In a tense and last-minute turn of events, the Alaska House of Representatives adjourned abruptly on Wednesday at 9:15 pm without voting on the state budget. A special session will begin Thursday at 10 am, as called by Gov. Mike Dunleavy.
The Alaska Senate had waited until the last possible minute to pass the spending proposal, prompting a race against the clock for the House to respond. The vote to adjourn was 22-18, with all Republicans voting together except for Rep. David Eastman, and Rep. Jesse Sumner, who voted with the Democrat minority.
The Senate’s budget plan was presented to the House late Wednesday, creating a demanding deadline that had less than six hours for the House to accept the proposal without any alterations.
The House, after spending most of the day in caucus, began its floor session two hours after the Senate’s budget approval at 6 pm, which left representatives with limited options to negotiate. As the House convened at 8 pm, and with a constitutional requirement to adjourn at midnight, it became apparent that an agreement was unlikely.
While the Senate had adjourned for the year, some senators, including Sen. Forrest Dunbar, took their seats in the gallery of the House to observe the unfolding situation. Dunbar arrived in a flannel shirt and stroked his day-old beard as he watched the House in action from a slouched position.
During the final moments on the Senate floor earlier in the evening, a few amendments had been introduced. The crucial question remained: had enough changes been made to appease House members fighting for a larger Permanent Fund dividend?
In the midst of this political standoff, the Democratic House minority appeared ready to accept the Senate take-it-or-leave-it scenario. However, the spending plan for the upcoming fiscal year, commencing on July 1, would have required at least five Republican defections to secure approval.
The Senate budget includes a $1,300 PFD payment per qualifying Alaskan, while the House’s plan offered a $2,700 dividend. The House’s proposal would have meant an $800 million draw from the Constitutional Budget Reserve.
One notable change made to the Senate’s budget depends on the price of oil. If the price exceeds $73 per barrel, Alaskans would receive a bonus on their Permanent Fund dividend.
This story will be updated with information once Gov. Mike Dunleavy makes a decision about convening a special session.
