The Senate in Alaska recently passed a version of the state operating budget that would result in residents receiving checks of around $1,580 this year. This check size includes the yearly dividend paid to residents as well as an energy relief payment. This is significantly lower than the House version of the budget, which proposed checks of about $2,275 per person, including a dividend of roughly $1,650, plus energy relief payments of about $625. The debate over the size of the dividend has been relatively muted compared to past years, as both versions of the budget aim to provide financial support to residents.
Both versions of the operating budget also include approximately $175 million in additional, one-time foundation funding for K-12 schools. This funding is intended to help school districts address inflationary issues and support education in the state. Last year, a similar one-time boost was passed by the legislature, but it was partially vetoed by Republican Governor Mike Dunleavy. Governor Dunleavy has expressed willingness to support this year’s funding for schools, as well as the possibility of a special session on education depending on the outcome of ongoing litigation around correspondence schools.
In March, Governor Dunleavy vetoed a measure passed by lawmakers that would have permanently increased aid to school districts through a school funding formula. The measure lacked provisions favored by the governor on teacher bonuses and charter schools. An attempt by the legislature to override the veto failed, leaving school leaders and education advocates disappointed. House lawmakers are currently working on an alternate education package, but it remains unclear if one will be completed before the regular session expires in mid-May.
Differences between the state operating and infrastructure budgets are typically resolved through a conference committee of House and Senate negotiators. While the Senate has already passed its version of the state infrastructure budget, the House has yet to pass its version. The resolution of these differences will be important in finalizing the state budget and determining the financial support that will be provided to various sectors in Alaska. Governor Dunleavy’s support for education funding and the potential for a special session on this issue reflects the ongoing efforts to address the state’s budgetary needs and priorities.
