With a special legislative session halfway over, little progress has been made by Alaska legislators toward passing a state budget and addressing a multi-billion dollar state deficit.
Notices were mailed Thursday to thousands of state employees warning of potential layoffs if a budget is not finalized by July 1, the start of the new fiscal year.
Legislative leaders have said they do not want a government shutdown, but they also remain entrenched in positions staked out months ago for how best to address the deficit.
While there’s general agreement that earnings from Alaska’s oil-wealth fund should be used to help fund government, the Republican-led Senate and Democrat-led House majority coalitions disagree over what else is needed for a fiscal plan.
Gov. Bill Walker weighed-in Friday on the legislative special session that has yet failed to resolve next year’s budget, and address more than a $3 billion gap between state revenues and expenses.
Walker said in an emailed news release he talked to members of the House and Senate caucuses and determined their negotiations have reached a stalemate.
Walker called a possible government shutdown “unacceptable” and pledged to work on a compromise package to present to both bodies next week.
