Alaska Governor Mike Dunleavy (R) had proposed in February to cut state spending by at least $650 million to provide a $3,000 permanent-fund dividend to every Alaskan without increasing taxes. After two special legislative sessions and much pushback from advocates and Alaska legislators, the governor signed a bill on August 19 that will provide a permanent-fund dividend of $1,600 to every Alaskan and more funding to services and programs than previously expected, though some critical programs were still cut. The Alaska Coalition on Housing and Homelessness (ACHH), an NLIHC state partner, urged its members to call their legislators to reject the governor’s harmful budget cuts, which would have resulted in vulnerable Alaskans losing housing assistance and other essential services.
The Alaska legislature rejected the governor’s initial budget proposal by passing less than a third of the cuts he had called for. In July, the governor line-item vetoed $390 million from the spending bill passed in the legislature, and there were insufficient votes to override his vetoes. The governor’s budget would have cut nearly $10 million from four key affordable housing programs if no further action was taken.
In response to the governor’s vetoes, the House and Senate went into special session, where they debated and passed budget bills SB2002 and HB2001. Both bills collectively restored a significant portion of the funding that was cut in the governor’s line-item vetoes by reducing the dividends to be paid to Alaskans. The four homeless-services line items – the Homeless Assistance Program, Special Needs Housing Grant, Human Services Community Matching Grant, and Community Initiative Matching Grant - were all restored.
The governor signed SB2002 and HB2001, but only after cutting half the bills’ line items. FY20 funding for housing programs and services were reduced significantly, but much less than the governor had originally proposed. The Human Services Community Matching Grant and the Community Initiative Matching Grant - grants that prevent and alleviate challenges for people with serious mental or physical hardships- were flat-funded. The Special Needs Housing Grant, which provides long-term rental assistance for seventeen successful housing programs targeting the most vulnerable homeless populations, received a $2 million increase.
The Homeless Assistance Program (HAP) was cut by $3.6 million (half of the general-fund contribution). The Alaska Housing Finance Corporation used the $2 million increase in Special Needs Housing Grants to help offset the cut to HAP and was able to fund current HAP grantee service agencies at 80%. In reference to the cut to HAP, ACHH Executive Director Brian Wilson said, “It’s just going to lead to increases of homelessness and have a negative effect for our most vulnerable populations.”
The Alaska Coalition on Housing and Homelessness had urged lawmakers and the governor to spare social programs designed to keep people sheltered. ACHH encouraged service and housing providers, community members and those impacted by the cuts to communicate to the governor’s office and Alaska policymakers about how the programs funded by the grants have a positive impact in their communities.
To learn more about the Alaska Coalition on Housing and Homelessness, contact Executive Director Brian Wilson at [email protected] or 907-523-0660.