Peter Segall | Juneau Empire                                Senate President Cathy Giessel, R-Anchorage, speaks to Sen. Click Bishop, R-North Pole, on Monday.

Peter Segall | Juneau Empire Senate President Cathy Giessel, R-Anchorage, speaks to Sen. Click Bishop, R-North Pole, on Monday.

Senate passes $12 billion budget, moves to adjourn early

Budget contains emergency funding for COVID-19 and a $1000 PFD

The Senate passed a state budget bill with $12.6 billion in funding after several hours of debate on the floor Monday.

Contained in the budget was $75 million in emergency funding for the COVID-19 crisis and unlimited federal receipt authority for Gov. Mike Dunleavy to accept funds from the federal government.

Senators also voted for a $1,000 emergency relief payment to Alaskans who qualified for the 2019 permanent fund dividend to be sent out in the coming weeks.

ADVERTISEMENT
0 seconds of 0 secondsVolume 0%
Press shift question mark to access a list of keyboard shortcuts
00:00
00:00
00:00
 

Sen. Mike Shower, R-Wasilla, who introduced the amendment, had earlier tried to add an amendment allocating a $1,300 supplemental PFD, but that motion narrowly failed, 10-9.

Shower argued that by mandating the closure of businesses the state owed a responsibility to Alaskans to help ease their financial strain.

“We are killing (people’s) livelihood,” Shower said. “People need help right now, and we can’t wait for help from the federal government.”

The U.S. Congress is currently weighing making cash payments to Americans but supporters of Shower’s amendment, including some Democrats, argued there wasn’t time to wait.

Opponents, including Senate Finance Co-chairs Sens. Natasha Von Imhof, R-Anchorage and Bert Stedman, R-Sitka, said while they agreed Alaskans were in need, PFDs would be sent to every Alaskan, even those who aren’t in financial need.

Sen. Jesse Kiehl, D-Juneau, cited many of the essential services provided by the state such as police and public health care. It made more sense, he said, to keep that money where it could be most effective, such as funding health services to combat the COVID-19 outbreak.

“It’s the difference between a ripple in the water and a wave,” he said.

Though Shower’s initial amendment failed, his second attempt which allocated only $1,000 passed 12-7.

Shower and Sen. Lora Reinbold, R-Eagle River, attempted to add several amendments Monday, with most of them failing save for Shower’s payment amendment.

Reinbold proposed adding in a full statutory PFD of $3,000 — the bill which passed the Senate allocated $1,000 for 2020’s PFD — and tried to add intent language which would “extend the benefits” of the U.S. Supreme Courts decision in Janus v AFSCME.

Last year Attorney General Kevin Clarkson issued an opinion the state was not in compliance with that decision, which says public employee unions can no longer automatically collect union dues. That opinion was challenged by the unions in the state and the matter is still in the courts. Citing the ongoing court case that amendment failed 15-4.

When the budget came before the Senate Monday morning it allocated roughly $11.8 billion, but with additional amendments, it rose to nearly $12 billion. Shower’s $1,000 relief check amendment added $680 million to the state’s budget.

The bill still needs to be passed by the House, which has yet to pass the FY2020 supplemental budget sent to them by the Senate last week.

That bill contained additional funding for COVID-19 relief as well as language for the “reverse sweep,” an action to reverse an accounting mechanism that empties state accounts at the end of each fiscal year. Normally those accounts are automatically restored by an act of the Legislature, but in the past few years, the approval of the reverse sweep has been used as a bargaining chip by the House Minority for leverage over the majority.

Members of House Majority have said they will try to rescind the vote against the supplemental budget and try again, hoping the sense of urgency provided by the COVID-19 pandemic will motivate members to pass the bill.

Asked what happens if the House fails to do that, Stedman told reporters following Monday’s floor session, “they might want to consider that.”

“If they don’t get (the supplemental budget) across the finish line, then those funds would be swept,” Stedman said. “My concern is we’ll have a lot of federal money coming in that’ll be sitting in those accounts, and it’ll restrict the flexibility that the governor has to even respond.”

