Lawmakers press APFC on Anchorage office costs and authority
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Summary
Legislators pressed the Alaska Permanent Fund Corporation's executive director about a staffed Anchorage office, seeking a December cost report and questioning whether the office contradicts legislative direction; APFC said the board prioritized the office for retention and recruitment and reported a nominal $34,000 annual lease cost for the Anchorage subspace.
Lawmakers on the House Finance Subcommittee pressed Alaska Permanent Fund Corporation (APFC) leadership on Feb. 20 about the corporation's recently staffed Anchorage office, its cost and whether the board's decision aligns with legislative wishes.
Devin Mitchell, APFC executive director and CEO, told the committee the Anchorage office has been a board priority incorporated in the corporation's strategic plan "to broaden the candidate pool" for APFC positions and aid retention. He confirmed six staff currently work out of the Anchorage office with a seventh joining in March and said some employees elected to relocate from Juneau and others were new hires who chose Anchorage.
Representative Story and other members said the legislature previously expressed an intent to avoid opening an Anchorage office and asked who ultimately governs APFC. Story asked whether the board can act contrary to the legislature's stated desires. Mitchell said he reports to a board of six trustees, who hire and direct him, and explained the corporation resides within the Department of Revenue and falls under the executive branch. He said the board received legal advice and used budget flexibilities in recent budgets to maintain the Anchorage office.
On costs, Mitchell said the presentation slide showed a net rent increase of $66,000; $34,000 of that is attributable to the Anchorage sublease at 555 Cordova Street and $32,000 to rental increases in Juneau. "So $34,000 is the the nominal cost of just the space," he said, and added there are other incidental expenses (equipment and travel) compiled in a December report the APFC provided to the legislature; Mitchell offered to re-provide that report to the committee.
Members pressed whether the office has functioned as a recruitment tool or as retention for existing staff; Mitchell characterized it as more of a retention tool to date, noting remote-work realities since COVID and that APFC also employs staff outside Alaska. Representative Kirk and others raised concerns about the longer-term effect on Juneau and Southeast jobs if more positions shift to Anchorage.
Mitchell also provided scale and staffing context: APFC has 67 PCNs to manage approximately $91,000,000,000 in assets and reported about six current vacancies. Committee members requested a detailed cost breakdown for the Anchorage office and the corporation's December cost report for the record. The committee will consider budget action items at its next meeting on Feb. 27.