(SitNews) - Today, Governor Bill Walker (I) and Lieutenant Governor Byron Mallott (D) explained to Alaskans the effects of a partial government shutdown on services offered by the offices of the governor and lieutenant governor and requested all departments to provide details of how a particial shutdown would impact services.

“While I am hopeful the legislature will reach an agreement to fully fund the budget, I am obligated to tell the public about how a potential government shutdown could affect services Alaskans have come to rely upon,” Governor Walker said today.

“Today, because we don’t have a fully-funded budget, about 10,000 notices of layoffs were mailed out - as we are morally and contractually obligated to do,” Governor Walker said during a press conference today.
Photo from LiveStream Video - Office of the Governor
Watch the full press conference (LiveStream)

There was hope Saturday and Governor Walker thanked members of the Alaska House for negotiating on a fully funded budget so the state can continue to fund services Alaskans depend on. Walker said on May 30th, “It is now up to the Senate to concur with work the House has begun to ensure 10,000 layoff notices are not sent out.”

Although the Governor said that he was hopeful on Saturday the Alaska Senate would pick up the work of the House, that's not what the Senate has done.

“Today, because we don’t have a fully-funded budget, about 10,000 notices of layoffs were mailed out - as we are morally and contractually obligated to do,” Governor Walker said. “I have asked Matt Peterson to be available to step in and mediate this legislative impasse so we don’t have a government shutdown. I urge the legislature to take advantage of his expertise so we can move forward.”

In the offices of the governor and lieutenant governor, constituents’ requests would go unanswered, the Human Rights Commission would halt investigations into human rights complaints and candidates would not be able to complete their filings with the Division of Elections. The review of petitions filed during the period of any shutdown and the authentication and certification of business and personal documents would stop.

For example, authentication of signatures for Alaska companies doing business in foreign countries, certification of paperwork for Alaskans hoping to adopt children from other countries, and even the returning of bodies of foreign nationals who die in Alaska require authentication paperwork.

While the lieutenant governor would continue to sign regulations, the processing of public notices would be curtailed.

The Governor asked the all state departments to send out notices this afternoon of what would happen on July 2nd if there is not a fully funded budget that will result in a partical shutdown. The Governor wants all Alaskans to be informed of what to expect and to be prepared for what could possibly happen on July 2nd.

The Governor retained Matt Peterson to help resolve the current legislative impasse holding up passage of a fully-funded budget. Peterson is an Anchorage attorney with an extensive history of conducting mediations.

Peterson works at Clapp, Peterson, Tiemessen, Thorsness & Johnson, LLC. He has worked for more than 30 years as a mediator and arbitrator in a range of complex cases, including civil litigation, medical and professional malpractice and business disputes. Mr. Peterson is a fellow of the American College of Trial Lawyers and the Alaska member of the National Academy of Distinguished Neutrals. Mr. Peterson has been peer-rated by Martindale-Hubbell as one of Alaska’s “Superlawyers.”

“I have long respected Matt and his work, and am confident he will get the job done well and quickly,” Governor Walker said. “I urge members of the legislature to accept my offer and avail themselves of Matt’s services so Alaskans can get past this gridlock and shift our focus to discussing a fiscally sustainable future.”

“This legislative impasse creates uncertainty for all Alaskans,” Lt. Governor Mallott said. “I urge legislators to avail themselves of the services provided by Matt Peterson, the mediator Governor Walker has retained.”

Department of Administration

In anticipation of a partial government shutdown the Department of Administration (DOA) has worked to provide planning and communication tools to agencies and employees so that critical state services needed for life, health, and safety of Alaskans are not compromised. The department has the unique role of providing services to other state agencies and state employees as well as to the public.

"No one wants a shutdown. In the perspective of the larger budget, the remaining issues are relatively modest. It is helpful to recognize that as the threat of a shutdown approaches, we have reached the point where the time spent by employees preparing for the shutdown, distracted by the shutdown or talking about the shutdown will consume any savings the legislature might hope to extract in the remaining negotiations,” stated DOA Commissioner Sheldon Fisher. "I share Governor Walker’s hope that the legislature will reach a compromise on the budget bill soon so that state agencies can return to focusing on right-sizing government. "

Specifically within the Department of Administration the following services would be diminished or discontinued throughout the duration of a partial government shutdown:

