Department of Administration
All Funds: $199,259.8 (2.3%)
General Purpose Funds: $579.8 (0.8%)
The mission of the Department of Administration is to (1) provide centralized management and technology services to state agencies; (2) provide legal and advocacy services to indigent Alaskans; (3) provide vehicle licensing and registration; (4) protect the public interest in oil and gas resources through the Alaska Oil & Gas Conservation Commission. The budget:

• Creates efficiencies in the DMV for a savings of $494,900 (4.7%).
• Invests $3.2 million in public broadcasting, and added $76,000 in grant funds for AIRRES (reading services for the blind).
• Transfers senior programs, including the Pioneers Homes, Longevity Bonus Program, and Medicaid waiver program to the Department of Health and Social Services (DHSS) to better align them with social and medical resources. This will result in better financing opportunities and coordination management of senior services.

Department of Community and Economic Development
All Funds: $136,352.3 (-11.9%)
General Purpose Funds: $32.921.1 (-18.9%)
The mission of the Department of Community & Economic Development is to promote independent sustainable communities and economic development by (1) strengthening rural communities; (2) creating new jobs by working with rural communities and the private sector; (3) selling Alaska’s goods and services throughout the world by marketing Alaska; (4) maintaining a fair and consistent business regulatory environment in the state through the RCA. The budget:

• Combines the Division of International Trade and Market Development and the tourism and economic development functions of the Division of Trade and Development and creates the new Division of Trade and Development. This saves $520, 100 and eliminates eight positions.
• Reduces revenue sharing/safe communities by 25% for a $7.4 million savings.
• Funds the Power Cost Equalization program at last year’s level ($15.7 million).
• Eliminates the Alaska Science and Technology Program and redirects its $87 million endowment to the General Fund.
• Adds $2 million in Federal funds to the Alaska Seafood Marketing Institute (ASMI) for its worldwide marketing efforts.
• Eliminates the Public Advocacy Section (PAS) of the RCA and transfers its responsibilities to the Department of Law.
• Increases the business license fee, for the first time since 1949, to help cover programs and infrastructure that the state provides for the conduct of business.

Department of Corrections
All Funds: $179,487.0 (-0.7%)
General Purpose Funds: $149,844.8 (-3.2%)
The mission of the Department of Corrections is to protect the public by encouraging offender rehabilitation through humane, safe, and cost-effective containment and supervision. It accomplishes this by (1) managing offenders in a manner that protects the public’s safety; and (2) providing programs that facilitate successful re-entry of offenders into communities. The budget:

• Targets $730,000 in savings for day-to-day management of the system.
• Refocuses the sex offender treatment programs and develops a polygraph testing program to strengthen compliance by released sex offenders.
• Develops alternative approaches and partnerships for substance abuse treatment, expands twelve-step programs led by community volunteers, and works to capture grant funds to expand more effective long-term programs. These program changes result in a $1.6 million savings.
• Retains the two residential substance abuse treatment programs at Hiland Mountain/Meadow Creek and Wildwood Correctional Center.
• Saves $1.6 million due to changes in inmate health care. The department will pursue payment for medical services from offenders’ insurance companies, and it will provide a different standard of care for sentenced and un-sentenced prisoners. The new Anchorage jail will also be equipped with a medical segregation unit that will save the state $755,000.

Department of Education and Early Development
All Funds: $942,511.4 (-5.9%)
General Purpose Funds: $744,002.2 (-2.7%)
The mission of the Department of Education and Early Development is to support lifelong learners through (1) high quality early care and education programs; (2) clear, rigorous, credible student standards and assessments; (3) credible system of academic and fiscal accountability; (4) highly qualified school professionals; and (5) schools in which students, staff, families, business, and communities are active partners. The budget:

• Funds fully the Foundation Formula at $692.211 million and increases the base student allocation by $169 per student to $4,169. Learning Opportunity Grants, which have been subject to the whim of the Governor or the Legislature, were rolled into the Foundation Formula at $32 million. Now that money cannot be decreased through legislation.
• Restores $10, 745, 600 for Pupil Transportation cut by the Governor to fund the program 100%.
• Continues the Alyeska Central School for another year to allow the students and teachers time to find appropriate alternative programs; however, the summer school program was discontinued, which will save the state $1.2 million.

