It remains uncertain whether the Alaska Legislature will approve $5,500 payments to Alaskans this fall. Reporter James Brooks with AlaskaBeacon says recent House votes have been postponed as leaders fear their coalition will cave. Take a listen:
It remains uncertain whether the Alaska Legislature will approve $5,500 payments to Alaskans this fall.
That’s the Permanent Fund dividend amount, plus an energy assistance check, in the state Senate’s budget proposal. The House approved a lower amount — $2,600 — and it can now either vote to seek a compromise, or agree with the Senate’s version. For individual legislators, in an election year, stalling a bigger PFD in the name of sustainable budgeting is a tough call, especially with oil prices high. But for others, it’s clear cut: If oil prices drop, the state will spend down savings and have to make up the difference with taxes, drastic cuts or both.says recent House votes have been postponed as leaders fear their coalition will cave.: Late Wednesday night, the House was expected to vote, had been on the calendar to vote.
But if oil prices go down, the amount of money that needs to be pulled out of savings increases. So let’s say oil is $93 a barrel instead of $101. At that point, the state drains its Statutory Budget Reserve, the first of the big savings accounts that it uses to balance the budget.So in order to spend from the next savings account, the Constitutional Budget Reserve, the Legislature needs a supermajority vote, which it doesn’t have right now. But let’s say it gets that.
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Alaska House delays vote on whether to pass the Senate’s budget with $5,500 in cash paymentsOne big point of contention is that the Senate’s budget has a full statutory Permanent Fund dividend at over $4,200 and a one-time energy relief check at $1,300. Added together, the two checks would be over $5,500.
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