02/17/2022 03:00 PM House STATE AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| HB291 | |
| HB37 | |
| SB25|| HB86 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 291 | TELECONFERENCED | |
| += | HB 37 | TELECONFERENCED | |
| + | SB 25 | TELECONFERENCED | |
| *+ | HB 86 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
HOUSE STATE AFFAIRS STANDING COMMITTEE
February 17, 2022
3:03 p.m.
MEMBERS PRESENT
Representative Jonathan Kreiss-Tomkins, Chair
Representative Matt Claman, Vice Chair
Representative Geran Tarr
Representative Andi Story (via teleconference)
Representative Sarah Vance
Representative James Kaufman
Representative David Eastman
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
HOUSE BILL NO. 291
"An Act extending the termination date of the Council on
Domestic Violence and Sexual Assault; and providing for an
effective date."
- HEARD & HELD
HOUSE BILL NO. 37
"An Act relating to deposits into the dividend fund; relating to
income of and appropriations from the earnings reserve account;
relating to the taxation of income of individuals, partners,
shareholders in S corporations, trusts, and estates; relating to
a payment against the individual income tax from the permanent
fund dividend disbursement; repealing tax credits applied
against the tax on individuals under the Alaska Net Income Tax
Act; and providing for an effective date."
- HEARD & HELD
CS FOR SENATE BILL NO. 25(FIN)
"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; and relating to the Alaska Checkbook
Online Internet website."
- HEARD & HELD
HOUSE BILL NO. 86
"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."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 291
SHORT TITLE: EXTENDING COUNCIL ON DOMESTIC VIOLENCE
SPONSOR(s): REPRESENTATIVE(s) TARR
01/27/22 (H) READ THE FIRST TIME - REFERRALS
01/27/22 (H) STA, FIN
02/17/22 (H) STA AT 3:00 PM GRUENBERG 120
BILL: HB 37
SHORT TITLE: INCOME TAX; PERMANENT FUND; EARNINGS RES.
SPONSOR(s): REPRESENTATIVE(s) WOOL
02/18/21 (H) PREFILE RELEASED 1/8/21
02/18/21 (H) READ THE FIRST TIME - REFERRALS
02/18/21 (H) CRA, STA, FIN
04/28/21 (H) W&M REPLACES CRA REFERRAL
04/28/21 (H) BILL REPRINTED
05/11/21 (H) W&M AT 11:30 AM DAVIS 106
05/11/21 (H) -- MEETING CANCELED --
05/13/21 (H) W&M AT 11:30 AM DAVIS 106
05/13/21 (H) Heard & Held
05/13/21 (H) MINUTE(W&M)
05/15/21 (H) W&M AT 11:30 AM DAVIS 106
05/15/21 (H) Heard & Held
05/15/21 (H) MINUTE(W&M)
05/18/21 (H) W&M AT 11:30 AM DAVIS 106
05/18/21 (H) Moved CSHB 37(W&M) Out of Committee
05/18/21 (H) MINUTE(W&M)
05/19/21 (H) W&M RPT CS(W&M) 5DP 2DNP
05/19/21 (H) DP: SCHRAGE, STORY, JOSEPHSON, WOOL,
SPOHNHOLZ
05/19/21 (H) DNP: PRAX, EASTMAN
01/27/22 (H) STA AT 3:00 PM GRUENBERG 120
01/27/22 (H) Heard & Held
01/27/22 (H) MINUTE(STA)
02/17/22 (H) STA AT 3:00 PM GRUENBERG 120
BILL: SB 25
SHORT TITLE: STATE GOV'T FINANCES: WEBSITE
SPONSOR(s): SENATOR(s) WIELECHOWSKI
01/22/21 (S) PREFILE RELEASED 1/8/21
01/22/21 (S) READ THE FIRST TIME - REFERRALS
01/22/21 (S) STA, FIN
02/02/21 (S) STA AT 3:30 PM BUTROVICH 205
02/02/21 (S) Heard & Held
02/02/21 (S) MINUTE(STA)
02/11/21 (S) STA AT 3:30 PM BUTROVICH 205
