Legislature(2021 - 2022)BUTROVICH 205
04/19/2022 03:30 PM Senate STATE AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| Presentation: Governor's Infrastructure Plan from a Policy Perspective Sb 241 | |
| SB57 | |
| SB167 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | SB 188 | TELECONFERENCED | |
| += | SB 167 | TELECONFERENCED | |
| += | SB 57 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
SB 57-ALASKA SUNSET COMMISSION
4:49:49 PM
CHAIR SHOWER announced the consideration of SENATE BILL NO. 57
"An Act establishing a violation for hindering the Alaska Sunset
Commission; relating to the Legislative Budget and Audit
Committee; relating to the duties of the legislature; relating
to the legislative audit division and the legislative finance
division; establishing the Alaska Sunset Commission to review
and make recommendations on discontinuation of or changes to
state entities; and relating to the powers and duties of the
Alaska Sunset Commission."
4:50:12 PM
SENATOR SHELLEY HUGHES, Alaska State Legislature, Juneau,
Alaska, sponsor of SB 57 stated that the bill needed work but
she wanted to start the conversation about adjusting the
constitutional spending cap. She described the genesis of the
bill and continued the introduction, speaking to the following
sponsor statement:
SB 57 "The Alaska Sunset Commission Act" will help
ensure transparency, efficiency, cost-effectiveness,
statutory alignment, and constitutional alignment in
the operation of our state government. SB 57
establishes the Alaska Sunset Commission as an
apolitical, independent, and objective entity charged
with reviewing, via detailed and robust audits, each
department by division in the state on a rotating
schedule. The Commission will make recommendations
related to the performance and costs to the
legislature. To prevent a division from sunsetting and
its statutory duties falling to the department's
office of the commissioner, the legislature will need
take up and act on the audit report.
The annual audit reports will also be available to the
executive branch for purposes of both performance and
structural improvements within departments as well as
for the construction of the governor's budget each
year.
The Commission will be comprised of nine individuals
from the private sector with financial, budget
analysis, accounting, operations management, and other
areas of expertise who are appointed by the governor
and confirmed by the legislature. The Commission will
serve without compensation but will be entitled to per
diem and travel expenses authorized for boards and
commissions. The Commission may employ staff as it
determines necessary to perform its duties.
Along with the submission of the audit report to the
legislature, the Commission will provide any
recommended statutory changes necessary to accomplish
the recommendations in the report.
The size and scope of government can sometimes be hard
to grasp and understand, and too often unwieldy and
hard to control. Currently, the House and Senate
Finance members are asked in a matter of a few months
to figure out what is going on in each of the fourteen
departments; essentially their only window is what the
executive branch provides. With this limited
information and in short order, legislators are tasked
with making decisions each year involving spending
billions of public dollars. Access to an extensive
audit will help hold future governors accountable to
building a responsible budget and will help
legislators' appropriate public dollars wisely.
The result will be more cost-effective and efficient
departments that better meet their statutory and
constitutional obligations. This in turn will result
in overall improved state operations which will better
serve Alaskans.
This is especially important as we aim for fiscal
sustainability. Although oil prices are high now, we
all know that this will not always be the case. While
government serves many essential functions, we must
bear in mind that its cost should be proportional to
our relatively small population. The Commission will
help ensure both: that the departments perform their
essential functions well and that they do it cost
effectively.
Senate Bill 57 is based upon the Texas model, the
Texas Sunset Advisory Commission. That Commission was
established in 1977 and is responsible for
recommendations on the need for, performance of and
improvements to agencies under review each year. Since
its establishment, the Texas Sunset Advisory
Commission has abolished 85 unneeded state agencies.
Of that total, 39 agencies were completely abolished
and 46 had their functions transferred to existing or
newly created state agencies.
This bill will not dismantle Legislative Budget and
Audit (LB&A) but note that LB&A's work is solely on
behalf of the legislature and primarily pertains to
reviewing boards and commissions within the executive
branch. SB 57 will provide both the legislative branch
and the executive branch with an important tool, the
Alaska Sunset Commission, for reviewing the operations
and cost of the overall state government.
