Last Frontier News

As the 2023 legislative session reaches its 56th day, lawmakers are focusing on several key issues. The House of Representatives is currently dealing with the operating budget, a process that significantly influences the session's timeline. The House Finance Committee is expected to conclude budget subcommittee closeouts this week. Although some informational hearings are scheduled, it remains uncertain when the committee will address the full budget. The subcommittees' recommended budget suggests deficit spending if a full statutory dividend is appropriated. Multiple proposals to reform the Permanent Fund Dividend (PFD) are under consideration in the House Ways and Means Committee.

In contrast, the Senate has made education funding a priority by advocating for an increase in the base student allocation (BSA) and considering a defined benefits retirement system for state employees. There are unconfirmed reports of potential legislation aimed at boosting state revenue through increased industry taxes or an income tax. Some conservative senators support implementing a spending cap, an idea also being discussed in the House. Overall, while the Senate is pushing for increased spending, the House is exploring various measures to adjust the PFD appropriately.

Personal legislation has taken a backseat this year and may become even less significant as the session progresses towards its conclusion. Typically, personal legislation gains importance from mid-March until the end of the session; however, legislative leaders in both chambers emphasize finding a lasting solution for the PFD over personal bills.

Governor Mike Dunleavy has maintained a relatively low profile during this session but reportedly shares legislative leaders' views on achieving a sustainable resolution for the PFD. His legislative team's actions suggest his primary focus lies in negotiating an end-game budget based on a forward-looking fiscal plan.