Legislature(2021 - 2022)BUTROVICH 205
02/25/2021 03:30 PM Senate STATE AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| SB25 | |
| SB39 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 25 | TELECONFERENCED | |
| += | SB 39 | TELECONFERENCED | |
SB 25-STATE GOV'T FINANCES: WEBSITE
3:43:03 PM
CHAIR SHOWER reconvened the meeting and recognized that Senator
Costello had joined the meeting via teleconference, thereby
establishing a quorum to do business.
CHAIR SHOWER announced the consideration of SENATE BILL NO. 25
"An Act relating to the establishment and maintenance of an
Internet website providing information on state government
financial transactions and specifying the information to be made
available on the website."
He listed the people available to answer questions and noted the
proposed committee substitute.
3:45:26 PM
SENATOR HOLLAND moved to adopt the work draft committee
substitute (CS) for SB 25, work order 32-LS0217\B, as the
working document.
3:45:44 PM
CHAIR SHOWER objected for discussion purposes.
3:45:56 PM
SENATOR BILL WIELECHOWSKI, Alaska State Legislature, Juneau,
Alaska, sponsor of SB 25 explained that Mr. Graham spent the
last several weeks collaborating with the chair's staff and the
Department of Administration (DOA) to resolve some of DOA's
concerns and reduce the fiscal note. He deferred to Mr. Graham
to present the proposed changes.
3:46:53 PM
NATE GRAHAM, Staff, Senator Bill Wielechowski, Alaska State
Legislature, Juneau, Alaska, described the following changes in
the CS for SB 25:
The Senate State Affairs Committee made clarifying and
technical changes to SB 25 (version A) Specifically to
Section 4 (a)(1)-(3), Section 4 (c)(3), Section 4 (d),
& Section 6 (b).
• Page 3 Line 7 Adds "Unaudited" allowing for the
Department of Administration to provide unaudited
state revenue numbers in the Alaska Online
Checkbook.
• Page 3 Line 20 Adds "Unaudited" allowing for
the Department of Administration to provide
unaudited state expenditures in the Alaska Online
Checkbook.
• Page 3 Line 28 Adds "Estimated" allowing for
the Department of Administration to provide the
estimated fund balances of the Statutory Budget
Reserve, Constitutional Budget Reserve, and
Permanent Fund
• Earnings Reserve in the Alaska Online Checkbook.
Page 5 Line 3-8 Clarifies that the Alaska Online
Checkbook will have searchable information
related to state service procurement contracts
and independent contractors.
o (B) " a searchable internet website that
provides information related to state
service procurement contracts, including
name, compensation, contract length and
contract type;
o (C) a searchable Internet website that
provides information related to independent
contractors engaged by the state, by state
agency, including name, compensation,
contract length, and contract type.
• Page 5 Line 9-12 Clarifies that state agencies
and corporations that do not use the central
accounting system shall provide information to
the Department of Administration that is
necessary to comply with the requirements of the
Alaska Online Checkbook.
o "Including a state agency that does not use
the central accounting system.
• Page 6 Transitional Provisions
o The Department of Administration shall
continue to make the Alaska Checkbook Online
Internet website the department made
available online in February 2021 available
to the public and continue to publish
information from the statewide accounting
system on the website until the Internet
website established under AS 37.05.215,
added by Sec. 4 of this Act, is made
available to the public.
3:49:44 PM
CHAIR SHOWER removed his objection; finding no further objection
the CS for SB 25 was adopted.
He asked Mr. Zigmund for a 30,000-foot explanation of IRIS.
3:51:56 PM
HANS ZIGMUND, Director, Division of Finance, Department of
Administration (DOA) Juneau, Alaska, recalled a question from
the previous hearing about the intersection of the IRIS upgrade
project and the work required to produce the online checkbook
outlined in SB 25. He explained that the resource constraint is
that the Division of Finance's five programmers and one database
specialist are 100 percent committed to working on the multiyear
IRIS upgrade project. IRIS is the state's central accounting
system, HR and payroll system, procurement system, and vendor
services system. Alongside that is the upgrade to ALDER, which
is the reporting tool used to pull accounting information from
IRIS. That reporting tool is essential to be able to produce the
online checkbook.