02/11/21 (S) Scheduled but Not Heard
02/25/21 (S) STA AT 3:30 PM BUTROVICH 205
02/25/21 (S) Heard & Held
02/25/21 (S) MINUTE(STA)
04/08/21 (S) STA AT 3:30 PM BUTROVICH 205
04/08/21 (S) Moved CSSB 25(STA) Out of Committee
04/08/21 (S) MINUTE(STA)
04/09/21 (S) STA RPT CS 2DP 3NR NEW TITLE
04/09/21 (S) NR: SHOWER, HOLLAND, REINBOLD
04/09/21 (S) DP: COSTELLO, KAWASAKI
04/20/21 (S) FIN AT 9:00 AM SENATE FINANCE 532
04/20/21 (S) Heard & Held
04/20/21 (S) MINUTE(FIN)
05/11/21 (S) FIN AT 9:00 AM SENATE FINANCE 532
05/11/21 (S) -- MEETING CANCELED --
01/24/22 (S) FIN AT 1:00 PM SENATE FINANCE 532
01/24/22 (S) Moved CSSB 25(FIN) Out of Committee
01/24/22 (S) MINUTE(FIN)
01/25/22 (S) FIN RPT CS 5DP NEW TITLE
01/25/22 (S) DP: STEDMAN, BISHOP, HOFFMAN, WILSON,
WIELECHOWSKI
02/02/22 (S) TRANSMITTED TO (H)
02/02/22 (S) VERSION: CSSB 25(FIN)
02/04/22 (H) READ THE FIRST TIME - REFERRALS
02/04/22 (H) STA, FIN
02/17/22 (H) STA AT 3:00 PM GRUENBERG 120
BILL: HB 86
SHORT TITLE: STATE GOV'T FINANCES: WEBSITE
SPONSOR(s): REPRESENTATIVE(s) RAUSCHER
02/18/21 (H) READ THE FIRST TIME - REFERRALS
02/18/21 (H) STA, FIN
02/17/22 (H) STA AT 3:00 PM GRUENBERG 120
WITNESS REGISTER
KRIS CURTIS, Legislative Auditor
Division of Legislative Audit
Juneau, Alaska
POSITION STATEMENT: Provided invited testimony during the
hearing on HB 291.
BRENDA STANFILL, Executive Director
Alaska Network on Domestic Violence & Sexual Assault
Fairbanks, Alaska
POSITION STATEMENT: Provided invited testimony during the
hearing on HB 291.
DIANE CASTRO, Executive Director
Alaska Network on Domestic Violence & Sexual Assault
Juneau, Alaska
POSITION STATEMENT: Testified during the hearing on HB 291.
CARRIE HARRIS
Anchor Point, Alaska
POSITION STATEMENT: Testified in opposition to HB 37.
MIKE COONS
Palmer, Alaska
POSITION STATEMENT: Testified in opposition to HB 37.
ED MARTIN
Kenai, Alaska
POSITION STATEMENT: Testified in opposition to HB 37.
RON JOHNSON
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of HB 37.
JOHN LARSON
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 37.
REPRESENTATIVE GEORGE RAUSCHER
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced HB 86, as the prime sponsor.
SENATOR BILL WIELECHOWSKI
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced SB 25, as the prime sponsor.
DAVID DUNSMORE, Staff
Senator Bill Wielechowski
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided a PowerPoint presentation during
the hearing on HB 86 and SB 25, on behalf of Senator
Wielechowski, prime sponsor of SB 25.
HANS ZIGMEND, Director
Division of Finance
Department of Administration
Juneau, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
86 and SB 25.
VERI DI SUVERO, Executive Director
Alaska Public Interest Research Group
Anchorage, Alaska
POSITION STATEMENT: Provided invited testimony during the
hearing on HB 86 and SB 25.
ACTION NARRATIVE
3:03:16 PM
CHAIR JONATHAN KREISS-TOMKINS called the House State Affairs
Standing Committee meeting to order at 3:03 p.m.
Representatives Tarr, Claman, Vance, Story (via teleconference),
and Kreiss-Tomkins were present at the call to order.
