(SitNews) Juneau, Alaska - Today, on the 121st day of the legislative session, the Alaska Senate approved operating and capital budgets that fund constitutionally mandated services, protect billions in the Permanent Fund’s corpus, and provide critical relief to local communities and small businesses affected by the COVID-19 pandemic.  

Senators also approved approximately a $2,300 Permanent Fund dividend – the largest in Alaska history.    

House Bill 69  authorizes $4.43 billion in state unrestricted general funds for the upcoming fiscal year 2022 operating expenses and $274.6 million for next year’s capital budget, which leverages nearly $1.9 billion in federal funds for roads, bridges, and other infrastructure. 

With more than $10 billion in the Permanent Fund’s spendable portion, Senators voted to transfer $4 billion into the fund’s principal account, which cannot be spent without amending the state constitution. 

“As we finalize the budgets, we look forward to working with the House and Governor over the summer to finally resolve Alaska’s multi-year fiscal challenge,” said Senate President Peter Micciche R-Soldotna). “With a sustainable fiscal package, our state will attract new investment, grow our economy, and generate good paying jobs for Alaska families.” 

“I'd like to congratulate and thank all the Senators for working collectively on holding the operating expenses flat and passing another historic transfer into the Permanent Fund’s protected principal,” said Senator Bert Stedman (R-Southeast Islands) co-chairman of the Senate Finance. 

“I appreciate the hard work of all my colleagues in putting this capital budget together.” said Senator Click Bishop (R-Fairbanks) co-chairman of the Senate Finance Committee. “While the state still has so many capital needs, we did what we could during this difficult fiscal climate to invest in the future of our state.”

HB 69 passed the Senate by a vote of 17-3. The bill is now on its way back to Alaska House of Representatives for concurrence. 

Last week, Alaska Governor Mike Dunleavy issued a proclamation calling the Alaska Legislature into special session beginning May 20th to complete work on the FY22 budget and to act on his constitutional amendment protecting the Permanent Fund, Permanent Fund Dividend (PFD), and power cost equalization (PCE). 

“It is clear from my conversations with legislative leaders that more time is needed to complete this year’s budget and to address a long-term, permanent solution to protecting the Permanent Fund and PFD. Consequently, today I’m calling a 30-day special sessions to give lawmakers additional time to complete those tasks” said Governor Dunleavy. “Nothing is more important than giving Alaskans a long-term solution to our fiscal challenges, and this session is an important first step.”

The first special session begins 10:00am on May 20, 2021 and directs work on three topics:

• FY22 Operating Budget & Mental Health Budget (HB 69/HB 71)
• FY22 Permanent Fund Dividend (HB 72/SB 52)
• Constitutional Amendment protecting the Permanent Fund, PFD, and PCE (SJR 6/HJR 7)

The governor also set a second special session to address other elements of a comprehensive state fiscal plan including a constitutional spending limit, consideration of new revenue measures, a prohibition on new taxes without voter approval, and appropriations of federal American Rescue Plan (ARP) Act funds.

The second special session would start at 10:00am on August 2, 2021 and directs work on four topics:

• Constitutional Amendment to establish an appropriation limit (HJR 6/ SJR 5)
• Constitutional Amendment to prohibit new state taxes without voter approval (HJR 8/ SJR 7)
• Appropriations of federal relief funds, including ARP funds
• Potential measures to increase state revenues

On the Web:

The governor’s special session proclamations (pdf)

Additional information (pdf)

Posted & Edited By Mary Kauffman, SitNews

Source of News:

Alaska Senate Majority
www.akleg.gov

Office of Governor Michael Dunleavy
www.gov.alaska.gov

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