"Permanent Fund earnings"

Gov. Mike Dunleavy is getting ready to propose his third budget, but it’s not clear what his plan is — or exactly when we’ll see it.

The state of Alaska could eliminate funding for much of what it does, and it still wouldn’t cover the projected $1.5 billion budget gap.

Just as Gov. Bill Walker inherited a budget from former Gov. Sean Parnell four years ago, he’ll be handing off a proposal to Gov.-elect Mike Dunleavy this year.

They traded accusations over which branch of government is responsible for the rise in crime.

About $72-per-barrel is the break-even point to close the state’s budget gap.

The Senate Finance Committee draft budget would cut $98 million to fund the operations of state government from the House’s version of the budget.

The House had been stalled for days, when the majority split over the size of the PFD. Six members of the majority reversed their position.

Sheldon Fisher didn’t champion any individual tax during his confirmatin hearing. Afterward, he said the biggest source of new revenue should be a draw on Alaska Permanent Fund earnings.

Homer Republican Rep. Paul Seaton said the smaller draw is more sustainable. He chairs the House Finance Committee, which voted for it 6 to 4.

Walker also proposed process changes. Lawmakers’ per diem payments would stop if they don’t pass a budget in the 90-day session set by state law. Their salaries would also be delayed. Another change would shift the state to a two-year budget.