2021-04-19                     House Journal                      Page 0649
HB 181                                                                                                                        
HOUSE BILL NO. 181 by the House Rules Committee by request of                                                                   
the Governor, entitled:                                                                                                         
                                                                                                                                
    "An Act making special appropriations relating to the American                                                              
    Rescue Plan Act; and providing for an effective date."                                                                      
                                                                                                                                
was read the first time and referred to the Finance Committee.                                                                  
                                                                                                                                
The Governor's transmittal letter dated April 16 follows:                                                                       
                                                                                                                                
"Dear Speaker Stutes:                                                                                                           
                                                                                                                                
Under the authority of Article III, Section 18 of the Alaska                                                                    
Constitution, I am transmitting a bill relating to appropriations of                                                            
$1.54 billion in federal relief funds from the American Rescue Plan                                                             
Act.                                                                                                                            
                                                                                                                                
This appropriation bill includes $1.02 billion in state discretionary                                                           
federal relief funds allocated to balance relief for impacted individuals                                                       
and industries, Alaska’s long-term economic development, and                                                                    
offsetting unrestricted general fund expenditures to improve Alaska’s                                                           
fiscal situation. The following broad categories are proposed                                                                   
allocations of the $1.02 billion:                                                                                               
                                                                                                                                
    •Protecting Alaskans: $80 million for emergency response to                                                                 
    address economic impacts, the negative effects of domestic                                                                  
    violence, food security, and assistance to households and                                                                   
    individual Alaskans.                                                                                                        
    •Alaska Tourism Revitalization: $150 million for industry relief,                                                           
    to promote tourism, and adapt services for the potential loss of                                                            
    another cruise ship season.                                                                                                 
    •Economic Recovery and Innovation: $325 million of relief to                                                                
    businesses and organizations impacted by COVID-19, and to                                                                   
    prepare Alaska’s economy for investment as we reach the end of                                                              
    the pandemic and a return to normal life.                                                                                   
    •Build Alaska – Infrastructure Investment: $325 million for water,                                                          
    sewer, and broadband infrastructure investments.                                                                            
    •General Fund Offsets - $139.3 million to provide state                                                                     
    government services by offsetting existing general fund                                                                     
    expenditures.                                                                                                               

2021-04-19                     House Journal                      Page 0650
Additionally, $112.3 million in federal funding is allocated to the State                                                       
for capital projects directly enabling work, education, and health                                                              
monitoring. This is a placeholder appropriation pending further detail                                                          
from United States Treasury on the funding requirements and the                                                                 
application process, which should be made available on or before May                                                            
10, 2021.                                                                                                                       
                                                                                                                                
The American Rescue Plan Act also provided $230.7 million for                                                                   
payments to Alaska communities, of which $185.4 million requires                                                                
appropriation and distribution by the State of Alaska to communities                                                            
based on a federal formula. This funding is included in this legislation.                                                       
                                                                                                                                
Numerous state programs were awarded increased federal funding in                                                               
the American Rescue Plan Act. Appropriations for these federal                                                                  
awards are included in this bill for items where sufficient guidance and                                                        
details are known. This includes $220 million for specific programs                                                             
for public health and safety, workforce development, education,                                                                 
transportation, and emergency management. This amount represents                                                                
the best-known information at this time of the total federal                                                                    
authorization that will be required for American Rescue Plan Act                                                                
funding.                                                                                                                        
                                                                                                                                
My administration will work with the legislature to refine these                                                                
appropriations as additional guidance is provided by the federal                                                                
government. I look forward to engaging with you to implement a                                                                  
robust plan for these funds for the benefit of all Alaskans.                                                                    
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Mike Dunleavy                                                                                                                   
Governor"