Department of Environmental Conservation (add how many positions finally get cut)
All Funds: $52,647.7 (0.5%)
General Purpose Funds: $11,341.1 (-5.6%)
The mission of the Department of Environmental Conservation is to protect human health and the environment by ensuring compliance with standards for clean air, clean water, clean land, safe food, safe handling of oil and chemicals, safe public facilities, and pollution prevention. The budget:

• Merges the Division of Administrative Services and Statewide Public Services, which eliminates two positions and save $183,000.
• Increases Clean Air Protection Funds by $915,400 over the FY 03 Management Plan to execute a major reform to the air permitting program to provide more timely issuance of permits and to establish clear performance standards.
• Adds $490,000 in Federal funds for wastewater permits to reduce review times, automate permitting, and improve permit production.
• Refocuses efforts to enforce food safety standards and save $513,300.
• Saves $334,000 in General Funds by closing the state chemistry lab and eliminating eight full-time jobs.
• Eliminates the Oxygenated Fuel Program and tax credit, which results in $80,000 in savings and $2.5 million in increased revenue.

Department of Fish and Game
All Funds: $133,437.5 (-1.1%)
General Purpose Funds: $27,837.6 (-7.5%)
The mission of the Department of Fish and Game is to protect, maintain, and improve the fish, game, and aquatic plant resources of the state. It manages their use and development in the best interest of the economy and the well-being of the people of the state, consistent with the sustained yield principle. Its four main division are Sport Fish, Commercial Fisheries, Wildlife Conservation, and Subsistence. The budget:

• Reflects an overall reduction of more than $1.436 million from the FY 03 Management Plan .
• Reduces the Commercial Fisheries general fund budget by $180,000 from the FY 03 Management Plan and $1.047 million from the Governor’s budget to encourage more conservative management in specific areas of the state.
• Reorganizes the Habitat Division and transfers a majority of the Title 16 permitting functions to the Department of Natural Resources, which changes the process but not the substantive environmental requirements. The Habitat budget is reduced by $12,434,8000, and $3,605,600 is allocated to the Sport Fisheries Division for Habitat.

Department of Health and Social Services
All Funds: $1,710,293.2 (7.7%)
General Purpose Funds: $593,127.4 (4.3%)
The mission of the Department of Health and Social Services is to promote and protect the health and well-being of Alaskans by (1) helping children and families stay healthy and safe; (2) helping Alaskans live healthier lives and have access to basic health care; and (3) increasing incentives and opportunities for communities to collaborate with the department to improve results for children and families. The budget:

• Reorganizes and streamlines the department and eliminates eight temporary positions.
• Adds $53.3 million in general funds over the FY ‘o3 Management Plan and $39.9 million over the Governor’s budget request to cover increases in caseload and formula-driven program costs.
• Includes an additional $1.5 million to operate the new Kenai Peninsula Youth Facility.
• Restores the Longevity Bonus Program proposed to be cut by the Governor, and funds it at $44.8 million.
• Reduces grant programs by approximately $6 million without negatively impacting client services by replacing many of those funds with additional Federal revenue.
• Restores the Human Services Matching Grants to 80% of last year’s funding, which the Governor had eliminated from his budget, with the intent that it decrease and be phased out over three years.
• Proposes several Medicaid cost-containment initiatives: Private proshare refinancing will save an estimated $19 million; targeted drug cost reductions will save approximately $15 million; and a $15 million budget reduction is expected to come through identifying and eliminating abuse and inappropriate expenditures.
• Funds $1.7 million to components of the continuing Community Mental Health/API Replacement Project, omitted from the Governor’s budget, necessary for a “Single Point of Entry” concept to integrate services and to divert persons in crisis from API.
• Increases alcohol treatment for parents of children in state custody by $10 million, $3.54 million from the new alcohol tax revenue and matched Medicaid funds, to help expedite family reunification and to expand treatment options for adolescents in rural areas.

Department of Labor and Workforce Development
All Funds: $154,780.7 (19.1%)
General Purpose Funds: $11,027.0 (-19.3%)
The mission of the Department of Labor and Workforce Development is to promote safe and legal working conditions and to advance opportunities for employment. The budget:

• Saves more than $1 million by reorganizing the department, changing to the certified payroll law, and eliminating three positions. An estimated $1.2 million in revenues will be collected through new contractor filing fees.
• Implements an agency-wide unallocated reduction of $300,000.
• Restores $383,000 to Independent Living Rehabilitation of $618,800 that was cut by the Governor.
• Makes $2.6 million available for Adult Basic Education programs after a 10-percent reduction in the state’s share of funding.

Department of Military and Veterans Affairs
All Funds: $34,862.7 (1.8%)
General Purpose Funds: $8,811.1 (8.3%)
The mission of the Department of Military and Veterans Affairs is to provide military forces that are fully prepared to mobilize and accomplish military missions, provide homeland defense, and respond to emergency requirements in the state or around the world. It also provides emergency services; trains at-risk juveniles; coordinates veteran’s assistance and programs; and supports state and Federal agencies suppress the use of illegal drugs:

• Saves $341,000 in streamlined facilities management.
• Increases support for the state’s homeland security program by $400,000.
• Reduces duplication in services between the Alaska State Troopers (AST), the Rescue Coordination Center (RCC), and the State Emergency Communications Center (SECC) for a $55,000 savings.
• Increases funding to the Alaska Youth Military Academy, which serves “at risk” high school students, by $388,100.

