The Budget
On Wednesday, May 17th, the Senate passed House Bill 39 which encompasses both the operating and capital budgets. However, after the bill was transmitted to the House, it failed to pass before the body adjourned. Because a budget failed to pass by the constitutional session limit of 121 days, the Governor immediately called the Legislature into a 30-day special session. That special session started Thursday, May 18th at 10 a.m. Throughout the day, both the Senate and House Leadership met along with the Caucuses from both majorities in an attempt to work out a plan to avoid spending 30 days in special session with the possibility of a government shutdown. We worked together for hours and agreed on a plan. The House sent the budget back to the Senate where we added another 34M in Capital projects and approved the budget. The House concurred with our budget, the special session ended and both Houses adjourned until the next session which begins on January 16, 2024.
Highlights of the approved budget:
- $1,304 Permanent Fund dividend. The budget also provides a path to repay the Constitutional Budget Reserve (CBR) account which the Legislature is constitutionally obligated to do. If incoming revenue exceeds projections, the first $636 million is split between a 2024 energy relief payment of up to $500 for every eligible Alaskan and deposits into the CBR. This occurs if the price per barrel of oil in FY 24 averages between $73 - $83 per barrel. Any additional revenue above an average of $83 per barrel will be deposited into the CBR.
- $174 million increase in education funding which is the largest increase in the State's history and represents a one-time BSA increase of $680.
While constructing the capital budget, the Senate Finance Committee took into consideration five goals: 1) Balance the budget, 2) maximize federal funds and provide grant writers for communities the ability to secure federal grants, 3) establish food security and resource preservation, 4) strengthen state-wide energy programs, and 5) address our deferred maintenance needs. Unfortunately, this meant that many district specific projects went unfunded.
I am pleased to leave the 1st session of the 33rd Legislature with a sustainable PFD, increase in education funding, funding for our seniors, disabled citizens, and our most vulnerable citizens, capital project match funding in order to receive Federal grants, statewide capital projects and, ultimately, a balanced budget with an $84.2M surplus.
Now that the session is over, you can visit me in my Anchorage Office at 1500 W. Benson Blvd., Suite 328.
Have a wonderful summer!!
