Alaska’s State Legislature is facing critical decisions as it enters the final stretch of its regular session. Major priorities include increasing public school funding, enacting corporate tax hikes, and finalizing the state budget which includes the Permanent Fund dividend for this year. However, as of late last week, all three priorities remained uncertain, leaving lawmakers in a state of flux.
The state budget, which is divided into a supplemental budget for the current fiscal year and an operating budget for the upcoming year, is still being worked out. The House has passed a bill to address the current year’s deficit, while the Senate is set to address the upcoming year’s budget. Education funding is also a key concern, with proposed bills aiming to increase per-student funding and introduce policy changes.
To fund these initiatives, legislators are considering various options including using the Constitutional Budget Reserve, overspending from the Permanent Fund, or implementing tax hikes. Despite Governor Mike Dunleavy’s opposition to tax increases, the Senate is exploring options like changing corporate income tax laws and oil taxes to generate revenue for state services or the dividend.
With just weeks left in the session, lawmakers are under pressure to make critical funding decisions that will impact education, public services, and residents across the state. The outcome of these decisions will determine the state’s financial future for the coming year.
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