2021-04-19                     Senate Journal                      Page 0751
SB 128                                                                                                                        
SENATE BILL NO. 128 BY THE SENATE 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.                                                                  
                                                                                                                                
Governor's transmittal letter dated April 16:                                                                                   
                                                                                                                                
Dear President Micciche:                                                                                                        
                                                                                                                                
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:                                                                                               
                                                                                                                                

2021-04-19                     Senate Journal                      Page 0752
           • 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.                                                                                         
           â?¢ 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.                                                                                                  
                                                                                                                                
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.                                                                                                                        
                                                                                                                                

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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