The state of the budget continues to be the big issue in Juneau these days. There is a $3.5 billion difference between revenue and a continuing level of expenditures. While we expect significant reductions in spending, we also expect a significant use of reserves to fill the remaining gap.
Much of the discussion includes a recognition that state spending has become an integral part of Alaska’s economy. Thus, a radical reduction could send Alaska into a tailspin reminiscent of the late 1980s. The challenge is caused not only by the reduced price of oil, but also by the declining flow in the pipeline. We will see how this all plays out as we work through the session.
In legislative action:
Daylight Savings Time Repeal
Senate Bill 6 by Sen. AnnaMacKinnon, ending Daylight Saving Time, passed the Senate State Affairs Committee and was sent to the Senate Finance Committee. NFIB Leadership Council Member Mike Wilson testified for NFIB in favor of the bill, saying the membership ballot showed 61 percent of NFIB/Alaska members wanting repeal.
Tourism vendors in Southeast Alaska opposed the bill, because the change would limit sunlight in the late evening hours, reducing the time float planes can land. They estimated that the change might cost them 25 percent of their business.
Business Income Restitution
Senate Bill 12 by Sen. Peter Micciche corrects a court decision by including loss of business income in restitution cases. This bill is scheduled for hearing in the Senate Labor & Commerce Committee, February 19. A letter of support from NFIB for SB 12 can be read here.
Veteran Hiring Preferences
House Bill 6 and Senate Bill 2 would permit private employers to offer veterans’ preferences in the hiring of veterans and their spouses or domestic partners. There is no prohibition against veteran preferences now, so these bills are unnecessary. Putting these types of bills into law make it so much easier to move the voluntary to a mandate.
Past Reports
