Summary Packet
Received June 14, 2021
CCS HB 71
Fiscal Note Packet
follows Summary
 1 * Sec. 2. The following appropriation items are for operating expenditures from the general
2 fund or other funds as set out in the fiscal year 2022 budget summary by funding source to the
3 state agencies named and for the purposes set out in the new legislation for the fiscal year
4 beginning July 1, 2021 and ending June 30, 2022, unless otherwise indicated. The
5 appropriations in this section fund legislation assumed to have passed during the first session of
6 the thirty-second legislature. If a measure listed in this section fails to pass and its substance is
7 not incorporated in some other measure, or is vetoed by the governor, the appropriation for that
8 measure shall be reduced accordingly.
9
10 SB 55 EMPLOYER CONTRIBUTIONS TO PERS
11 Employer contributions to the Public Employees' Retirement System of Alaska, as described in
12 SB 55 and accompanying fiscal notes, are included in section 1 of this Act. The fiscal note
13 totals for SB 55 are: $1,370,400 of unrestricted general funds, $9,800 of designated general
14 funds, and $377,100 of other state funds.
15 Appropriation
16 *** Total New Legislation Funding *** 0
17 (SECTION 3 OF THIS ACT BEGINS ON THE NEXT PAGE)
FY22 Fiscal Note Section to HB 71, Sec. 2 -1-
 2021 Legislature - Operating Budget
Agency Summary with Funding - Conf Committee Structure
Numbers and Language
Mental Health Funds
[1] [2]
All Funds All Funds
Agency
___________________________________ NewLegis
_____________ SB55 Total
_____________
Agency Operations
Administration 0.0 73.2
Corrections 0.0 311.3
Health & Social Services 0.0 1,031.6
Labor & Workforce Dev 0.0 1.2
Natural Resources 0.0 156.7
Revenue 0.0 183.3
Total 0.0 1,757.3
Statewide Total 0.0 1,757.3
Funding Summary
Unrestricted General (UGF) 0.0 1,370.4
Designated General (DGF) 0.0 9.8
Other State Funds (Other) 0.0 377.1
2021-06-11 17:51:18 Legislative Finance Division Page: 1
 2021 Legislature - Operating Budget
Statewide Totals with Funding - Conf Committee Structure
Numbers and Language
Mental Health Funds
[1] [2]
All Funds All Funds
NewLegis
_____________ SB55 Total
_____________
Total 0.0 1,757.3
Funding Sources
1037 GF/MH (UGF) 0.0 1,370.4
1092 MHTAAR (Other) 0.0 216.6
1094 MHT Admin (Other) 0.0 160.5
1254 MET Fund (DGF) 0.0 9.8
Funding Summary
Unrestricted General (UGF) 0.0 1,370.4
Designated General (DGF) 0.0 9.8
Other State Funds (Other) 0.0 377.1
2021-06-11 18:47:45 Legislative Finance Division Page: 1
The attached Fiscal Note Packet accompanied the
report for the following:
CCS HB 71
HB 71-APPROP: MENTAL HEALTH BUDGET
Please refer to the 6/14/21 memo from the Division
of Legislative Finance for a finalized listing of those
fiscal notes.
(House Journal Page 1356)
 State of Alaska
Fiscal Note
Bill Version: SB 55
2021 Legislative Session
Fiscal Note Number:
() Publish Date:
Identifier: 0684-VAR-ALL-6-10-21 Department: Various
Title: EMPLOYER CONTRIBUTIONS TO PERS Appropriation: Various
Sponsor: RLS BY REQUEST OF THE GOVERNOR Allocation: All Branches
Requester: Conference Committee OMB Component Number: 0
Expenditures/Revenues
Note: Amounts do not include inflation unless otherwise noted below. (Thousands of Dollars)
Included in
FY2022 Governor's
Appropriation FY2022 Out-Year Cost Estimates
Requested Request
OPERATING EXPENDITURES FY 2022 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027
Personal Services 102,993.7 102,993.7 102,993.7 102,993.7 102,993.7 102,993.7
Travel
Services 705.8 705.8 705.8 705.8 705.8 705.8
Commodities
Capital Outlay
Grants & Benefits
Miscellaneous
Total Operating 103,699.5 0.0 103,699.5 103,699.5 103,699.5 103,699.5 103,699.5
Fund Source (Operating Only)
1002 Fed Rcpts (Fed) 10,913.0 12,631.3 13,599.7 13,599.7 13,599.7 13,599.7
1178 temp code (UGF) 71,133.0 63,670.8 56,800.5 56,800.5 56,800.5 56,800.5
1251 Non-UGF (Other) 17,773.9 22,411.7 27,068.2 27,068.2 27,068.2 27,068.2
1252 DGF Temp (DGF) 3,879.6 4,985.7 6,231.1 6,231.1 6,231.1 6,231.1
Total 103,699.5 0.0 103,699.5 103,699.5 103,699.5 103,699.5 103,699.5
Positions
Full-time
Part-time
Temporary
Change in Revenues
None
Total 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Estimated SUPPLEMENTAL (FY2021) cost: 0.0 (separate supplemental appropriation required)
Estimated CAPITAL (FY2022) 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? No
If yes, by what date are the regulations to be adopted, amended or repealed? N/A
Why this fiscal note differs from previous version/comments:
Updated for Confererence Committee budget changes from Governor's request. Increase $276.0 all funds, decrease $749.9 federal
funds, increase $1,025.9 unrestricted general funds (UGF). Net UGF savings for all fiscal notes reduced by $1,025.9 from $25.7 million
to $24.7 million.
