JUNEAU, Alaska (AP) — Alaska lawmakers faced the end of the regular legislative session Wednesday, with a state spending package — and the size of this year’s check to residents from Alaska’s oil-wealth fund — not yet resolved.
House and Senate negotiators reached a tentative agreement Tuesday that would pay residents more than $3,000 each, but the final amount would depend on whether the Legislature can muster the votes needed to access a state budget reserve fund.
The agreement must still be taken up by the House and Senate.
Wednesday marked a constitutional legislative meeting limit of 121 days, though the state constitution provides an option to extend the session up to 10 days. Senate President Peter Micciche said Wednesday morning that “at this point, we’re certainly treating (this) as though it’s the last day.”
Lawmakers took a midday break for a group photo outside the Capitol, and the House imposed a limit on debate early Wednesday afternoon after representatives had made little progress to that point in getting through the bills on their calendar.
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The tentative budget agreement calls for a dividend from Alaska Permanent Fund earnings of about $2,500 this year, plus a $1,300 “energy relief” check. Half the funding for the energy checks would come from a budget reserve account that requires three-fourths support in both the House and Senate for it to be tapped.
Payments to residents could be about $3,200 or about $3,850 depending on whether the vote threshold is reached, according to estimates.
The House in its version of the budget approved a dividend of about $1,250 and a $1,300 energy check. The Senate passed a budget that was amended during floor debate to include a dividend of about $4,200, an amount in line with a long-standing dividend formula last used in 2015, plus a $1,300 energy check. Many lawmakers consider that formula unsustainable.
The House rejected the Senate package, leading to the appointment of the conference committee that was tasked with reaching a compromise.
Most Alaskans get a dividend. There is a yearly application and residency requirements to qualify. Dividends traditionally have been paid using permanent fund earnings, which lawmakers also have come to rely on to help pay for government.
Lawmakers have sought to limit withdrawal amounts for dividends and government. That’s created tension over how much should go to each, with lawmakers setting and fighting over the yearly amount. Last year’s check was $1,114.
A dividend of about $2,500 would be in line with an approach supported by Republican Gov. Mike Dunleavy and some lawmakers. That approach recommends splitting the amount withdrawn from earnings equally between dividends and government.
Dunleavy has recommended dividend payments of at least $3,700 — consisting of a check of about $2,500 and a supplemental dividend of about $1,250.
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