Dividend, tax vote bills could complicate governor’s budget

  • By Becky Bohrer
  • Monday, January 8, 2018 11:06pm
  • News

JUNEAU — Bills introduced ahead of the new legislative session could complicate Gov. Bill Walker’s plans to address Alaska’s budget and tackle infrastructure projects.

Two new Senate proposals — from Republican Bert Stedman and Democrat Tom Begich — seek to enshrine a dividend from the Alaska Permanent Fund into the state constitution.

Similar measures were introduced last year but pushed aside as legislators delayed action on a plan that would use fund earnings to help pay for state government and change how dividends are calculated.

That debate is expected to be reignited this session, as the state grapples with an ongoing deficit.

Some use of earnings is widely seen as inevitable; but how much and what that means for the dividend is up for debate.

Stedman said a structure should be in place to ensure lawmakers don’t dip into the fund in a way that will hurt it. He said he cautioned colleagues last year that the level of draw previously considered was too high and the amount for dividends was too low.

“We need to go back to table, rethink what we’re doing and start with the premise of, How do we protect the permanent fund, not how much money we can get out of it to run the state,” said Stedman, who is from Sitka.

The fund’s principal is constitutionally protected but the dividend currently is not.

The past two years, the formula for doling out dividends has not been followed and the size of the check — paid to qualified Alaska residents as their share of the state’s oil-wealth —has been limited.

Stedman and Begich have taken different approaches in proposing to amend the constitution to set limits on draws and to protect a dividend, setting new dividend calculations.

Begich, who is from Anchorage, said added protections for the dividend are important.

Another bill released Monday, from Republican Sen. Kevin Meyer, calls for voter approval of any broad-based income or statewide sales tax before it takes effect.

Meyer, however, said legal concerns were raised with that approach so he plans to revise the bill to call for an advisory public vote on such taxes instead.

“I see this as an opportunity for the Legislature to get a feel for what the general public wants or doesn’t want,” he said. “And I think if the Legislature feels like a tax is absolutely necessary, then they need to convince their constituents and the public of the need.”

Walker, a former Republican no longer registered with a party, has proposed a wage tax to help pay for deferred maintenance and community infrastructure projects. He said the tax would be limited to three years.

Meyer said he hasn’t spoken with his caucus about his bill. But the Senate has been cool to the idea of new taxes. During a fall special session, Walker proposed a wage tax as a way to help address the deficit. The Republican-led Senate did not act on it.

Earlier last year, the Senate rejected a proposed income tax, arguing that it was ill-advised during a recession.

More in News

Member Tom Tougas, far right, speaks during a meeting of the Kenai Peninsula Borough Tourism Industry Working Group in Soldotna, Alaska, on Wednesday, Dec. 18, 2024. (Jake Dye/Peninsula Clarion)
Tourism working group rejects bed tax, recommends seasonal sales tax adjustment

The document includes a section that says the borough could alternatively leave its tax structure exactly as it is.

The rescued sea otter pup looks at the camera in this undated picture, provided by the Alaska SeaLife Center. (Kaiti Grant/Alaska SeaLife Center)
Stranded otter pup rescued from Homer beach

She is estimated to be around 2 months old and was found alone by concerned beach walkers.

Kenai Peninsula College Director Cheryl Siemers speaks to graduates during the 55th commencement ceremony at Kachemak Bay Campus on Wednesday, May 7, 2025, in Homer, Alaska. (Delcenia Cosman/Homer News)
Kenai Peninsula College leadership sees temporary transitions

KPC Director Cheryl Siemers is serving as interim UAA chancellor, while former KBC director Reid Brewer fills in her role.

Ash-Lee Waddell (center) of Homer is one of six recipients of the 2025 First Lady’s Volunteer Award at the Governor’s Residence in Juneau, Alaska, on May 13, 2025. Photo courtesy of the Office of the Governor
First lady honors Alaska volunteers

Volunteers from Homer and Nikiski were recognized.

The front of the Kenai Police Department as seen on Dec. 10, 2019. (Photo by Brian Mazurek/Peninsula Clarion)
Update: Middle schooler reported missing found after 24-hour search

The student was seen leaving Kenai Middle School at around 10:30 a.m. Wednesday.

The Oceania Riviera stands out against a bluebird sky at the Homer Harbor on Wednesday, May 7, 2025. Over 1200 passengers from aboard the boat explored Homer throughout the beautiful day. (Chloe Pleznac/Homer News)
Homer tourism season kicks off with arrival of cruise ships

The first cruise ship of the season arrived April 28 with 930 passengers.

tease
‘Tomorrow — remember you are still a learner’

Kachemak Bay Campus graduated 49 students during its 55th annual commencement hosted on May 7.

Mt. Redoubt rises above Cook Inlet and the Anchor River drainage as fireweed is in bloom, as seen from Diamond Ridge Road on Friday, July 22, 2022, near Homer, Alaska. (Photo by Michael Armstrong/Homer News)
Native plants provide lifeline for local songbirds

Shorebird Festival talk highlights importance of native plants.

Sterling Elementary School students collect trash from the banks of the Kenai River near Bing’s Landing in Sterling, Alaska, during the 10th Annual Kenai River Spring Cleanup on Wednesday, May 14, 2025. (Jake Dye/Peninsula Clarion)
Cleaning up the mess that’s left behind

Students from six local schools combed for litter during the 10th Annual Kenai River Spring Cleanup.

Most Read