Senator Elton and Isabel
off the record
a VIP policy letter
from
Senator Kim Elton
Room 115, State Capitol, Juneau, AK 99801 * 465-4947 Phone * 465-2108 FAX

Edition # 212                  Please feel free to forward                 August 15, 2005

  Capitol Undercurrents

Thanks, Judge--For those of you unfortunate enough to have heard any of my speeches over the last several years, you may remember that a recurring topic is the failure of our Department of Corrections (DoC) to actually correct prisoner behavior. Between 70 and 80 percent of the prisoners in the state system are there because of crimes committed under the influence of or because of addictions to alcohol and other drugs. Despite this, state policy makers have cut programs that help prisoners deal with the addictions so they have a chance of breaking their criminal cycle. Juneau Superior Court Judge Larry Weeks has tackled another significant rehab issue--sex offender treatment of prisoners. As part of a sentence, Judge Weeks ordered sex offender treatment for a man convicted of molesting a child. The DoC failed to provide treatment--they no longer have a sex offender treatment program. They do, though, have "a limited post-release program for convicted sex offenders." That's just great, isn't it? Let's treat them after they get released back into our neighborhoods. DoC needs to listen to the judge. They need to quit warehousing prisoners and start correcting well before any "post-release" program.

No bias here--A friend in Homer got in touch about comments made by the lite guv during a radio interview in the Kachemak Bay community. During the interview, the lite guv was asked about ballot initiatives and he raved about the 90-day session limit initiative. He noted he had sponsored similar legislation when he was in the legislature. He waxed eloquent about the inherent goodness of the initiative before catching himself and recalling he was supposed to appear neutral since he conducts the elections and certifies the initiatives.

Who, us?--The Sunday New York Times 'Week in Review' section headlined Alaska. Under the banner "Fresh Pork, Coming to a District Near You", the paper reported with a couple of paragraphs, a map of the state, a bar graph, a photo of where the Knik Arm Crossing would connect Anchorage to Pt. McKenzie, and a drawing of the proposed Gravina Island bridge. The most trenchant item was the bar graph. It showed a very tall bar that reflected the $1,501 in per capita spending for Alaska encompassed in the transportation spending bill next to a very tiny bar that showed the $83 in per capita spending the other 49 states average. The written text repeats Rep. Don Young's comment that he "stuffed it [the transportation spending bill] like a turkey".

Oh, oh--The AP reported last week on the "Jerk-O-Meter"--a device that tells you if you're really paying attention to your phone conversations. Researchers at MIT are developing software that analyzes speech patterns and voice tones that tip off how involved you are as you talk on the phone. Right now, the software is just for the user's end of the phone line and has messages that warn "don't be a jerk" or "be a little nicer now." But beware, we know all about software. Generation 2.0 will allow the caller to know when you are being a jerk. That advanced software will be a nightmare for some politicians.


Phone: (907) 465-4947
Fax: (907) 465-2108
Mail: Sen. Elton, State Capitol
Juneau, AK 99801
Email:
Senator.Kim.Elton
Jesse.Kiehl
Paula.Cadiente
Web:
http://elton.akdemocrats.org
     
Rewritten retirement law 
loses state money

(Guest column by Rep. Harry Crawford, D-Anchorage, originally published in the Anchorage Daily News, August 12, 2005)

     Governor Murkowski would like you to believe he did a good thing when he forced through legislation tinkering with the state retirement system. But he's wrong.

     The Murkowski Administration says the problem lies in the unfunded liability of the current system. This liability can mostly be attributed to rising health care costs and a downturn in the investment market. 

     Absolutely nothing in the Governor's new retirement plan deals with the unfunded liability. The problem continues to grow.

     Not only does Murkowski's new plan fail to solve the problem, his plan will cost more. Since it will take years to build up the membership in the new plan, the burden of paying the operation costs of the plan will fall to the state. Administering the new plan will cost much more than our current retirement system, which means less of the employees' money in retirement accounts and more lining the pockets of investment brokers. 

     Long-term costs to the state include the possibility of workers outliving their retirement assets and needing state assistance. Since many are ineligible for Social Security benefits, state workers will have to rely on individual retirement funds to support them. When those run out, many will have to turn to the state and seek public assistance in order to survive. The Governor's plan robs state employees of a secure and dignified retirement.

     The Murkowski administration touts the new plan as a recruitment tool. But who is attracted to this new plan? Commissioner Matiashowski has said that in a "nation of constant change and movement" a 401(k) style retirement plan is more likely to attract a young family thinking of relocating to Alaska. 

     I say that the new plan is more likely to attract people who have no intention of staying in Alaska and are looking for a plan they can invest somewhere else. This especially becomes a problem when we're talking about skilled workers, such as troopers, firefighters and teachers. School districts and local governments participating in the state retirement plan, as well as the state itself, invest a lot of time and money training these employees. Offering this new portable retirement plan only increases the likelihood that a worker will receive training at the expense of the state and then take their retirement to another state that offers better wages and benefits.

     Attracting workers who are looking for a retirement they can take somewhere else is not in the best interest of the state. Murkowski's new plan hurts our ability to retain trained workers. 

     The Murkowski Administration is ignoring other states' experiences with defined contribution plans. In fact, only Washington D.C. and Michigan have mandatory defined contribution plans. Two other states, have recently abandoned their mandatory defined contribution plans. After 20 years experience, Nebraska found that workers' rate of return was 5% less with a defined contribution plan. After 14 years, West Virginia is merging its defined contribution plan for teachers into an existing defined benefit plan because state actuaries determined that the state would save money.

     Nearly all of the testimony and correspondence I received on the Governor's proposal encouraged lawmakers to stand fast opposing Murkowski's plan because it didn't solve the problem, costs more, and hurts our ability to attract and retain quality employees.

     The House of Representatives rejected Murkowski's plan, but, in the end, the pressure of a special session and the political muscle of the Administration outweighed common sense. Our only hope is that with the delayed effective date of July 1, 2006, we can make things right next session.

     The Governor's new plan hurts future state employees and does nothing to solve the unfunded liability of the current system. Alaska's public employees deserve a secure and dignified retirement plan. I'm going to do all I can to make sure they get a fair deal.
 

 

  If you would like to receive this newsletter or if you want to be removed from the mailing list, please contact Paula Cadiente, staff, at paula.cadiente@legis.state.ak.us and have her add or remove your name.   View all the back copies of Off the Record at http://elton.akdemocrats.org