Representatives Eastman and Kaufman arrived as the meeting was
in progress.
HB 291-EXTENDING COUNCIL ON DOMESTIC VIOLENCE
3:05:50 PM
CHAIR KREISS-TOMKINS announced that the first order of business
would be HOUSE BILL NO. 291, "An Act extending the termination
date of the Council on Domestic Violence and Sexual Assault; and
providing for an effective date."
3:06:17 PM
REPRESENTATIVE TARR, prime sponsor of HB 291, introduced the
legislation. She paraphrased the sponsor statement, which read
as follows [original punctuation provided]:
HB 291 extends the termination date of the Council on
Domestic Violence and Sexual Assault (CDVSA) until
June 30, 2028, in accordance with the recommendation
of the Legislative Auditor.
The CDVSA serves an important public service by
developing, implementing, and maintaining Alaska's
domestic violence, sexual assault, and crisis
intervention/prevention programs in conjunction with
authorities in the field, supporting public employers
to provide education programs, coordinating DV/SA
intervention/prevention programs provided by DEED,
DPS, DOC, DHSS, and the Department of Law, creatin
DV/SA training programs and standards, and dispensing
funds related to services and programs that serve
survivors of sexual assault and domestic violence.
REPRESENTATIVE TARR discussed the audit report on the Council on
Domestic Violence and Sexual Assault (CDVSA) [included in the
committee packet] and highlighted the council's primary
functions on page 1.
3:11:32 PM
CHAIR KREISS-TOMKINS welcomed invited testimony.
3:11:48 PM
KRIS CURTIS, Legislative Auditor, Division of Legislative Audit,
presented the audit report conclusions, which read as follows
[original punctuation provided]:
The audit concluded that the council generally
operated in the public's interest by funding and
monitoring Alaskan domestic violence and sexual
assault programs and prevention activities. The
council served as the central coordinator for related
services throughout the state, conducted meetings in
accordance with council bylaws, effectively met most
statutory duties, and did not duplicate the efforts of
other entities.
The audit also concluded that the council should
improve document retention, access to the Battering
Intervention Program database, and timeliness of
annual report submission and regulation changes.
In accordance with AS 44.66.010(a)(5), the council is
scheduled to terminate June 30, 2022. We recommend the
legislature extend the council's termination date six
years, to June 30, 2028.
3:16:00 PM
REPRESENTATIVE CLAMAN believed that there may be a management
problem at CDVSA after reading the four recommendations from the
legislative auditor. He asked if that was accurate.
MS. CURTIS said she would not consider "bad management" an
issue. She reviewed the four recommendations and provided
additional context.
3:18:51 PM
REPRESENTATIVE CLAMAN, referring the fourth recommendation,
opined that improving access to the Battering Intervention
Program (BIP) should have been made a priority for the CDVSA.
He believed that in itself was a reflection of management
challenges. He said he agreed with the recommendations made by
the legislative auditor and had no problem with the six-year
extension; however, he maintained his belief that there was a
need for management improvements.
3:20:37 PM
REPRESENTATIVE VANCE turned attention to page 29 of the audit,
which outlined the first recommendation. She asked Ms. Curtis
to opine on the council's plan to reduce the volume and depth of
the annual report in order to meet the bylaws and statutory
requirements.
MS. CURTIS pointed out that the old annual reports were
extremely extensive. She said it would be a policy call as to
whether a more concise report would meet the legislature's need.
She added that, in terms of timeliness, she understood why the
council made the decision to reduce the volume.
REPRESENTATIVE VANCE asked whether the annual report was viewed
by the Department of Public Safety (DPS) or utilized by other
government agencies.
MS. CURTIS was unsure of who used it. She noted that the
auditors tested the annual report to ensure that it met
statutory minimums.
3:23:06 PM
REPRESENTATIVE EASTMAN inquired about the nature of the
vacancies [within the council].
MS. CURTIS said that detail was not included in the audit
report.
REPRESENTATIVE EASTMAN asked how extensively the financials were
audited.
MS. CURTIS directed attention to page 9 and clarified that
financials were unaudited. She explained that the council's
finances were received from management and cited as such.
