Wrangell should know by June 30 — maybe sooner — if Gov. Mike Dunleavy will veto funding to restore two state jobs in the community that were headed toward approval by lawmakers in the final days of the legislative session.
The governor has 20 days, not counting Sundays, after legislators adjourn their session to sign or veto budget bills. But because the 20-day clock would extend past the start of the fiscal year on July 1, Dunleavy needs to decide on the budget by June 30 to avoid any potential shutdown of public services.
Legislators this week were working to adopt a budget for the new fiscal year that includes $66,000 in state funds to restore the lone commercial fisheries position in Wrangell. The state eliminated the job a year ago after the governor vetoed the legislative funding, saying the work could be handled by staff in Petersburg.
Lawmakers also included $72,000 in state and federal funds in the budget to restore the Office of Children’s Services caseworker job in Wrangell, with the borough contributing office space and covering a portion of the salary, in total matching the state’s $72,000.
Wrangell lost its children’s services caseworker several years ago to budget cuts. Legislators approved funding for the office last year, but the governor vetoed the spending — even with the borough offering to cover half the costs.
The state constitution gives governors the power to eliminate any line item in a budget or reduce its amount. It takes a three-quarters vote of the Legislature to override a veto of budget items.
A conference committee of three members each from the House and Senate finished work on a compromise budget bill on Sunday, sending the measure to the two chambers for a vote.
The Senate was scheduled to consider the budget bills on Wednesday. The House approved the spending plan late Tuesday night on a 21-18 vote, but in a separate vote failed to approve a provision appropriating money to pay an $1,100 Permanent Fund dividend, reducing the PFD by about half.
The House was scheduled to meet again Wednesday and a revote was possible before Friday’s adjournment deadline.
Votes were postponed earlier in the week as members debated in private meetings several provisions of the spending plan, the most contentious of which was the amount of the dividend. The House-Senate conference budget and leadership of the House and Senate majorities wrote the bills so that if members did not accept the complete budget package with an $1,100 dividend, the PFD would be cut in half.
The House and Senate majority linked the larger dividend to other key provisions that would continue a college scholarship program, state financial assistance with high electricity costs in rural communities, and public works money for school and roads projects in the Matanuska-Susitna Borough, where support for a large PFD is strong.
Legislators started work on the budget May 19 after the governor called them into special session to finish a state spending plan for the next fiscal year. The Legislature adjourned its regular session May 18 without completing work on the budget, as disputes over the size of the Permanent Fund dividend blocked progress on the overall budget bill.
In addition to deciding spending on public services, state agency operations, highway work and construction projects, and the appropriation of $500 million from the latest round of federal pandemic relief aid, the budget also pays for the dividend. At $1,100, it would be about $100 more than last year’s PFD but far short of what the governor wanted.
The governor can veto spending but cannot increase items, such as the PFD.
Though many legislators favored the governor’s plan to withdraw an additional $3 billion from the Permanent Fund to pay a much larger dividend this year and next, most lawmakers opposed exceeding the annual draw on the crucial savings account.
Several House Republicans have objected to the $1,100 dividend, arguing the Legislature could take more money out of the Permanent Fund to pay a bigger PFD. Several have criticized the majority’s linkage tactics to push for acceptance of the PFD amount or risk a smaller dividend.
A conference committee bill cannot be amended in either chamber; only a yes-or-no vote is allowed.
The size of the dividend and the governor’s proposal to take more money out of the Permanent Fund were the biggest issues of the month-long special session of the Legislature. Spending decisions on public services were much less controversial among lawmakers.
Last week, Senate members of the conference committee accepted the House provision to add back the caseworker for Wrangell.
When Dunleavy vetoed the children’s services caseworker last year, his spokesman said the department needed to use the money in communities with larger child protection caseloads than Wrangell.
Wrangell school personnel sees it differently than the governor. Bringing back a caseworker “is absolutely crucial,” Bob Davis, lead teacher and assistant principal for the high school and middle school, said last month. “We’re seeing a huge uptick in depression … just kids struggling.”
Reader Comments(0)