(SitNews) Anchorage, Alaska - With the passage of legislation last week to reform Alaska’s oil industry subsidies, the attention of the Alaska Legislature turns to the Fiscal Year 2018 Capital Budget. That budget needs to pass before the start of the federal fiscal year in October in order to prevent the loss of over a billion dollars in federal funding. The Alaska House Majority Coalition said in a news release they hope to negotiate a compromise with the Alaska State Senate and Governor Walker to pass the FY 18 Capital Budget before returning lawmakers to Juneau for final action. To this end, the Co-chairs of the Finance Committees in the House and Senate have already started meeting to discuss the details of a Capital Budget compromise.

In a news release Sunday, Alaska Governor Bill Walker said Alaskans deserve a complete fiscal plan and economic stability for the future. He urged lawmakers to continue with this spirit of compromise and collaboration, and pull together to fix Alaska. Governor Walker said legislators need to present him with a compromise on the capital budget before he places it on the call for another special session.

Walker said, “The state does not need to spend thousands of dollars in daily expenses simply for the parties to negotiate.” Governor Walke rsaid, “I have been assured, however, that legislators will reach a compromise in time to pass a capital budget before July 31. Once a deal is reached, I will immediately call them back into session.”

The Alaska State Senate invited the House to join them in a new special session this week in Juneau to finalize a capital budget that keeps Alaskans working on key projects across the state. The Senate issued the invitation at the close of the special session addressing oil tax credits.

“I see no benefit to the Alaskan people by paying to send dozens of legislators to Juneau, competing with tourists for peak-season hotel rooms at state expense, when there are still differences between the most recent House and Senate Capital Budgets. However, we have made significant progress in the last few days. We can and should act quickly to resolve our differences, protecting vital construction projects and preserving over a billion dollars in federal matching funds,” said Speaker of the House Rep. Bryce Edgmon (D-Dillingham). “I have already begun conversations with Senate President Kelly and Governor Walker to discuss the timing of taking up the Capital Budget with the hope of reaching a deal and getting this vital piece of legislation passed and signed before the end of July.”

In the effort to move quickly, the leadership of the Alaska House Majority Coalition has been in contact with the Governor’s office and the Alaska Department of Transportation and Public Facilities to get information on projects that must be funded in the FY 18 Capital Budget and the timing of that funding to prevent the loss of federal matching funds.

“I am confident a compromise is in reach that will protect the thousands of construction jobs that depend on a yearly Capital Budget,” said House Finance Committee Co-chair Rep. Neal Foster (D-Nome), who is leading Capital Budget negotiations. “We have no intention of delaying consideration of the Capital Budget but there are still some disagreements between the two bodies that need to be worked out. I agree with Speaker Edgmon that it would be a waste of time and money to force 60 members of the Alaska Legislature to sit in Juneau waiting on a deal. We should continue working and reconvene in Juneau when we have a compromise.”

“Alaska is facing tough economic times,” said Sen. Anna MacKinnon (R-Eagle River) co-chair of the Senate Finance Committee in calling for a special session to take place this week. “Job losses are high, our unemployment rate at 6 percent is the highest in the nation, and we’ve lost ground on other key indicators. Eliminating cash payments to oil companies was a good step forward, and we must now turn our focus to a capital budget.”

The capital budget invests $56 million of state funds to leverage $1.2 billion in federal money. Without a capital budget in place by July 31, negative impacts will be felt as early as this fall, according to the Alaska Senate Majority news release.

However, Governor Walker no more per diem or another special session until legislators present him with a compromise on the capital budget. According to various reports, Alaska lawmakers have collected at least $400,000 in per diem during special sessions held just this year.

“The Senate remains committed to addressing the critical issues before the state,” said Sen. Peter Micciche (R-Soldotna). “We delivered on an operating budget and eliminated cash payments to oil companies. Now, it is imperative we pass a responsible capital budget that leverages federal funds and keeps Alaskans employed. We are close to agreement and should continue negotiations toward a prompt resolution.”

According to the Alaska House Majority Coalition, once a compromise is agreed to, the Alaska Legislature will have a couple of options for taking up the Capital Budget, including calling themselves back in or working with Governor Walker to call a Third Special Session.

Editing by Mary Kauffman, SitNew

Source of News:

Alaska House Majority Coalition
www.akhouse.org

Alaska Majority Senate
akleg.gov

Office of Gov. Bill Walker
www.gov.alaska.gov

 

Representations of fact and opinions in comments posted are solely those of the individual posters and do not represent the opinions of Sitnews.

SitNews ©2017
Stories In The News
Ketchikan, Alaska

Articles & photographs that appear in SitNews may be protected by copyright and may not be reprinted without written permission from and payment of any required fees to the proper sources. E-mail your news & photos to editor@sitnews.us Photographers choosing to submit photographs for publication to SitNews are in doing so granting their permission for publication and for archiving. SitNews does not sell photographs. All requests for purchasing a photograph will be emailed to the photographer.