The Alaska Senate has refused to cough up the state operating budget, refused to allow the seating of a conference committee to negotiate the differences in the Senate and House budget, and refused to treat the House as an equal. So let’s not sugarcoat it: There will be a special session.
Adding fuel to that is the Senate budgeters also wedged $40 million into the budget to account for extra state employee leave that may be “cashed out” in the event of a state shutdown, which would occur July 1, if there is no approved budget.
In other words, the Senate is starting to simmer the narrative that the government could shut down.
At this point on the legislative calendar, the Senate will meet on Monday and go through amendments for the operating budget, then return the budget to the House.
By the Uniform Rules, the House cannot even take up that budget until Tuesday — the last day that is allowed of session by the Alaska Constitution. They must adjourn at midnight on Day 121 or go into either a 10-day extended session (requires a three-quarter affirmative vote in both houses) or Special Session, called by the governor.
Juneau legislative observers say the Senate Democrat-dominated majority is managing the timeline to create panic and crisis.
The real negotiations on the budget occurs at a conference committee, which is an open and transparent process. But with no budget to negotiate, that is now a figment of imagination.
As a side effect, the heavy-handed tactics by the Senate leadership with the take-it-or-leave-it budget has simply coalesced the House majority further.
Another dynamic is coming into play for the Legislature: One of the main housing units for legislative staff is the Driftwood Inn has just gotten more expensive. The rates are kept low, about $70 a night, through the last day of session, normally, but the rundown building was purchased by Tlingit Haida Tribes, and as of May 1, the tribe has started charging full tourist season rate to the staffers who live there. As of Monday, the rate will explode to $280 a night. Staffers don’t make enough to afford that.
That has made some staffers so mad they want the Driftwood taken off the preferred legislative housing list, but there’s no where else for them to go; the Marine View building was turned back into tourism season worker housing, and tourism season has all the other worker housing filled to the brim. Thus, expect that several staffers may sleep on the floor somewhere or leaving for home.
The budget’s sticking point, as it has been since 2017, is the size of the Permanent Fund dividend and what pot of money it will be funded from. The Senate would take 75% of the available funds and use it for government, leaving 25% for dividends. This would leave Alaskans with a $1,300 PFD. The House proposes the 50-50 split, for a $2,700 PFD.
By taking from the PFD, the Senate has announced that it balanced the budget, while the House budget would need to dip into the Constitutional Budget Reserve to balance, since it’s about $600 million short.
Accessing the Constitutional Budget reserve takes a three-quarters vote from the House and Senate.
