I passed my COVID-19 screening at the Capitol all three days.

Last March the legislature finished the budget and recessed in the midst of the COVID-19 pandemic. In April the State of Alaska received $1.145 billion in federal funds under the congressional CARES Act. The funds are to be spent on COVID-19-related costs that Alaska has incurred or may still, due to the health pandemic and its economic consequences.

Under a statute allowing the governor to decide the spending of additional, non-budgeted federal dollars, Governor Dunleavy submitted proposals for the CARES funds to the Legislative Budget & Audit Committee (LB&A). LB&A is a joint committee of ten House and Senate members which, under the statute, can approve the proposals to immediately effect the governor's spending plan. Such proposals are known as Revised Program Legislatives (RPLs). I serve on LB&A as an alternate member, attend all the meetings, and follow the issues closely.

The Alaska Constitution grants the legislature sole appropriations authority. This allows legislators to represent the needs of their constituents and their districts and debate the merits of various budget items, and it provides for a methodical public process. The governor may veto or reduce items that the legislature has budgeted. The Constitution clearly provides for separation of powers and checks and balances, ensuring that control over state spending is not concentrated in just one branch of government.

During LB&A discussions, several of us had strong concerns that at least some RPLs violated the legislature's appropriations authority, and were advised just that by our legislative attorneys. Still, LB&A approved the governor's RPLs earlier this month. Two days after the final approvals, a Juneau resident filed a lawsuit contending that the process violated the legislature's appropriations duty.

Because of the lawsuit, the entire legislature reconvened this week to try to pass a bill to remedy the constitutional problems before the end of the 120-day session. Today, we passed HB 313, ratifying the governor's CARES funds spending plan. We also adjourned the 2020 legislative session.

While HB 313 was not an appropriations bill, and I'm still concerned that the process that got us to this point was unconstitutional and could be invalidated, my colleagues and I decided that the funds must be disbursed as soon as possible to help Alaskans and local governments grappling with the costs of the COVID-19 crisis.

Small Business Relief Grants

The legislature approved $290 million in CARES relief for small businesses. DCCED and the Alaska Industrial Development and Export Authority (AIDEA) will offer emergency relief to Alaskan small businesses. The application period for this program is expected to open on May 26, 2020.

• Did not qualify or were otherwise unable to obtain SBA PPP or EIDL funding
• Were in operation for at least one year prior to March 11, 2020
• Have on average 50 or fewer employees

• Marijuana-related businesses
• Secondary income sources
• Out-of-state businesses
• Businesses that  have received funding or have an approved application for SBA's PPP or has EIDL funding in excess of $5,000
• Businesses with more than 50 full-time equivalent employees.
• Businesses that have filed bankruptcy.
• Businesses that do not meet the eligibility. criteria outlined above.

• Payroll costs and expenses
• Payment of any short term (less than 24 months) or credit card debt incurred by the applicant to support the applicant's business during the emergency
• Rent or mortgage payments (unless otherwise waived by lessor/lender)
• Utility payments
• Purchase of personal protective equipment required by the business
• Business-related equipment
• Expenses incurred to replenish inventory or other necessary re-opening expenses