03/19/2024 03:30 PM Senate STATE AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| SB195|| SB195 | |
| SJR15 | |
| Presentation: Alaska Online Checkbook Act Goals and Implementation | |
| Presentation: Department of Administration - Online Checkbook | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 195 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SJR 15 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE STATE AFFAIRS STANDING COMMITTEE
March 19, 2024
3:31 p.m.
MEMBERS PRESENT
Senator Scott Kawasaki, Chair
Senator Matt Claman, Vice Chair
Senator Jesse Bjorkman
Senator Bill Wielechowski
Senator Kelly Merrick
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE BILL NO. 195
"An Act relating to the office of management and budget; and
providing for an effective date."
- MOVED SB 195 OUT OF COMMITTEE
SENATE JOINT RESOLUTION NO. 15
Proposing an amendment to the Constitution of the State of
Alaska relating to actions upon veto.
- MOVED SJR 15 OUT OF COMMITTEE
PRESENTATION: ONLINE CHECKBOOK
- HEARD
PREVIOUS COMMITTEE ACTION
BILL: SB 195
SHORT TITLE: STATE AGENCY PERFORMANCE IMPROVEMENT
SPONSOR(s): SENATOR(s) KAUFMAN
01/18/24 (S) READ THE FIRST TIME - REFERRALS
01/18/24 (S) STA, FIN
02/13/24 (S) STA AT 3:30 PM BELTZ 105 (TSBldg)
02/13/24 (S) Heard & Held
02/13/24 (S) MINUTE(STA)
03/19/24 (S) STA AT 3:30 PM BELTZ 105 (TSBldg)
BILL: SJR 15
SHORT TITLE: CONST. AM: VOTES NEEDED FOR VETO OVERRIDE
SPONSOR(s): SENATOR(s) CLAMAN
02/19/24 (S) READ THE FIRST TIME - REFERRALS
02/19/24 (S) STA
02/29/24 (S) STA AT 3:30 PM BELTZ 105 (TSBldg)
02/29/24 (S) Heard & Held
02/29/24 (S) MINUTE(STA)
03/19/24 (S) STA AT 3:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
SENATOR JAMES KAUFMAN, District F
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of SB 195.
DAVID DUNSMORE, Staff
Senator Bill Wielechowski
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Delivered a presentation on the Alaska
Online Checkbook Act Goals and Implementation.
ERIC DEMOULIN, Director
Division of Administrative Services
Department of Administration (DOA)
Juneau, Alaska
POSITION STATEMENT: Co-presented an overview of Checkbook
Online.
STEPHANIE ALLISION, Director
Division of Finance
Department of Administration (DOA)
Juneau, Alaska
POSITION STATEMENT: Co-presented an overview of Checkbook
Online.
ACTION NARRATIVE
3:31:59 PM
CHAIR SCOTT KAWASAKI called the Senate State Affairs Standing
Committee meeting to order at 3:31 p.m. Present at the call to
order were Senators Claman, Bjorkman, Wielechowski, Merrick, and
Chair Kawasaki.
SB 195-STATE AGENCY PERFORMANCE IMPROVEMENT
3:33:45 PM
At ease
3:35:12 PM
CHAIR KAWASAKI reconvened the meeting and announced the
consideration of SENATE BILL NO. 195 "An Act relating to the
office of management and budget; and providing for an effective
date."
3:35:57 PM
SENATOR KAUFMAN, District F, Alaska State Legislature, Juneau,
Alaska, sponsor of SB 195. He noted that SB 195 has no fiscal
note and listed three provisions under SB 195:
Key provisions of the bill include:
• Expand the statutory duties of the OMB director
to collect and analyze data on performance of
agencies, to advise the governor on matters of
improvement of business processes and increasing
accountability, and to publish regularly updated
progress updates on a website.
• Empower OMB to collaborate with state agencies to
enhance responsiveness, improve customer service
quality, and implement cost optimization
strategies.
• Establish a framework for state agencies to
cooperate fully with the OMB, ensuring timely
responses to inquiries and the provision of
necessary information for performance evaluation
and improvement.
3:37:23 PM
CHAIR KAWASAKI opened public testimony on SB 195; finding none,
he closed public testimony.
3:37:50 PM
CHAIR KAWASAKI solicited the will of the committee.
3:38:11 PM
SENATOR MERRICK moved to report SB 195, work order 33-LS1015\B,
from committee with individual recommendations and attached
fiscal note(s).
3:38:25 PM
CHAIR KAWASAKI found no objection and SB 195 was reported from
the Senate State Affairs Standing Committee.
