Last week, Alaska's lawmakers received word from the governor's office another session may be called for October.
On August 31 emails were sent to members of the Alaska Legislature, letting them know a special session – the fourth of the year – will likely be called to discuss revenue.
During the second special session in July an operating budget was passed, with a capital budget approved the following month in another session. The spending bills came with cuts and an overhaul of the state's oil tax credit system, but without new sources of revenue.
During the year competing strategies on how to make up for declining petroleum royalties and taxes were offered in the House and Senate, with a measure of consensus reached by both chambers on a restructuring of the Permanent Fund. Other options still being considered include reinstitution of an income tax, or implementation of a statewide sales tax. However, neither option will likely close the prospective $2.7 billion spending deficit, and some combination is likely.
As it stands, the state has nearly emptied its Constitutional Budget Reserve after five years of drawing on it and other accounts. The approximately $2 billion left by next year is not expected to last much longer at the present rate.
Details on what Gov. Bill Walker might propose are not yet available, and an official proclamation is expected later this month. Alaska's Constitution requires 30 days’ notice be given before legislators can be called into session.
Responding to the news in an announcement later that day, the coalition Alaska House Majority seemed ready to adopt a fiscal plan for the state, which it considered incomplete following previous sessions.
“The facts are that low oil prices are likely for the foreseeable future and we currently have less than one year’s worth of savings to fund essential state services like public education and public safety. That means it is time for all of us to put aside politics and come together to find a sustainable fiscal solution for Alaska,” said Rep. Bryce Edgmon (D-Dillingham), House Speaker. “The members of the Alaska House Majority coalition are prepared to go back to work to finish what we started earlier this year when we passed a full fiscal plan that included new revenue to fill the budget gap. I am concerned that if action is not taken this fall the politics that inevitably spring up during an election year will get in the way of real and comprehensive fiscal solutions next year.”
Speaking for the Republican-led Alaska Senate Majority, Sen. Pete Kelly (R-Fairbanks) said, “The Senate is committed to reducing state spending and passing a spending limit. Earlier this year, when the economy was losing thousands of jobs, the Senate voted to protect working families by defeating an unnecessary income tax. The economy hasn't improved, but we plan to give the governor's revenue proposals a fair hearing.”
Rep. Dan Ortiz (U-District 36) was unable to comment on the announcement by Tuesday's press time. However, he will be in Wrangell to meet with the Borough Assembly Friday at 1:30 p.m., inside City Hall.
“This is an informal meeting,” he explained, gathering input for the coming session. Afterward, he intends to meet with Wrangell Cooperative Association to hear its concerns on a planned monofill site near Pats Creek.
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