Little Progress On Alaska Spending Plan Amid Layoff Warnings

Author: Associated Press |

With a special legislative session halfway over, little progress has been made by Alaska legislators toward passing a state budget and addressing a multibillion-dollar state deficit.

 

On Thursday, notices were mailed to thousands of state employees warning of potential layoffs if a budget is not finalized by July 1, the start of the new fiscal year.

 

Legislative leaders have said they do not want a government shutdown, but they also remain entrenched in positions staked out months ago for how best to address the deficit.

 

While there’s general agreement that earnings from Alaska’s oil-wealth fund should be used to help fund government, the Republican-led Senate and House majority coalition disagree over what else is needed for a fiscal plan.

 

The House coalition is composed largely of Democrats.