3:24:34 PM
REPRESENTATIVE CLAMAN asked whether unaudited financial
information was a typical practice.
MS. CURTIS said sunset audits did not touch the financial
information.
3:25:42 PM
BRENDA STANFILL, Executive Director, Alaska Network on Domestic
Violence & Sexual Assault (ANDVSA), discussed the CDVSA and its
importance. She explained that the ANDVSA relied on the council
to hold public hearings and commission studies; monitor funds to
victim service agencies; ensure program compliancy; department
coordination; inform the administration; and hold strategic
plans. She opined that the Alaska Mental Health Trust and the
Alaska Native population were both underrepresented on the
council. She urged the committee to extend the CDVSA's
termination date until 2028.
3:34:19 PM
REPRESENTATIVE EASTMAN inquired about the vacancies that had
been referenced earlier.
MS. STANFILL deferred to Diane Castro.
REPRESENTATIVE CLAMAN acknowledged Ms. Stanfill's continued work
on the issue of domestic violence.
3:35:00 PM
CHAIR KREISS-TOMKINS inquired about the interrelationship
between the CDVSA and ANDVSA and asked how the two organizations
differ. He sought to confirm that the CDVSA primarily played a
funding role while ANDVSA primarily played a coordination role.
MS. STANFILL answered yes, adding that the council was
responsible for coordination as well.
CHAIR KREISS-TOMKINS inquired about the victimization study,
which Ms. Stanfill had mentioned in previous testimony.
MS. STANFILL discussed the victimization study, which tracked
rates of domestic violence and sexual assault. She noted that
the entire study could be found on the University of Alaska
Anchorage (UAA) Justice Center's website.
REPRESENTATIVE CLAMAN noted that the study was also referenced
in the annual report from the Alaska Criminal Justice
Commission.
CHAIR KREISS-TOMKINS inquired about the strategy around
prevention and asked how prevention-related programming was
being approached.
MS. STANFILL emphasized the importance of identifying each
community's "readiness." She reviewed the strategic approach
being taken, which involved close work with community
coalitions, media outreach, and various programs and violence-
prevention strategies. Additionally, she highlighted the Green
Dot program, which was focused on bystander intervention.
3:42:50 PM
CHAIR KREISS-TOMKINS asked how research was approached in terms
of efficacy.
MS. STANFILL shared her understanding that it involved surveying
children and parents and tracking additional information. She
offered to follow up with additional specifics.
CHAIR KREISS-TOMKINS asked whether that was generally
accomplished via prevention programs.
MS. STANFILL answered no. She explained that other prevention
programs were evidence based, meaning rigorous studies had been
performed initially to determine the efficacy.
CHAIR KREISS-TOMKINS sought to confirm that Ms. Stanfill was
referring to Green Dot.
MS. STANFILL said yes, in addition to Coaching Boys Into Men or
Girls On The Run.
3:44:35 PM
REPRESENTATIVE CLAMAN asked who ran Coaching Boys Into Men.
MS. STANFILL said it was the Alaska School Activities
Association (ASAA).
REPRESENTATIVE CLAMAN inquired about the pro bono legal services
program offered by ANDVSA and whether it was funded by CDVSA.
MS. STANFILL discussed the legal program, called the Pro Bono
Attorney Project, which was the only direct service program to
victims. She noted that the core funding was provided through
the Stop Grant.
3:48:47 PM
REPRESENTATIVE EASTMAN referenced the alarming statistics
pertaining to domestic violence and sexual assault in Alaska and
asked whether they had improved.
MS. STANFILL believed that overall, an upward trajectory was
being made.
CHAIR KREISS-TOMKINS asked whether there was a country that was
regarded for a relative scarcity of domestic violence.
MS. STANFILL did not know the answer. She offered to follow up.
3:53:41 PM
REPRESENTATIVE EASTMAN inquired about staffing issues and asked
whether they were resolved or ongoing.
3:53:51 PM
DIANE CASTRO, Executive Director, ANDVSA, reported that staffing
had been a struggle for two years. She believed that the
staffing issue was pandemic-related in part. She discussed
funding, grant agreements, and the technical work that went on
behind the scenes to highlight the difficulty of losing three
staff members, which wouldn't normally seem significant.
