It’s in the Legislature’s hands now.
Last week, the Empire warned you that Gov. Bill Walker was likely to veto some or all of this year’s Permanent Fund Dividend.
On Wednesday, he did exactly that. Instead of a $2,000 dividend, you’ll receive $1,000 — unless the Legislature acts and passes some version of Senate Bill 128, which would have diverted a portion of the Permanent Fund to offset Alaska’s multibillion-dollar deficit.
We’ll find out starting July 11.
So far, the signs aren’t promising. Soon after the governor announced the Dividend veto (and $600 million in other budget vetoes), lawmakers rushed to put out press releases complaining about the governor’s actions.
Rep. Mark Neuman, a Republican from Big Lake and co-chairman of the House Finance Committee, complained that Walker vetoed $430 million in payments to oil and gas companies. Rep. Steve Thompson, a Fairbanks Republican and the other House Finance chairman, weighed in with complaints about Walker’s move to veto road projects throughout the state.
“In our current fiscal situation we need to make sure our economy stays strong. We don’t have a lot of roads in Alaska, so when you cut eight statewide road construction projects totaling $250 million, you’re cutting a lot of jobs,” Thompson said in a prepared statement.
In reality, it’s inaction by the House of Representatives that’s jeopardizing Alaska’s economy.
It was the House Finance Committee that failed to advance SB 128.
That diversion would have avoided the need for Gov. Walker’s vetoes and protected the Dividend far into the future. Right now, the Dividend will end by 2022 unless the Legislature acts quickly to preserve it.
The Senate voted 14-5 to pass Senate Bill 128. The House Finance Committee kept it from reaching a floor vote.
Gov. Walker’s vetoes have given reluctant lawmakers an out. They can be the heroes who restored the Dividend and protected Alaska’s economy. They can play Gov. Walker as the villain all they want, and they can ride to the rescue.
They simply have to vote in favor of Senate Bill 128.
Without that bill, there will be no heroes in the Legislature. Only villains.
