Midway through session, lawmakers looking for fiscal fix
The state is in its fifth year of deficits, a problem exacerbated by chronically low oil prices, and Legislative Finance Division Director David Teal has said neither cuts nor taxes appear capable of filling the hole.
During a committee hearing on a permanent fund bill Tuesday, Sen. Mike Dunleavy, R-Wasilla, proposed calling for an advisory vote of the people on changing the dividend calculation and the amount available from earnings.
Sen. Cathy Giessel, a fellow Republican who voted against it, said special election turnout can be unpredictable and said she wasn't convinced people would understand the ramification of a yes or no vote.
The Senate has said it hopes to lop $300 million off the budget for next year, and Senate Majority Leader Peter Micciche has said he'd like to see a focus on passing a permanent fund bill before delving into politically divisive topics, like taxes.
The House majority, composed largely of Democrats, is eyeing changes to oil tax and credit policy along with a broad-based tax and permanent fund bill as part of a comprehensive fiscal plan.