The Alaska House of Representatives on Monday ratified the $6.4 billion operating budget for the year that will start on July 1. The budget was approved by a 23-17 vote, which is a crucial hurdle to final approval of the state’s year-long operating budget.
“This bill isn’t flawless … however, it’s a good faith, collaboration effort that has strong involvement from the governor,” added Rep. DeLena Johnston, Co-chair of the House Finance Committee.
The plan that was approved by the House is now being considered by the Senate which is working on another proposal, whose initial draft will be released on this Wednesday at the Senate Finance Committee.
The legislative calendar requires the two plans to be merged into a final agreement before May 17, which is the last day in the Alaska session. If the work can’t be completed within the timeframe, an extended session or special session will occur.
The House plan includes a $2700 Permanent Fund dividend, 680 dollars per student in additional funding for public schools from K-12 and the state taking over of a significant federal program for construction permits and a few increases in the funding for public safety and education programs.
The plan also has the possibility of a deficit of $590 million. This could be compensated through spending the 2 billion Constitutional Budget Reserve, the primary savings account for the state.
Thirty votes are required to approve spending on the CBR however, Members of the House’s majority Democratic majority voted against the spending in protest of the need for an increase in dividends or new taxes to help balance the budget.
The refusal of the CBR vote has become a regular practice by caucus members from minority groups seeking to leverage this budgetary procedure. Prior to this year the Republican-led minority frequently voted against the original budget, hoping for an increased Permanent Fund dividend.
On Monday, lawmakers in the House stated that there’s plenty of time for finding agreement before the end of the legislative session.
“We’ve had a lot of pieces to play with. It’s a very flexible time. It’s not the first time that a budget has been pushed over without a CBR approval,” Johnson said.
In the coming weeks, Alaska Senate is expected to adopt a budget that will include an enlargement of the Permanent Fund dividend as a method to balance the budget without the risk of a deficit.
The vote of Monday’s came after one week of no action about the proposed budget. It was largely put on hold after lawmakers from minority groups held a brief protest to protest the budgetary pressure tactic, which was intended to entice them to vote on the CBR.
Rep. Andrew Gray, D-Anchorage, on Monday apologized for his part in the protest, stating that it was “a spiral of righteous anger” and that, since the time he was adamant, “our feelings have tamped down a bit.”
Republicans, Democrats and independents each acknowledged issues with the budget approved on Monday, including the massive structural deficit, but the majority of Republicans generally indicated that they would accept the plan for the moment however, the majority of Democrats opposed it.
Rep. Maxine Dibert, D-Fairbanks, expressed concern over the deficiency of budget amendments that were intended to tackle child care.
“We are in a child care crisis. When I started knocking on doors, it was the number. 1 issue. We’re not focussed on this,” she said.
Other lawmakers have noted that the increase in funds for K-12 schools is a once-off benefit and not a long-term change that advocates for public schools have demanded.
Others have expressed their displeasure with the budget, citing that it’s not to be sustainable. (At an average price of oil at or above $79 a barrel, this budget might draw out.)
However, a large majority House lawmakers consider this spending plan to be the first step towards an affordable long-term plan for spending.
“There are a lot of other issues we’re debating as an body, since they’re crucial … however, this is the issue we’re dealing with in the present and is the very first element of discussions on budgets,” said Rep. Sarah Vance, R-Homer. “I’m for this to be a part of staying on the table to negotiate in the interest of Alaskans.”
The story was originally published in Alaska Beacon and is republished here with permission.
