Back in Juneau, legislature faces uncertain path in fifth special session

A small group rallies in Capitol Park for state legislators to adopt a long-term fiscal plan on July 11, 2016. (Photo by Mary Uyanik/360 North)
A small group rallies in Capitol Park asking legislators to pass a long-term fiscal plan. (Photo by Mary Uyanik/360 North)

Legislators returned to Juneau on Monday for the fifth special session since last summer. And lawmakers were greeted by a group of 20 protesters who want them to close the state’s budget shortfall.

The protesters chanted: “Act now! Pass a fiscal plan!”

But it’s not clear if there are enough votes in the House to pass a bill to restructure Permanent Fund earnings to pay for state government. Several proposals to raise taxes on industries or introduce a new state income or sales tax may have even less support.

Sens. Anna MacKinnon, R-Eagle River and John Coghill, R-North Pole, chat during the fifth special session of Alaska's Legislature in the last two years on July 11, 2016 in Juneau, Alaska. (Photo by Rashah McChesney/KTOO)
Sen. Mia Costello, R-Anchorage, and Lesil McGuire, R-Anchorage, chat after the Senate’s opening special session floor session Monday. (Photo by Rashah McChesney/KTOO)

The legislature also may not be able to muster the three-quarter majority needed to overturn Gov. Bill Walker’s veto of half of this year’s Permanent Fund dividend money. The veto essentially cuts dividends in half.

Walker said the House should follow in the steps of the Senate and pass the Permanent Fund legislation. He noted that he’s taken the unpopular steps of cutting PFDs and delaying oil and gas tax credits.

“As a result of that, I expect them to come back and finish up what I would call the lighter lifting associated with fixing Alaska’s fiscal situation,” Walker said.

The House took a long break Monday afternoon, as members of the Republican-led majority met to decide their next step. The Senate is scheduled to meet again Friday.

Mary Uyanik of 360 North contributed to this report.

Andrew Kitchenman

State Government Reporter, Alaska Public Media & KTOO

State government plays an outsized role in the life of Alaskans. As the state continues to go through the painful process of deciding what its priorities are, I bring Alaskans to the scene of a government in transition.

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