Governor's expanded special session scope enables lawmakers to appropriate PFD and restore funding to vital programs
August 23, 2021
“Alaskans are still in recovery mode from the economic impacts of the pandemic. With this in mind, and following recent encouraging conversations with legislators, my administration has put forth a vehicle for the legislature to fund the PFD and student scholarships – two critical programs that directly impact Alaskans,” said Governor Dunleavy. “We recognize there may be other appropriations the legislature will consider as we work collaboratively to finalize the FY 22 budget in this special session; but I am committed to ensuring Alaskans get a fair share of their resource wealth.” Senate leaders in the Alaska Legislature responded releasing the following statements: “I appreciate Governor Dunleavy’s willingness to be flexible and work with the Legislature for the benefit of Alaskans. With this addition, we can pay a healthy dividend and fund other critical programs Alaskans rely on every day," said Senate President Peter Micciche (R-Soldotna). "It’s my hope that this positive, collaborative action will help build momentum toward the Legislature and the Dunleavy administration finally solving Alaska’s long-term fiscal challenge, ending the uncertainty that has plagued our state’s economy and divided Alaskans for years.” “I’m glad the Governor has added appropriations to the call. There are some vetoes that can now be restored, and providing a dividend this year for Alaskans is crucial. Many Alaskans are struggling, communities throughout Alaska are in a recession, and we are still in the midst of the COVID-19 pandemic,” said Senate Democratic Leader Tom Begich (D-Anchorage). “I appreciate that the Governor has added this to the call so Alaskans can be sure that we will address not only the recommendations of the Working Group, but also fiscal uncertainty.” Speaker of the House Louise Stutes released the following statement in response to the governor's decision: "Today’s decision by the governor to allow work on a budget bill means we now have the tools to get the job done—keeping the state on track toward a resolution that will provide Alaskans with a dividend, and restore funding for vital programs like Alaska Performance Scholarships and WWAMI, which is the only program that trains doctors who want to launch careers in our state." Stutes said, "We’re committed to working toward a resolution on every proposal that has consensus as we continue to seek a compromise that will end Alaska’s structural budget deficit once and for all." Quoting a news release from the Office of the Governor, the governor's budget bill includes critical appropriations to help the legislature finalize a structured fiscal solution for Alaska, provide Alaskans with an equitable distribution of the state’s resource wealth, and fully fund student scholarship programs:
The state’s scholarship programs and the Power Cost Equalization Endowment Fund were two components of the budget process that failed to pass the legislature earlier this year. On August 12, the Superior Court determined the PCE fund is not subject to Article IX, Section 17(d) of the Alaska Constitution that moves the fund into the Constitutional Budget Reserve for future appropriation. With clarity from the court, Governor Dunleavy immediately authorized the funding to be distributed to the utilities that provide electricity to the 90,000 residents in rural Alaska. Governor thanked Fiscal Policy Working Group Earlier last week, the legislative Fiscal Policy Working Group released their report, in which they identified several solutions including: constitutionally protecting the Permanent Fund Dividend, allocating 50% of the annual Permanent Fund earnings draw to pay dividends, establishing an enforceable government spending limit, and leveraging a small portion of the Permanent Fund’s earnings windfall as one-time bridge funding to implement a comprehensive fiscal solution. “I want to thank the Fiscal Policy Working Group for their dedication and hard work over the past six weeks. They had a difficult assignment and a very compressed timeline in which to work. I’m impressed with the thoughtful solutions the members have put forward for legislative consideration and it provides an excellent launching point for this special session,” said Governor Dunleavy. “In my meeting with the four legislative caucus leaders yesterday, everyone agreed that we must take action this session to resolve these issues for the long-term.”
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Edited By Mary Kauffman, SitNews
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