JUNEAU – In a recent radio interview, Alaskan Governor Mike Dunleavy said he would not approve new taxes without a statewide vote on one of his proposed constitutional amendments.
Except for sharp increases in the price of oil, the elimination of dividends from the Permanent Fund or unprecedented cuts in state services, Dunleavy’s position means at least two more years of deficit spending by the state.
“I will not support new revenue. I will not support the withdrawal of money from Alaska unless they have the opportunity to vote on their constitutional amendment, ”said Dunleavy during a radio interview on Thursday.
“If no tax changes are implemented before the constitutional amendment, then yes, the deficit will continue for a few years,” said Corey Allen Young, spokesman for the governor.
“We know and recognize that the time to implement the necessary significant structural change will take time,” said Young. “There is no way to completely eliminate the deficit in a single year.”
On Tuesday, the Alaska Senate State Affairs Committee passed three constitutional amendments proposed by the governor, but committee chairman Mike Shower, R-Wasilla, said the three have a long way to go. To take effect, each must be considered by various committees in the House and the Senate and must receive votes from an absolute majority in both halves of the legislature before facing a ratification vote in the next state general elections.
Dunleavy’s statement on Thursday was at odds with a 10-year fiscal plan published late last year by the governor’s own Budget and Management Office. This plan provides $ 1.2 billion of “other sources of revenue” to balance the budget starting next year.
With Alaska’s available savings accounts almost completely depleted, the state’s deficits can be covered with additional money from the Alaska Permanent Fund. Its revenue already represents more than 70% of the state’s annual revenue.
Raising the Permanent Fund’s revenue will reduce the amount of money available for services and dividends in the future, and Alaska Permanent Fund director Angela Rodell told the House Finance Committee on Tuesday that the corporation does not recommend exceeding the sustainable spending limit approved in 2018.
Three floors below that meeting, the Senate State Affairs Committee heard public testimony about the governor’s constitutional amendments and moved them forward without making changes.
• The first amendment would require a statewide vote before any tax increases become law.
• The second would restrict the state’s current spending ceiling.
• The third would change the traditional formula for paying the Permanent Fund dividend and enshrine the dividend in the Constitution.
This year, the traditional formula would result in a payment of about $ 3,170 per person. The new formula would pay about $ 2,380, based on 630,000 applicants and the next scheduled transfer from the Permanent Fund.
Shower said amendments are possible on the Senate Judiciary Committee, the next panel scheduled to examine the ideas.
Two years ago, when Dunleavy proposed similar amendments, Shower’s committee received a tsunami of public testimony. This time, there were less than 10 calls for each proposal, despite announcements by the governor and legislators on the committee.
“I think with everything else going on, it kind of got lost in the confusion,” said Shower during a pause in the committee process.
“Seven people thought it was important to testify – it’s crazy,” said Sen. Scott Kawasaki, D-Fairbanks and the minority committee member.