Senate Republican Caucus: Governor Right to Question Federal Stimulus Dollars that Would Result in Huge Long-Term Operating Budget Commitments

JUNEAU – In light of Governor Sarah Palin’s announcement today that she would accept only $514 million of $930 million offered to Alaska in federal stimulus dollars, members of the Senate Republican Caucus endorsed her approach to keep the state operating budget under control.

“The Governor has said she would accept only those dollars offered for capital projects and is just saying ‘no’ to most of the funding for expansion of government programs,” said Sen. Gene Therriault, R-North Pole. “I think this is a responsible course to take. She may be criticized for refusing more than $400 million in available funding, but by doing so, we will avoid an unsustainable expansion of programs on into the future. I appreciate that she is going to work with the Legislature to review those projects and dollars she questioned, to see if there is a balance we can reach between the strings that are attached and what is in the best interest of Alaskans.”

“This offer from the Congress and the Obama administration is a little bit like having way too much to drink,” said Sen. Con Bunde, R-Anchorage. “A good time may be had by all, but the hangover the next day, and the consequences of what you did while you were drunk, may be with you for a long, long time.”

“The Governor made it clear that the direction she is taking with the federal stimulus dollars only pertains to the State of Alaska, and does not impact any funding for which municipalities, nonprofits, tribal organizations, and other community entities may otherwise be eligible,” said Sen. Tom Wagoner, R-Kenai. “I think part of the job of the Legislature, along with the administration, is to help those local entities identify available grants that are funded through the stimulus package, and apply for those dollars if they do not create an on-going commitment that the local organization cannot sustain.”

“The U.S. economy is going through an especially rough patch, so we have to be very careful how we apply this stimulus,” said Sen. Fred Dyson, R-Eagle River. “In addition, we hope the public will understand the strings that are attached to some of these carrots. For example, one program would get us $28 million, but requires us to adopt a statewide international building code. While a one-size-fits-all code may work in smaller states, the climate and geography in Alaska is so varied that local governments need flexibility in their areas. Through our legislative process, we will determine if we want to take on this requirement.”

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