Alaska DOT proposes functional leadership shift, 23 position eliminations and targeted restorations

At a March 18, 2026 DOT finance subcommittee meeting, Alaska Department of Transportation and Public Facilities Commissioner Ryan Anderson outlined an organizational restructure that would keep regional offices intact but change reporting so capital and maintenance leaders report to common functional directors.

Anderson said the change preserves regional day‑to‑day operations while centralizing leadership for "infrastructure development" and "maintenance and operations." He said the goal is to improve consistency across regions in procurement, change‑order handling and maintenance practice and to position DOT to use modern data and project management practices.

The department has submitted a budget request that would reduce costs by about $3,500,000 and eliminate 23 positions, DOT presented. A department staff presenter said many of the eliminated slots were vacant; 10 were filled when the request was submitted, three remain filled today and several others are pending transfers or retirements. DOT said collective bargaining agreements and bumping rights will guide any reassignment of filled employees.

DOT also described moving 32 shared‑service positions (payroll, accounts payable, travel services) back from the Department of Administration to streamline processes and speed payroll and procurement access.

The package includes programmatic and technical adjustments: roughly $1,000,000 in salary realignments tied to modernizing IT job classifications after a DOA study, a $1.7 million request for a statewide guardrail and roadside repair component, a $420,000 wayside component to extend services at waysides, and a request to restore $5.2 million in UGF cuts taken the prior year to the Highways and Aviation component.

Senators raised concerns about regionality codified in statute and about whether leadership changes would require statutory amendments. Senator Yorkman cited statute 44.42.040, which directs that ‘‘the functions of the department within each region shall be performed to the maximum extent feasible through a regional office.’’ Anderson responded the regions remain intact and the change affects only the leadership reporting structure.

Chair Steadman and other committee members emphasized preserving core services such as plowing and pothole repair. Anderson said DOT is asking for contracting authority that will let it scale up in major events and continue to rely on contractors for surge capacity while trying to protect staff from overwork.

The subcommittee agreed to follow up in future meetings; Steadman asked DOT to return with any additional detail committee members request.