Now that Alaska Gov. Bill Walker has the state budget on his desk, he has the power to veto or reduce appropriations, including the Alaska Permanent Fund Dividend. That could mean no October dividend check for Alaska residents, or a reduced one.<\/p>\n
In a press conference on Sunday, Walker showed frustration with the House for not showing \u201cleadership and momentum and statesmanship\u201d as the Senate did in passing the Permanent Fund restructuring bill that would\u2019ve meant a smaller dividend payout but a reduction in the state\u2019s deficit.<\/p>\n
\u201cThose that are concerned about receiving a lesser dividend this year … that is a step to make sure we have a dividend going out generations,\u201d Walker said.<\/p>\n
During an earlier press conference last week, he asked naysayers of Senate Bill 128 to envision \u201cwhat it\u2019ll be like to have no check.\u201d<\/p>\n
The bill called for a 5.25 percent annual draw from the Alaska Permanent Fund to pay for the dividend and provide money for state services. That would mean cutting the dividend to as low as $1,000. Without SB 128, the dividend is expected to be about $2,000 this fall.<\/p>\n
[House kills Permanent Fund plan<\/a>]<\/p>\n Walker recognized the restructuring doesn\u2019t fix the whole deficit problem.<\/p>\n Last week, Revenue Commissioner Randall Hoffbeck said the state would still have up to a $1.5 billion deficit next year. But that wouldn\u2019t mean continuing to take from the Permanent Fund.<\/p>\n \u201cAs far as squeezing any more out of the Permanent Fund earnings, the formula put in place is essentially the maximum draw we could make from the Permanent Fund earnings and expect to protect the corpus of the funds,\u201d he said. \u201cWe won\u2019t be going back to the Permanent Fund for more money. We will be looking at more traditional measures, revenues and reductions in spending.\u201d<\/p>\n An obligation<\/strong><\/p>\n After the Legislature adjourned Sunday morning failing to pass measures that would balance the state budget without deep draws from the state\u2019s savings accounts, Walker called the Legislature back to another special session starting July 11. The number one issue is the Permanent Fund.<\/p>\n [Governor urges action on Permanent Fund bill<\/a>]<\/p>\n In the meantime, the governor said the budget is his vehicle to cause change.<\/p>\n \u201cWhen the budget comes to me and I address the financial situation of Alaska through the budget … it will get some Alaskans\u2019 attention in that process. I am in a situation that things I anticipated would be done legislatively have not been. Therefore, I have the opportunity \u2014 I have the obligation \u2014 to do some things as governor with the budget,\u201d Walker said at the Sunday press conference.<\/p>\n [Empire Editorial: What if PFDs aren’t ‘permanent’?<\/a>]<\/p>\n When asked directly by members of the press if he would veto the whole $1.4 billion Permanent Fund appropriation or a portion of it, Walker didn\u2019t rule it out.<\/p>\n \u201cWe\u2019ll look at every item individually and decide between now and July 1 what items get vetoed and what does not,\u201d he said Sunday. \u201cAt this point, all options are on the table.\u201d<\/p>\n <\/p>\n \u2018A real possibility\u2019<\/strong><\/p>\n \u201cGiven the financial situation we\u2019re facing, I think it\u2019s a real possibility that a portion of the Permanent Fund money will be vetoed,\u201d Juneau Republican Rep. Cathy Mu\u00f1oz said on the phone Monday.<\/p>\n \u201cIf all of the dividend money were vetoed, then I believe that would force the Legislature to then deal with either an override of that veto or, more importantly, the long-range fiscal plan and the inclusion of the Permanent Fund endowment piece,\u201d she said, referring to SB 128.<\/p>\n The Legislature has the ability to meet in joint session and, with three-quarters of the members voting to do so, override a veto.<\/p>\n