The Alaska Legislature is facing a tough challenge in passing a viable state budget before the end of the legislative session in mid-May. House Speaker Bryce Edgmon described the situation as being in a pickle due to low oil prices and large deficits. The House has a narrow majority, making it difficult to agree on a budget that meets their constitutional obligations.
The $13.5 billion state operating budget contains $2.5 billion for dividends and an unallocated cut of nearly $80 million. However, there is a $1.9 billion deficit even before accounting for market volatility. Members of both the coalition majority and Republican minority have called the $3,800 dividend figure unrealistic. House Finance Committee members have voted out the budget, but disagreements continue over the dividend amount.
House leaders are seeking help from the minority and the governor to resolve the budget crisis. Reductions to the PFD would not fully balance the budget, and discussions on cuts to education funding are expected. There are suggestions to raise state revenue through tax expansions and reductions to oil and gas tax credits, but reaching an agreement on these measures may prove challenging.
Despite the difficulties, House Speaker Edgmon remains optimistic that lawmakers will settle on a budget before the legislative session ends. However, with time running out, there is growing pressure to reach a consensus on the budget to avoid potential challenges in passing it in time.
Source
Photo credit alaskapublic.org
