The Alaska House of Representatives passed the Operating and Mental Health budgets, HB 268 and HB 270 on Thursday, with unanimous support from House Majority members. The vote was 23-17. The consolidated efforts in HB 268 and HB 270, total $12.3 billion from all fund sources, including state and federal, plus Permanent Fund earnings.
HB 268, the state’s operating budget, contains these highlights:
- Education: Substantial additional one-time funding of $174.6 million, equivalent to a $680 BSA increase, reaffirms our commitment to education. The budget also contains significant investments in K-3 education assistance, career and technical education initiatives, Head Start, and the READS act. School bond debt reimbursement is also fully funded at $44.9 million.
- Public Safety: An infusion of $3.5 million for 10 additional VPSO positions and strategic investments in crime investigation and domestic violence prevention underscores the House’s commitment to safeguarding communities.
- Statehood Defense: Bolstering resources to safeguard Alaska’s sovereignty, including additional funding for litigation and support for natural resources specialists, reaffirms state commitment to protecting our state’s interests.
- Permanent Fund Dividend: Honoring the lawful commitment to Alaskans, the House’s version of the bill contains a $2,273 PFD, which would represent the third largest dividend in Alaska’s history.
Immediately, Senate Majority Leader Cathy Giessel slammed the budget, saying on social media that there will be cuts, and she indicated the cuts would come from the dividend.
“The Senate gets the Operating Budget next and we will, of course, rein in the spending. Our Bipartisan Coalition Majority is committed to not spend beyond available revenue, not spending from savings, and to allocate an affordable dividend.” That means the Senate is dedicated to not following Alaska Statute and the formula laid out in law. The Senate majority is dominated by Democrats.
Last year, the Senate held the budget until the last minute and then forced it back to the House with no time to respond, requiring a special session. Political observers will be keeping a close eye on Senate hostilities this year to see if the pattern repeats.
