For Alaska’s municipalities, nonprofits, and tribes receiving state payments through approved grants, contracts, and reimbursements – including Community Assistance – those payments need to be made on time. If they are not, critical services to Alaskans are threatened. AML members should expect timely payment after submitting necessary documents or performing required work.
Today, Representative Rebecca Himschoot and Senator Scott Kawasaki introduced HB 133 & SB 129 in their respective chambers. The companion bills aim to bring parity in state payment on par with current statutory protections for private contractors who deliver public works projects. HB 133 & SB 129 ensure both state and federal pass-through funds are disbursed promptly to local governments, nonprofits, and tribal organizations, ultimately benefiting our residents.
AML collaborated with the Foraker Group to push for approval of HB 133 & SB 129. Together, we have a stronger voice on an issue that impacts all of us. Last year, AML members adopted a resolution on the impacts of delayed payments, and we are pleased to work with partners and the bill sponsors now to make payment parity a normal course of business for the State.
Impacts to Local Governments
Local governments have reported delayed payments, including through the Community Assistance Program, that have affected property insurance renewals, payroll and project payments, delayed construction and maintenance activities, delayed bulk fuel commitments and contracting, and an inability to reflect non-federal match for federal grants. The delay in payments can further affect a community especially when reserves have to be used that lessen investment returns, and otherwise interest and fees may compound non-payment.
Here’s how you can support our efforts:
- Contact your legislators in both the House and the Senate. Let them know that the health and well-being of Alaskans and Alaska’s economy depend on a strong, healthy partnership among municipalities, nonprofits, tribes, and the State of Alaska. Prompt payment for services is an expected part of this partnership.
- Write a letter of support. Join with colleagues in a formal letter or email to bill sponsors that outlines specific challenges you have experienced with delayed payments. Your letters will become part of the public record. The volume of communications will demonstrate a united front on this important issue. AML and Foraker have put together a brief guide on how to draft a letter, including an outline and tips to make the letter more effective.
Impact on Alaska Communities and our Economy
For many years, we have been hearing about issues caused by the materially long delays in payments due from state agencies for money authorized by the legislature and for services essential to Alaskans. To better understand the severity of the issue, Foraker surveyed the impact of delayed payments over the past two years. They received 46 responses from a diverse range of organizations. In all cases of delay, the important work of nonprofits was disrupted. Read the report here.