MR. ZIGMUND estimated that it would take about six months to
implement the online checkbook envisioned in SB 25. That is how
long it took a team of five people in Ohio to implement that
state's online checkbook, which is similar to the one in SB 25.
He noted that Ohio has dedicated two people fulltime and $75,000
a year to maintain the software.
MR. ZIGMUND stated that DOA views the online checkbook as an
important tool to support transparency in public finances. The
department looks forward to this project and estimates that the
October 2022 effective date is achievable with some modest
investment.
3:55:39 PM
CHAIR SHOWER asked him to explain IRIS versus the online
checkbook.
MR. ZIGMUND explained that IRIS is the state's general ledger
system where the transactions occur. By contrast, the online
checkbook provides a visualization into where the state spends
money and where that money comes from. It will also show the
estimated value of funds such as the Constitutional Budget
Reserve (CBR), the Statutory Budget Reserve (SBR), and the
Earnings Reserve Account (ERA). It is an easily understood way
for legislators, businesses, and the public to have insight into
the state's finances.
CHAIR SHOWER asked what drove the IRIS upgrade, if it was
supported, and what it cost.
3:57:53 PM
MR. ZIGMUND explained that the vendor stopped supporting the
original version of IRIS in April 2019 after it released a new
version. Since DOA was actively engaged in upgrading the system,
the vendor agreed to provide support for the old version as long
as the upgrade was underway. The upgrade is a new underlying
technology with a redesigned user interface with a mobile-first
design approach. Some of the 150 new features on the finance
side include GASBY 87 compliant lease accounting and a new bond
accounting module. About 75 new features also will go live on
the HR side. The upgrade also provided the opportunity to do
process automation for timesheets, payroll correction documents,
and vendor setup.
With regard to whether DOA will have additional needs, he
explained that the vendor no longer requires massive upgrades
every few years and instead will push out software improvements
periodically, similar to cellphone updates. Over time, this will
save the state money. He highlighted that there is additional
functionality within the new version 4 that is not within the
current budget. These include statewide grantee/grantor
functionality, enhanced accounts receivable technology, and
inventory management processes.
4:01:57 PM
CHAIR SHOWER asked for the total cost and the timeline for
implementation.
MR. ZIGMUND related that the estimated completion date for the
IRIS upgrade is January 25, 2022. The planning phase took about
a year and staff training on project management techniques took
a month. The build phase is about a year, the achieve phase to
do change management and training is about 3 months, and the
post implementation and support phase is from January 2022
through April 2022. He described the implementation schedule as
typical for a massive upgrade. The two capital appropriations
for the project were for $4.1 million and $7.1 million. He
anticipated producing a viable project on budget.
4:04:47 PM
SENATOR HOLLAND asked if someone will need to be prepared month-
to-month to help with updates or when the unexpected arises with
the online checkbook.
MR. ZIGMUND confirmed that he does anticipate that ongoing need.
He noted that Ohio has two people on staff for that purpose but
it was unclear how much of their time is dedicated to online
checkbook maintenance.
CHAIR SHOWER asked if the CGI contractor was doing all the
upgrades or if DOA staff was also involved.
MR. ZIGMUND replied both state employees and the contractor are
working on the IRIS upgrade project.
4:08:10 PM
CHAIR SHOWER asked if the on-cost and on-time IRIS upgrade would
be done at the same time as the online checkbook.
MR. ZIGMUND replied the IRIS upgrade will go live January of
2022 and SB 25 requires the online checkbook to be live by
October 2022. Once the upgrade is complete, he said the
department can redeploy resources to the online checkbook with
the assistance of probably one contractor and perhaps outside
help with design.
CHAIR SHOWER asked the sponsor if he had any questions.
4:09:45 PM
SENATOR WIELECHOWSKI asked if the fiscal note for SB 25 was
still indeterminate or if it could be absorbed in DOA's budget.
4:10:14 PM
MR. ZIGMUND replied the fiscal note may be amended before the
bill is heard in Senate Finance. One cost that will change is
for the forward-facing software because DOA has identified some
licenses that it already owns that can be used for that.
However, there may still be server costs on the capital side.
There is also the question of the cost for outside help on the
design phase and for contractors.
