Stimulus funds: what happens when the money runs out? Were we given the boost needed?

• Author: Bohi, Heidi
• Position: SPECIAL SECTION: BUILDING ALASKA - Cover story

[ILLUSTRATION OMITTED]

When former Gov. Sarah Palin originally vetoed $28.56 million in American Recovery and Reinvestment Act (ARRA) funds to help improve the energy efficiency of public and private buildings statewide, most Alaskans were ready to posse up and escort her out of town. In announcing the acceptance of only 69 percent of the estimated $930 million slated to flow into Alaska, Palin said she was acting in the best interests of Alaskans. She said she would only accept "timely, targeted and temporary" money that did not create strings binding the State in the future, adding that any kind of obligation would simply lead Alaska into a deeper hole.

[ILLUSTRATION OMITTED]

"A good time may be had by all, but the hangover the next day, and the consequences of what you did while you were drunk, may be with you for a long, long time," Sen. Con Bunde said, supporting Palin's decision. Democrats rebuked her and the conservative Republican minority in the Senate saying the governor was breaking with a long tradition of Alaska going after as much federal money as possible to help create infrastructure and build the state.

At the same time, many Palin-antagonists said her motives behind the decision were completely selfish and that she was making decisions with an eye toward a future presidential campaign, in the meantime aligning herself with other very conservative governors who also rejected the money.

By now, of course, everyone knows the punch line to the story. In May 2009, House and Senate finance committees held almost 20 public hearings to discuss and debate the stimulus legislation. In the end, the federal economic stimulus appropriation bill, HB 199, was signed. Palin did not accept the $28.6 million for energy funds and vetoed this portion, but the Alaska State Legislature then voted 45-14 to override her veto.

ARRA

Congress passed the American Recovery and Reinvestment Act (ARRA) of 2009 at the urging of President Barack Obama, who signed it into law last year. A direct response to the economic crisis, the act has three immediate goals: to create new jobs and save existing ones, spur economic activity and invest in long-term growth, and foster unprecedented levels of accountability and transparency in government spending. To do this, nationally, the act provides $288 billion in tax cuts and benefits for millions of working families and businesses; increases federal funds for education and health care as well as entitlement...