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Budget & Fiscal Plan Updates
This week, the legislature came to an agreement on the supplemental budget to pay the bills for the remainder of the current fiscal year, which ends on June 30. A conference committee was appointed to work out the differences between the House and Senate. The $449 million budget includes state match to leverage federal dollars for construction projects, as well as cover expenses from last year's wildfire season and the state response to former Typhoon Halong in Western Alaska.
It is unusual for the legislature to appoint a conference committee an a supplemental budget. The reason for this is because recent news in the Middle East caused the state's revenue forecast to project an influx of funding, such that some disagreed in using the state's Constitutional Budget Reserve savings account that required a 3/4 vote to access. While the approved supplemental budget was leaner and does not access this account, the forecasted windfall from the Iran War is nearly $550 million -- that is nearly the precise amount needed to cover the supplemental budget. It is clear the state cannot bet on wars and pandemics to drive up our revenue.
Because of that, the Senate also advanced a measure to close the S-corporation tax loophole, which may generate up to $150 million in revenue. Listen to my floor speech below.
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