As the rest of the Alaska Legislature takes a two-week recess before returning for special session next Tuesday, the Senate and House finance committees have been left behind to continue working toward adoption of a budget.
After extending beyond the statutory 90-day session without a fully funded budget, the Legislature was called into special session by Gov. Bill Walker. On April 30 both chambers agreed to gavel out until May 12 while the finance committees continue to meet.
“Right now we’re recessing,” Rep. Dan Ortiz (I, Ketchikan) said in an interview Monday. “I personally don’t think we should be,” he added.
Walker has challenged legislators to adopt a “Take 2” budget proposal, which his office says largely incorporates legislative actions taken throughout the session and would reduce state spending in operations and capital projects by $874 million. This budget would also add $94 million in funding for education spending and other target items, and it includes savings associated with an approved Medicaid expansion.
Medicaid expansion and reform has been a key issue for Walker since taking office last November. A previous push to get it passed stalled last month in the House and Senate finance committees, after passing the Health and Social Service subcommittee.
“From his (Walker) perspective it would be in the best interests of the state, and I share that perspective,” Ortiz commented.
Projecting $146 million in new federal revenue accompanying the expansion, the governor’s office estimates $1 billion would be brought into the state economy over the next six years by the move. It also estimates the expansion would extend coverage to 42,000 residents who are currently uninsured.
On its site, the Senate Majority counters that expansion would increase Alaska’s long-term Medicaid liability, costing the state $109 million by 2022. While some Republican legislators have shown support for expansion, the party maintains reform of the current system must come first.
The budget put forward by the Legislature before ending its session April 27 did not pass with the necessary support needed to tap into the Constitutional Budget Reserve for $3 billion, the amount needed to fully fund the proposed budget.
The Senate and House finance committees now have the governor’s budget to consider in addition to Medicaid expansion.
Senate Secretary Liz Clark explained there will likely be an amended budget coming from each, which go before the House and Senate for a vote when the recess ends. Whether the finance committees will favor putting forward a budget based on H.B. 72 or the governor’s “Take 2” proposal is yet to be decided.
“We do have to cut spending,” said Ortiz. Rather than cuts to education spending, he favored reductions to tax credits and other subsidies for oil production or funding for the new legislative building in Anchorage. Similarly, he felt money could be saved by approving Medicaid expansion.
“I don’t see it as a desire to spend more money. I see it as a desire to spend money that we’re currently spending more wisely and direct it to education,” he said.
Reader Comments(0)