Governor Dunleavy calls to convene special session on August 16
Anchorage, AK – Alaska Governor Mike Dunleavy has announced the August special session will begin on August 16. His decision, in consultation with the Alaska Department of Law, comes after a written request from the four caucus leaders in the Alaska Legislature to convene the start of the August special session on August 9 or 16.
The Governor also modified the call to include the proposed constitutional amendment (SJR 6, HJR 7) to constitutionalize the PFD and the power cost equalization program.
“While Alaskans are out enjoying summer, they are also paying close attention to the legislature because they rightfully expect them to move forward on a plan that protects both the PFD and the Permanent Fund in the constitution and that can be put before voters in the 2022 general election,” said Governor Dunleavy. “We can’t wait any longer. The fund is sitting at 81 billion dollars, more than enough to pay sizable PFDs to Alaskans recovering from the pandemic. The members of the House and Senate Comprehensive Fiscal Plan Working Group are reportedly making progress on recommendations that can be presented to the legislature at the start of the upcoming special session.”
The Alaska Department of Revenue has requested an opportunity to present its latest revenue and spending projections to the working group before it finalizes its recommendations.
The working group took public testimony over the last several days.
The Alaska House Republicans, the Alaska Senate Majority and the Alaska Senate Democrats asked Dunleavy for an additional twoweeks for the Comprehensive Fiscal Policy Working Group to continue their work. The Alaska House Coalition majority asked for an extension not later than August 9.
Rep. Cathy Tilton (RChugiak/Wasilla), the House Minority Leader stated, “It is imperative we give this process the greatest opportunity for success. We must give the Comprehensive Fiscal Policy Working Group more time to complete their important task.”
Rep. Ben Carpenter (RNikiski/Seward), who is a member of the Working Group and a member of the House Finance Committee commented, “We’ve worked hard to find common ground and I suspect that what we forward to the full Legislature won’t make anyone happy but that’s likely a sign of a good compromise. The process has definitely been slow, but our work is important. The timing is right for this discussion and a positive outcome will be worth the time spent. We MUST persevere.”
“A full 2021 dividend is still of paramount importance for many members of our caucus” said Rep. Kevin McCabe (R-Big Lake), who is also a member of the Working Group. “New constitutional amendments regarding spending or future taxes are incredibly important, but until we tackle how we’ll treat the dividend, going forward, I doubt we’ll make much progress.”
The committee took public testimony from Thursday through Saturday last week. According to a press release from House Republicans nearly 12 hours of public testimony during the last five days were held.
Rep. Mike Cronk (R-Tok/Healy), stated, “Representing communities that depend on PCE, I’m very supportive of protecting the program in perpetuity while looking to reduce reliance on the program for the longterm. As a UA graduate, I also know the importance of preserving the UA Scholars Program.” Rep. Cronk is a member of the House Education Committee.
“Alaska desperately needs more doctors and the WWAMI program is a needed pipeline to provide them. As a mental health professional, I will gladly support continued funding for this important program.” stated Rep. Ken McCarty (R-Chugiak) who is a member of the Health and Social Services Committee.
“For many of us, voting down the reverse sweep was about honoring the constitution and our oath of office, not defunding the PCE or any other programs. The House Republican Caucus put forward an amendment to fund these programs without reversing the constitution’s sweep” stated Rep. Christopher Kurka (RWasilla).
Rep. Cathy Tilton (RChugiak/MatSu), the House Minority Leader, offered the following observation, “It is unfortunate we’ve arrived at the current situation. These beneficial programs shouldn’t be held hostage by unnecessary political tactics. It is important to note that a major distinction between these programs and the dividend is the dividend benefits every Alaskan. We hope our colleagues will join us in finding a path forward to restore funding and provide a dividend in 2021.”
It required a supermajority to initiate that funds that belong to the PCE be “swept” back into the PCE account. Republican legislators were those opposed to the reverse sweep, with the result that the PCE account, among other accounts, sits empty and this month’s utility bills will be higher in the region due to the lack of power cost equalization funds not applied.
House Speaker Louise Stutes issued a response to a series of public comments by members of the House Minority in support of Power Cost Equalization, the UA Scholars Program, and the WWAMI Regional Medical Education Program. She said that these programs were defunded in the current budget because of the governor's position that they are subject to a super-majority vote of the Legislature, which so far has failed to pass despite unanimous support from the Alaska House Coalition.
“I thank members of the minority for continuing to work with us toward a solution to Alaska’s structural deficit and to the immediate budget decisions we will face when we return to Juneau later this month. I am especially encouraged to see the minority leader and others in her caucus acknowledge the outcry of Alaskans who expect to see full funding for Power Cost Equalization, scholarships that provide an incentive for our best and brightest students to launch their careers here, and the only program that trains doctors in our state,” Stutes said.
“When the governor called the third special session, he restricted lawmakers from voting on any of these items or providing for a Permanent Fund Dividend. I am hopeful that today's [Tuesday’s] comments from the minority indicate a willingness for lawmakers to establish a special session call of our own so that the PFD and programs vital to our state's economic recovery will no longer continue to hang in the balance.”