SENATOR WIELECHOWSKI said his office would continue to work with
the administration to come up with a good product that provides
transparency in a timeline that is as short as possible and at a
cost that is as low as possible, ideally within DOA's existing
budget. "I don't think we need a Rolls Royce," he said.
CHAIR SHOWER said he would not hold the bill awaiting the new
fiscal note.
4:15:16 PM
CHAIR SHOWER opened public testimony on SB 25.
4:15:39 PM
BRENDA ANGASAN, representing self, Anchorage, Alaska, stated
support for SB 25 because Alaskans deserve transparency in
government. She looks forward to Alaska no longer being the
worse in the nation for data transparency and availability.
4:16:11 PM
TIMOTHY HALE, representing self, Butte, Alaska, stated that the
online checkbook is a fantastic tool, but the state's old system
was like a 1992 Honda Accord with 300,000 miles. He reported
that the IT and finance departments in the Mat-Su Borough built
an online checkbook last year that is user-friendly and cost
very little. He reiterated his support.
4:18:15 PM
ESTELLE TOKASH, representing self, Anchorage, Alaska, stated
that she supports SB 25 because she wants more transparency in
government spending.
4:19:06 PM
VERI DI SUVERO, Alaska Public Interest Research Group (AkPIRG),
Anchorage, Alaska, stated that AkPIRG is the only
nongovernmental nonprofit focused on addressing Alaska's
consumer and trust issues. Transparency is the cornerstone of a
democracy and is essential for its government. She said AkPIRG
supports SB 25 and believes the implementation of the online
checkbook is critical for the public to understand how
government is spending public dollars. Access to the state's
financial information is an important element of government
accountability and provides a functional system of checks and
balances. She said the enhancements of the online checkbook
contained in SB 25 include searchable features, the addition of
procurement documents and agencies that do not use the state's
accounting system, and embedded links to primary financial
documents, among other things.
MS. DI SUVERO suggested that the online checkbook should
include: accounting codes that are specific to the associated
transaction and identified with explanations; definitions of
accounting terms; a chart of accounts guide; credits and other
costs to reflect the true cost of certain policies; and
interagency receipts, particularly for personal travel and
relocation costs.
4:21:52 PM
NAURI TOLER, representing self, Eagle River, Alaska, stated
support for SB 25. She said it is important to have transparency
and for the online checkbook to be comprehensive, easy for the
average person to navigate, and include information about
whether money actually was spent on projects for which it was
allocated.
4:24:00 PM
CHAIR SHOWER closed public testimony on SB 25 and reminded the
public that written testimony could be submitted at
ssta@akleg.gov.
CHAIR SHOWER asked Commissioner Tshibaka if she had any comments
on SB 25.
4:25:04 PM
KELLY TSHIBAKA, Commissioner, Department of Administration,
Anchorage, Alaska, stated that DOA has chosen to prioritize the
IRIS upgrade because the system has not been supported since
April 2019. The project is on time and on budget. The only delay
was when the Division of Finance had to take down the old online
checkbook. She agreed with Mr. Zigmund that DOA supports SB 25
and the new online checkbook, but the condition is that the IRIS
upgrade must be finished first.
CHAIR SHOWER observed that it sounded like the sponsor was
willing to work with the department.
4:27:15 PM
CHAIR SHOWER held SB 25 in committee for future consideration.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 25 Amendment 1.pdf |
SSTA 2/25/2021 3:30:00 PM |
SB 25 |
| SB 25 Amendment 2.pdf |
SSTA 2/25/2021 3:30:00 PM |
SB 25 |
| SB 25 Amendment 3.pdf |
SSTA 2/25/2021 3:30:00 PM |
SB 25 |
| SB 25 Amendment 4.pdf |
SSTA 2/25/2021 3:30:00 PM |
SB 25 |
| SB 25 Amendment 5.pdf |
SSTA 2/25/2021 3:30:00 PM |
SB 25 |
| SB 25 CS.pdf |
SSTA 2/25/2021 3:30:00 PM |
SB 25 |
| SB 25 Explanation of Changes.pdf |
SSTA 2/25/2021 3:30:00 PM |
SB 25 |
| SB 25.pdf |
SSTA 2/25/2021 3:30:00 PM |
SB 25 |