.31%

16.41%

-3.90%

8,629,438

336,548

Fbks Utility Sys

20.31%

16.41%

-3.90%

6,249,702

243,738

Wasilia, City of

11.26%

7.36%

-3.90%

1,539,336

60,034

Skagway, City of

10.02%

6.12%

-3.90%

643,874

25,111

Sitka S.D.

9.95%

6.05%

-3.90%

1,314,274

51,257

Palmer, City of

8.09%

5.93%

-2.16%

1,525,606

32,953

Wrangell, City of

11.86%

7.96%

-3.90%

2,015,055

78,587

Bethel, City of

0.00%

0.00%

0.00%

2,590,930

-

Valdez S.D.

12.92%

9.02%

-3.90%

1,611,235

62,838

Hoonah S.D.

29.69%

25.79%

-3.90%

451,692

17,616

Nome, City of

3.91%

0.01%

-3.90%

1,766,684

68,901

Kotzebue, City of

0.00%

0.00%

0.00%

1,740,160

-

Galena S.D.

0.00%

0.00%

0.00%

292,292

-

Petersburg, City of

13.62%

9.72%

-3.90%

3,127,662

121,979

Bristol Bay Borough

8.38%

6.18%

-2.20%

1,822,404

40,093

North Slope Borough

7.29%

4.15%

-3.14%

53,828,775

1,690,224

Wrangell S.D.

10.54%

6.64%

-3.90%

714,275

27,857

Cordova, City of

6.37%

5.12%

-1.25%

1,651,632

20,645

Nome S.D.

5.00%

2.64%

-2.36%

898,064

21,194

King Cove, City of-

9.30%

5.40%

-3.90%

817,586

31,886

Ak Housing Fin Corp

8.65%

5.38%

-3.27%

12,303,747

402,333