• Delay or cancel vendor purchasing and payments on supplies - across the entire state this will impact many small businesses that rely on an estimated $1.7 million daily in state contracts
• Hundreds of state leases will not be paid in full for the duration of the closure, potentially creating hardship for private lessors and taking several million dollars out of the economy for each month the shutdown persists
• Critical state I/T and communications equipment would go unmaintained and reliability of those services would decrease
• The Office of Public Advocacy would limit advancing appeals and their caseload backlogs will grow with the elimination of support staff during the shutdown
• The Public Defender Agency would see their caseload backlogs grow
• Reaction time for emergency support services delivered by DOA would be impaired
• Progress on the state's new financial and payroll administrative system , the Integrated Resource Information System or IRIS, replacing 30+ year old legacy systems will be halted right at the critical juncture of implementation after years hard work, imposing additional costs and delays to a $80+ million dollar investment
• Skeleton crews will be established in divisions such as Personnel, Finance, General Services, Risk Management, and Enterprise Technology Services to support only those state functions related to life, health, and safety
• Alaska Public Offices Commission (APOC), tasked with oversight on elected officials and lobbyist, would not have staff to process cases and would therefore close for the duration of the shutdown
• Administrative appeals would largely go unscheduled if not funded through federal programs
• Bargaining of labor contracts would cease until government reopens this function
• Employee grievances and (grievances and) letters of agreement will not have agency staff to respond
• Grant to supply "blind-friendly" accessibility to news and information services would no longer be available
• Access to state surplus goods would not be available
• Alaska Public Broadcasting Commission would not receive any grant funds for local TV or radio
• State employee recruitment resources will be slowed to a near standstill for current and future job seekers

Department of Administration agencies that rely on program receipts of those who use the service will not be affected by the partial shutdown including the Alaska Division of Motor Vehicles (DMV), Alaska Oil and Gas Conservation Commission (AOGCC), and Violent Crimes Compensation Board. Additionally the Division of Retirement and Benefits will continue to process remaining state employee and all retiree benefits with health trust dollars that are unaffected by the legislative inaction.

As it is essential for life, health, and safety, all security services for state agencies would be continued to ensure the safety and well-being of state staff and property during the shutdown.

In the event of a partial shutdown the remaining staff at the Department of Administration will continue providing personnel updates and layoff information to state employees separated from service through their primary website, www.DOA.alaska.gov and the toll-free hotline 844-465-4688.

Alaska Department of Health and Social Services

Due to the critical health and safety implications of the services that are provided by the Alaska Department of Health and Social Services, limited funding of the Health and Social Services’ FY2016 budget was approved by Governor Walker. There will be no impact to the operations of DHSS in the event of a partial government shutdown. While programs and operations will continue in the near term, an extended government shutdown could ultimately affect services provided by DHSS.

Alaska Department of Transportation and Public Facilities (ADOT&PF)

The Alaska Department of Transportation and Public Facilities (ADOT&PF) is also preparing to reduce services statewide on July 1, 2015, the start of the new state fiscal year.

“We are still hopeful that the legislature will pass a fully funded budget. However, we must have a plan in place so that the traveling public is prepared and understands what services will and will not be affected,” said ADOT&PF Commissioner Marc Luiken.

Without a fully funded operating budget the following ADOT&PF services will be impacted after June 30, 2015:

• Alaska Marine Highway System: All 11 vessels will enter layup status and will not provide passenger service.
• Weights and Measures: These services will be limited.
• Road Maintenance and Operations: Preventative Maintenance funded by the federal government on state highways will continue into September. Emergency response will be available for signal and general highway issues.
• Public Facilities: Will provide emergency monitoring and response only.
• Support staff and accounting: Staff will be reduced to paying bills and processing payroll.

The following ADOT&PF services will continue to be provided:

• Whittier Tunnel: Will continue to operate as normal.
• International Airports: Ted Stevens Anchorage International and Fairbanks International airports will continue to operate as normal.
• State Airports: Part 139 certificated airports that serve larger passenger and jet aircraft will operate with reduced hours.
• Planning, Design and Construction: All projects currently being planned, designed and are under contract for construction will continue.
• Commercial Vehicle Enforcement: Overweight/oversize permitting will be available.

