Gov. Mike Dunleavy called the Legislature into a second special session to pass a complete budget that will prevent a government shutdown.
The budget for the coming fiscal year that was passed by the Legislature this week failed to have a new effective date of July 1, and thus a partial government shutdown would occur until the 90-day effective date. That means the government wouldn’t be funded until September.
“The budget passed this week is constitutionally impaired if the goal was for it to take effect on July 1. This second special session affords the opportunity to remedy that problem,” he said.
Section 18 of the Alaska Constitution addresses the effective date of legislation and states that a bill does not take effect until 90 days after enactment unless two-thirds of the legislature “provide for another effective date.” According to the Department of Law, “expenditures of state funds provided under CCS HB 69 cannot be made until that bill becomes law which is 90 days after its enactment – with a very limited exception for spending that is necessary to meet constitutional obligations of the state such as maintaining the health and safety of its residents or to comply with federal requirements.”
The second special session begins at 10 am on Wednesday, June 23, in the Alaska State Capitol and directs the Legislature work on the following:
A bill similar to HB 69, the operating budget; making the operating budget effective immediately under AS.01.10.070 (c); making appropriations from the Earnings Reserve account, including for the payment of Alaska Permanent Fund dividends; and making appropriations under Article IX, Section 17(c), Constitution of the State of Alaska, from the Constitutional Budget Reserve Fund.