<\/a>Senate President Peter Micciche listens to senators Wednesday during a contentious day at the Capitol. The Senate was able to pass an operating budget, but questions remain regarding the Permanent Fund and other state programs like the Power Cost Equalization fund. (Peter Segall \/ Juneau Empire)<\/p><\/div>\n\t\t\t\t
Micciche said he and other lawmakers who voted for the budget were unhappy with tactics used in changing the funding sources for the PFD that came out of the conference committee on Sunday. But the prospect of a government shutdown was worse than the idea of a smaller PFD for now, he said, as it’s still possible more money could be added to the dividend in another special session.<\/p>\n\t\t\t\t
“The Senate’s position remains a 50-50 this year,” Micciche said, referring to a formula for the PFD espoused by Gov. Mike Dunleavy as part of his fiscal solution. Dunleavy is proposing combining the two accounts that currently make up the Alaska Permanent Fund and using an annual percent of market value draw to fund state government. Under the governor’s plan, half of that draw would automatically be put to PFDs and the other half toward state services.<\/p>\n\t\t\t\t
The Senate passed a budget with a $2,300 PFD, an amount reached using the 50-50 formula, but the PFD was reduced to roughly $1,100 in the conference committee tasked with hashing out the differences between House and Senate budget bills. Over the weekend, the committee released a final proposal using funds from the CBR to partially fund the PFD, meaning lawmakers in favor of a larger PFD would have to vote for programs they don’t approve of.<\/p>\n\t\t\t\t
Lawmakers from both parties bristled at the tactics, with many saying they felt coerced. In a statement, Dunleavy called the House vote incomplete and urged lawmakers to vote again before the end of the special session on Friday, June 18.<\/p>\n\t\t\t\t
Caucus divisions.<\/strong><\/p>\n\t\t\t\t It was an emotional day on the floor of the Senate with lawmakers delivering emotional speeches both for and against the budget or the decision to mix the fund sources. Several lawmakers, including Sen. Mia Costello, R-Anchorage, said her no vote was not against the budget but the tactics used and the amount of the PFD.<\/p>\n\t\t\t\t Sen. Lora Reinbold, R-Eagle River, said the budget didn’t have meaningful cuts to state spending, which she said should be reduced in favor of a larger dividend.<\/p>\n\t\t\t\t “The (percent of market value) is around $3.1 billion,” Reinbold said on the floor. “The Dunleavy administration put the entire amount towards government. That is not budget cuts, that is still massive government.”<\/p>\n\t\t\t\t However, supporters of the budget proposal countered the division in the Legislature lay with lawmakers demanding large dividends the state can’t afford. Nearly shouting, Sen. Natasha von Imhof, R-Anchorage, said lawmakers had debated the size of the PFD for years at the expense of long-term investments in the state.<\/p>\n\t\t\t\t