Legislative passes budget, COVID-19 response

Late Saturday night the Alaska State Legislature recessed for the time being.  The last week has been a flurry as they rushed to pass mandatory and priority legislation and get out of town. The amount that was accomplished in the last 10 days is impressive.  Due to COVID-19 new legislation needed to be quickly drafted to protect businesses and individuals during this time.  Emergency powers needed to be established and granted and economic provisions needed to be made. All of this was accomplished in 10 days. The Legislature did not formally adjourn but recessed so that they can quickly reconvene if they need to address any emergency matter.  The attached newsletter covers what happened so grab a cup of coffee and enjoy the read.

Things have rapidly changed in Alaska and the State Legislature in the last month, so this newsletter will be a little longer than usual. The Legislature is now facing unprecedented times on several fronts. In Alaska, a global pandemic is combined with plummeting oil prices and a tumbling stock market, reducing the earnings of the permanent fund and the state’s overall fiscal outlook.  The Legislature is left responding to the epidemic with dwindling financial resources in an expedited time frame.  In the good news category, the state is set to receive a minimum of $1.25 billion in federal aid, as well as relief funding for tribes, fisherman, education, hospitals, public health, research, vaccines and businesses.

Everything in the legislature quickly became a race against the clock to finish the required work and return home.  The Legislature accelerated the usual time schedule and prioritized their work, passing only mandatory and priority legislation, which includes all budget and sunset legislation and any legislation that addresses COVID-19 and its impacts.  Lawmakers formed an Emergency Response and Preparedness Committee, which is planning several different emergency scenarios to handle any outbreak from the legislative side of things.

Governor Dunleavy also announced the creation of the Alaska Economic Stabilization Team (AEST). The bipartisan group of leaders will work with the Dunleavy administration on a plan to protect the state’s economy from the impact of COVID-19 in Alaska. The group will be led by former Governor Sean Parnell and former US Senator Mark Begich. The remaining seats will be filled by a cross section of Alaska’s economic leaders and former elected officials.

Confirmation of the Governor’s cabinet and board appointments will be postponed until next year through legislation, HB 309.  HB 309 allows acting officials to continue to serve in their respective positions for now.  By January 18, 2021, or 30 days after the public health disaster is over, the Legislature will have to act to consider the Alaskans who have been appointed to these positions.

The Legislature then recessed to the call of the chair instead of adjourning sine die.  This procedural move will make it easier for the legislature to reconvene to address any emergency matter.  Both bodies also passed legislation, SCR 14, which allows them to recess for more than the normally allowed 3 days.

The legislature also quickly passed several bills to ease government and business functions and to provide assistance to businesses and individual Alaskans.  These bills, as well as the operating budget, mental health and supplemental budgets are outlined in the attached newsletter.