Juneau, Alaska (AP) - The Alaska Senate approved a state spending package Wednesday that would pay residents around $3,850 this year but the size of the payout will depend on what happens in the House in the waning hours of the legislative session.
A tentative budget agreement reached by House and Senate negotiators Tuesday called for a dividend from the earnings of the state’s oil-wealth fund of about $2,500 this year, plus a $1,300 “energy relief” check.
But the proposal called for half the funding for the energy checks to come from a budget reserve account that requires three-fourths support in both the House and Senate for it to be tapped.
The Senate approved the budget 19-1 and reached the required threshold to access the reserve account, with a 15-5 vote. Attention now shifts to the House. Estimates have indicated that payments would be around $3,200 if the three-fourths vote fails in the House.
Wednesday marked a constitutional legislative meeting limit of 121 days, though the state constitution provides an option to extend the session up to 10 days. Senate President Peter Micciche said Wednesday morning that “at this point, we’re certainly treating (this) as though it’s the last day.”
The House in its version of the budget had approved a dividend of about $1,250 and a $1,300 energy check. The Senate passed a budget that was amended during floor debate to include a dividend of about $4,200, an amount in line with a long-standing dividend formula last used in 2015, plus a $1,300 energy check. Many lawmakers consider that formula unsustainable.
The House rejected the Senate package, leading to the appointment of the conference committee that was tasked with reaching a compromise. Supporters of the compromise said it would make investments in areas such as education and infrastructure.
Sen. Bill Wielechowski, an Anchorage Democrat, supported the higher dividend in the Senate version of the budget but said Wednesday that the compromise amount would come close to that amount.
“For families in this state who are struggling with energy bills, struggling with school costs, struggling with rent costs, this will be life changing,” said Wielechowski, who was on the conference committee.
Sen. Mike Shower, a Wasilla Republican who also had supported a dividend of around $4,200, said he couldn’t vote against the package when people could use the help.
Sen. Lora Reinbold, an Eagle River Republican, voted against the package, saying she has a hard time with “arbitrary amounts” being used for a dividend and that “meaningful” budget cuts were missing.
Most Alaskans get a dividend. There is a yearly application and residency requirements to qualify. Dividends traditionally have been paid using permanent fund earnings, which lawmakers also have come to rely on to help pay for government.
Lawmakers have sought to limit withdrawal amounts for dividends and government. That’s created tension over how much should go to each, with lawmakers setting and fighting over the yearly amount. Last year’s check was $1,114.
A dividend of about $2,500 would be in line with an approach supported by Republican Gov. Mike Dunleavy and some lawmakers. That approach recommends splitting the amount withdrawn from earnings equally between dividends and government.
Dunleavy has recommended dividend payments of at least $3,700 — consisting of a check of about $2,500 and a supplemental dividend of about $1,250.