Juneau’s two delegates to the Alaska House of Representatives and Gov. Bill Walker say they are optimistic about a keystone budget fix proposed by the House’s leaders on Friday.
House Bill 115, introduced to the House, would impose a state income tax and spend a portion of the investment earnings of the Alaska Permanent Fund as a means to eliminate more than three-quarters of Alaska’s $2.7 billion annual deficit.
The bill will receive its first hearing in the House Finance Committee at 1:30 p.m. Monday. The hearing will be televised by Gavel to Gavel online and on GCI cable.
In a statement Friday, Walker thanked members of the finance committee for suggesting the bill.
“This could complete the task of establishing a balanced fiscal plan for our state. I am pleased to see momentum building to address our budget deficit this session, and I look forward to working with lawmakers to move these efforts forward,” he said in an email sent by a spokesperson.
Rep. Sam Kito III, D-Juneau, said by phone that he supports what was introduced Friday, but those watching the Legislative process should keep in mind that the details of the bill could change as lawmakers suggest amendments, and the end result might be something he wouldn’t support.
Right now, however, he said he agrees with the plan proposed by Rep. Paul Seaton, R-Homer and co-chairman of the House Finance Committee.
“That bill and what’s in it is a necessary component of a fiscal plan to try to create a sustainable revenue system for the state of Alaska,” Kito said.
Rep. Justin Parish, D-Juneau, offered more wholehearted support of the idea and said Seaton has been a consistent “adult in the room” when it comes to suggesting fixes that, while painful, fix the state’s deficit.
Parish said he might support amendments to the proposal, but he supports the bill’s goals.
Contact Empire reporter James Brooks at james.k.brooks@juneauempire.com or 419-7732.
