More than $6.5 billion in federal funding for pandemic relief has already been authorized for individuals, communities, school districts, businesses, health-safety programs, government agencies, the fishing industry and others in Alaska, with more probably headed this way.
Legislators will likely want a say in how any new money coming to the state treasury will be used.
The White House and Democrat-led Congress are pushing for additional federal assistance, as much as $1.9 trillion, including potentially several hundred million dollars more for the state of Alaska to spend at its discretion. The federal spending bill is still being written.
The $6.5 billion on the books includes expanded unemployment benefits, economic disaster loans to small businesses, funds under the Paycheck Protection Program for businesses and nonprofits, tribal programs, payments to individuals, housing assistance, plus money that went to the state for its own spending decisions.
The director of the governor's budget office presented legislators with the total at a Senate Finance Committee meeting earlier this month. The $6.5 billion tally was through the end of December, and included Alaska's share of that month's $900 billion federal relief package, including $200 million in rental assistance to Alaskans and $600 payments to individuals.
December's federal aid also resulted in $284,000 for the Wrangell School District as its share of education funding given to the state.
Generally, federal funding appropriated to the state while the Alaska Legislature is in session requires lawmakers to approve receipt and expenditure of the funds, the review of which starts with the finance committees in the House and Senate, working with the governor's administration.
The state last spring received $1.25 billion for discretionary spending under the federal CARES Act, but the Legislature was not in session and a legislative committee accepted the spending plan as proposed by Gov. Mike Dunleavy and his administration. That plan shared about half the $1.25 billion with cities and boroughs across the state. Wrangell received $3.85 million of the money.
About one-quarter of the state money went out as grants to Alaska businesses.
Should Congress send more money to the state by next month, as congressional leaders are moving toward, state legislators would be in session in Juneau and will want a say and likely will want to direct it toward the biggest needs, said Anchorage Sen. Natasha von Imhof, in her second session on the Finance Committee.
The state should look toward economic stimulus for the battered economy rather than just stabilization, von
Imhof said. It appears that the industries - and employees - most in need are tourism, hospitality and transportation, she said.
The questions lawmakers will ask, von Imhof said, will be "what jobs are available" and where can the funds do the most good. This could include money for job training for people forced into new careers, or to work on the backlog of deferred maintenance projects at public facilities across the state.
A question lawmakers are sure to ask is "which industries have received money and which haven't," and which need more help getting through the pandemic, the senator said.
The state's spending decisions will depend on a large extent to what rules Congress or the White House attach to the funds this year, von Imhof said. For example, the rules for last year's federal assistance prohibited municipalities from using the money to replace lost sales tax, income tax, utility or public transit revenues. The funds could be used only for expenses related to the pandemic and to help community businesses and nonprofits, but not directly to fill budget gaps.
Congress this time around is considering allowing the use of federal assistance to help cities and states cover their budget holes.
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