PUBLISHED: 5:38 PM on Wednesday, April 16, 2008
Municipalities to get $60 million in funding
JUNEAU - Gov. Sarah Palin signed into law bills that will provide revenue to local communities and address the $8 billion unfunded liability in the state's retirements.

Senate Bill 72, signed by Palin on April 9, sets up a structure for distributing $60 million each year to local governments for the next three years. Under municipal revenue sharing, the state distributes funds to the municipalities of Alaska. Local entities have discretionary use of the funds, which can be used for a variety of purposes such as providing larger communities the ability to offer tax relief to its residents and providing smaller communities with funds to help support basic municipal services.

"Local government is the most responsive and responsible," Palin said. "I support the state's wealth being shared with that most effective level of government."

Senate Bill 125 locks in the contribution rate for the Public Employees Retirement System at 22 percent to address the system's unfunded liability.