PROV
APPrepared By: ED BY Committee
Conference Date: 06/10/2021
CO NFERENCE
Printed 6/12/2021 Page 1 of 3 Control Code: KWrhZ
COMMITTEE
 FISCAL NOTE ANALYSIS
STATE OF ALASKA BILL NO. SB 55
2021 LEGISLATIVE SESSION
Analysis
This legislation removes the 22 percent cap on the payroll contribution to the Public Employee Retirement System (PERS)
for the State of Alaska as a PERS employer. All other PERS and TRS employers' rates will remain capped at 22 percent of
payroll. The contribution cap, which is lower than the annual actuarial rate for the retirement system's normal and past
service costs, was implemented to reduce the cost burden on PERS employers. The difference between the 22 percent
and the full cost is subsidized by an unrestricted general fund annual payment to the retirement system known as the
state assistance payment or "onbehalf" payment.
The Alaska Retirement Management Board approved an actuarially determined contribution rate for fiscal year 2022 for
PERS employers of 30.11 percent. Under AS 39.35.280, the state is obligated to make up the difference between the
statutory employer contribution rate of 22 percent and the actuarial rate of 30.11 percent, calculated to be $193.5
million. This legislation would direct the state to apply the 30.11 percent actuarial rate to agency payroll rather than
contributing that difference through the state assistance payment. The net impact to the state's overall contribution to
the retirement system would be unchanged.
This legislation only impacts the State of Alaska as a PERS employer, and excludes the University of Alaska, municipalities
and school districts, the Alaska Housing Finance Corporation, and the Alaska Gasline Development Corporation.
The budgetary impact of this legislation will be reflected as a shift from the direct appropriation to the public employee
retirement system, which is typically funded with unrestricted general funds (UGF), to agency payroll, where the cost can
be spread across all fund sources. This legislation continues to provide for the full actuarial contribution to the retirement
system while changing the financing structure in the state budget.
Page one of this fiscal note reflects the estimated $103,699.5, all fund sources, increase to State of Alaska executive,
legislative and judicial branch payroll in fiscal year 2022, $71,133.0 of which will be UGF.
An accompanying fiscal note for retirement system payments reflects the $95,794.5 reduction in UGF.
Combined UGF savings total $24,661.5 in fiscal year 2022. UGF savings are expected to increase in fiscal years 2023 and
beyond as ratesetting agencies have time to adjust rates based on actual costs and grant awards can be renegotiated,
reducing the need for UGF offsets. The fiscal impact for fiscal years 2023 through 2027 assumes no changes in agency
payroll or the actuarially determined rate of 30.11 percent.
The summary table on the following page reflects the net fiscal impact of this financing change for fiscal year 2022
inclusive of all fiscal notes.
(Revised 8/20/20 OMB/LFD) Page 2 of 3
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 FISCAL NOTE ANALYSIS
STATE OF ALASKA BILL NO. SB 55
2021 LEGISLATIVE SESSION
Analysis
FY2022 SB55 Budget Impact
Note: Standard methodological differences between actuarial and budgeted payroll projections result in a difference
between the state's estimated share of the state assistance payment and the budgetary impact of the change from 22%
to 30.11% of payroll.
(Revised 8/20/20 OMB/LFD) Page 3 of 3
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