3:38:37 PM
At ease
SJR 15-CONST. AM: VOTES NEEDED FOR VETO OVERRIDE
3:40:36 PM
CHAIR KAWASAKI reconvened the meeting and announced the
consideration of SENATE JOINT RESOLUTION NO. 15 "Proposing an
amendment to the Constitution of the State of Alaska relating to
actions upon veto."
3:41:13 PM
At ease
3:41:47 PM
CHAIR KAWASAKI reconvened the meeting.
3:42:04 PM
SENATOR CLAMAN expressed appreciation for the support of SJR 15.
3:42:13 PM
CHAIR KAWASAKI solicited the will of the committee.
3:42:18 PM
SENATOR MERRICK moved to report SJR 15, work order 33-LS1373\A,
from committee with individual recommendations and attached
fiscal note(s).
3:42:32 PM
CHAIR KAWASAKI found no objection and SJR 15 was reported from
the Senate State Affairs Standing Committee.
3:42:45 PM
At ease
^Presentation: Alaska Online Checkbook Act Goals and
Implementation
PRESENTATION: ALASKA ONLINE CHECKBOOK ACT
GOALS AND IMPLEMENTATION
3:44:21 PM
CHAIR KAWASAKI reconvened the meeting and announced the
consideration of a presentation on the Alaska Online Checkbook
Act Goals and Implementation.
3:45:16 PM
DAVID DUNSMORE, Staff, Senator Bill Wielechowski, Alaska State
Legislature, Juneau, Alaska, delivered a presentation on the
Alaska Online Checkbook Act Goals and Implementation. He moved
to slide 2 and outlined the history and current status of the
Alaska Online Checkbook Act:
[Original punctuation provided.]
The Alaska Online Checkbook Act Was Passed by the 32nd
Legislature in 2022
• Sponsored by Sen. Wielechowski, 10 Senate co-
sponsors, and 19 House cross-sponsors
• Passed the Senate 20- 0 and the House 40-0
• Heard by the State Affairs and Finance Committees
in both bodies
• The sponsor worked with the Department of
Administration and other agencies to make changes
to make the bill easier to implement.
3:46:11 PM
MR. DUNSMORE moved to slide 3 and spoke to the timeline of the
Alaska Online Checkbook Act:
[Original punctuation provided.]
The Alaska Online Checkbook Act: 16 Years in
• Sen. Wielechowski introduced the first version of
this bill in 2008.
• After the bill was introduced, the Palin
administration launched the "Checkbook Online"
website using existing authority.
• In 2020, the website was taken offline for almost
a year.
• Sen. Wielechowski reintroduced this bill to
codify the requirement for an Online Checkbook in
statute and expand the information available.
3:46:45 PM
MR. DUNSMORE moved to slide 4 and spoke to the anticipated
benefits of the Online Checkbook Act:
[Original punctuation provided.]
Alaska Online Checkbook Act Anticipated Benefits
• Increased accountability by making state
financial data available to the public in a
searchable and easy to understand format.
• Making data available for legislators, staff, and
other policy makers in a central location.
• Saving state agencies money on public records
requests.
3:47:11 PM
MR. DUNSMORE moved to slide 5 and spoke to online transparency:
[Original punctuation provided.]
When it was first launched the "Checkbook Online" made
Alaska a leader in transparency of government
finances, but as technology advanced Alaska hasn't
kept pace.
In 2019, the U.S. Public Interest Research Group gave
Alaska an "F" for online transparency.
Source: U.S. PIRG "Following the Money 2019"
3:48:01 PM
MR. DUNSMORE moved to slide 7 and spoke to revenue data
reporting requirements:
[Original punctuation provided.]
The Alaska Online Checkbook Act Requires More
Information Be Available Online
• The previous website only provided expenditure
data and did not provide information for state
corporations.
• Requires data from state corporations be
included.
• The Alaska Online Checkbook Act requires data for
expenditures, income, number of employees and
contractors, debt, and account balances be
available online.
• Requires that the data be searchable online,
unlike the previous website which required
downloading spreadsheets.
3:48:17 PM
MR. DUNSMORE moved to slide 8 and highlighted expenditure
reporting requirements:
[Original punctuation provided.]
Revenue Data Reporting Requirements
• RECEIPTS OR DEPOSITS
• PROCEEDS FROM TAXES
• AGENCY EARNINGS (SALES, SERVICES, LICENSES,
PERMITS, ETC.).
• OTHER REVENUES (INTEREST, LEASE, GIFTS,
DONATIONS, ETC.).
• SOME DATA CAN BE AGGREGATED TO PROTECT
CONFIDENTIALITY.
