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Legislature fails to act on Permanent Fund, Walker calls fifth Special Session

Alaska State Legislature

Alaska’s 29th Legislature will go back for another round in July, after Governor Bill Walker called for its fifth special session Sunday.

By a vote of 6-5, the House Finance Committee failed to advance a bill passed by the Senate that would restructure the Permanent Fund to pay for state government. District 37 representative and Dillingham resident Bryce Edgmon was one committee member who tried to advance the bill to a vote.

"I did not commit to which way I was gonna vote once the bill got to the floor," Edgmon said, "but I felt that we needed to have that vote."

Governor Walker has tasked the Legislature with considering revisions to oil and tax credit programs, a range of new and increased taxes, and the cornerstone of his fiscal plan, restructuring the Permanent Fund. Edgmon says that is an especially difficult task during both a contentious election season and a busy Alaska summer.

"You’re asking the legislature to make basically a fundamental change, a structural change, to a program that has been around for a long time and is of the upmost importance to individual Alaskans," said Edgmon. "I’m not surprised that it’s going to take additional time and work, but [I'm] disappointed we didn’t get the opportunity to vote on it."

The state is running a $4 billion deficit going into the next fiscal year. Without any changes, such as use of the earnings from the Permanent Fund’s investment, the difference will be made up from dwindling state savings accounts. Edgmon says some Alaskans are ready for significant changes and lower PFD checks, while others are adamant that the size of state government still needs to be scaled back.

"The frustrating part of it... is that we have a general public that has some understanding of where things are at fiscally with the state, [but] in other respects [is] completely oblivious or choosing not to accept the hard reality that we’ve only got about one year’s worth of savings left," said Edgmon. "Beyond that we have to go into the earnings reserve of the Permanent Fund, and that will impact the size of dividends."  

The Legislature goes back into session on July 11. Edgmon says he will be back in Dillingham by the end of the week, and will meet with anyone in person or by phone who’d like to discuss the state’s fiscal situation and the options currently on the table.