Alaska Department of Environmental Conservation (DEC)

The Alaska Department of Environmental Conservation (DEC) is determining what services will be maintained and which will be suspended if the Legislature does not pass a fully funded budget before July 1, 2015.. The following DEC services critical to Alaskans’ life, health, and safety will be operational during a shutdown:

• Division of Spill Prevention and Response: DEC would need to maintain a level of preparedness to respond in the case of an oil or hazardous substance release. This division is primarily funded through the Prevention Account of the Oil and Hazardous Substance Release Prevention and Response Fund and therefore would not be affected.
• Environmental Health Laboratory: If there is a health crisis, like a major foodborne illness outbreak, DEC would need to recall laboratory staff.
• Air Monitoring and Quality Assurance Program: This program is responsible for forecasting the impact of weather on air quality pollution that poses a potential health hazard to people. One meteorologist position would be retained to issue air quality advisories.

Remote Maintenance Workers: Staff frequently respond to breakdowns of drinking water systems in rural communities. DEC would seek to enter into local agreements to cover emergency events during a government shutdown.

Other core services provided by the Alaska Department of Environmental Conservation such as air and water monitoring, laboratory testing, shellfish PSP testing, permitting, inspections, complaint response, and support to many community environmental programs rely on general fund support and will be largely suspended.

Some aspects of the following Alaska Department of Environmental Conservation services will remain operational without the use of general funds:

• Division of Environmental Health’s Drinking Water Program
• Division of Water’s Cruise Ship Monitoring Program
• Division of Environmental Health’s Pesticides Program
• Village Safe Water and Municipal Matching Grants Programs
• Food Safety and Sanitation Program: using federal funds, may continue conducting inspections of manufactured food facilities
• Office of the State Veterinarian: responding to issues related to shipments of livestock and other animals crossing the border
• Division of Air Quality’s Permitting and Compliance Program: continue permit-related work funded by fees

Department of Commerce, Community and Economic Development

Responding to the ongoing budget impasse, Department of Commerce, Community and Economic Development employees were sent layoff notices this afternoon. Commissioner Chris Hladick said he shares Governor Walker’s optimism that the legislature will reach a compromise and the layoffs will be recalled prior to the end of this fiscal year. However, in recognition of the impact of possible reductions in service, the Department of Commerce will provide as much information and advance notice as possible to the public and potentially affected parties, and will continue to issue press releases as more details unfold.

Alaskans would experience significant reductions in services provided by the Department of Commerce, Community, and Economic Development (DCCED) should a partial state government shutdown occur, including impacts to local governments and the private sector.

The divisions most affected are determined by the percentage of unrestricted general funds received, not by the value of the work or responsibilities. The highest impacts would be seen by communities, businesses, and individuals who engage with or receive services from the Division of Community and Regional Affairs (DCRA) and the Division of Economic Development (DED).

In the Division of Community and Regional Affairs, services reduced or cut would include rural utility assistance, the Local Boundary Commission, various planning, research and analysis functions, the Alaska Native Language Preservation Council, and a curtailment in both grants administration and local government support functions. In the Division of Economic Development, economic development activities would be suspended, although most loan operations would continue (Commercial Fishing Revolving Loan program, etc.).

According to today's information provided by Commissioner Hladick, layoff letters have not been sent to state corporations that do not fall under the personnel act. Accordingly, there would be minimal impact to services provided by the Alaska Energy Authority, the Alaska Industrial Development and Export Authority, the Alaska Gasline Development Corporation, and the Alaska Seafood Marketing Institute.

The remainder of the Department of Commerce, Community, and Economic Development (DCCED) agencies are not funded by unrestricted general funds through the operating budget, and it is anticipated would be able to recall the majority of their employees. These include the Alcoholic Beverage Control Board, the Division of Banking and Securities, the Division of Corporations, Business and Professional Licensing, the Regulatory Commission of Alaska, and the Division of Insurance. DCCED anticipates minimal impact to services from these divisions. For example, the Alcoholic Beverage Control Board would continue to regulate sale of alcohol and proceed with regulation of marijuana.

Department of Education & Early Development

The Department of Education & Early Development has also developed a contingency plan for a partial shutdown of its services if a fully funded state budget is not passed by July 2.

Governor Walker is hopeful the legislature will reach a compromise so this shutdown does not occur. But out of an abundance of caution, the Governor wants Alaskans to understand how services provided by the Department of Education & Early Development would be affected.

The child nutrition services unit, which organizes summer feeding programs for children, will continue to operate because it is not funded by state general funds.

For the same reason, the teacher certification unit, the Professional Teaching Practices Commission, the Alaska Commission on Postsecondary Education, and the Alaska Student Loan Corporation will continue to operate.

With available funds, the department can cover three of 12 monthly payments to school districts during fiscal year 2016, which coincides with the school year. The department can cover approximately the first quarter of funding for schools in juvenile detention centers, grants to boarding schools, and the Alaska School for the Deaf and Hard of Hearing.