3:59:42 PM
REPRESENTATIVE EASTMAN asked when Alaska would see a significant
reduction in the high rates of domestic violence and sexual
assault.
MS. CASTRO discussed the continuum of services. She reported
that 80 percent of grant funding went towards victims' services,
5-7 percent to prevention, and 1-2 percent to perpetrator
rehabilitation. She believed that significant progress would
not be made until prevention and perpetrator services were fully
addressed; further, she emphasized the importance of changing
belief systems about domestic violence if generational change
were to happen.
4:05:26 PM
CHAIR KREISS-TOMKINS announced that HB 291 was held over.
HB 37-INCOME TAX; PERMANENT FUND; EARNINGS RES.
4:05:36 PM
CHAIR KREISS-TOMKINS announced that the next order of business
would be HOUSE BILL NO. 37, "An Act relating to deposits into
the dividend fund; relating to income of and appropriations from
the earnings reserve account; relating to the taxation of income
of individuals, partners, shareholders in S corporations,
trusts, and estates; relating to a payment against the
individual income tax from the permanent fund dividend
disbursement; repealing tax credits applied against the tax on
individuals under the Alaska Net Income Tax Act; and providing
for an effective date." [Before the committee was CSHB
37(W&M).]
CHAIR KREISS-TOMKINS opened public testimony on CSHB 37(W&M).
4:06:21 PM
CARRIE HARRIS emphasized her strong opposition to the proposed
implementation of an income tax.
4:06:54 PM
MIKE COONS shared his strong opposition to the proposed
legislation. He believed the legislature was "stealing money
from the PFD and the people of Alaska."
4:09:02 PM
ED MARTIN stated his adamant opposition to the bill. He opined
that an income tax would not be fair. Further, he believed that
a dividend reduction was in itself a tax on people's income. He
urged the legislature to audit all the state agencies to
identify deficiencies.
4:11:59 PM
RON JOHNSON stated his support for the proposed legislation. He
believed it was a good alternative to the 50/50 split, which he
characterized as unsustainable. He pointed out that HB 37 would
produce a dividend of over $1,000; further, he said he liked the
idea of flat 2.5 percent tax, which he believed would
incentivize the public to participate in government activities.
4:14:02 PM
JOHN LARSON expressed his support for HB 37. He pointed out
that quality schools, roads, and domestic violence prevention,
for example, required proper funding. Additionally, he
highlighted the importance of preserving the PFD for future
generations of Alaskans.
4:15:26 PM
CHAIR KREISS-TOMKINS closed public testimony. Hearing no
questions from committee members, he announced that CSHB 37(W&M)
was held over.
4:16:37 PM
The committee took an at-ease from 4:16 p.m. to 4:19 p.m.
SB 25-STATE GOV'T FINANCES: WEBSITE
HB 86-STATE GOV'T FINANCES: WEBSITE
4:19:14 PM
CHAIR KREISS-TOMKINS announced that the final order of business
would be 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"
and HOUSE BILL NO. 86, "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."
4:19:38 PM
REPRESENTATIVE GEORGE RAUSCHER, Alaska State Legislature, prime
sponsor, introduced HB 86, the companion bill to SB 25. He
conveyed his constituents' beliefs that the legislature did not
balance the budget and that money was being hidden from them.
He explained that HB 86 related to the establishment and
maintenance of an internet website that would provide
information on state government financial transactions.
4:21:36 PM
SENATOR BILL WIELECHOWSKI, Alaska State Legislature, prime
sponsor, introduced SB 25. He stated that fundamentally, the
bill would require the state to maintain an online, searchable
database of all state expenditures over $1,000. He paraphrased
the sponsor statement [included in the committee packet], which
read as follows [original punctuation provided]:
The state of Alaska spends billions of dollars each
year on everything from office supplies, professional
services and capital improvement projects. Public
accountability helps ensure that state funds are spent
wisely. All 50 states operate websites that make
information on state expenditures and revenues
accessible to the public. However, compared to other
states Alaska's site is ranked as one of the worst in
the nation at making the data accessible to the
public.
