Bill Summary – FastDemocracy

State of Alaska
                                                            Fiscal Note
                                                                                               Bill Version:                   CSSB 201(STA)
 2024 Legislative Session
                                                                                               Fiscal Note Number:             1
                                                                                               (S) Publish Date:               4/8/2024
 Identifier:       SB201-DOA-CIO-2-9-24                                          Department:       Department of Administration
 Title:            OFFICE OF INFORMATION TECHNOLOGY                              Appropriation: Office of Information Technology
 Sponsor:          KAUFMAN                                                       Allocation:       Chief Information Officer
 Requester: (S) STA                                                              OMB Component Number:                3139
 Expenditures/Revenues
 Note: Amounts do not include inflation unless otherwise noted below.                                                                (Thousands of Dollars)
                                                 Included in
                                    FY2025       Governor's
                                Appropriation      FY2025                                             Out-Year Cost Estimates
                                  Requested       Request
 OPERATING EXPENDITURES               FY 2025        FY 2025       FY 2026                       FY 2027             FY 2028         FY 2029         FY 2030
 Personal Services                       392.0                        784.0                        784.0               784.0           784.0           784.0
 Travel
 Services                                410.0                        277.5                         277.5              277.5           277.5             277.5
 Commodities                              20.0                          4.0                           4.0                4.0            20.0               4.0
 Capital Outlay
 Grants & Benefits
 Miscellaneous
 Total Operating                         822.0            0.0       1,065.5                       1,065.5            1,065.5          1,081.5         1,065.5
 Fund Source (Operating Only)
 1081 Info Svc (Other)                        822.0                              1,065.5          1,065.5            1,065.5          1,081.5         1,065.5
 Total                                        822.0               0.0            1,065.5          1,065.5            1,065.5          1,081.5         1,065.5
 Positions
 Full-time                                       5.0                                  5.0              5.0               5.0              5.0              5.0
 Part-time
 Temporary
 Change in Revenues
 None
 Total                                           0.0              0.0                 0.0              0.0               0.0              0.0              0.0
 Estimated SUPPLEMENTAL (FY2024) cost:                                     0.0              (separate supplemental appropriation required)
 Estimated CAPITAL (FY2025) cost:                                          0.0              (separate capital appropriation required)
 Does the bill create or modify a new fund or account?       No
 (Supplemental/Capital/New Fund - discuss reasons and fund source(s) in analysis section)
 ASSOCIATED REGULATIONS
 Does the bill direct, or will the bill result in, regulation changes adopted by your agency?                  Yes
 If yes, by what date are the regulations to be adopted, amended or repealed?                                  TBD
 Why this fiscal note differs from previous version/comments:
 Not applicable, initial version.
 Prepared By:            Bill Smith, Chief Information Officer                                                        Phone:       (907)269-6596
 Division:               Office of Information Technology                                                             Date:        01/30/2024 02:00 PM
 Approved By:            Leslie Isaacs, Administrative Services Director                                              Date:        02/09/24
 Agency:                 Department of Administration
Printed 4/8/2024                                                        Page 1 of 2                                                         Control Code: iZKQF
                                                                                                             CSSB 201(STA) - Fiscal Note 1
                                                  FISCAL NOTE ANALYSIS
STATE OF ALASKA                                                                    BILL NO. SB 201
2024 LEGISLATIVE SESSION
Analysis
   This bill establishes the Office of Information Technology (OIT) in statute, responsible for overseeing information
   technology (IT) projects. It sets standardized processes, project approval criteria, and management requirements across
   the executive branch in the State of Alaska. The bill also establishes standards for statewide IT purchases. It takes effect on
   January 1, 2025, with some provisions effective immediately. It aims to improve IT project efficiency and accountability in
   the state.
   To align with the bill's provisions, OIT will create a statewide project governance structure, standardized processes and
   templates, project management system, and project staff. As the agency lacks the capacity to handle this increased
   workload, it has identified the financial needs for establishing a statewide IT Project Management Office (PMO), overseen
   by the State Chief Information Officer. This fiscal note reflects the cost of creating centralized program management for
   use across the executive branch. In this model, the majority of project managers will be funded as part of specific projects
   and expected to manage within the standard guidance. This model provides demand driven resourcing and reduces
   overhead. Consequently, the agency is seeking funding to acquire a software tool and hire Project Management staff
   essential for the successful implementation of the IT PMO.
   Add 5 Project Management Positions
   Personnel Services - Total $784.0 recurring annually. Detail as follows:
   - IT Project Manager III (Juneau Range 24 Step C) - $179.6
   - IT Project Manager II (Juneau Range 22 Step C) - $155.5
   - IT Project Manager II (Juneau Range 22 Step C) - $155.5
   - IT Business Analyst II (Juneau Range 21 Step C) - $146.7
   - IT Business Analyst II (Juneau Range 21 Step C) - $146.7
   Indirect costs (Services) of $10.0 per position for a total of $50.0
   Commodities - $20.0 first year and fifth year for equipment and supplies, $4.0 annually for supplies
   Add Software Tools
   Initial Purchase and Implementation of Software Tool - $350.0 one time cost
   Annual Recurring Cost of Software Tool - $225.0 recurring annually
   Training - $10.0 one time cost
   Training - $2.5 recurring annually
   The first year service costs are as follows:
   1) Initial Purchase and Implementation of Software Tool - $350.0 one time cost
   2) Training - $10.0 one time cost
   3) Indirect costs (Services) of $10.0 per position for a total of $50.0
(Revised 10/31/2023 OMB/LFD)                                                                                          Page 2 of 2
SB201-DOA-CIO-2-9-24                                              Page 2 of 2                                                  Control Code: iZKQF
Statutes affected: 
SB0201A, AM SB 201, introduced 01/24/2024: 44.21.630, 44.21.600, 44.21.650, 44.21.620, 44.21.640, 44.33.910, 44.99.240
SB0201B, AM CSSB 201(STA), introduced 04/08/2024: 44.68.110, 44.21.630, 44.21.600, 44.21.660, 44.21.620, 44.21.650, 44.21.640, 44.21.610, 44.33.910, 44.21.390