Legislature opens session by setting veto override vote before governor’s State of the State speech Thursday
- Mark Sabbatini
- 8 hours ago
- 3 min read
Updated: 5 hours ago
Lawmakers will contest Dunleavy’s rejection of internet tax bill hours before he lays out final-year agenda expected to focus on long-term fiscal plan
By Mark Sabbatini
Juneau Independent
This is a developing story.
The second half of the 34th session of the Alaska State Legislature started much as the first half ended — with lots of concern about the state’s financial situation, and disputes between legislators and Gov. Mike Dunleavy about a stable path forward.
The Senate gaveled in at 1:04 p.m. with a traditional invocation by the Rev. Gordon Blue of Holy Trinity Episcopal Church, followed by the presentation of colors by local members of the Girl Scouts of Alaska. That was followed by the official recognition of two new members — Republicans Cathy Tilton of Wasilla and George Rauscher of Sutton — who are replacing colleagues who stepped down to participate in this fall’s gubernatorial campaign.
"They bring with them a lot of experience to us," President Gary Stevens, R-Kodiak, said after both new members received honorary recognition at the front of the Senate Chambers. "They both served in the other body for quite some time. I've certainly enjoyed working with both of them in the past, and looking forward to continue working with them. Here's hoping they also have long tenure here in this body after we shine the light of the Senate upon them."
The House also convened at about 1 p.m. with similar ceremonies that welcomed new Republican members, Garret Nelson of Sutton and Steve St. Clair of Wasilla, to replace Rauscher and Tilton, respectively.
Much of the opening-day business was ceremonial, but the House and Senate did agree to two joint sessions on Thursday. The first at 9 a.m. will be to consider a veto of Senate Bill 113, which would require companies doing business online in Alaska to pay sales tax, which supporters hope will add tens of millions of dollars annually to the state’s coffers. The second joint session at 7 p.m. is to hear Dunleavy’s final State of the State address as he enters his eighth consecutive year in office.
A fiscal situation many lawmakers are calling grim is expected to be the dominant focus of the session, with dropping oil prices resulting in shortfalls to the state budget even if maintained at current levels with no adjustment for inflation. Both the governor and legislative leaders have said a sustainable long-term financial plan for the state — a concept discussed in various forms for decades — is their top priority this year.
Dunleavy has stated he will introduce details of his proposed plan during the opening days of this year’s session. His proposed budget for the coming fiscal year, starting July 1, is largely a status quo plan — once his PFD of nearly $3,900 is removed. He’s introduced such a dividend and lawmakers have ignored it during each of his years in office, including setting a $1,000 PFD last year in order to balance the budget they approved.
If the dividend sought by Dunleavy was approved this year, it would drain $1.8 billion from the state’s roughly $3 billion Constitutional Budget Reserve, a pace of spending that would leave the state unable to pay its day-to-day bills in less than two years.
• Contact Mark Sabbatini at editor@juneauindependent.com or (907) 957-2306.
