The State Officers Compensation Commission has approved a system of automatic salary adjustments for Alaska State political officials, a formula that will allow their salaries to ease higher with inflation.
The three-member commission has been debating the new system for several years, with the aim of removing salaries of politically sensitive positions from the political pressures that have kept them far lower than the rate of inflation.
In 2009 and 2011, salary increases for legislators, department heads, the governor, and the lieutenant governor became law as they were not rejected by the Legislature after being proposed by the commission.
However, 2014 recommendations for executive salaries were rejected. In 2016, a policy allowing deputy commissioners to retain higher salaries when promoted became law. No salary changes were recommended in 2020.
In 2021 and 2022, the commission met multiple times, issuing reports that found salaries had not kept pace with inflation. In 2023, the panel recommended salary increases for the governor, lieutenant governor, department heads, and legislators, which became law. The commission met again on Nov. 14, 2024, to propose new preliminary recommendations:
- Increase the salaries of the governor, Lieutenant Governor, department heads and legislators every two years (to coincide with the statutory meeting requirements of the commission). These increases should be tied to the CPI.
- The CPI increases will be calculated off the current base pay.
To keep up with inflation, an $84,000 salary in 2015 would need to be $111,851.98 today, according to the Consumer Price Index Inflation Calculator.
Currently, the governor makes $176,000 a year, and commissioners earn around $168,000 per year. Legislators earn $84,000. The new system will tie their earnings to the Anchorage Consumer Price Index.
The commission’s recommendations will become law unless the Alaska Legislature rejects the decision. The new system would be in place following the 2026 election.
Read the entire final proposal by the Alaska State Officers Compensation Commission at this link.
