Juneau, Alaska (KINY) - The State Senate will now take up the operating budget for next fiscal year approved by the State House Monday.
Juneau Senator Dennis Egan talked about what the upper body might do while a guest on Action Line Tuesday. He believes the spending plan has a better chance in the Senate now.
He said that's because the size of the year's Permanent Fund Dividend was lowered to $1,600. He believes that figure will be the subject of a compromise during deliberations by the two bodies during the free conference committee on the budget.
The House failed to muster the required three-quarters vote to tap the Constitutional Budget Reserve which is needed to balance its spending plan,
Tapping the CBR concerns Senator Egan. At one point, Egan said the reserve fund totaled nearly $15 Billion. With a withdraw of $700 Million as proposed by the House, Egan said its getting to the point where it will be scary if there's a serious natural disaster. He wondered how the state would pay for the damage.
Senator Egan is still holding out hope for a progressive income tax, but doesn't believe that will happen.