Gov. Mike Dunleavy announced $117 million in undesignated general fund budget amendments to his proposed budget.
“We have talked several times about what caused the backlog issues which, is really our legacy IT systems,” Acting Department of Health Commissioner Heidi Hedberg said. “We’re incredibly thankful for $54 million that’s in the capital budget that will deal with our systemic issues. Again, we need to get off of the mainframe and move those, the SNAP program and the Medicaid program off of the eligibility information system into AIRES, so I think that’s a big focus area.
Anderson said that Alaska was awarded $285.6 million in federal discretionary grants, as well as six individual grants. Of those funds, $44 million was awarded to the operation of ferries, $68.4 million will go toward the replacement of the M/V Tustumena, and $8.6 million will be spent on planning and design of a replacement ferry in the future. Anderson said that the remaining $163.
However, $40.9 million in matching funds are required to access federal dollars, which Anderson said would come from a federal program which has not been used in Alaska previously: toll match credits. The Alaska Marine Highway System is classified as a toll facility. “To meet this requirement, the state is proposing to use an innovative federal aid highway tool that allows the state to use existing federal dollars to capture these new federal dollars,” Anderson said. “This tool allows the state to use other federal funds in lieu of state funds as match on the $163.7 million of federal funding for the electric ferry and the upgrade of dock infrastructure and vessel modernizations.
Anderson said that the toll match credits allows for toll revenues that were reinvested into maintenance and improvement of a toll facility to be used for required state matching funds of certain projects.
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