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Failure by the Alaska Legislature to pass a budget presents a grave risk to communities and individuals served by the nonprofit sector. We make a strong call to all legislators to break through the political gridlock and get the job done for Alaskans – pass a state budget that protects Alaska’s most vulnerable populations, our environment, education, and cultural life.
Without a budget, many state operations will shut down on July 1. That’s something we haven’t seen in Alaska. And the lack of action by the legislature that is leading to this dire consequence is both irresponsible and unacceptable.
Our message is simple: Get to work, stop the infighting, compromise, and pass a budget.
As an organization that supports the work of nonprofits in communities around the state, we are profoundly concerned about the impacts of a shutdown. While the most visible are that state employees will face layoffs and furloughs and the vast majority of state services not deemed “essential” will stop, the actual impacts are more far-reaching.
For example, nonprofits that receive state funding, or federal funding that is funneled through the state, will not receive timely payments. Few Alaska nonprofits are in a position to subsidize the state during a shutdown. They, too, will be forced to lay off or furlough employees, or staff who are dedicated to their mission will end up working without pay. This is not how a government should treat one of its most important partners, the nonprofit sector.
For smaller nonprofits without strong cash reserves, the payment delays would be swift and debilitating, leading in some cases to a “nonprofit shutdown,” with organizations being forced to close their doors. Setting aside the severe impact a shutdown will have on organizations, the real disaster will be for Alaskans they serve. Their needs continue, but our sector’s ability to serve them will be seriously degraded.