The intent of the Alaska Online Checkbook Act is to
create a free, searchable website that provides
Alaskans with easy access to detailed and
comprehensive information on state spending. This will
encourage better understanding of state operations
and, ultimately, help ensure that funding is directed
to the state's most important needs. The state
currently posts some financial information in a
downloadable spreadsheet, but this spreadsheet is very
cumbersome, must be downloaded, is difficult to search
and understand. It does not provide any "big picture"
context about state expenditures vs. revenues nor is
it codified in law. The ability to see how Alaska's
government uses public funding is fundamental to
transparency and bolsters public confidence in
government and promotes fiscal responsibility.
SB 25 will give Alaskans easy access to detailed
information on state expenditures and revenue,
empowering them to become fiscal watchdogs. It will
lead to greater government accountability and a public
better able to assist in making difficult government
decisions.
I hope that you will join me in taking reasonable
steps to ensure that Alaskans have access to our
state's financial information.
4:24:44 PM
The committee took a brief at-ease.
4:25:30 PM
CHAIR KREISS-TOMKINS welcomed Mr. Dunsmore.
4:25:34 PM
DAVID DUNSMORE, Staff, Senator Bill Wielechowski, Alaska State
Legislature, on behalf of Senator Wielechowski, prime sponsor of
SB 25, provided a PowerPoint presentation, titled "Senate Bill
25" [hard copy included in the committee packet]. He directed
attention to slide 2, which read as follows [original
punctuation provided]:
SB 25: The Alaska Online Checkbook Act
• Codifies and modernizes Alaska's Online Checkbook
website
• Requires the state to provide monthly and annual
financial information to the public on a user-
friendly website.
• Creates a one-stop-shop for information on
revenue and expenses.
• Provides detailed information on state
expenditures and revenue including date, vendor,
agency, and expense type
MR. DUNSMORE continued to slide 3, which read as follows
[original punctuation provided]:
Alaskans Deserve Better Transparency
In 2018 Alaska received a failing grade from the U.S
PIRG Education Fund for providing online access to
government spending data.
Alaska has no statutory requirements to maintain an
online checkbook.
MR. DUNSMORE turned to slide 4, which read as follows [original
punctuation provided]:
SB 25: A Win-Win-Win for Alaskans
Will provide policy makers with user-friendly access
to actual unaudited revenue and expenditure data
Makes state government more accountable by making
information readily available to the public.
Allows vendors to submit more competitive bids by
reviewing previous payments.
4:27:30 PM
MR. DUNSMORE advanced to slide 5, which read as follows
[original punctuation provided]:
SB 25 Improves Transparency and Usability
Current Checkbook Online
Can be taken down at any time.
Not searchable online, data must be downloaded as a
PDF or Excel file.
Does not include revenue reports.
Does not allow year to year spending comparison.
Does not include spending for the University of
Alaska or public corporations.
Alaska Online Checkbook Act
Monthly & annual reporting requirements codified in
Alaska Statutes.
Data is searchable online by agency, vendor, year,
purpose, amount, and accounting code.
Includes both revenue & expenditures.
Allows year to year spending comparisons.
Includes revenue & expenses of University of Alaska &
public corporations.
4:28:08 PM
MR. DUNSMORE proceeded to slide 6, which read as follows
[original punctuation provided]:
SB 25: Reporting Requirements
Revenues
Receipts or deposits.
Proceeds from taxes.
Agency earnings (sales, services, licenses, permits,
etc.).
Other revenues (Interest, Lease, Gifts, Donations,
etc.).
MR. DUNSMORE continued to slide 7, which read as follows
[original punctuation provided]:
SB 25: Reporting Requirements
Expenditures
The names and locations of any persons to whom
payment was made.
The amounts of the expenditures disbursed.
The type of transaction, by account code, including
the purpose of the expenditure.
MR. DUNSMORE turned to slide 8, which read as follows [original
punctuation provided]:
SB 25: Reporting Requirements
Employees and Contractors
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.
