OMB director briefs Senate Finance on governor’s small amendment packet, TANF and settlements

The Office of Management and Budget presented the governor’s latest amendment packets to the Senate Finance Committee on April 24, describing operating, capital and STIP/AIP changes that OMB characterized as limited in size and not materially altering the overall surplus/deficit outcome.

Lacey Sanders, OMB director, said the operating amendments include a $50,000 federal grant to support recruitment and retention work at the Office of Public Advocacy, and multiple items tied to Public Safety Employees Association bargaining: salary and health insurance adjustments, a fund‑source change related to rural trooper housing, and a $924,000 request to cover contractual dispatch increases for the Kenai Peninsula and Mat‑Su Borough.

On higher education, Sanders said the packet reverses a 3% salary increase for University of Alaska positions that have recently unionized; those employees will proceed through collective bargaining and any agreed terms could be brought to the legislature next year.

Committee members asked OMB to follow up on recent Cook Inlet Tribal communications about unexpected TANF costs tied to disaster‑related arrivals in Anchorage; Sanders said she is coordinating with the Department of Health to determine the funding need and would follow up with committee staff and the tribal recipient.

The committee also reviewed two supplemental judgments and settlements summarized in materials. Deputy Attorney General Corey Mills described the first as an inverse‑condemnation‑related settlement with Thompson/Johnson involving DOT construction and access/flooding claims (settlement roughly $378,000). The second involved an Office of Children’s Services case (Hari) with severe child injuries where the state’s allocated portion required roughly a $1,000,000 appropriation; the larger allocation of fault was assigned to the foster parent in that case.

Sanders closed by noting a capital supplemental reappropriation for the Palmer Pioneer Home roof project remaining balance to be used for doors and a Help America Vote Act award that will be deposited into the elections fund.

Committee members thanked OMB staff and requested backup materials and case details in committee packets; OMB said backup details had been provided and staff would follow up on the TANF request.