The Alaska legislature is recessed from floor sessions until May 12 but many are using the time to address the most important topics for the state.
Rep. Olson: “Budget bills, operating and capital; AK LNG, primarily because that’s the only revenue stream coming online in the next few years unless we do something draconian like go into the permanent fund, which we wouldn’t do unless it’s voted on by the people, that’s not a decision the legislature is going to make; and then Medicaid and education. All four of them are number one.”
Representative Kurt Olson alongside House Speaker Mike Chenault and Senator Peter Micciche spoke at a joint chamber luncheon about the session they’ve had so far and what’s coming next.
All three agreed that although this budget process has been tumultuous, next year’s is sure to dig deeper.
Spkr. Chenault: “Well I think you’re going to see, I won’t say bigger cuts, but you’re going to see cuts that really kind of get down to the meat and the bones of some of the programs. There were some that we went after this year that made sense, some that maybe didn’t make sense but certainly a number of those were places that we need to constrict the growth of government. Next we’ll probably be employees.”
Senator Micciche said the state is four billion dollars in the hole and legislature has cut almost 1 billion but there is still going to be a deficit.
One idea has been proposed to correct that.
Sen. Micciche: “I recommend folks go and research the ISER report from last year, Goldsmith’s report. It talks about the potential to use earnings from the permanent fund, not touching the principal but it’s a percent of market value, there would still be a dividend, the remainder of that draw, if you will, could help offset the cost of government.”
Senator Micciche said although many residents have suggested it, a state income tax would not suffice for the current deficit.