MR. DUNSMORE advanced to slide 9, which read as follows
[original punctuation provided]:
SB 25: Reporting Requirements
Account Balances and Debt
Statutory Budget Reserve (SBR).
Constitutional Budget Reserve (CBR).
Permanent Fund Earnings Reserve Account (ERA).
Total long-term debt by agency.
4:29:22 PM
MR. DUNSMORE proceeded to slides 10-11, indicating that the
current checkbook website was outdated, as it only allowed
information to be downloaded by fiscal year and was difficult to
search through; additionally, spending could not easily be
tracked by year. He reported that in FY 16, there were 78,156
individual reports in the online checkbook. Slides 12-17
illustrated examples of Ohio's online checkbook.
4:30:47 PM
MR. DUNSMORE concluded on slide 18, which read as follows
[original punctuation provided]:
SB 25: Additional Benefits
Mississippi reported that every information request
fulfilled by its transparency website rather than by a
state employee saves the state between $750 and $1,000
in staff time.
South Carolina open records requests dropped by two-
thirds after the creation of its transparency website,
reducing staff time and saving an estimated tens of
thousands of dollars.
The Texas Comptroller used its transparency website
to evaluate spending. By monitoring contracts more
closely and sourcing services from new vendors when
the potential for cost-cutting was identified, the
state saved more than $163 million.
4:31:27 PM
CHAIR KREISS-TOMKINS invited questions from committee members.
4:31:31 PM
REPRESENTATIVE EASTMAN asked whether salary information would be
available on the online checkbook.
MR. DUNSMORE explained that an amendment in the Senate Finance
Committee had clarified that individual wage payments would not
be listed; however, state employee salaries would still be
public information.
REPRESENTATIVE EASTMAN sought to confirm that annual salaries
would be available.
MR. DUNSMORE confirmed, reiterating that individual wage
payments were excluded to prevent privacy infringement.
4:32:59 PM
REPRESENTATIVE EASTMAN recalled that the Alaska Public Offices
Commission (APOC) website used to allow searches for specific
donations, which could then be shared via direct link. He asked
whether the bill would allow for that type of search.
MR. DUNSMORE shared his belief that the bill did not explicitly
allow for that type of inquiry. He offered to follow up with
the requested information.
4:34:43 PM
REPRESENTATIVE TARR noted that she had signed on as a co-sponsor
because she believed in building accountability and trust with
the public. She inquired about the frequency of reporting.
4:35:28 PM
SENATOR WIELECHOWSKI said the intent was to share the most
updated information as possible; however, the legislation would
be subject to existing administrative limitations. He directed
attention to page 4, lines 19-21, which indicated that
information "shall" be updated on a monthly basis.
4:36:14 PM
CHAIR KREISS-TOMKINS invited a response from Mr. Zigmend.
4:36:34 PM
HANS ZIGMEND, Director, Division of Finance, Department of
Administration (DOA), as to whether or not the information could
be updated on a more frequent basis, said there were certain
limitations. Nonetheless, he acknowledged that depending on how
the technology was implemented, it could be possible. He
maintained that monthly reporting was the most reasonable
timeframe to produce accurate data.
MR. DUNSMORE in response to Representative Tarr, noted that the
Senate Finance Committee had added the terms "estimated" and
"unaudited" in several sections of the bill to allow for quicker
reporting.
4:39:00 PM
CHAIR KREISS-TOMKINS suspected that there was a small niche of
government software providers. He inquired about the landscape
of potential private sector partners.
4:39:46 PM
MR. ZIGMEND listed several software options, such as
BusinessOptix and Tableau.
CHAIR KREISS-TOMKINS, referencing the fiscal note, asked how the
$65,000 figure was arrived at.
MR. ZIGMEND explained that $65,000 was based on an estimate from
the Office of Information Technology (OIT), DOA. He
acknowledged that until the procurement process had been
completed, that figure was only an approximation.
CHAIR KREISS-TOMKINS presumed that OIT had considered licensing
agreements from different vendors and what that might cost.
MR. ZIGMEND confirmed. He reiterated that there was a range of
potential outcomes.
