DOT outlines staffing cuts, payroll changes and AMHS funding delay as reasons for reorganization
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Summary
DOTPF told the Senate committee it is proposing targeted deletions and internal realignments to offset recent cuts, plans to reclaim payroll and accounting for the department, and warned that a federal funding opportunity for the Alaska Marine Highway System has not been released.
The Alaska Department of Transportation and Public Facilities told the Senate Transportation Committee on Feb. 3 that recent budget reductions and delays in federal funding are a principal reason for a proposed internal reorganization that seeks savings and operational efficiencies.
Commissioner Ryan Anderson said DOTPF took a 12.2% reduction in highways and aviation for 2026 and described options that included shutting maintenance camps or seeking internal savings. "We took a 12.2% reduction in highways and aviation," Anderson told the committee, and said the department chose to look for efficiencies rather than close service locations.
In the governor's FY27 proposed budget materials presented to the committee, DOTPF listed 3,453 total positions across the department and proposed deleting 24 positions for an estimated ongoing savings of $3,740,000; the department also described internal realignments of 91 positions. "We have a total of 3,453 positions. What we're proposing is 24 positions deleted, and that estimated ongoing savings is $3,740,000," Anderson said.
Anderson said some deletions reflect long-term vacancies and that the department is attempting to place affected employees where possible. He told senators the department also plans to bring payroll and accounting services back into DOTPF for the whole agency, citing prior success when DOTPF took Alaska Marine Highway System payroll from the Department of Administration: "We took that back...we had some success there in improving our metrics and the responses and making sure we're getting people paid right. And so this would be a further of that efforts, but we'll take back payroll for the entire department, and the same with accounting services."
Senators raised questions about whether DOTPF has the staffing capacity and the detailed work plans to absorb those functions. Senator Kiel asked whether the proposed staff counts and position control numbers (PCNs) are sufficient; Anderson said the department has reviewed prior arrangements and is comfortable with the proposed numbers but agreed to follow up with detailed counts.
On federal funding for the Alaska Marine Highway System (AMHS), Anderson said the Federal Transit Administration has not released a Notice of Funding Opportunity for a major ferry program, preventing DOTPF from applying for roughly $400 million the department estimates remains available to the program. "There's about 400,000,000 left in the program as we calculate it. And we haven't received funds this past year," Anderson told the committee, adding that the department and congressional delegation are seeking clarity from federal officials.
Chair Bjorkman also reminded staff that the committee had requested details on changes to the Statewide Transportation Improvement Program (STIP) due to reduced match availability from an earlier Jan. 22 hearing; Anderson said staff would provide the requested STIP changes quickly. No formal vote was taken; the department described the reorganization as a draft that would be implemented after staff engagement and an enacted FY27 budget.