By establishing this Commission, we can help ensure
that our state government is the right size and
working well for the people of Alaska. With the
guidance of the transparent Commission's reports, the
governor will build more appropriate budgets, and the
legislature will have the information it needs to
route public dollars more accurately and correctly and
adjust statutes as needed for improvements and
efficiencies. Both branches will be held to a greater
degree of accountability. I hope that you will join me
in supporting more responsible government that stays
on mission and does not break the bank by supporting
Senate Bill 57 the Alaska Sunset Commission.
4:54:56 PM
SENATOR COSTELLO recalled that former Representative Mike
Chenault introduced a similar bill that rotated the audits of
entire departments. She asked if the composition of the
commission proposed in SB 57 was based on the Texas model, and
if she had considered having university students who are
majoring in the relevant areas to serve on the commission
instead of relying on unpaid professionals. She voiced support
for more audits and relayed that the State of Kentucky had an
elected state auditor with a $10 million budget who had complete
autonomy as to what is reviewed. She said that investment found
efficiencies and the legislature was able to make more informed
decisions about government.
SENATOR HUGHES responded that former Speaker Chenault's bill
focused on performance and whether or not the departments were
meeting the established statutory goals and missions. SB 57 was
more comprehensive. It seeks to look at not only meeting the
statutory requirements but also the process and how it might be
streamlined. To the question about not compensating the
commission members, she relayed that the commission would rely
on staff who would be compensated. She deferred further
explanation to Mr. Whitt.
4:57:35 PM
BUDDY WHITT, Staff, Senator Shelley Hughes, Alaska State
Legislature, Juneau, Alaska, explained that the composition of
the Texas Sunset Commission was entirely state legislators
whereas the sponsor wanted this commission to be as nonpartisan
as possible. He also noted that provisions of former Speaker
Chenault's bill (House Bill 30 that passed in the 28th
legislature) will sunset next year so Legislative Budget and
Audit will no longer perform those duties. SB 57 proposes a more
comprehensive approach to the audits generally and specifically
for the different agencies.
4:58:53 PM
SENATOR HUGHES highlighted that SB 57 proposes to have subject
matter professionals serve on the commission who would be
appointed by the governor and confirmed by the legislature. The
commission would have paid staff to perform the duties. She
acknowledged that the proposed rotating schedule of audits
should be tightened, which would require hiring additional
commission staff. She opined that a five-year rotation of
department audits was the sweet spot.
SENATOR COSTELLO asked if she had considered having a standing
committee serve as the commission so multiple audits could be
done at the same time.
SENATOR HUGHES replied that was a possibility but it would make
the commission partisan and that was contrary to her intention.
She suggested that Mr. Whitt could speak further about the Texas
commission.
5:01:03 PM
SENATOR COSTELLO asked the chair if the information could be
sent to his office and then distributed to the members.
CHAIR SHOWER asked Mr. Whitt to send the information to his
office.
MR. WHITT agreed to provide an overview of what the Texas
commission had done since it was instituted in 1977. He noted
that there wasn't time to go through the sectional analysis and
advised the members to focus on Section 9 when they reviewed the
bill.
CHAIR SHOWER held SB 57 in committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| letter of support april 17.pdf |
SSTA 4/19/2022 3:30:00 PM |
SB 188 |
| SB 167 Memo OPPOSE.pdf |
SSTA 4/19/2022 3:30:00 PM |
SB 167 |
| SB 167 Memo OPPOSE.pdf |
SSTA 4/19/2022 3:30:00 PM |
SB 167 |
| SB 188 - Amendment #1 Explanation_.pdf |
SSTA 4/19/2022 3:30:00 PM |
SB 188 |
| 22.04.19 GOV Infrastructure Bill Sen STA.pdf |
SSTA 4/19/2022 3:30:00 PM |
|
| 2022 04 04 GOA Infrastructure Bill Summary.pdf |
SSTA 4/19/2022 3:30:00 PM |
|
| SB 188Letter of Support SB 188 Criminal Procedure-Change of Name.pdf |
SSTA 4/19/2022 3:30:00 PM |
SB 188 |