It is reported that the Alaska Senate is currently preparing an annual state budget that will include a less Permanent Fund dividend and a less significant increase in funding for public schools, in order to keep Alaska’s operating budget in check without borrowing from savings or exceeding a cap for spending the Alaska Permanent Fund.
The debate on the operating budget will start on Wednesday at Senate Finance Committee. Senate Finance Committee, the budget proposal being debated will include the Permanent Fund dividend of about $1300, as well as an increase of $500 in the per-student state funding amount, also known as the base allocation for students senators announced at a press conference on Tuesday.
“We’re likely to be able to sustain our income stream this year, and that means there’s something that needs to be sacrificed,” said Sen. Bert Stedman, R-Sitka and co-chair of the finance committee.
Both numbers are lower than those that were approved earlier in the month by the Alaska House of Representatives in the draft budget, which covers services provided by the state for 12 months starting on July 1.
The House plan contained an estimated $2,700 dividend as well as a 680 percent increase in the basic student allocation. Together with other elements of the budget created an estimated deficit of 600 million.
Stedman stated that the Senate will not accept the deficit.
He suggested that the senators’ preferred strategy is to have legislators approve a balanced budget then revisit the state’s financial condition during January and February. If the price of oil is higher than expected, which results in additional revenue, lawmakers next year may adopt a budget supplemental which includes additional funds for the top priorities.
“We can review the capital budget in order to include projects, if needed or to provide funds for schools, or anything else that is important to you got,” Stedman said.
At the time of writing, the budget schedule requires to the Senate Finance Committee to debate the plan and take into consideration changes this week prior to submitting the bill to a vote of the entire Senate in the coming week.
The Senate’s plan would be reintroduced to the House following the House has approved. If House lawmakers approve of their vote on the Senate budget plan, the bill will be sent to the governor. Mike Dunleavy.
If not then, it is possible that House and Senate plans could be negotiated to create a final compromise. The negotiations may be challenging.
Rep. Kevin McCabe, of Big Lake is a member of the House majority caucus. He said Tuesday that the size of the dividend included in the House budget was already an acceptable compromise for himHe would prefer a higher number. A figure that is similar to Senate’s is “very complicated for me” McCabe told reporters.
Rep. Dan Ortiz, I-Ketchikan Rep. Dan Ortiz, I-Ketchikan, is one of the co-sponsors of legislation to forever increase the state’s per-student budget for public schools. The bill would provide the per-student rate of $680, a year-long increase. Another $120 will be for the following year.
He stated that he was “disappointed” with the hike that was proposed by the Senate that would be counted only for one year but added that “it’s the result of a negotiation.”
Rep. Cliff Groh, D-Anchorage Rep. Cliff Groh, D-Anchorage, said he “contests the frame” which has the budget as a pull-pull between spending cuts and savings.
Legislators may instead propose more revenue from the new tax system, Mr. added. In the past year, lawmakers of the Legislature have introduced over a dozen tax plans that include changes to the state’s oil production tax and a sales tax for the entire state as well as a state-wide income tax.
Alongside the bills already presented Governor. Mike Dunleavy is expected to present a sales tax reform proposal prior to the close of the session.
The passage of any single item could alter the rules in the Legislature However, none has been approved for a vote by the entire House or the entire Senate and there are just three weeks remaining during the regular legislative session.
“Here we are at only 22 days to go and it’s going be difficult to get a tax bill between House and Senate within that period of time.” Senate President Gary Stevens of the Republican Party of Kodiak said on Tuesday.
House majority members House majority also said that they’re not likely to pass any new tax unless it’s a part of a bigger long-term fiscal plan for the state that also includes other legislation which could create more problems.
“We’re not likely to have the fiscal plan in the next two weeks between now and two and one-half weeks. I don’t think it will happen,” Ortiz said.
This article first appeared in Alaska Beacon and is republished here with permission.
