The House Finance Committee in Alaska passed a $11 billion proposed operating budget that includes a $2,300 Permanent Fund dividend (PFD), lower than the $3,500 PFD proposed by Governor Mike Dunleavy. The budget was approved due to a $200 million surplus from higher oil prices and projected surpluses in the future, leaving the state with a balanced budget. The committee also made cuts, including rejecting $5 million for the Alyeska Reading Academy and adding $7.5 million for grants to childcare centers.
One contentious issue was funding for an Anchorage homeless shelter, with lawmakers ultimately supporting funding to keep the shelter open through mid-October. Additionally, the proposed budget includes one-time funding for a $680 per-student funding increase, which may go away if an education bill with a BSA provision is passed. Lawmakers are currently working on finding a solution after Governor Bronson vetoed a bipartisan education package.
The proposed budget will now head to the Senate after being debated on the House floor. The Senate majority plans to review the House version of the budget by April 12. Lawmakers expressed differing opinions on the budget, with concerns about stable education funding and the need to cut the operating budget to adhere to legal requirements. Overall, the proposed budget aims to balance state finances while addressing key issues such as education funding and support for essential services.
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