By Representative Mike Hawker
Special to the Turnagain Times
It appears the biggest issue in Juneau this session is not going to be the multi-billion dollar deficit we face and the need for fiscal planning, but what to do with $800 billion in federal economic stimulus funding. It has been quite an adventure.
It took the governor more than four weeks from the time the economic stimulus bill became law to tell Alaskans what she thought the state should accept from the federal money available to Alaska. She announced the state should take two-thirds of the money and harshly criticized the remaining $288 million as unwanted federal interference, government growth and bribe money.
The next day the governor softened her stance and stated she wanted a public discussion on whether the state should accept those funds she did not initially request, including $171 million for education, $56 million for home weatherization and energy programs, and more than $28 million for job training and improvements to the state’s Job Centers and unemployment benefits programs. The federal stimulus bill gave the governor until April 3 to decide what she wants to request for the state. It also empowered the legislature to step in and request any funds the governor refuses.
Time was short and, as co-chair of the House Finance Committee, I directed my staff to work through the precise details of the 407-page stimulus bill, find out what the money could do to help Alaskans and what, if any, problems come with the federal dollars. The legislature wants to be very careful that we do not accept any funding that creates a problem more harmful than helpful. We are especially concerned that Alaskans understand the temporary nature of this money. Neither the federal nor the state government will be writing checks to repeat, replace or restore the funding when it is gone.
We do want to accept whatever funds can be put to good use to help Alaska’s students, Alaska’s unemployed, Alaska’s homeowners, Alaska’s cities and Alaska’s taxpayers. The Finance Committee has held hearings, taken public testimony and carefully examined the available funding that the governor did not request. Our work pretty much leads to the conclusion that there are really very few strings attached to the available federal funds and that most of the concerns expressed by the governor, some legislators and political pundits are just not valid.
Legislative leadership unsuccessfully attempted to meet personally with the governor to share our research and determine her intent with regards to the results of the public process we were conducting. With the end of session rapidly approaching, we will probably pass legislation accepting most, if not all, of the stimulus money to make certain Alaska’s interests are fully protected and all our options are kept open. The ball will then be back in the governor’s court, where she enjoys the constitutional power to accept or veto our recommendations. We all will have to wait until then to see how this story ends.