The Department of Education & Early Development can cover one of three annual payments to school districts for student transportation. The contract for inspections of school buses will be fully funded to assure student safety.

However, the state general funds for early learning will be reduced by $5.7 million, potentially closing Head Start programs in Alaska because they rely on those funds to meet a federal requirement for a state contribution.

The Alaska State Library and the Alaska State Archives will not operate. The staffing of the Alaska State Museum will be sufficient to support the State Libraries, Archives and Museums (SLAM) ongoing construction project in Juneau.

Continuing to operate will be Live Homework Help, a tutoring service for students, and Online With Libraries, a program that improves the computing capabilities of public libraries.

Alaska Department of Fish and Game


The Alaska Department of Fish and Game is analyzing the impacts from a potential shutdown of government services effective July 2, 2015. Accounting for the largest percentage of general funds in the department, the Division of Commercial Fisheries would be the hardest hit.

Most commercial salmon fisheries occur during June through September and contribute hundreds of millions of dollars to the economy. The division will maintain a core staff involved in active management of these fisheries. Field staff deployed to remote areas of the state operating weirs and conducting other enumeration projects will be returned to their primary duty station and laid off using a phased approach during the months of July and August. Similarly, the division’s five research vessels will be returned to port and tied up. Other services including regional support, front counter support to the public, laboratory services, data support and other related services will be curtailed or halted.

In addition to these impacts, the following services provided by ADF&G will also be significantly curtailed or halted effective July 2:

• Title 16 permits issued by the Division of Habitat.
• Subsistence harvest surveys conducted by the Division of Subsistence.
• Support to the Board of Fisheries and Board of Game as well as advisory committees.

The following Alaska Department of Fish and Game services will remain operational without the use of general funds:

• Functions of the Division of Sport Fish.
• Functions of the Division of Wildlife Conservation.
• Functions of the Commercial Fisheries Limited Entry Commission.

Due to the current budget impasse, Department of Revenue (DOR) employees were sent layoff notices this afternoon. DOR will provide as much information as possible to the public in regard to a partial government shutdown and any potential reductions in service. Governor Walker and Commissioner Hoffbeck are hopeful the legislature will reach an agreement so the shutdown does not occur, but out of respect to Alaskans, DOR has listed the effects a partial government shutdown would have on the Department’s different divisions.

The Tax Division will continue to collect and account for taxes and refunds. The Juneau and Anchorage offices will remain open with a reduced level of staffing and the online portal for filing tax returns will remain available. The public may experience a delay in the processing of refunds and tax
credits. Additionally, audit, appraisal, and tax payer assistance functions will be limited which may result in delays in tax assessments and litigation resolutions, potentially resulting in delayed final tax payments. Information such as oil prices and production, which is typically posted daily, may not be available on the Tax Division website.

The Child Support Services Division will continue to operate as usual during the early periods of a shutdown. Should a shutdown last longer than 2 months, the staffing will be reduced to a level that allows only for payment of child support on existing orders and collection. At that point no new child support orders or modifications would be processed.

The Treasury Division will have minor staffing reductions, as they are only partially fund by the unrestricted general fund. All investment and cash management activities will continue.

The Permanent Fund Dividend Division is funded by sources other than the unrestricted general fund and will not be effected with a partial government shutdown.

All DOR agencies not funded by the unrestricted general fund should remain unaffected. These agencies include the Alaska Mental Health Trust Authority, Alaska Permanent Fund Corporation, and Alaska Housing Finance Corporation.

In light of a partial government shutdown, both Governor Walker and Commissioner Hoffbeck stay optimistic the legislature will reach a compromise and the layoffs will be recalled prior to the end of the fiscal year (June 30, 2015). As the details unfold, DOR will provide as much information and advance notice as possible to the public and any potentially affected parties.

Department of Revenue

Also due to the current budget impasse, Department of Revenue (DOR) employees were sent layoff notices this afternoon. DOR will provide as much information as possible to the public in regard to a partial government shutdown and any potential reductions in service. Governor Walker and Commissioner Hoffbeck are hopeful the legislature will reach an agreement so the shutdown does not occur, but out of respect to Alaskans, DOR has listed the effects a partial government shutdown would have on the Department’s different divisions.

