The second session of the 29th Alaska Legislature reaches its 90th day today, but don’t expect lawmakers to be finished with their work anytime soon.
Whether lawmakers decide to spend extra days in the regular session or decide to call an immediate special session, all signs indicate that deep divisions on the budget and how to resolve a $4.1 billion annual deficit mean no solution will come in time to meet the standards of a voter initiative approved in 2006.
“I don’t want to diminish the optimism for the end of the session,” Gov. Bill Walker said on KINY-AM Thursday about the call for a special session, but “that decision will probably be happening Sunday night.”
Ninety-day sessions started with the 2008 Alaska Legislature, and this is the ninth. Only two have finished before midnight on the morning of Day 91 without being followed immediately by a special session: 2009 and 2013. The 2010 session ended close to the deadline: It finished just after midnight.
This year, the Legislative logjam is the issue of subsidies for the oil and gas industry. Next year, according to estimates from the Alaska Department of Revenue, the state of Alaska will be liable for $775 million in tax credits owed to oil and gas producers and drillers.
With the state of Alaska facing a $4.1 billion annual deficit, many in the Alaska Legislature are requiring significant cuts to that subsidy before they vote for tax increases or spending from the Alaska Permanent Fund.
“For me and for us, this oil tax bill really is the foundation for everything else,” said Rep. Chris Tuck, D-Anchorage and the House Minority Leader. “We simply do not want to see Alaskans … give up their Permanent Fund for the oil industry.”
On the opposite side are lawmakers representing districts whose local economies rely upon the oil industry. They contend that with oil prices in the basement and oil companies losing money, cutting subsidies is the equivalent of cutting jobs — and jobs lost now mean lower production when oil prices rebound.
“I’m willing to give a little bit, but I think we need to be very careful with the changes we make to the tax structure,” said Speaker of the House Mike Chenault, R-Nikiski.
In an ordinary year, the Legislature would simply work past the 90-day limit, ignoring the voter-imposed statute and holding to the 121-day limit in the Alaska Constitution.
This year, that isn’t possible. Construction on the third and final year of seismic reinforcements to the Alaska Capitol is expected to begin later this week, making continued Legislative work impossible.
Many Anchorage lawmakers support moving the session to Anchorage if needed — a resolution stating as much has passed the Senate and is awaiting a vote in the House.
Juneau lawmakers are hoping legislators move simply down Main Street, perhaps to Centennial Hall, which has figured into contingency plans written by the City and Borough of Juneau.
If the Legislature stays on course for overtime, lawmakers will be on the move. The only question is whether they’ll move down the street or north in the state.
“We’ll make that decision Sunday night, as far as where, if there is a need for the special session,” Walker said.
Correction: A previous version of this story misspelled the name of Speaker of the House Mike Chenault.
Gov. Bill Walker speaks during an interview in his Capitol office on Wednesday.
Gov. Bill Walker speaks during an interview in his Capitol office on Wednesday.
Gov. Bill Walker speaks during an interview in his Capitol office on Wednesday.
