Four Alaska House members, Rep. Chuck Kopp, Rep. Andy Josephson, House Speaker Bryce Edgmon, and Rep. Louise Stutes, met in Juneau to discuss the state’s budget and fiscal situation. The House’s budget has stalled due to disagreements on the Permanent Fund dividend, school funding, and the overall budget size.
The House Finance Committee approved a draft budget with a statutory PFD and a $1.9 billion deficit. However, the House majority is unwilling to send an unbalanced budget to the Senate. Legislators are facing a $680 million deficit over two fiscal years, assuming a $1,400 dividend and a $174 million school funding boost.
Some lawmakers support a larger school funding increase of over $250 million per year, which would require a smaller $1,000 dividend payment. The House majority is committed to the $1,000 BSA boost despite the deficit. Governor Mike Dunleavy has proposed a statutory dividend, but it would lead to a $1.9 billion deficit.
The House majority, with a one-seat margin, needs Republican minority members to pass the budget. The House’s budget process has been tense, with finger-pointing between the majority and minority caucuses. Both sides have not articulated clear plans for balancing the budget, while options for reducing the deficit are limited. The House exchange of budget bills with the Senate is delayed as the House remains deadlocked.
Lawmakers are facing additional fiscal uncertainties due to potential cuts in federal programs and President Trump’s tariffs. Despite the challenges, legislators are urged to work together to find a solution and avoid a special session.
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