The Foraker Group

Message from Foraker’s President/CEO Laurie Wolf in response to Governor Dunleavy’s veto of HB 133.

We are extremely disappointed by Governor Dunleavy’s veto of House Bill 133, legislation that would have created accountability for late state payments to nonprofits, local governments, and tribal organizations providing essential services to Alaskans.

Across Alaska, nonprofits operate shelters, food programs, behavioral health services, youth programs, and many other critical supports on behalf of the public. When payments are delayed, organizations are forced to use reserves, take on debt, delay hiring, reduce services, or even close programs. HB 133 was a practical response to a systemic problem that nonprofits and municipalities have experienced for years.

The governor’s veto message points to administrative reforms, improved systems, and agency accountability as alternatives to legislation. In reality, nonprofits and local governments sought those changes first. Despite years of conversations and repeated requests for administrative improvements, delayed payments continue to disrupt services across the state.

HB 133 was advanced because existing processes had not reliably solved the problem. The legislation recognized a simple principle: organizations delivering essential public services should not bear the financial burden of state payment delays.

We are deeply grateful to Rep. Rebecca Himschoot and Senator Scott Kawasaki for their leadership and determination in sponsoring this legislation. We also thank the legislators who voted in support of HB 133, the committees that advanced the bill, our partners at the Alaska Municipal League (AML), and the many nonprofit leaders and advocates from every region of the state who shared their stories and helped build momentum for this effort. The extraordinary advocacy from nonprofits across Alaska made clear that this issue affects communities statewide.

While this veto is a setback, it is not the end of the effort. We are committed to continue working on this issue, and we will return in the next legislative session to pursue a durable solution that ensures timely payment for organizations delivering services that Alaskans depend on every day.