With just weeks left in the session, lawmakers are scrambling to finalize Alaska’s state budget for 2024 amid rising fiscal concerns. The House approved a draft operating budget last week that creates a $1.9 billion deficit starting July 1 this year.
Lawmakers expect to use the Constitutional Budget Reserve (CBR) to fill that gap, though it needs a supermajority to access. At the same time, the Senate continues reviewing the capital budget, aimed primarily at unlocking much-needed federal infrastructure grants.
Legislators also advanced a supplemental budget to fix a current-year deficit nearing $200 million before the fiscal year ends June 30. Without CBR approval, the current and next year’s budgets remain unfunded, leaving Alaska in a precarious financial position.
Meanwhile, lawmakers are debating a $250 million boost for public schools, which is included in the House’s proposed operating budget draft. The Senate Education Committee also advanced House Bill 69 to raise per-student funding by $1,000 and cap class sizes. The proposed increase would cost over $275 million and include new statewide programs and oversight staff additions.
That bill has now been moved to the Senate Finance Committee, but a hearing has not yet been scheduled. Governor Mike Dunleavy criticized the bill, saying it imposes unfair rules on Alaska’s homeschooled students using correspondence programs.
His alternative, Senate Bill 62, offers one-time school funding and boosts correspondence programs with $181 million in proposed spending. That bill is under Senate committee review, with its House version scheduled for a hearing on April 11.
Lawmakers are exploring new corporate taxes to pay for all this, especially targeting Hilcorp under Senate Bill 92. This measure could generate $150 million annually but faces challenges as the House resists any tax increase proposals.
Senate Bill 112 offers broader oil tax reforms and could add $190 million more for the state or Permanent Fund dividend. As legislators weigh options, they must choose between unpopular cuts, deeper savings withdrawals, or new taxes to balance the Alaska state budget in 2024.
This news article was originally published by Alaska Beacon.
