The Foraker Group

Posted Under: Advocacy

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For nonprofits, municipalities, and tribes receiving state payments through approved grants, contracts, and reimbursements, those payments must be made on time. If they are not, critical services to Alaskans are threatened. Organizations should not be expected to perform work and then have to wait unreasonable amounts of time to be paid – and that’s what has been happening for some time now.

Today, Representative Rebecca Himschoot and Senator Scott Kawasaki introduced HB 133 & SB 129 in their respective chambers. The companion bills aim to bring parity in state payment on par with current statutory protections for private contractors who deliver public works projects. HB 133 & SB 129 ensure both state and federal pass-through funds are disbursed promptly to nonprofits, local government, and tribal organizations, benefiting the people of Alaska.

Foraker is joining with the Alaska Municipal League (AML) to push for approval of HB 133 & SB 129. Together, we have a stronger voice. Last year, we issued joint resolutions on the impacts of delayed payments, and we are pleased to work with AML and the bill sponsors now to make payment parity a normal course of business for the state.

Here’s how you can support our efforts:

• Contact your legislators in both the House and the Senate. Let them know that the health and well-being of Alaskans and Alaska’s economy depend on a strong, healthy partnership among nonprofits, municipalities, tribes, and the State of Alaska. Prompt payment for services is an expected part of this partnership.
• Write a letter of support. Join with colleagues in a formal letter or email to bill sponsors that outlines specific challenges you have experienced with delayed payments. Your letters will become part of the public record. The volume of communications will demonstrate a united front on this important issue. We have put together a brief guide on how to draft a letter, including an outline and tips to make the letter more effective.

The Impact of Delayed Payments

For many years, Alaska nonprofits, municipalities, and tribes have told us about the increased challenges caused by the materially long delays in payments due from state agencies for money authorized by the legislature and for services essential to Alaskans. To better understand the severity of the issue, we surveyed the impact of delayed payments over the past two years. We received 46 responses from a diverse range of organizations. In all cases of delay, the important work of nonprofits was disrupted. Read the report.

You can find a press release announcing the legislation here.