Govenor Palin apparently plans to accept stimulus funding afterall

Apparently Gov. Sarah Palin will be accepting the federal stimulus funding, including millions of dollars for education, which she had originally said she would not accept.

Here’s the pertinent parts of the press release:

The Palin administration today acknowledged the state legislature’s action to accept economic stimulus funds with passage of House Bill 199, Senate Bill 75, HB81, HB113, and two legislative resolutions supporting receipt of the funds, House Joint Resolution 11 and House Concurrent Resolution 13.

“I have been clear and consistent about my concerns with accepting economic stimulus funds as our nation incurs tremendous debt,” said Governor Palin. “As I am required to certify that stimulus dollars will create new jobs and stimulate the economy, I acknowledge the legislature’s action. And now I must make sure that, by applying for funds that they’ve resolved to accept, we do not grow government but instead put people to work and grow Alaska’s private-sector economy.”

The House and Senate finance committees held nearly 20 public hearings and worked closely with the administration to research aspects of the stimulus bill.

“We provided the public with the opportunity to weigh in and for them to understand the complicated and evolving federal requirements in this package,” Governor Palin said. “My concern remains that we must acknowledge these are one-time, temporary funds, that the federal government is deeply in debt, and that we must borrow money from other countries to fund much of government.”

The legislature agreed with the Governor that these federal funds should be used to generate new private sector jobs and not be used to create new services or programs. HB199 includes intent language to that effect: “The state will not be granting additional funds to continue the programs after the federal aid is exhausted.”

Education Funding

Education funding is one of the largest components of the economic stimulus package, and legislators appear to have assured themselves that Alaska schools will use the one-time funds wisely. Alaska’s 53 school districts can access about $171 million in stimulus funds. HB199 states, “School districts (should) focus on short-term investment with long-term gains for student and teacher performance.”

“I have heard from the education community and parents that these funds can be invested in support of improved student achievement while not incurring ongoing expenses,” said Larry LeDoux, commissioner of the Department of Education and Early Development. “Teacher training and technology upgrades are just some examples of how these funds can be invested wisely without creating unrealistic expectations when they are no longer available in 24 months.”

“I thank legislators for their work on the federal economic stimulus package and the public for participating in the process,” said the governor. “The legislature has accepted these stimulus dollars, and my agencies will make appropriate applications for funding. As we move forward, we must continue to exercise fiscal responsibility and prudent planning to develop our resources and build a stronger Alaska, and not assume federal dollars will continue to pay so many of Alaska’s bills.

“Alaskans are strong and innovative as a people and we have great potential because of our vast natural resource wealth. It is my hope that Alaskans recognize this potential and will support efforts to responsibly develop our great state so our families and the private sector can thrive and prosper. Growing government stymies this, so it is with great caution, I am sure, that our legislature resolved to accept federal economic stimulus funds, and it is with great responsibility to future generations that I prudently and conservatively administer the funds.”

The governor will take final action on all appropriation bills, including the economic stimulus package, within 20 days of receiving the documents from the legislature.

More detailed information on the federal economic stimulus package is available on the Office of Management & Budget website at www.alaska.gov/recovery.

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