The proposed budget released by a legislative committee Sunday got strong pushback from lawmakers, throwing into question whether there are enough votes for it to pass.<\/p>\n
The proposal allocates a Permanent Fund Dividend of $1,100 but splits the funding sources for the payment so that two votes are required for the full amount.<\/p>\n
One of those fund sources is the Constitutional Budget Reserve of the Alaska Permanent Fund which requires a three-quarter vote in both bodies to access, or 15 Senators and 30 Representatives. Neither body has a caucus that can muster enough votes and reaching the high threshold typically involves negotiations.<\/p>\n
[Lawmakers reach tentative deal on budget, dividend<\/a>]<\/ins><\/p>\n Alaska uses an accounting mechanism known as “the sweep,” which at the end of each fiscal year empties certain state accounts into the CBR. Without the three-quarter vote to reverse the sweep, several critical state programs, such as the Power Cost Equalization and the Alaska Performance Scholarship, will remain unfunded. In that scenario, the PFD amount would also drop down to $525.<\/p>\n The budget bill passed by the Senate included a PFD of $2,300, following a formula currently being advocated by the governor. But that amount would require an overdraw on the Earnings Reserve Account of the Permanent Fund, which several lawmakers of both parties<\/a> strongly oppose. <\/p>\n Many Republican lawmakers and the governor have stepped away from a demand the dividend be paid according to a statutory formula, and offered the $2,300 amount as a compromise. Lawmakers opposed to overdrawing the ERA had already proposed a dividend of roughly $1,000 in an earlier version of the budget.<\/p>\n Not long after the committee’s proposal was released lawmakers from both parties took to social media to condemn the tactics. On Facebook, Rep. Garan Tarr, D-Anchorage, called the move “manipulation” and said it was disappointing lawmakers had not consulted with the Republican minority in the House.<\/p>\n “Since the House Republican Minority has been working closely with (Gov. Mike Dunleavy) all session I won’t be surprised at all if they do not give the three-quarter vote, leaving the piddly $500 PFD, and then (Dunleavy) will veto it to try and force the legislature to actually do our job and address this in the August Special Session.”<\/p>\n Dunleavy himself voiced his disappointed, saying in a Twitter post, “once again the PFD is a political football subject to the whims of politicians. This is further proof we need to protect the PFD within AK’s constitution.”<\/p>\n Big Lake Republican Rep. Kevin McCabe, posted an image to Facebook Monday reading “Bring. It. On” with a background of skulls.<\/p>\n