With just over a week left in the session, the Alaska Legislature has not resolved how to pass a budget, the size of the Permanent Fund dividend or a boost to public school funding on March 8, 2023
The Senate hasn’t passed its version of the operating budget or the capital budget, which is used for infrastructure and renovation projects, and there is no set plan for when a final vote will take place. The Senate has indicated support for a $1,300 dividend — following the 75-25 model — which was projected to leave the state with a $90 million surplus and not require drawing from savings.
“You’ve got softening financial markets, and softening oil markets — you need to be careful,” he said about drawing from savings to pay for the annual budget. “There’s a limit of reserve capacity. That’s a concern.”Typically, the House and Senate pass different versions of the budget and then resolve those differences through negotiations, so a single bill can pass both legislative chambers and onto the governor’s desk.
A Senate committee advanced legislation Monday to the full Senate that would increase the Base Student Allocation — the state’s per-student funding formula — by $680 at a cost of $175 million per year.were added to increase state payments for student transportation costs by $8 million, or 11%. State boarding school students would also get a $4.5 million boost for their monthly stipends, representing a 50% increase.
Alaska education advocates had said an $860 BSA boost was needed this year — just to match losses from inflation. Earlier in the session, the Senate had debated a $1,000 school funding formula increase, but that— as described by Tobin — was watered down following the state’s gloomy revenue projections.