Governor Issues AO To Combine Two Divisions

Press Release

In an effort to reduce costs and streamline delivery of services, Governor Bill Walker issued an administrative order today to combine two divisions in the Alaska Department of Labor and Workforce Development. The newly formed Division of Employment and Training Services will combine work currently done in two separate divisions, Business Partnerships and Employment Security. The Alaska Workforce Investment Board, formerly within the Division of Business Partnerships, will now be managed by the Commissioner's Office.

The change is aligned with the Walker Administration Transition Team's priority of reducing agency overhead, and Governor Walker's goal of redesigning administrative infrastructure to maintain maximum program and services delivery.

"We've got to find smart ways to reduce spending, while making sure we continue to train Alaskans for good paying jobs," said Governor Walker. "I commend Commissioner Drygas and her team for finding an effective way to cut costs and streamline government services."

In recent years, grant expenditures have decreased significantly due to declining funding sources. Combining grant programs under a single division will save the state money. The Department is also planning to get rid of all current vacant positions within Business Partnerships, saving the state approximately $600,000 per year.

"This reorganization scales the Department back to the effective structure it operated under several years ago," said Department of Labor and Workforce Development Commissioner Heidi Drygas. "We will now be spending less money on administrative overhead in order to focus our resources on developing Alaska's workforce in a cost-effective manner."

The Department, which has developed a comprehensive strategy for combining the two divisions, will implement its plan over the next few months.

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