State of Alaska
Fiscal Note
Bill Version: SB 14
2023 Legislative Session
Fiscal Note Number: 2
(S) Publish Date: 2/22/2023
Identifier: SB014-GOV-OMB-1-27-23 Department: Office of the Governor
Title: RIP FOR PUBLIC EMPLOYEES/TEACHERS Appropriation: Office of Management and Budget
Sponsor: KAWASAKI Allocation: Office of Management and Budget
Requester: (S) EDU OMB Component Number: 2144
Expenditures/Revenues
Note: Amounts do not include inflation unless otherwise noted below. (Thousands of Dollars)
Included in
FY2024 Governor's
Appropriation FY2024 Out-Year Cost Estimates
Requested Request
OPERATING EXPENDITURES FY 2024 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Personal Services
Travel
Services 110.0
Commodities
Capital Outlay
Grants & Benefits
Miscellaneous
Total Operating 110.0 0.0 0.0 0.0 0.0 0.0 0.0
Fund Source (Operating Only)
1004 Gen Fund (UGF) 85.0
1005 GF/Prgm (DGF) 25.0
Total 110.0 0.0 0.0 0.0 0.0 0.0 0.0
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 (FY2023) cost: 0.0 (separate supplemental appropriation required)
Estimated CAPITAL (FY2024) 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If yes, by what date are the regulations to be adopted, amended or repealed? No
Why this fiscal note differs from previous version/comments:
Not applicable, initial version.
Prepared By: Laura Timko, Policy Analyst Phone: (907)500-8447
Division: Office of Management and Budget Date: 01/27/2023 10:30 AM
Approved By: Neil Steininger, Director Date: 01/27/23
Agency: Office of Management and Budget
Printed 2/21/2023 Page 1 of 2 Control Code: LIDkk
 SB 14 - Fiscal Note 2
FISCAL NOTE ANALYSIS
STATE OF ALASKA BILL NO. SB014A
2023 LEGISLATIVE SESSION
Analysis
This legislation establishes a temporary and voluntary retirement incentive program (RIP) for public employers including
state agencies. The legislation requires the Office of Management and Budget (OMB) review each RIP proposed by a state
agency and determine whether the program will result in a net reduction to the operating costs of the agency for fiscal
years 2024 through 2028. The Office of Management and Budget will report these findings to the Commissioner of the
Department of Administration before a state agency RIP is approved.
The OMB does not currently have the in‐house expertise to evaluate RIPs and will hire a qualified contractor to evaluate
the net impact of the proposed programs to each agency's budget. Each evaluation is expected to cost $5.0, and there are
a 16 executive branch agencies plus the legislature. If all agencies, including the legislature, propose a RIP, the total cost
would be $85.0 unrestricted general funds. Because other small public employers may elect to partner with OMB and
utilize the same contract to evaluate the efficacy of a RIP, the cost estimate includes contracting services for an additional
$25.0 that would be funded by the respective public employer (statutory designated program receipts fund source). This
estimate is variable and depends on the established contract and number of other public employers who elect to partner
with OMB for RIP assessments. This fiscal note assumes that all RIPs are established and evaluated in fiscal year 2024.
This legislation also requires OMB submit an annual report to the legislature on the RIPs established by all public
employers under this legislation. The report must include, for each program,
(1) the designated employee categories;
(2) the employer's cost for each participant;
(3) the actual annual cost to the state;
(4) for state agencies, the budgeted annual cost;
(5) the cost paid by each participant;
(6) the number of positions that became vacant as a result of the program and how many of those
positions remain vacant;
(7) for the relevant three‐year period, the projected net savings and the actual net savings resulting for
the program.
The first report will be due January 15, 2024. The workload resulting from this new reporting requirement is anticipated to
be absorbed by existing staff.
(Revised 08/26/2022 OMB/LFD) Page 2 of 2
SB014-GOV-OMB-1-27-23 Page 2 of 2 Control Code: LIDkk


Statutes affected:
SB0014A, AM SB 14, introduced 01/09/2023: 14.20.136, 14.25.009, 14.25.220, 14.25.310, 14.25.590, 14.30.350, 14.20.370, 14.25.043, 14.25.110, 14.25.050, 14.25.070, 14.25.173, 39.35.370, 39.35.680, 14.40.661, 14.40.799