3:48:33 PM
MR. DUNSMORE moved to slide 9 and spoke to employee and
contractor reporting requirements:
[Original punctuation provided.]
Employee and Contractor Reporting Requirements
• The number of full-time, part-time, and temporary
employees by agency.
• The number of independent contractors by agency.
• Total general fund payroll by agency.
3:48:49 PM
MR. DUNSMORE moved to slide 10 and spoke to debt reporting
requirements:
[Original punctuation provided.]
Account Balances and Debt Reporting Requirements
• STATUTORY BUDGET RESERVE (SBR)
• CONSTITUTIONAL BUDGET RESERVE (CBR)
• PERMANENT FUND EARNINGS RESERVE ACCOUNT (ERA)
• TOTAL LONG-TERM DEBT BY AGENCY
3:49:04 PM
MR. DUNSMORE moved to slide 11 and spoke to an image
illustrating a sample online checkbook. He noted that during the
committee process, the sponsor and committees examined how other
states use data visualization software to enhance their online
checkbooks. He provided a screenshot from Ohio's online
checkbook website as an example of how data can be made more
accessible to the public.
3:49:29 PM
MR. DUNSMORE moved to slide 12 and spoke to the timeline for
implementation:
[Original punctuation provided.]
The Alaska Online Checkbook Act Set a Timeline for
Implementation
• Existing "Checkbook Online" website to remain
online during transition.
• New website to launch October 1, 2024, and begin
being updated monthly.
• The sponsor would have preferred a shorter
timeline, but the Department of Administration
testified that this delayed implementation was
necessary.
MR. DUNSMORE corrected the website launch date to October 1,
2023.
3:50:03 PM
MR. DUNSMORE moved to slide 13 and spoke to the fiscal note:
[Original punctuation provided.]
Alaska Online Checkbook Act Fiscal Note
• The Legislature fully funded the fiscal note
submitted by the Department of Administration.
• Added $65,000 in operating funds to the base
budget for the Division of Finance.
• Included $250,000 in one-time capital funding to
"procure outward-facing presentation software,
server capacity, design expertise, and contractor
assistance with interface design, programming,
and reporting.
3:50:34 PM
MR. DUNSMORE moved to slide 14 and spoke to the implementation
of the Online Checkbook:
[Original punctuation provided.]
Actual Implementation So Far
• In October 2023, a new feature was added to the
existing website allowing the spreadsheets to be
searched online.
• Added links to documents from the University of
Alaska, Legislative Audit, Tax Division, and
Department of Labor.
• Does not appear to include any additional
information beyond what was available on the
previous website.
• Does not use data visualization technology to
make the data more accessible.
3:51:09 PM
MR. DUNSMORE moved to slide 15 and presented a chart outlining
the major data requirements and their current availability
online. He highlighted that income data is not yet available,
while expenditure data and reports required by the Legislative
Audit Division are accessible. However, data from state
corporations is still missing from the website.
3:51:58 PM
SENATOR WIELECHOWSKI asked whether it is accurate to say that
the administration is in substantial non-compliance with the
Online Checkbook Act.
3:52:07 PM
MR. DUNSMORE replied that there are several areas explicitly
listed and required to be posted online by October 1 of last
year, which have not been complied with. He confirmed that the
statement about substantial non-compliance is accurate.
^Presentation: Department of Administration - Online Checkbook
PRESENTATION: DEPARTMENT OF ADMINISTRATION
CHECKBOOK ONLINE
3:52:44 PM
CHAIR KAWASAKI announced the consideration of a presentation on
Checkbook Online.
3:53:10 PM
At ease
3:54:06 PM
CHAIR KAWASAKI reconvened the meeting.
3:54:12 PM
ERIC DEMOULIN, Director, Division of Administrative Services,
Department of Administration (DOA), Juneau, Alaska, co-presented
an overview of Checkbook Online. He introduced himself.
3:54:36 PM
STEPHANIE ALLISION, Director, Division of Finance, Department of
Administration (DOA), Juneau, Alaska, co-presented an overview
of Checkbook Online. She mentioned that she started in her role
on March 13th. She moved to slide 2 and said the DOA has not met
the statute requirements. Although it provided an improved model
of information using Microsoft Power BI (business intelligence),
it still does not meet those requirements. The department
contracted with Tyler Technologies and have a prototype, which
she reviewed yesterday.
3:55:24 PM
MS. ALLISON moved to slide 3 and spoke to a screenshot of a
landing page. She said the prototype has similarities to Ohio's
model. From this landing page, users can delve deeper into the
product for more detailed financial data.
