The Senate was unable to pass the budget, which left the possibility of an agreement last minute prior to the close in the normal session closing of the session on Wednesday.
The two chambers want to avoid a special session, but are divided on the amount of the Permanent Fund dividend and whether to tap into savings from the state.
The Republican-led House leadership has proposed an increase in the amount of $2,700 for a PFD as well as an increase in school funding which would require a substantial withdrawal from savings of the state. The majority of bipartisans in the Senate has been in favor of a moderate $1,300 PFD which doesn’t require savings to be dipped into with current estimates of oil revenue. Senator. Bill Wielechowski, D-Anchorage, has said the PFD is the primary issue of discussion.
“I think we’d like to have the highest dividend feasible. The question is how do you make it happen?” said Wielechowski.
This Senate bill also calls for major increases in the amount provided to public schools for each student, but it only includes minimal capital projects.
Senate Presidency Gary Stevens said the leaders of both chambers have been regularly meeting over the past few days. The Kodiak Republican stated that he was planning to meet on Tuesday night to make an agreement so that the Senate will be able to pass this budget and present it to House the following Wednesday.
“We’re looking forward to hearing about the House between today and tomorrow’s session and we hope to find a solution that everyone can be comfortable with,” he said.
Stevens stated that a few members of the bipartisan majority caucus stated they would be willing to tap in the state’s Constitutional Budget Reserve, but not at the amounts the House had proposed.
Wielechowski stated that House leadership has said they would be looking into a possible spending limit and also adding an additional PFD contribution to constitutional.
“We asked them to turn over”,” he said. “There’s only a couple of timing issues and their inability to get their information over in our hands.”
The House had already approved a budget, but was unable to secure the required three-quarter majority to access the budget reserve to pay for the millions of dollars that were not allocated. The budget’s provisions left major increases in education funding as well as the PFD of $2,700 unfunded.
House Leaders were in session much of the day on Tuesday and didn’t have time to speak with reporters.
Stevens has also said that he’s been talking to Governor. Mike Dunleavy, who has generally favored a higher PFD payment, but hasn’t said whether Dunleavy would approve an amount that is lower.
“He’s active in the community,” said Stevens. “He is keen to be out there too.”
With just one day remaining in the session the option of negotiating a budget via an executive group isn’t a possibility.
The only way that the Legislature could pass a bill before midnight on Wednesday to finance the federal government would be if House is able to vote in favor of the budget of Senate. If both chambers come up with a compromise and the Senate approves it and the House could vote to approve the bill on Wednesday. This is called a agreement.
It’s a long shot because both the House along with the Senate haven’t been able to agree on the budget ever since.
If the deal falls through Dunleavy could call the Legislature to an extraordinary session. It’s unclear when it will occur and how long it could be. Stevens stated he’d heard that it wouldn’t happen for a while, and that could create an unsustainable timeframe for funding government operations prior to the start of the next fiscal year begins July 1.
At the moment, he said that he’s focused on negotiating an agreement on a budget prior to the conclusion of the session.
“I’m not worried with other bills right now,” he said.
