Sen. Gary Stevens, R-Kodiak, and Senate Finance Committee Co-chair Bert Stedman, R-Sitka, speak with Sen. Lyman Hoffman, D-Bethel, during an all-day debate on the state's budget on the floor of the Alaska State Senate on Tuesday, May 9, 2022. (Peter Segall / Juneau Empire)

Senate OKs budget that includes over $5k in payments to Alaskans

Senators add nearly $1 billion in amendments

The Alaska State Senate Tuesday afternoon passed an omnibus budget bill for the state, after adding close to $1 billion in amendments on the floor. The bill will now go to the Alaska House of Representatives, but its final details are expected to be negotiated in a bicameral conference committee.

On Monday, senators voted for Permanent Fund dividend based on the statutory formula — roughly $4,300 — and an energy relief payment of $1,300 for a combined payment of $5,600 to eligible Alaskans. To pay for the energy relief checks, senators voted to use money included in the House and Senate Finance Committee versions of the bill to forward fund education for two years.

On Tuesday, senators added another roughly $300 million with $150 million in funding for the Port of Nome, $100 million for the Port of Alaska in Anchorage and $30 million for road projects in the Matanuska-Susitna Borough.

Some senators balked at the amount of money being added to the budget. Sen. Bert Stedman, R-Sitka, who co-chairs the Senate Finance Committee responsible for drafting the bill, noted Tuesday that through floor amendments, senators had gone from having $1.2 billion in savings to potentially being underfunded by $1 billion.

[Senate goes big on PFD in budget debate]

Sen. Mike Shower, R-Wasilla, argued on the floor that the state is looking at large returns from the high price of oil, and should spend money on capital projects while the state had the money to pay for them.

“If not now, when?” Shower asked on the floor.

Shower was able to pass an amendment that said the state would use money from the Statutory Budget Reserve, one of the state’s savings accounts. But opponents to the plan said it was irresponsible to base an amendment off of predictions of $100 barrels of oil.

“No one can predict the price of oil and to create a budget that depends on $100 oil, in my view is reckless,” said Sen. Natasha von Imhof, R-Anchorage.

Sen. Jesse Kiehl, D-Juneau, said he supports the PFD program but this year’s amount was too much.

“I can’t call myself a good steward of Alaska’s money if we’re passing a budget which at $100 a barrel of oil draws on savings,” Kiehl said.

Despite criticism of the amount of money added to the bill, the bill passed 15-5, with senators who were critical of the spending voting in favor.

The only senators to vote against the budget were Sens. Tom Begich, D-Anchorage; Lyman Hoffman, D-Bethel; Josh Revak, R-Anchorage; Kiehl and von Imhof.

Shortly after senators passed the budget, House Speaker Louise Stutes, R-Kodiak, told reporters the bill needed to wait 24 hours before being taken up in the House. Stutes said the current plan was to take up the bill Wednesday afternoon or Thursday morning.

It’s possible the House could vote to concur with the Senate’s proposals, and the budget would be passed. However, if the House isn’t able to get enough votes to pass the budget, the bill will be negotiated in a conference committee, typically made up of the finance committee co-chairs from each body, and one member of the minority from each body.

Senate President Peter Micciche, R-Soldotna, told reporters he expected the Senate to choose its conference committee members on Wednesday. Micciche also said he expected the amount of money in the budget to come down in negotiations.

“The reality of (the budget bill) staying in its final form is essentially nonexistent,” Micciche said.

That process could take some time, and run lawmakers close to the May 18 end of session.

• Contact reporter Peter Segall at psegall@juneauempire.com. Follow him on Twitter at @SegallJnuEmpire.

More in News

(Juneau Empire File)
Aurora forecast for the week of Nov. 27

These forecasts are courtesy of the University of Alaska Fairbanks’ Geophysical Institute… Continue reading

Choir members rehearse Tuesday night for a Bach holiday concert at Ḵunéix̱ Hídi Northern Light United Church. (Mark Sabbatini / Juneau Empire)
Quartet of Bach compositions joins lineup of local large-ensemble performances this season

Concerts this weekend part of resurging “wealth of riches” by choruses and orchestras, director says.

The Alaska Marine Highway System ferry LeConte at the Auke Bay Terminal on Monday, March 5, 2018. (Juneau Empire file photo)
Petition seeks name change for LeConte state ferry

Petersburg man calling attention to what he calls Joseph LeConte’s racist history.

The deadly landslide that struck Wrangell on the night of Nov. 20 is seen the next day. Southeast Alaska is, by nature, vulnerable to such landslides, but climate change is adding to the risk by bringing more precipitation and more extreme rainfall events. (Photo provided by Alaska Department of Transportation and Public Facilities)
Deadly Wrangell landslide is part of a pattern in vulnerable Alaska mountainous terrain

Scientists warn climate change, by increasing precipitation and extreme rainfall, adds to risks.

Jonson Kuhn / Juneau Empire File
Even the Grinch got into the holiday spirit at last year’s Gallery Walk on Friday, Dec. 2, 2022.
An abundance of traditional and new ways to capitalize on this year’s Gallery Walk

More than 50 events scheduled Friday afternoon and evening from downtown to Douglas.

This view is from Wrangell on Sept. 11, 2022. (Photo by Joaqlin Estus/ICT)
Conservation group supports formation of new Alaska Native corporations

The conservation group the Wilderness Society has changed its position and now… Continue reading

From her hospital bed on Friday, Nov. 24, Christina Florschutz demonstrates how she pulled pajama bottoms that she found in the landslide debris over her legs, arms and head to keep warm. Her house was destroyed in the landslide, and after spending the night in the wreckage, she was rescued the morning of Tuesday, Nov. 21. (Caroleine James / Wrangell Sentinel)
Elementary school aide who survived Wrangell landslide calls circumstances a miracle

Christina Florschutz trapped overnight by landslide that killed at least 4 people, with 2 missing.

Lylah Habeger (left) and Jaila Ramirez lead the Konfeta Corps during a rehearsal of Tchaikovsky’s “The Nutcracker” at Juneau Dance Theatre. The ballet will be performed in the Juneau-Douglas High School: Yadaa.At.Kalé auditorium Friday through Sunday. (Photo courtesy of Juneau Dance Theatre)
‘Nutcracker’ tradition, with a twirl of new choreography

This year’s performances feature a cast of 93, ages 5 to 78

(Michael Penn / Juneau Empire File)
Police calls for Sunday, Nov. 26, 2023

This report contains public information from law enforcement and public safety agencies.

Most Read