Wednesday is the last day of the extended legislative session, but Alaska still doesn’t have a budget for the fiscal year starting in July. In fact, legislators haven’t passed any of the major bills that Governor Bill Walker proposed to close the state’s $3-4 billion budget deficit.
Andrew Kitchenman of APRN and KTOO in Juneau has been talking with legislators about the budget.
TOWNSEND: What the holdup on getting the budget done?
KITCHENMAN: 1. The oil and gas tax bill –
What each caucus wants.
What’s likely to happen next with the bill.
- Ideal scenario – agreement on HB 247 – agreement on a CBR draw
What could stop a CBR draw from happening
TOWNSEND: So what will happen if the two caucuses can’t reach an agreement.
KITCHENMAN: Senate President Kevin Meyer lays out an ERA draw scenario.
TOWNSEND: Wouldn’t Governor Bill Walker have concerns about this approach:
KITCHENMAN: In fact, Meyer says he hopes the governor will be receptive to this approach.
“I think once the governor understands that we don’t plan on just using the earnings reserve and not dealing with the long term fiscal stability and lowering that gap then I think some of his points will be moot,” Meyer said.
KITCHENMAN: Now, Meyer admits (they’ll have to sell the governor on this).
TOWNSEND: What does all of this mean for Permanent Fund dividends?
KITCHENMAN: A few things could happen. – could be cut in half by current finance committees’ proposal – could be even worse if the fund is depleted.
Senate Minority Leader Berta Gardner says this scenario wouldn’t be even worse if the Legislature doesn’t pay the oil and gas tax changes. I spoke with her in a noisy coffee shop today about this.
“If we don’t fix the oil company subsidies, we will have to use any draw from the Permanent Fund earnings to pay oil companies subsidies and that is rightly unacceptable to Alaskans,” Gardner said.
So I don’t think the majority caucuses will get much support from the minority caucuses for this proposal, unless they agree to oil and gas tax bill changes closer to what the minority wants.
TOWNSEND: Is there anything else left for the Legislature?
KITCHENMAN: Yes, there are other revenue bills. Marijuana regulations – And Governor Walker would like to see changes to fix the individual insurance market. Meyer says that Walker could ask the Legislature to address any loose ends during a special session.