Governor Dunleavy Gives FY21 Budget a Mixed GradePosted & Edited By MARY KAUFFMAN
March 29, 2020
Governor Mike Dunleavy stated in a news release that he appreciates the fact that lawmakers worked quickly to pass a budget and, that certain funding was included to combat aspects of the pandemic and the associated economic fallout. However, the Governor feels the legislature missed the mark by not including a cash infusion that many leading economists believe should be implemented as quickly as possible.
“Thousands of Alaskans are out of work through no fault of their own, due to the government pausing most economic activity to slow the spread of the disease,” said Governor Dunleavy. “It would appear lawmakers missed the opportunity to create a cash infusion from the earnings reserve account into the hands of Alaskans, like hairdressers and restaurant workers, that could have happened in as little as two weeks. I am quite frankly puzzled why they would not do that.” “The vast majority of economists worldwide, as well as the President of the United States, and almost every member of congress understand how a quick injection of cash into the hands of workers will do more to stabilize the economy than any other approach at this time. My administration will continue to work closely with Alaska’s congressional delegation and the White House on how to maximize the benefit of the federal emergency relief package here in Alaska,” added Governor Dunleavy. The Alaska Legislature Saturday evening passed the state’s capital and operating budgets, House Bill 205, with a 23-13 vote, and funded the bill with a supermajority (three-quarters) vote of 30-6. The three-quarters vote accessed the Constitutional Budget Reserve.The bill also provides a $1,000 Permanent Fund dividend for each eligible Alaskan this fall. However, the bill did not include a cash infusion or early PFD stimulus funds. “As the number of Alaskans who test positive for the COVID-19 virus grows, the Senate worked feverishly to craft a budget that would provide statewide community assistance and a give the governor the resources his administration needs,” said Senator Bert Stedman (R-Sitka) co-chair of the Senate Finance Committee. “We saw the urgency and acted swiftly." “This bill gives the governor broad authority to protect Alaskans,” said Senator John Coghill, (R-North Pole). “The Legislature is watching the situation closely and has made provisions for the next few months for assistance where we anticipated a need.” The legislation protects Alaska’s first responders and healthcare providers, establishes a temporary path to increase the number of licensed professionals, and helps Alaska’s small businesses weather the economic impacts. “It’s been one heck of a year for Alaskans, and it’s only March,” said Senator Natasha von Imhof (R-Anchorage) co-chair of the Senate Finance Committee. “At a time when Alaskans are struggling to pay bills and put food on the table, this budget leverages nearly one billion dollars in federal funding for a capital budget that will provide good-paying jobs critical to our state’s economy.” “This budget provides for the immediate needs of Alaska’s families and businesses,” said Senate President Cathy Giessel (R-Anchorage). “I am proud of my colleagues in the House and Senate for their diligent work on this budget under challenging circumstances. The Legislature is committed to doing all we can to protect Alaskans from the health and economic impacts of this pandemic.” According to the Alaska House Republicans, in what they described as a stunning late-night floor session on Saturday, the Alaska Senate and House Majorities forced a vote on the FY21 budget that risked emergency COVID-19 funding to protect their own political agendas. “Folks are thinking about surviving,” said Rep. Ben Carpenter (R-Nikiski) as he questioned why the majorities would remove the stimulus package from the budget. “This bill fails to take care of our people…and I cannot support it.” “Stimulus could have been one of the most important things we did for the people of Alaska all year,” Rep. Dave Talerico (R-Healy) added. “Alaskans need aid NOW. The COVID-aid payment from the Permanent Fund would have been the fastest way to deliver that aid – cash that would help keep these families out of financial ruin,” said Rep. DeLena Johnson (R-Palmer), House Minority Whip. “But we didn’t do that." “Former White House Chief of Staff Rahm Emmanuel famously said, ‘Never let a good crisis go to waste'," said Rep. Cathy Tilton (R-Chugiak/Mat-Su). “Using the $75 million COVID response money as a leverage point is shameful. That money is intended to be used for venues like the Alaska Airline’s Center as triage facilities.” “We are in unprecedented times, and yet our budget is larger than ever,” added Rep. Sarah Vance (R-Homer). “Our spending is increasing as if nothing has happened to our revenues. That almost wipes out our savings account.” “Until yesterday, this was just a budget,” said Rep. Lance Pruitt (R-Anchorage). “This bill was intended as a quick-response measure to combat COVID-19, but it left the Senate prioritizing everything but COVID-19 emergency triage centers. For the first time, I was embarrassed to be a member of this body. We could have solved this with conversations, we could have listened to others’ concerns. Instead, we are jeopardizing lives for political gain. It didn’t have to be this way.” Tthe Alaska House Majority Coalition says the budget provides critical funding that will allow the State of Alaska to effectively respond to the COVID-19 crisis, ensures that essential services will continue operating uninterrupted in the upcoming fiscal year, and funds a $1,000 Permanent Fund Dividend this fall. An additional PFD stimulus was not included. “Alaskans take care of Alaskans,” House Speaker Bryce Edgmon (I-Dillingham) said. “That’s never been truer than during the COVID-19 crisis, and we saw another example today as we set aside our differences and worked together as a unified Legislature to pass a budget in record time and ensure that essential services will continue without interruption.” HB 205 contains several items related to COVID-19 response efforts, including: $75 million for the Department of Health and Social Services, $5 million for the Disaster Relief Fund, $5 million for the Alaska Housing Finance Corporation, and $2.7 million for the public health services provided by the Municipality of Anchorage. “Today was a victory for Alaska’s first responders and frontline healthcare workers who now have additional tools to keep our people safe and healthy,” House Finance Co-Chair Neal Foster (D-Nome) said. “I’m proud of the thorough, hard work that was done to craft a budget amid a rapidly evolving public health and economic crisis,” added House Finance Co-Chair Jennifer Johnston (R-Anchorage). “Because of today’s vote, the workers who keep our state running – doctors and nurses, firefighters and troopers – will be able to keep doing their jobs without the risk of interruption due to a lack of funding.” Overall, HB 205 approves spending $4.54 billion of unrestricted general fund and includes funding for the following:
HB 205 passed the Senate 13-4 and the House 23-13, for a combined vote of 36-17. The bill is now on its way to Governor Mike Dunleavy to be signed into law. The Alaska Legislature Saturday evening also finalized a bill that extends the governor’s public health disaster emergency declaration until this fall. The measure also ensures that some of the economic impacts of COVID-19 are mitigated for Alaskans. Senate Bill 241 passed the House on a 34-1 vote in a late night floor session after a House-Senate Conference Committee worked out differences in the versions of the bill that previously passed each chamber. The Senate adopted the changes 16-1, and now the proposal heads to the governor for final approval. “I thank everyone in the Legislature who worked to fast-track this bill, which puts tools in the hands ofthose on the front lines of Alaska’s fight against COVID-19,” Rep. Chuck Kopp (R-Anchorage) said. “We will continually monitor this situation to see what else we can do lift the burdens of people grappling with health and economic effects of the pandemic.” ”SB 241 will prevent homelessness by putting a pause on evictions and utility shut offs for Alaskans who can’t pay their bills because of COVID 19,” Rep. Ivy Spohnholz (D-Anchorage) said. “This bill gives us more rules to respond to the COVID-19 public health crisis and adds protections for the many Alaskans displaced from their jobs through no fault of their own.” This bill takes several important steps:
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