(Juneau) – The Dunleavy administration Wednesday released the FY20 supplemental bill to cover the unanticipated costs from two natural disasters and Medicaid services and programs. The legislation also contains funding to continue to improve public safety in Alaska, repair transportation infrastructure, and provide mental health and elder care services.

“The state has unanticipated and significant costs that will have to be covered this year through supplemental appropriation legislation,” said Governor Mike Dunleavy. “We still have significant earthquake damage that needs to be repaired, in addition to last summer’s massive wildfires that drained the disaster account, and an abrupt change in direction by the federal government on Medicaid funding. My administration will continue to make every effort to keep State spending in check and will continue to push for constitutional amendments that cap the State budget, allow Alaskans to approve any proposed State taxes, and secure the PFD for Alaskans today and in the future.”

The supplemental bill, SB 174 / HB 234, totals $262.5 million in unrestricted general funds and $225 million in Federal matching funds for a total of $507.9 million. The cost to extinguish the wildfires, repair earthquake damage, and fund Medicaid services, accounts for $250.4 million of the $262.5 million in unrestricted general funds.

Key items of interest in the FY20 supplemental bill:

• $110.5 million in State funds to cover expenses following last summer’s devastating wildfires in the Southcentral and Interior regions of the state
• $3 million in State funds for infrastructure repairs from the 2018 Cook Inlet Earthquake
• $128 million in State funds for Medicaid services
• $6.7 million in State funds to hire new Alaska State Troopers, Wildlife Troopers, and purchase Trooper equipment
• $1 million in State funds for the Pioneer Home Payment Assistance Program
• $6 million in State funds to achieve full capacity at the Alaska Psychiatric Institute
• $12.050 million in Marine Highway receipts for the Alaska Marine Highway System

Additional information on the FY20 supplemental bill can be found on the Office of Management and Budget webpage.

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