Leading Alaska legislators said on Tuesday that there’s little appetite for spending from savings to pay a super-sized Permanent Fund dividend this year, likely killing a proposal from Gov. Mike Dunleavy.
In December, the governor proposed spending almost $2.3 billion on a dividend of roughly $3,500 per recipient under a formula in state law. That would result in a $1 billion deficit and require spending from the state’s Constitutional Budget Reserve, but as a draft budget takes shape in the House, top members of both the House and Senate said they’re unlikely to spend from the reserve this year.
“I don’t think it’s a wise thing to draw from savings,” said Rep. Will Stapp, R-Fairbanks and a member of the House Finance Committee. “I personally would not be in favor of tapping the state’s savings.”
Rep. DeLena Johnson, R-Palmer and co-chair of the House Finance Committee, said that at this time, she has not been having conversations with the House’s 16-member minority caucus about spending from the reserve.
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Minority support would be needed because 30 votes are needed in the House to spend from the reserve, and the majority caucus has 23 members. (Rep. David Eastman, R-Wasilla, is not a member of either caucus.)
When the budget leaves the House, Johnson said, she expects the dividend to be whatever can be afforded under a balanced budget.
“We are not awash in cash. Let me put it that way. So it’s based on revenue,” she said.
Sen. Bert Stedman, R-Sitka and co-chair of the Senate Finance Committee, said that a “25% dividend” — so named because it would be paid for with ¼ of the annual transfer from the Permanent Fund to the state treasury — could fit within a balanced budget alongside the Legislature’s just-passed education funding increase, though there wouldn’t be a lot of excess room, he said.
The 25% dividend would be worth about $1,360 per recipient and cost about $914 million, according to estimates published by the Legislative Finance Division last week.
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Last year’s budget law allows a bonus on top of that amount, depending on the price of oil in the current fiscal year.
Officials from the Alaska Department of Revenue are expected to present an updated state revenue forecast to legislators on or about March 15, which will begin the process of finalizing the Legislature’s preferred budget.
The House will write the first draft of the state operating budget, and the Senate will have the first draft of the state’s annual construction and renovation budget, called the capital budget.
Disputes over the handling of last year’s budget bills created distrust between the House and Senate majorities, and to avoid a similar problem, the House and Senate intend to pass their budget bills on the same day, then hand-deliver copies to the other half of the Legislature, literally crossing in the hallways as they do so, Johnson said.
That is expected to take place in mid-April, leaving about a month for legislators to finalize the budget before the end of the regular legislative session in mid-May.
In the summer of 2023, Alaska Public Media partnered with StoryCorps’ Military Voices Initiative which provided a space for veterans, service members, and military families to share their stories.
In this conversation Harry DeBruhl (68) tells his wife, Melinda (68), about flying in the weather squadron and making rescues in Alaska.
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These interviews are recorded by StoryCorps, a national nonprofit whose mission is to preserve and share humanity’s stories in order to build connections between people and create a more just and compassionate world.
StoryCorps’ Military Voices Initiative is made possible by the Corporation for Public Broadcasting.
Excerpts were selected and produced by Ammon Swenson with help from Lillian Robbins.
Find more stories at alaskapublic.org/storycorps.
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Ammon Swenson is Alaska Public Media’s Audio Media Content Producer. He was born and raised in Anchorage, Alaska. He graduated from UAA in 2018 with a bachelor’s degree in journalism and integrated media. He’s previously worked for KRUA radio, the Anchorage Press, and The Northern Light.
On Friday, Alaska Airlines petitioned a U.S. judge to dismiss a consumer lawsuit challenging its planned $1.9 billion acquisition of Hawaiian Airlines. The airline argued that the transaction would not unlawfully consolidate its power within the transportation industry.
In its filing with the Hawaii federal court, Alaska Airlines contended that the lawsuit, filed by consumers in April, failed to demonstrate any “concrete, particularized and impending harm” that passengers would face if the deal proceeded. Reuters reported that Alaska Airlines described the plaintiffs as “serial litigants” who had previously filed lawsuits over other airline mergers, labeling their claims as “boilerplate.”
Alaska Airlines refrained from commenting further on Friday. Meanwhile, the attorney representing the plaintiffs, a group of eight airline passengers from Hawaii, California, and other states, did not immediately respond to requests for comment, according to Reuters.
The lawsuit alleges that the merger would exacerbate the current trend towards concentration and reduced competition in the airline industry, which the plaintiffs argue is “unmatched, unparalleled, and dangerous.” In response, Alaska Airlines asserted in its filing that the merger would significantly expand customer access to global destinations.
The proposed acquisition is currently under antitrust review by the U.S. Department of Justice (DOJ). Both Alaska Airlines and Hawaiian Airlines have stated they are cooperating with the DOJ and expect to continue doing so, as reported by Reuters in March.
The case, titled Warren Yoshimoto et al v. Alaska Airlines and Alaska Air Group, is being heard in the U.S. District Court for the District of Hawaii, under case number 1:24-cv-00173.
Very strong mag. 6.0 earthquake – North Pacific Ocean, 23 mi southeast of Amukta Island, Aleutians West, Alaska, United States, on Sunday, May 19, 2024, at 12:35 am (GMT -9) –
Detailed info, map, data, reports, updates about this earthquake: Very strong mag. 6.0 earthquake – North Pacific Ocean, 23 mi southeast of Amukta Island, Aleutians West, Alaska, United States, on Sunday, May 19, 2024, at 12:35 am (GMT -9) –
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