3:55:43 PM
MS. ALLISON moved to slides 4 and noted that the snapshot on
this slide demonstrates the total spending for Fiscal Year (FY)
24.
3:55:49 PM
MS. ALLISON moved to slide 5 and spoke to a screenshot of
divisions within DOA. She explained that users can filter data
by division, name, expense category, vendor, and expense type on
the prototype's landing page. She noted that data is likely
exported using Microsoft Excel.
3:56:15 PM
MS. ALLISON moved to slide 6 and briefly showed a screenshot of
the pie chart function.
3:56:41 PM
MS. ALLISON moved to slide 7 and briefly showed a screenshot of
the expense detail filter. She stated that this filter allows
users to limit the dollar amount and sort data both ascending
and descending. She noted that location for the vendor was a
requirement and will follow up with the project lead to ensure
its inclusion in the prototype.
3:57:20 PM
MS. ALLISON moved to slide 8 and spoke to a screenshot of a
vacancy list as of February 29. She explained that the division
currently has a 28 percent vacancy rate, primarily affecting
payroll, with recent departures including the division Director
and two operations managers. While these staffing issues have
contributed to delays, they are not the sole cause. The planned
implementation date is April 30, although there is a possibility
of going live by April 15. However, she expressed uncertainty in
guaranteeing the earlier date.
3:58:24 PM
MR. DEMOULIN stated that the project is being implemented in
phases, with a target to go live towards the end of April. He
noted that coordinating with various corporations using separate
proprietary accounting systems presents challenges in ensuring
all data points are accurately presented. The dashboards
currently reflect available expenditure data, with revenue data
expected to be added later. The data will come from the state's
Integrated Resource Information System (IRIS) system. Director
Allison has requested a detailed project plan and roadmap to
outline objectives and progress. He highlighted the value of the
previous presentation's outline in helping to develop a
transparent roadmap for the project's future.
4:00:12 PM
SENATOR WIELECHOWSKI expressed frustration with the process
surrounding Online Checkbook. He noted that despite having
fought for the bill for many years and providing over a year for
the department to implement it, the result has been
disappointing. He compared the outcome unfavorably to a previous
instance where a staff member achieved similar results in a
fraction of the time and at no cost. He criticized the
department for not meeting expectations despite having resources
and funding. He acknowledged the improvements being made and
highlighted the need for the project to meet the promised
standards. He requested information on whether contractor data,
including state and corporate contractors, will be included in
Checkbook Online.
4:01:59 PM
MS. ALLISON acknowledged that including information for quasi-
corporations (quasi-corps) presents a challenge. Although these
entities provide audited financial statements annually, which
are included in the state's audited financial statements, the
data is often not easily accessible or understandable for the
public. To address this, the Division of Finance is working on
developing a method for these entities to provide financial
information monthly for inclusion in Checkbook Online. She noted
that while some quasi-corps use the state's financial system,
Iris, the number of such entities is small, making this a
significant hurdle. She asked him to further clarify the
remainder of his question.
4:03:01 PM
SENATOR WIELECHOWSKI asked for information on contractor data
and state corporations.
4:03:05 PM
MS. ALLISON replied that there are some issues with contractor
data inclusion. Contractors are identified through contracts
within the system, but those using alternative procurement
methods without contracts are not tracked. To address this, DOA
must identify the departments using these alternative methods
and develop a process to capture the relevant data.
4:03:42 PM
MR. DEMOULIN provided an example of challenges with identifying
contractor details, such as National Association of State
Procurement Officials (NASPO) agreements. He said a procurement
might show expenditures through a company like Sealaska Heritage
Institute (SHI), which could be a software reseller or another
contractor. The challenge lies in effectively breaking down
these bundled contracts to understand their underlying purposes.
While these issues may have been identified previously, they
still present challenges that need addressing to provide clear
and detailed information.
4:04:34 PM
SENATOR WIELECHOWSKI noted that the legislature had multiple
conversations, phone calls, and meetings with the Department of
Administration to address issues before passing the bill. He
noted that Hans Zigmund, Director of the Division of Finance for
DOA, had previously indicated that the department planned to
provide corporations with a spreadsheet template for monthly
data submissions. He asked him to elaborate on the status of
that plan.
4:04:58 PM
MR. DEMOULIN stated that he has not seen a spreadsheet or
template provided by the previous director. He noted that, as
the former Admin Services Director for the Department of
Revenue, he worked extensively with quasi-corporations but had
not encountered the spreadsheet expectation mentioned. He
acknowledged the need for an automated and streamlined process
to ensure consistency and minimize user error. He suggested
looking into the provided template and deferred to Ms. Allison
for additional details.
4:05:53 PM
MS. ALLISON replied that she had not yet seen the template.
