Governor Mike Dunleavy announces his budget changes at the capitol of the state in Juneau on February. 15 2023. (Photo taken by Claire Stremple/KTOO)

Gov. Mike Dunleavy added $9 million to his budget this week in order to solve a problem in the Division of Public Assistance that’s caused hundreds of Alaskans who are waiting for the food stamps or Medicaid. The money will go on contract workers hired to help state employees work through the backlog to ensure they can be prepared for the future Medicaid recertifications.

Dunleavy described that rise “significant” Dunleavy called the increase “significant” and stated that it will be used to finance more than 100 contract and temporary jobs. In addition, there’s another $54 million from the capital budget that will be used for better computer systems for the division.

Democratic Rep. Andy Josephson says he fought cuts in the staff of the public assistance division in the past session. He now says the governor is attentive to the situation.

“We’ll be watching to observe how this plays out,” he said. “And it’s not over yet. It’s a issue of why we ended up to this point. And I’m sure there are lots of concerns that still remain.”

A minority leader who is not affiliated with the party Calvin Schrage said he thinks the contract workers and further funding will be able to address the backlog in food stamps and provide benefits for Alaskans. But he also said there are some issues about the possibility of contract workers replacing state employees.

“Also there are reports that this could be the result of staffing shortages in the past,” he said. “And that’s why we need to ensure that we have sufficient staffing going forward, and it’s not an one-time boost to overcome a difficult decision , only to return to a slower or ineffective service.”

Department of Health Commissioner Heidi Hedberg says that the budget will require contract employees because the department doesn’t require more staff.

“We’re going to be able to review our options however, we think that our current positions are adequate,” she said.

But the union representing state workers doesn’t agree. It protested at the capitol this week to demand additional staff in the division. It lodged a grievance with the state claiming that the contract labor violates the state’s contract for collective bargaining.