The allotted 90 days of the Alaska Legislature’s 30th session has passed by with two leading bills on the coming year’s budget still awaiting reconciliation.
The House last week passed a version of Senate Bill 26, which among other things allots 75 percent of Permanent Fund earnings to the state’s operating funds and ties earning computations to a market value model. The House version differed from that initially put forward by the Senate, notably eliminating an appropriation limit of $4.1 billion and reducing the draw from the earnings reserve when oil revenues are about $1.4 billion, rather than $1.2 billion. And while in the Senate version dividends for the next three years would be set at $1,000, the House version would set it at a minimum of $1,250 for the next two.
Perhaps the largest change was a section tying effect of the act to the passage and signature into law of House Bill 111, overhauling oil tax credits and the base tax rate. That passed over to the Senate on April 10 and sits in the Senate Resources Committee. After taking hours of public testimony early in the week, the body is expected to continue working on the bill this week.
The two chambers failed to find agreement over the weekend. The Senate rejected House amendments to S.B. 26 in a 4-16 vote on Friday, and the House likewise rejected withdrawing its amendments on Sunday in a 17-22 vote. As of Tuesday the bill was expected to head to conference committee to be reconciled by appointees representing both chambers of the Legislature.
A similar fate befell House Bill 57, the lower chamber’s budget package. The House failed to concur with an amended version put forward by the Senate on April 6, voting against it in a 22-18 result on April 11. It currently awaits consideration in the Senate.
House Bill 115, which proposes institution of a statewide income tax of 15 percent of a person’s federal liability, also passed 22-17 on Saturday, and after being read for the first time by the Senate was referred to its Labor, Commerce and Finance committees on Monday.
Passing the voter-mandated 90-day threshold for the session, legislators have another 30 days to come to a resolution. During this period the session ends if either body gavels out, meaning smaller technical sessions will keep things going until a budget can be resolved. If the session ends without a fiscal plan in place for the coming year, Gov. Bill Walker or the Legislature itself can call special sessions until one finally is.
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