The Tax Division will continue to collect and account for taxes and refunds. The Juneau and Anchorage offices will remain open with a reduced level of staffing and the online portal for filing tax returns will remain available. The public may experience a delay in the processing of refunds and tax credits. Additionally, audit, appraisal, and tax payer assistance functions will be limited which may result in delays in tax assessments and litigation resolutions, potentially resulting in delayed final tax payments. Information such as oil prices and production, which is typically posted daily, may not be available on the Tax Division website.

The Child Support Services Division will continue to operate as usual during the early periods of a shutdown. Should a shutdown last longer than 2 months, the staffing will be reduced to a level that allows only for payment of child support on existing orders and collection. At that point no new child support orders or modifications would be processed.

The Treasury Division will have minor staffing reductions, as they are only partially fund by the unrestricted general fund. All investment and cash management activities will continue.

The Permanent Fund Dividend Division is funded by sources other than the unrestricted general fund and will not be effected with a partial government shutdown.

All Department of Revenue agencies not funded by the unrestricted general fund should remain unaffected. These agencies include the Alaska Mental Health Trust Authority, Alaska Permanent Fund Corporation, and Alaska Housing Finance Corporation.

As the details unfold, the Department of Revenue will provide as much information and advance notice as possible to the public and any potentially affected parties.

Alaska Department of Natural Resources

If a government shutdown occurs, the Alaska Department of Natural Resources anticipates significant impacts on activities that occur on state lands and water but will ensure necessary work continues to protect the life, health and safety of Alaskans.

Under the governor’s reduced Fiscal Year 2016 budget, the Alaska Department of Natural Resources will continue wildland firefighting operations, the Alaska Volcano Observatory and the state’s dam safety program. DNR also will be able to operate Alaska state parks using non-general fund resources through the month of August. DNR programs that do not rely on general fund expenditures also will continue, including the Recorder’s Office, Mental Health Trust Land Office, Office of Project Management and Permitting, State Pipeline Coordinator’s Office, and Office of Boating Safety.

However, due to delayed issuance of permits and authorizations, even a temporary shutdown could have significant impacts to the public and the natural resource industries that provide almost all of the State’s revenue. Governor Walker is hopeful the Alaska Legislature will reach a compromise so this shutdown doesn’t occur, but out of an abundance of caution, he wants Alaskans to know the following services provided by DNR will be significantly curtailed or halted, effective July 2:

• Delayed issuance of a variety of the Alaska Department of Natural Resources (DNR) permits and authorizations
• Closure of the DNR Public Information Center locations in Anchorage and Fairbanks which handle customer service calls and visits
• Reduced agriculture services, including the seed and pathology labs, seed sales and the following programs: horticulture, forage, soils, revegetation, marketing, invasive weeds and technical on-farm assistance.

Alaska Department of Public Safety

Due to the critical nature of the services provided, the Alaska Department of Public Safety’s FY2016 budget the Departments of Corrections and Health and, as mentioned above, Social Services were approved by Governor Walker. DPS will continue to provide public safety and law enforcement services to Alaskans even in the event of a state government shutdown.

While the Legislature continues to work on the vetoed sections of the budget and things could change, the Department of Public Safety does not anticipate any of the cuts that were made to the FY 2016 budget that was approved by Governor Walker to be reinstated.

As a result of those budget cuts and not any potential government shutdown, the Alaska Department of Public Safety will still close the Talkeetna Post, the Girdwood Post, the Cold Case Unit, lose 27 trooper positions, and ground both of Search & Rescue helicopters (one in Anchorage and one in Fairbanks). The Girdwood Post will close December 31, 2015.

Alaska Department of Law

If a partial shutdown occurs, the Alaska Department of Law will see a reduction in staff in both the Civil and Criminal Divisions, resulting in a reduction in services on all criminal and civil matters. The department anticipates maintaining a skeleton crew to deal with civil matters, while trying to prioritize resources towards public safety and child protection.

"Like Governor Walker, I am still hopeful that the legislature will reach a budget deal that fully funds state operations for the next fiscal year," said Attorney General Craig Richards. "But considering July 1st is just around the corner, we have to begin preparing. For the Department of Law that means prioritizing what criminal laws we will be able to prosecute and what litigation can continue with minimal staff. For instance, prosecution of fishing and hunting violations will fall lower on the priority list and get less attention because resources will likely be needed elsewhere."

The Department of Law acts as the legal advisors and prosecutors for the State of Alaska. This means that any legal matters involving most state agencies are handled by attorneys in the department. In addition, the department handles all criminal matters for the State. This makes the impacts of a shutdown difficult to quantify because the department's workload greatly depends on actions of other departments, lawsuits brought against the State by outside parties, and schedules set by federal and state courts.