4:06:07 PM
SENATOR MERRICK wondered how many people have visited the
website.
4:06:15 PM
MR. DEMOULIN replied no, said the department has metered
websites, and agreed to follow up with the committee.
4:06:36 PM
CHAIR KAWASAKI acknowledged agency staffing issues but expressed
concern that these resources should be relatively easy to
access. He asked what would be required to ensure that the
project meets the April 30 deadline, emphasizing the importance
of meeting this timeline.
4:07:17 PM
MS. ALLISON expressed confidence that the basic product would be
ready by the April 30 deadline. She noted that the team is
confident in meeting this timeline, though she admitted not
having had sufficient time to fully assess the status of ongoing
projects.
4:07:44 PM
CHAIR KAWASAKI acknowledged the work being done to ensure the
payroll is processed, which he said is a high priority. However,
he emphasized the importance of prioritizing compliance with the
statute.
4:07:58 PM
SENATOR WIELECHOWSKI highlighted that failing to meet the
requirements could lead to legal action against the state, which
would be costly and likely result in a loss. He emphasized the
importance of meeting the statutory requirements and warned of
the risk of a costly lawsuit if compliance is not achieved.
Ensuring the department meets these legal obligations should be
a high priority. He asked about the priority level the
department is assigning to completing this task and ensuring
that it provides the service Alaskans expect.
4:08:42 PM
MS. ALLISON acknowledged that payroll is a priority and
mentioned that she is addressing staffing issues by assigning an
accountant to assist the project manager with the project. She
noted the challenge of balancing multiple statutory requirements
and ongoing financial system updates. While she understands the
need to prioritize compliance with the statute, she expressed
uncertainty about how it will fit in with other priorities. She
committed to making it a top priority as much as possible
despite the current hurdles.
4:10:06 PM
MR. DEMOULIN emphasized that prioritizing the online checkbook
project has been a key focus since his time in the Department of
Administration. He noted that additional resources are being
considered to address current issues. said a contractor has been
brought on board, but that was not done at the beginning of the
contract, so that has also created uncertainty, but assured that
the department is committed to completing it as quickly as
possible. The working prototype will soon go live with the
current functionalities and data visualizations by the end of
April. The project remains a high priority and that efforts are
underway to resolve issues and deliver positive results as soon
as possible.
4:11:08 PM
CHAIR KAWASAKI inquired about the nature of the work conducted
under the contract with Tyler Technologies, a public sector
software provider based in Plano, Texas. He asked if its
employees are physically working within the division or if the
contract involves providing information to Tyler Technologies
for processing and formatting it into a publicly readable
format.
4:11:55 PM
MR. DEMOULIN explained that, currently, Tyler Technologies
employees are not working directly within the division. Instead,
the company is working externally to assist with data validation
and synthesizing information for online posting. He mentioned
that he would need to obtain further details on the specifics of
how the data is handled and the project's interactions and
invited Director Allison to provide additional information.
4:12:30 PM
MS. ALLISON said that Tyler Technologies meets weekly with the
project team, and the internal team holds meetings every other
week to address issues. However, she said does not have
specifics on the interactions or project details.
4:12:50 PM
SENATOR WIELECHOWSKI requested a timeline for when the
department expects to fully comply with all provisions of the
statute.
4:13:01 PM
MR. DEMOULIN replied yes.
4:13:04 PM
CHAIR KAWASAKI suggested providing individual timelines for each
citation in the law from the spreadsheet shown on page 15 of the
slide deck. He acknowledged that some requirements might be
easier to meet than others and proposed that if some items can
be made available online sooner than others, they should be
prioritized. He emphasized that rolling out compliance in
phases, if possible, would be preferable and beneficial for both
the committee and the public.
4:14:29 PM
SENATOR MERRICK wished Chair Kawasaki a happy birthday.
4:15:22 PM
There being no further business to come before the committee,
Chair Kawasaki adjourned the Senate State Affairs Standing
Committee meeting at 4:15 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 12.22.2023 - DOA Senator Wielechowski Inquiry.pdf |
SSTA 3/19/2024 3:30:00 PM |
Online Checkbook Presentation |
| 3.19.24 - SSTA - Checkbook Online.pdf |
SSTA 3/19/2024 3:30:00 PM |
|
| Alaska Online Checkbook Act Goals and Implementation presentation.pdf |
SSTA 3/19/2024 3:30:00 PM |
Online Checkbook Presentation |
| letter to Finance Divison re Online Checkbook 12-18-23.pdf |
SSTA 3/19/2024 3:30:00 PM |
Online Checkbook Presentation |