Daily Sitka Sentinel

Stedman: Governor Is Wrong on Budget

By SHANNON HAUGLAND
Sentinel Staff Writer

Sitka’s Sen. Bert Stedman says the budget the Legislature passed this week is adequate to run the government for the next year, and is close to the budget Gov. Mike Dunleavy presented.

But the Republican legislator added that Dunleavy is threatening a state government shutdown “for political purposes,” not out of necessity.

“There’s no reason to shut the government down,” Stedman said. “If that happens, it’s the governor’s choice.”

The first special sessions called by Dunleavy ends at midnight tonight. Stedman expects to receive a call between midnight and 1 a.m. Saturday with the news that the governor has issued a proclamation calling another special session starting Wednesday.

Dunleavy said Thursday that notices for possible layoffs were sent to state employees, and cited the failed effective date vote in the House, which the governor  said raises constitutional issues.

Both chambers passed the state operations and capital budget but the House fell short of the two-thirds majority required for the effective date clause, which would make the budget immediately effective.

Responding to the governor’s comment that the budget passed was “defective,” Stedman said, “The budget that was passed by the Legislature is not a defective budget. We have retroactive effective date language in the budget which is standard. The budget is the governor’s budget. There are very little changes except for some reductions. There are no legislative items in the capital budget and the dividend that is supported is $1,100.”

He said half of the dividend funding was removed by elected officials who support a higher dividend amount.

“We’re working to make sure a $1,100 dividend is delivered and not the short-funded dividend of $575,” Stedman said.

Dunleavy and Republicans in the House minority support a dividend closer to $2,200 which Stedman said is prompting Dunleavy’s move toward a shutdown.

Stedman explained that setting the effective date of the budget of July 1 – instead of 90 days from the passage of the budget – is being blocked by the Republican minority in the House. He added that it has passed the Senate by the two-thirds majority required.

Besides the Permanent Fund Dividend, another sticking point is the Power Cost Equalization factor, which subsidizes energy costs in such rural communities as Angoon, Hoonah and Kake, as well as other towns across the state.

“A bunch of legislators want to liquidate it, and spend it,” Stedman said.

Stedman said the governor has “40 years of precedence to fall back on” in approving the budget as presented, with the immediate effective date language.

“If he doesn’t, it’s on him,” Stedman said. “There’s no reason to shut it down unless you want to for political purposes.”