Alaska’s State Agencies Face Increased Non-Compliance Issues, Legislative Auditor Reports

Alaska State Agencies Face Increased Compliance Issues, Legislative Auditor Reports

Anchorage, AK — In a concerning trend for Alaska’s governance, state agencies are increasingly failing to adhere to both state and federal regulations, according to a recent report by Legislative Auditor Kris Curtis. During a hearing of the Legislative Budget and Audit Committee this week, Curtis revealed a staggering rise in compliance failures, with 85 instances noted in the 2024 fiscal year—up from just 44 a decade ago.

Curtis attributed this alarming increase to a combination of factors, including high employee turnover, staffing vacancies, and inadequate training within the state workforce. “There’s been a degradation within the departments’ internal controls,” she stated, highlighting the challenges faced by agencies such as the Division of Public Assistance, the Office of Children’s Services, and the Department of Corrections.

The findings come at a time when lawmakers have long expressed concerns about the impact of high turnover rates on the quality of state services. Rep. Chuck Kopp, an Anchorage Republican, emphasized the recurring theme of insufficient staff resources and training, noting that many errors stem from inexperienced personnel.

Among the notable compliance failures, the Department of Corrections was found to have exceeded its authorized spending by over $8 million last year. The Division of Public Assistance, which manages critical programs like food assistance and Medicaid, also faced scrutiny.

In response to the audit, a spokesperson for Governor Mike Dunleavy, Jeff Turner, defended the administration’s efforts to address previous audit findings. He argued that Curtis’ remarks do not fully capture the work being done and pointed out that some discrepancies arise from differing interpretations of laws and regulations. For instance, Curtis criticized the administration for not establishing a new state account to track opioid settlement funds, a claim Turner countered by stating that the creation of such a fund is the Legislature’s responsibility.

As Alaska grapples with these compliance issues, the need for improved training and retention strategies within state agencies has never been more urgent. Lawmakers and state officials alike are now faced with the challenge of restoring public trust and ensuring that essential services remain effective and compliant.