{"id":4459,"date":"2017-06-15T14:57:09","date_gmt":"2017-06-15T21:57:09","guid":{"rendered":"http:\/\/spijue.wpengine.com\/news\/house-votes-for-higher-dividend-but-deal-is-far-from-complete\/"},"modified":"2017-06-15T14:57:09","modified_gmt":"2017-06-15T21:57:09","slug":"house-votes-for-higher-dividend-but-deal-is-far-from-complete","status":"publish","type":"post","link":"https:\/\/www.juneauempire.com\/news\/house-votes-for-higher-dividend-but-deal-is-far-from-complete\/","title":{"rendered":"House votes for higher dividend, but deal is far from complete"},"content":{"rendered":"

The Alaska House of Representatives has voted to approve a $2,200 Permanent Fund Dividend for this fall, a sign that it is abandoning a long-term deficit solution in favor of a one-year budget needed to avert a statewide government shutdown.<\/p>\n

The 26-14 vote came Wednesday as lawmakers debated amendments to the state&rsquo;s capital construction budget. The higher PFD amount was Amendment No. 1.<\/p>\n

“At this point, it looks like we may be leaving this building with only a budget and without a comprehensive plan,&rdquo; said Rep. Gabrielle LeDoux, R-Anchorage and the sponsor of the amendment.<\/p>\n

“Without this amendment, we are headed for a budget that reduces the people&rsquo;s PFD. And to this, Mr. Speaker, I say not only no, but hell no,&rdquo; she added.<\/p>\n

Earlier this year, the House approved a $1,250 dividend as part of its statewide operating budget proposal, one that was tied to a comprehensive fix for the state&rsquo;s $2.7 billion annual deficit.<\/p>\n

Wednesday&rsquo;s vote was along neither caucus nor party lines. Twelve Democrats voted for it, as did 14 Republicans. Two independents voted against it, as did five Democrats and seven Republicans.<\/p>\n

Rep. David Eastman, R-Wasilla, joined others in support of the amendment.<\/p>\n

“If we are not going to change the law, I think it is incumbent upon us to follow the law,&rdquo; he said in a floor speech.<\/p>\n

From Juneau, Rep. Sam Kito III, D-Juneau, voted against the higher dividend. Rep. Justin Parish, D-Juneau, voted for it.<\/p>\n

“I&rsquo;d rather not say anything … until we&rsquo;re done with the bill,&rdquo; Kito said as more amendments were presented.<\/p>\n

Parish was more willing to discuss his vote.<\/p>\n

“As part of a fair and comprehensive plan, I would support using part of the dividend,&rdquo; he said. “However, if we&rsquo;re not asking anything of the oil industry and if we&rsquo;re not asking anything of the 20 percent of nonresident workers in the state, I can&rsquo;t in good conscience ask every one of my constituents … to contribute $1,100 to state government and the oil industry.&rdquo;<\/p>\n

Wednesday&rsquo;s vote is a sign that members of the coalition House Majority are willing to make a short-term deal to avoid a government shutdown.<\/p>\n

If the Legislature fails to pass a budget — and find a way to pay for it —before July 1, many state services will shut down for lack of funding.<\/p>\n

[State shutdown would affect every man, woman and child in Alaska — including the dead<\/a>] <\/ins><\/p>\n

The Legislature&rsquo;s first special session ends on Friday, and it appears that even if a compromise is in the works, a second special session will be needed to finish it.<\/p>\n

Until Wednesday, the House Majority had said that it was unwilling to accept anything less than a comprehensive fix to the state&rsquo;s deficit. Speaker of the House Bryce Edgmon, D-Dillingham, has repeatedly pointed out that 2018 is an election year, and lawmakers are reluctant to make difficult decisions (such as raising taxes) in an election year.<\/p>\n

Wednesday&rsquo;s vote is the first sign that members of the House Majority may deem a shutdown worse than a persistent deficit. The state can fully fund its operations from savings for one more year without consequences to the dividend.<\/p>\n

Wednesday&rsquo;s vote on the dividend has a long road to become reality. The Senate must approve the higher dividend, and Senate President Pete Kelly, R-Fairbanks, appears to think negatively of the idea.<\/p>\n

In a statement released after the House vote, he said the higher dividend adds more than $800 million to the state&rsquo;s budget.<\/p>\n

He called the addition an attempt by the House Majority to encourage passage of an income tax, even though half the majority didn&rsquo;t vote for the higher dividend and many members of the Republican minority did vote for it.<\/p>\n

Even if the Senate were to agree with the higher dividend, the idea must survive Gov. Bill Walker, who vetoed half of last year&rsquo;s dividend and could do so again.<\/p>\n

Walker, at the time, said the state needed to prioritize a long-term fix to the deficit.<\/p>\n

“Drawing down from limited savings to fund the budget is not a viable plan,&rdquo; Walker said at the time.<\/p>\n


\n

• Contact reporter James Brooks at james.k.brooks@juneauempire.com or call 419-7732.<\/b><\/p>\n


\n","protected":false},"excerpt":{"rendered":"

The Alaska House of Representatives has voted to approve a $2,200 Permanent Fund Dividend for this fall, a sign that it is abandoning a long-term deficit solution in favor of a one-year budget needed to avert a statewide government shutdown. The 26-14 vote came Wednesday as lawmakers debated amendments to the state&rsquo;s capital construction budget. […]<\/p>\n","protected":false},"author":426,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_stopmodifiedupdate":false,"_modified_date":"","wds_primary_category":4,"footnotes":""},"categories":[4],"tags":[34,168,95,230],"yst_prominent_words":[],"class_list":["post-4459","post","type-post","status-publish","format-standard","hentry","category-news","tag-alaska-legislature","tag-alaska-permanent-fund","tag-alaska-state-budget","tag-state-news"],"_links":{"self":[{"href":"https:\/\/www.juneauempire.com\/wp-json\/wp\/v2\/posts\/4459","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.juneauempire.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.juneauempire.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.juneauempire.com\/wp-json\/wp\/v2\/users\/426"}],"replies":[{"embeddable":true,"href":"https:\/\/www.juneauempire.com\/wp-json\/wp\/v2\/comments?post=4459"}],"version-history":[{"count":0,"href":"https:\/\/www.juneauempire.com\/wp-json\/wp\/v2\/posts\/4459\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.juneauempire.com\/wp-json\/wp\/v2\/media?parent=4459"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.juneauempire.com\/wp-json\/wp\/v2\/categories?post=4459"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.juneauempire.com\/wp-json\/wp\/v2\/tags?post=4459"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.juneauempire.com\/wp-json\/wp\/v2\/yst_prominent_words?post=4459"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}