CHAIR KREISS-TOMKINS inquired about annexing the University of
Alaska (UA) and public corporations into the online checkbook
and asked what that would cost.
MR. ZIGMEND explained that the university would have to provide
that information to DOA for it to be presented on the online
checkbook.
4:44:28 PM
CHAIR KREISS-TOMKINS sought to confirm that currently, UA
financials were not represented on the online checkbook;
however, under the proposed legislation, UA financials would be
included, which would require additional work. He asked if that
was accurate.
MR. ZIGMEND said, "That's correct."
CHAIR KREISS-TOMKINS asked whether that would require extra
expense.
MR. ZIGMEND believed that any extra cost would be to the
university, as they would be responsible for compiling and
providing the reports.
CHAIR KREISS-TOMKINS asked whether any conversations had
transpired with the university.
MR. ZIGMEND said the Division of Finance had not communicated
with the university.
CHAIR KREISS-TOMKINS asked which public corporations would be
affected by the bill.
MR. ZIGMEND offered to follow up with the requested information.
4:45:59 PM
The committee took a brief at-ease.
4:46:48 PM
CHAIR KREISS-TOMKINS said a list of corporations would be
appreciated in order to anticipate implementation requirements
and costs.
MR. ZIGMEND offered to follow up with the list of corporations
that would be impacted.
4:48:48 PM
MR. WIELECHOWSKI, in response to a question from Representative
Vance, explained that the effective date had been a big issue in
the Senate State Affairs Committee. He noted that he would
prefer an immediate effective date. He said it was unclear why
it would take two years to implement the legislation and
deferred to DOA.
4:50:01 PM
CHAIR KREISS-TOMKINS opened invited testimony.
4:50:54 PM
VERI DI SUVERO, Executive Director, Alaska Public Interest
Research Group (AKPIRG), expressed strong support for both
bills. They paraphrased their written testimony [included in
the committee packet], which read as follows [original
punctuation provided]:
The Alaska Public Interest Research Group (AKPIRG),
established in 1974, advocates on behalf of public and
consumer interests. To our knowledge, we are the only
non-governmental, non-profit organization focused on
addressing Alaska-specific consumer interest issues.
Transparency is a cornerstone of a democracy. It's
also essential for good government. Most Alaskans want
to know what government is up to with their public
dollars. These Alaskans, including legislators, want
this information to be easy to find.
AKPIRG supports SB 25 The Alaska Online Checkbook
Act. The implementation of the Department of
Administration's Alaska Online Checkbook is critical
because it enables the public to better understand
what their government officials are up to and how they
spend our public dollars.
Public access to state financial information
accomplishes many things: it empowers Alaskans,
including legislators, is an important element of
government accountability, and provides a more
functional system of checks and balances.
While the current Online checkbook suffices for now,
the enhancements contained within SB 25 facilitates a
more seamless process when members of the public
review state spending. These improvements include
searchable features, addition of procurement documents
and agencies who do not use the state accounting
system, and embedded links to primary financial
documents, among other things.
We believe it is important to make this Online
Checkbook so that expenses can be reviewed with the
most ease possible. All accounting system codes should
be specific to the associated transaction and
identified with explanations. Accounting terms should
be defined, ie. roll up. A chart of accounts guide
would be a helpful tool for the public.
We also believe that credits like tax credits,
subsidies, and other costs need to be included in the
Alaska Online Checkbook in order to reflect the true
cost of certain policies like senior credits, tax
credits, education subsidies, etc. These figures would
greatly aid in the public's understanding of where the
money goes--or doesn't go, in these instances.
Lastly, interagency receipts should also be included.
Especially if they deal with personnel, travel, and
relocation costs.
The Online Checkbook system should be simple so that
everyone can understand it--and in order to do that,
it must have all the information, so Alaskans can see
the true costs to run our State.
4:53:11 PM
CHAIR KREISS-TOMKINS announced that HB 86 and SB 25 were held
over.
4:53:27 PM
ADJOURNMENT
There being no further business before the committee, the House
State Affairs Standing Committee meeting was adjourned at 4:53
p.m.