After the vote on the budget, that Senate passed a resolution that would allow the Legislature to take a recess of more than three days if they can pass a budget. Some lawmakers are hoping to pass a budget and reconvene later in the year when the crisis has hopefully abated. Stedman said he hoped the Legislature could finish its business by the end of the week.

Both bodies were holding sessions into the evening Monday.

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

Information on the coronavirus is available from websites for the State of Alaska at coronavirus.alaska.gov and the Centers for Disease Control and Prevention. People with flu-like symptoms are encouraged to contact their health care provider.

Alaska state Rep. David Eastman sits at his desk on the House floor in Juneau, Alaska, Monday, March 23, 2020. Eastman, a Wasilla Republican, has been critical of the Legislature’s planning around the coronavirus. Rep. Sharon Jackson also wore a mask on the House floor Monday. (AP Photo/Becky Bohrer)

Alaska state Rep. David Eastman sits at his desk on the House floor in Juneau, Alaska, Monday, March 23, 2020. Eastman, a Wasilla Republican, has been critical of the Legislature’s planning around the coronavirus. Rep. Sharon Jackson also wore a mask on the House floor Monday. (AP Photo/Becky Bohrer)

More in News

Foliage surrounds the Soldotna Police Department sign on Tuesday, Aug. 30, 2022, in Soldotna, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
Soldotna OKs $170,000 for new police camera system

The existing system was purchased only during the last fiscal year, which ended June 30, 2024.

Winter Marshall-Allen of the Homer Organization for More Equitable Relations, Homer Mayor Rachel Lord, and Jerrina Reed of Homer PRIDE pose for a photo after the mayoral proclamation recognizing June as Pride Month on Tuesday, May 27 at the Cowles Council Chambers. (Photo courtesy of Winter Marshall-Allen)
City of Homer recognizes Pride Month, Juneteenth

Mayor Rachel Lord brought back the tradition of mayoral proclamations May 12.

File
Potential remains of missing Texas boaters discovered in sunken vessel

The vessel capsized 16 miles west of Homer in Kachemak Bay in August.

A sign for The Goods Sustainable Grocery is seen in Soldotna, Alaska, on Tuesday, May 20, 2025. (Jake Dye/Peninsula Clarion)
New Saturday Market to launch this summer at The Goods

The summer bazaar will feature craftspeople from around the central and southern Kenai Peninsula.

Council member Alex Douthit speaks during a meeting of the Kenai City Council in Kenai, Alaska, on Wednesday, June 5, 2024. (Jake Dye/Peninsula Clarion)
Kenai loosens restrictions on employee purchase of city property

Municipal officers like city council members are still prohibited from buying property.

Mount Spurr is seen from the Kenai Peninsula, Alaska, on May 11, 2025. (Peninsula Clarion file)
Likelihood of Spurr eruption continues to decline

Spurr is located about 61 miles away from Kenai and 117 miles away from Homer.

Anchor Point Chamber of Commerce President Dawson Slaughter (left) and Susie Myhill, co-owner of Anchor River Lodge and co-chair for the chamber’s sign committee, unveil the new “most westerly highway point” sign on Tuesday in Anchor Point. (Delcenia Cosman/Homer News)
Anchor Point chamber unveils new highway sign

The sign marks the “most westerly” highway point in North America.

Alaska State Troopers logo.
1 dead in Anchor River vehicle turnover

Alaska State Troopers were notified at 7:46 a.m. of a vehicle upside down in the Anchor River.

The barge, crane, and first pile of rock for the Kenai Bluff Stabilization Project is seen during a break in work at the bank of the Kenai River in Kenai, Alaska, on Tuesday, May 27, 2025. (Jake Dye/Peninsula Clarion)
Kenai bluff project underway

A roughly 5,000-foot-long berm will be constructed from the mouth of the Kenai River to near the city dock.

Most Read