Blog: Capital Focus

House Finance OK's stimulus resolution

Published Tuesday, March 24, 2009

House Finance Committee has passed a resolution saying the Legislature will accept all federal stimulus money available to Alaska.

The resolution now goes before the Rules Committee, chaired by Rep. John Coghill, R-North Pole.

Finance Committee chairman Rep. Mike Hawker, R-Anchorage, pointed out that the resolution "sets the stage" for more debate on what money the state should - and shouldn't - accept to stimulate the economy and create jobs.

The resolution seemed prudent after Gov. Sarah Palin offered a bill accepting only part of the roughly $930 million Alaska could receive. She cited federal "strings" attached to some funds, and irresponsible growth of government that could result from other money.

However, lawmakers say they need more time,information and discussion to figure out which dollars really are in Alaska's best interests. And while the governor has until April 3 to certify whether Alaska will accept stimulus money, it's unclear if the Legislature faces a similar deadline.

The predominant position now is, better safe than sorry - thus, the resolution. A similar measure is being routed through the Senate.

The bill is a "back stop" that will allow the Legislature to continue discussions on what money should and shouldn't be accepted, Hawker said, and "does not obligate us, as a Legislature, to accept any additional stimulus funds."

Even if lawmakers appropriate the funds, they can't force the executive branch to spend the money, Hawker noted.

Rep. Mike Kelly, R-Fairbanks, said he's worried that the state could bind itself to sustaining higher levels of program spending in the future, to the detriment of taxpayers and residents.

But, he supported the resolution as a vehicle for delving into those very issues.

"We need this in order to continue the discussion," Kelly said.

Hawker predicted "morning, afternoon and evening" Finance meetings for the foreseeable future in order to give the stimulus plan the scrutiny it deserves while contending with a 2010 budget as the 90-day session winds down into the last 26 days.

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