Just after I wrote last week’s enews, late last Thursday evening, with just a week before the government would have shutdown, the legislature reached a compromise on the operating budget. While this relieves the immediate pressure of a looming shutdown, measures to enact a fiscal plan were not passed so we have not completed our work for this year.
In a major step forward, the Legislature has passed a compromise operating budget with a bipartisan vote of 31 to 8 in the Alaska House. This budget is not ideal, but it is necessary to prevent a government shutdown on July 1 which would have brought a halt to Alaskans’ ability to provide for their families at the most crucial time of year for many economic activities.
On Thursday evening, the legislature passed House Bill 57, the FY18 operating budget. Passing this budget compromise means the state will continue to provide government services when the state’s fiscal year begins on July 1. Although passing the operating budget is a step in the right direction, the legislature has not adopted a responsible action plan to address Alaska’s financial challenges. There is more work to be done for a long-term solution.
I am excited to finally be returning to my family in Fairbanks, hopefully to enjoy the remainder of the summer at home; but of course I don’t know when I might have to go back to Juneau. I hope you have been taking advantage of these long summer days to spend time with your friends and family.
Greetings from Juneau. Late Thursday evening, the legislature was able to pass an operating budget to avoid a government shutdown. The budget includes several compromises between the House and Senate versions; the final version cuts $128.7 million in unrestricted general fund spending from last year’s budget. The House held strong on the commitment to fully fund K-12 education and pupil transportation.
Juneau – Speaker of the House Rep. Bryce Edgmon (D-Dillingham) has released the following statement in response to news that S&P Global Ratings has placed the State of Alaska on its CreditWatch and has indicated that Alaska’s credit rating would likely be lowered without the passage of significant fiscal reforms this year.
Juneau – Recent analysis from the Alaska Department of Revenue shows a stark contrast between the competing versions of legislation to reform Alaska’s unsustainable system of subsidizing the oil industry on the North Slope with unaffordable tax credits. The version of House Bill 111 supported by the Alaska Senate Majority follows the lead of the Alaska House Majority Coalition in ending the practice of paying oil companies cash for tax credits, but on paper only. This is expected to save the State of Alaska an estimated $1.5 billion over the next ten years. However, the Senate version of the bill would result in the loss of $1.45 billion in revenue over that same timeframe by replacing the cash for credit system with a higher percentage of “carry forward” deductions that oil companies could subtract from production and other taxes they pay to the State of Alaska.
It is the 27th day of the Special Session focused on our fiscal issues. I know many of you are frustrated to see a legislative gridlock in Juneau. I too am frustrated, but we are at a critical point in Alaskan history and it is important that we get this right. I am sure I sound like a broken record.