Based on current workloads and funding estimates, the department is likely to be impacted in the following ways:

• reduction in the prosecution of non-violent offenses based on available staffing levels;
• reduction in the prosecution of misdemeanors;
• inability to enforce environmental protection laws, such as enforcement relating to oil spills and water contamination;
• lack of representation in cases defending the State's rights and interests, such as cases in federal court relating to resource development; and
• inability to address consumer complaints and other consumer protection issues.

To ensure public health and safety are maintained to the maximum extent possible, the Alaska Department of Law's minimal resources will be put towards matters involving bodily harm or injury to adults or children and the health of our most vulnerable populations, such as the elderly and disabled. This meets Governor Walker's call to support critical life, health, and safety functions of state government. The department will also evaluate ongoing litigation and prioritize those matters that are most important to protecting Alaska's long-term interests and avoiding future liability. This evaluation will be ongoing and staff who are asked to stay on during a shutdown will need to remain flexible as priorities shift and unforeseen matters arise.

Alaska Department of Military and Veterans Affairs

The Alaska Department of Military and Veterans Affairs (DMVA) identified the following impact that will take effect if a state shutdown occurs.

Alaska National Guard: Uniformed Guard members will continue their duties as normal. DMVA environmental reviews by state employees will continue, and some state personnel will remain on staff to provide required services for federal facilities.

Division of Homeland Security and Emergency Management (DHS&EM): Emergency monitoring staff will consist of three emergency management specialists working from the State Emergency Operations Center. If a disaster event necessitates response activities, appropriate DHS&EM and other state government emergency response personnel will be recalled to address the immediate life, health and safety needs of the effected Alaskans. The recalled staff will be funded through the Alaska Disaster Relief Fund. During the course of a shutdown, DHS&EM will cease processing grants for individuals and communities for disaster-related response and preparation activities.

Office of Veterans Affairs: All Office of Veterans Affairs staff will be laid off. Additionally, grants to veteran organizations for 17 Veterans Service Officers statewide will not be renewed when they expire June 30. This will leave Alaska’s approximately 75,000 veterans without assistance to claim the benefits they have earned.

Division of Administrative Services: The Division of Administrative Services will recall necessary staff for federal reimbursement processing, and to conduct the fiscal year close-out requirements.

Alaska Military Youth Academy: Initially, all Alaska Military Youth Academy staff will be laid off. However, AMYA will recall the essential staff needed to complete the current training cycle. Cadets will graduate in August, at which point remaining AMYA staff will be laid off. In the event of a shutdown, DMVA will be required to notify the National Guard Bureau that it can no longer perform the activities required for the AMYA program. The program will be terminated, and it is unknown if Alaska will receive funding for subsequent classes.

Alaska Department of Labor and Workforce Development

Also today, the Alaska Department of Labor and Workforce Development (DOLWD) is mailing layoff notices to its employees. These layoffs will occur on July 2nd if the legislature’s inability to pass a budget causes a government shutdown.

In the event of layoffs, state employees may apply for Unemployment Insurance . DOLWD has also published a “Partial Government Shutdown FAQ” about Unemployment Insurance.

Alaska Department of Labor and Workforce Development has several divisions in which all staff would be laid off during a government shutdown. These include the Alaska Labor Relations Agency, Wage and Hour Administration, and the Alaska Workforce Investment Board. Closure of these programs will mean delayed resolution of disputes and elections, and unresolved allegations of wage and hour violations. In addition, the department will be unable to distribute grants in support of the Alaska Construction Academy, Independent Living Program, General Education Development diplomas, and the Helmets-to-Hardhats veterans training program.

Some Department of Labor and Workforce Development divisions would continue operations supported by federal grants. The Vocational Rehabilitation Client Services, Occupational Safety and Health, and Adult Basic Education programs would continue operating through September 30, 2015, in order to avoid incurring expenses associated with paying back federal grants.

Some Department of Labor and Workforce Development programs that rely primarily on federal funds or generate their own revenue will continue operating in the event of a shutdown. These programs include Unemployment Insurance, Disability Determinations, Workers’ Compensation, Mechanical Inspection, and Employment and Training Services. Continuing the operations of these programs will enable the department to provide timely unemployment determinations and benefits, including those of laid off state employees. The Division of Administrative Services, Division of Business Services, and the Alaska Vocational and Technical Center (AVTEC) will retain some staff, but only to maintain critical functions.

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