As Alaska’s budget crisis worsens, House leaders urge bipartisan cooperation to avoid deep cuts and special sessions. At a Tuesday news conference, House Speaker Bryce Edgmon called on the House minority and Governor Mike Dunleavy to collaborate.
Edgmon stated that Alaska faces a financial mess that all branches of government must confront together or risk legislative gridlock. Last week, the House Finance Committee passed a budget with $1.9 billion more in spending than projected revenues.
He assured reporters that work continues on the bill to meet the legal requirement of a balanced budget. A sharp oil price drop from $76 to $65 per barrel has amplified concerns. Lawmakers also face Permanent Fund losses of $3.2 billion, shrinking available reserves.
With a 21-19 split in the House, Edgmon said every vote matters and compromise is essential. Representative Neal Foster and Representative Nellie Jimmie support a full Permanent Fund dividend under the statutory formula, totaling $2.46 billion.
If passed, this figure would require steep spending cuts or new taxes to balance the budget. Minority members DeLena Jhonson and Will Stapp proposed reducing the draft budget, especially for new programs or staffing increases.
They challenged a $253 million plan to boost education spending by $1000 per student. Stapp suggested following last year’s one-time funding model, which gave the school $680 more per student, a $174 million boost overall.
Majority leader Chuck Kopp argued for a smaller sustainable dividend. He rejected raising oil taxes, fearing it would hinder industry recovery and future investments. Finance co-chair Andy Josephson defended the budgets, noting that the governor proposed many increases.
Lawmakers may face a May 21 deadline to approve a budget or risk another government shutdown. The budget crisis now hinges on whether bipartisan leaders can find common ground in time.
This news article was originally published by Alaska Beacon.
