Gov. Mike Dunleavy speaks during an interview with the Juneau Empire at the Capitol on Tuesday, Feb. 26, 2019. (Michael Penn | Juneau Empire)

Gov. Mike Dunleavy speaks during an interview with the Juneau Empire at the Capitol on Tuesday, Feb. 26, 2019. (Michael Penn | Juneau Empire)

Update: Governor calls special session to meet in Juneau

Gov. Dunleavy has called all legislators to Juneau to finish the special session.

The remainder of the special session will take place in Juneau, Gov. Mike Dunleavy announced in a press release Wednesday.

In an amendment to the original proclamation for a special session, Dunleavy said that from Wednesday onward, the legislature will meet in Juneau.

Dunleavy also expanded the scope of the special session to cover the capital budget and funding for state programs.

The majority of the legislature has been meeting in Juneau already, but after they failed to override Dunleavy’s vetoes to the state budget, many legislators left the capital and have been taking meetings elsewhere in the state.

Update: Governor calls special session to meet in Juneau

The legislature had been split following Dunleavy’s initial proclamation which set Wasilla as the location for the special session. Legislators disagreed on where authority lays with regard to setting a location for the legislator. About a third of the legislature meet in Wasilla while the majority met in Juneau. Neither side had enough votes to take any meaningful action, and lawsuits have been filed on both sides.

While the legislators in Wasilla were able to avoid joining the majority of the legislature during the vote to override Dunleavy’s vetoes, the legislature still has not appropriated funds for the Permanent Fund Dividend, a top priority for the governor and his supporters.

Dunleavy has promised a $3,000 PFD as well as back pay for previous years while many in the legislature are supporting House Bill 2001, which would restore funding to a number of the programs facing cuts but allocate a diminished PFD.

HB 2001 is currently still being reviewed by the both Senate and House Finance Committees, both of which have meetings scheduled for Thursday.

The House Finance Committee has been hearing public comment for five hours a day Monday through Wednesday this week, with emotional testimonies from the public both for and against the bill’s passage.

While HB 2001 works its way through the legislature, Dunleavy will introduce a capital budget that will contain matching funds necessary to receive federal money for transportation projects, according to a press release from the governor’s office.

In addition to matching funds for transportation the governor’s budget will contain, “state matching funds for village safe water projects, funding for the new crime legislation (HB 49), and other necessary fixes to a number of fund source changes that appeared in the final version of the capital budget passed by the Legislature in May,” according to the press release.

HB 2001 would take money from the Permanent Fund in order to pay for state programs. However, in order to maintain a balanced budget that would mean less money paid out in this year’s dividend. When the bill was introduced it delivered a PFD of $1,600, but an amendment on Monday lowered that amount to $929.

HB 2001 also contains provisions for a “reverse sweep,” or the restoration of funds to state accounts which are automatically emptied, or swept, into the Constitutional Budget Reserve at the end of each fiscal year on June 30.

Update: Governor calls special session to meet in Juneau

Normally the legislature would vote to restore those funds in its capital budget. But as the legislature was not able to pass a budget before June 30, several accounts have been emptied and not yet restored.

Some of those accounts cover programs like the Power Cost Equalization benefits which provide subsidies to rural communities for energy costs. Without the PCE many rural communities could face much higher energy bills, particularly in the winter.

Other programs include the Higher Education Investment Fund which awards the Alaska Performance Scholarship,which gives students money to attend college in the state. Some recipients of the APS have been uncertain if they will have the money needed to finish their education.

Uncertainty over funding has hung over a number of state programs in the past weeks. On Monday, the University of Alaska Board of Regents delayed declaring financial exigency in hopes that a certain amount of funding could be restored by HB 2001 or other legislation.

With the entire legislature coming together, final capital and operating budgets may be within reach.

“Timelines compel us to find a solution sooner rather than later,” Dunleavy said in a press release. “Concluding work on the state infrastructure budget and the PFD brings the Legislature one step closer to finishing the work of the people.”

Legislative leaders had been meeting with the governor over the past several days and it became clear that a divided legislature was no longer tenable.

Gov. Dunleavy moved the legislature to Juneau, “no strings attached,” Senate Minority Leader Tom, Begich said. Begich said that all sides had shown a willingness to negotiate. “There’s a lot of pressure to not lose those federal matching funds,” he said.

When asked about how the governor was responding to HB 2001 and its attempt to restore funding cut by his vetoes, Begich told the Empire, “There’s certainly some flexibility,” but “I can’t say he was overly enthusiastic.”


• Contact reporter Peter Segall at 523-2228 or psegall@juneauempire.com


More in News

(Juneau Empire file photo)
Aurora forecast through the week of Nov. 3

These forecasts are courtesy of the University of Alaska Fairbanks’ Geophysical Institute… Continue reading

Nesbett Courthouse in downtown Anchorage on Oct. 7, 2024. (Yereth Rosen/Alaska Beacon)
After controversial correspondence school decision, Anchorage judge faces voters in election

Adolf Zeman is one of 19 judges on Alaska’s ballots, but he’s the only one with a campaign against him.

The outcome of the struggle for control of both the House and Senate will have sweeping implications for the country’s future. Shown is the U.S. Capitol on Oct. 9, 2024. (Jane Norman/States Newsroom)
Will control of Congress shift? The results hinge on a handful of states and races

Narrow Republican Senate majority would allow Murkowski to wield outsized influence, expert says.

A sign on Egan Drive reminds motorists at midday Friday a lower seasonal speed limit is in effect in an attempt to reduce collisions at the Fred Meyer intersection. (Mark Sabbatini / Juneau Empire)
Reduced 45 mph speed limit goes into effect on Egan Drive in vicinity of Fred Meyer intersection

Change in effect until Jan. 31 intended to improve safety; JPD reports normal number of traffic stops.

People voting ahead of Election Day line up inside the Mendenhall Mall annex on Friday, Oct. 25. (Laurie Craig / Juneau Empire)
Juneau an afterthought for candidates ahead of Tuesday’s election, but early voting at a record pace

Toss-up U.S. House race, minimum wage increase, repeal of ranked choice voting on ballot.

Mark Sabbatini / Juneau Empire file photo
Tesla Cox (left) explains the damage done to her home and possessions by record flooding Aug. 6 to a delegation of municipal, tribal and federal officials on Aug. 11. The City and Borough of Juneau is considering a memorandum of agreement with the Central Council Tlingit and Haida Indian Tribes of Alaska for public safety issues such as emergency response, plus a similar agreement involving solid waste operations.
City leaders, Tlingit and Haida considering operational pacts for public safety, solid waste

Assembly members Monday will also discuss flood barriers, short-term rentals, homeless.

(Michael Penn / Juneau Empire file photo)
Police calls for Wednesday, Oct. 30, 2024

This report contains public information from law enforcement and public safety agencies.

The Tongass National Forest near Sitka on Oct. 10, 2024. The remains of a hunter who the authorities believe was fatally mauled by a bear were recovered on Wednesday, Oct. 30, 2024, from a remote region in Alaska where such attacks are rare. (Christopher Miller/The New York Times)
Deer hunter is killed in apparent bear attack near Sitka, authorities say

The remains of a hunter who authorities believe was fatally mauled by… Continue reading

Most Read