Department of Natural Resources
All Funds: $99,266.6 (23.3%)
General Purpose Funds: $47,735.2 (38.7%)
The mission of the Department of Natural Resources is to develop, conserve, and maximize the use of Alaska’s natural resources consistent with the public interest by (1) encouraging resource development that create Alaska jobs and ensure economic growth; (2) ensuring resource development planning, management, and new project approvals are based on sound science and public involvement; (3) ensuring resource sustainability and multiple use; and (4) streamlining natural resource leasing, sales, and permitting processes. The budget:

• Transfers $3.5 million and 37 employees from the Department of Fish & Games Habitat and Restoration Division to DNR, strengthening DNR as the lead agency in permitting oil, gas, and timber projects.
• Moves $4.3 million and 28 full-time employees from the Division of Governmental Coordination to the new Office of Alaska Coastal Zone Management within DNR.
• Provides $7.363 million in general funds for fire suppression, based on a ten-year average of costs, to reduce or eliminate substantial supplemental costs next year.
• Adds $340,000 to the Oil & Gas Division to handle increased workloads from increased lease sales and licensing programs that are expected to generate $8-10 million in revenues.
• Facilitates the streamlining of permitting activities of all state agencies involved in large resource projects to the new Office of Project Management and Permitting.
• Adds $330,000 to last year’s Parks budget and encourages division evaluation of park management out-sourcing and cost-saving options.

Department of Public Safety
All Funds: $110,561.3 (3.1%)
General Funds: $79,308.4 (1.2%)
The mission of the Department of Public Safety is to ensure public safety and enforce fish and wildlife laws. The budget:

• Saves $167,400 through the sale of nine state-owned and seized aircraft.
• Maintains the level of funding for the Civil Air Patrol, $503,000, and Avalanche Education, $85,000.
• Funds Wolstad Sea Days and Stimson Dutch Harbor Operations for increased patrols of fisheries.
• Transfer, through legislation, the Alcohol Beverage Control (ABC) Board from the Department of Revenue to the Department of Public Safety.

The Department of Revenue
All Funds: $161,484.3 (0.0%)
General Purpose Funds: $8,370.4 (-2.1%)
The mission of the Department of Revenue is to collect and invest funds for public purposes. It administratively manages the Child Support Enforcement Division, the Treasury Division, the Tax Division, and the Permanent Funds Dividend Division. The budget:

• Allocates $150,000 to the Gas Line Authority.
• Reduces the general budget of the Tax Division by $150, 000, which should be achieved through better daily management.
• Realizes a $153,00 general fund savings from the Child Support Enforcement division by replacing these funds with new Federal incentive payments.
• Transfers, through passed legislation, the Alcohol Beverage Control (ABC) Board to the Department of Public Safety.

Department of Transportation and Public Facilities
All Funds: $368,635.4 (3.7%)
General Purpose Funds: $96,687.0 (2.5%)
The mission of the Department of Transportation and Public Facilities is to improve the quality of life for Alaskans by cost-effectively providing, operating, and maintaining safe, environmentally sound and reliable transportation systems and public facilities. The budget:

• Saves $1.3 million in reductions to administrative travel, training, and elimination of some administrative-related positions.
• Assigns an unallocated cut to the Commissioner’s Office of $200,000 that was included in the Governor’s requested budget but were composed of one-time appropriations in the FY 03 Management Plan.
• Increases funding by $5.3 million for maintenance of highways and airports around the state.
• Maintains support levels for the Alaska Marine Highway System.
• Reduces the budget $214,800 (3%) by cutting a vacant inspector position, reducing travel to remote areas, and not filling several temporary summer weigh station positions.

University of Alaska
All Funds: $649,573.1 (6.1%)
General Purpose Funds: $212,716.0 (3.2%)
The mission of the University of Alaska is: (1) to produce the social, economic, scientific, civic, and cultural leadership of the state; (2) to provide a forum for informed and rigorous debate; (#) to offer practical advice to policy makers; and (4) to make discoveries that solve problems and create opportunities. The budget:

• Increases total funds by approximately $26 million over the previous year’s budget, $4 million in increased Federal Funds, $15.6 million in other funds, and $6.9 million for negotiated contracts.
• Increases the authorized position count by 95 PFT and 23 PPT.