Governor Bill Walker stressed that Alaska is in a crisis with only 26 days remaining till a government shutdown. To date the state has drawn over 10 billion from the state savings with no new revenue added.
During the press conference Tuesday from Juneau, Department of Revenue Commissioner Randy Hoffbeck outlined details in the Governors plan.
Under the proposal:
- The House is assured a status-quo operating budget, a broad-based tax structure, and the end of cashable oil and gas credits. In return, it must accept a smaller dividend, as well as less revenue and progressivity, and limited oil and gas reform.
- The Senate gets its version of SB 26, close to its version of HB 111 and is able to make larger payments to the oil and gas industry for tax credits but has to concede a modest broad-based tax structure and adopt the House’s operating budget.
- The state gets a level of fiscal stability but must continue significant spending restraint.
From the Capital the Governor then pleaded to the State Legislature…
Gov. Walker: “So, my message to legislators, if you can’t find further comprise in what I have presented, please, please develop your own comprise. But most of all make sure it’s a balance and Alaskans are not deprived of the much needed government services, that they will need as of July 1 of this year”
The Governor then pleaded to all Alaskans…
Gov. Walker: “To the public, I say please let your legislator know it’s ok comprise. I know i have heard from some, that have said I have given up and somethings I said that i would stand for, that’s what comprise looks like. In fact most Alaskan’s across the state are asking for a comprise, and I think that is what they deserve and also pass a fully funded budget by July 1.”
Since 2015, the state budget was reduced 1.7 billion, for a total of 3.4 billion. The top three big departments that have been reduced include the Department of Commerce by 54 percent, The Department of Labor by 37 percent and the Department of Fish and Game by 36 percent. The state has closed over 40 state facilities, including offices, prisons, dmv offices, ocs offices and more. The Governor went on to say that the state also discontinued over 70 statewide programs.
Governor Walker stressed that the state fiscal situation will be fixed…
Gov. Walker: “As we look at how we’re going to do this, we’re going to do this together, we’re going to do this as Alaskans, and we’re going to do it through compromise, and that’s how we’re going to fix this issue, and that’s how it can be fixed. There’s plenty of time to fix it between now and the end of this special session.”
State Legislators have 10 days remaining in the Special Session called by Gov. Walker on May 18th.