Tag: Alaska Legislature

By: James Brooks, Alaska Beacon

On Saturday, Alaska legislators voted 43-16 to override Gov. Mike Dunleavy’s veto of Senate Bill 183, which is intended to compel the executive branch to provide information about settlements paid by oil companies to the state of Alaska, in order to resolve tax disputes with the Alaska Department of Revenue.

That vote was overshadowed by an education funding veto override that took place minutes later, but the override on SB 183 could be more significant for state revenues in the long run.

Since 2020, lawmakers have unsuccessfully attempted to audit the Department of Revenue’s audit division in order to determine whether the state has been settling tax disputes with oil companies for what Sen. Bill Wielechowski, D-Anchorage, calls “pennies on the dollar.”

“I would expect that we will see there has been significant underpayments,” he said, explaining that the state had been collecting tens or hundreds of millions of dollars in settlement payments, “and then it dropped to $250,000. Based on the amount that the settlements dropped, which was huge, I expect there’s probably massive underpayments.”

In comparison, Saturday’s veto override on education funding involved just $50.6 million.

Legislative Auditor Kris Curtis, who has worked in that position since 2012, hasn’t been able to examine the Department of Revenue’s work because the department hasn’t provided the necessary information.

Until 2019, the department supplied that information regularly. Curtis previously conducted an audit of the same division in 2014.

“I’ve never seen this type of non-cooperation with any other administration,” she said in an interview Tuesday.

If the department still does not comply with the new law, The joint House-Senate Legislative Budget and Audit Committee is prepared to issue subpoenas to legally compel the department to release the information, said Sen. Elvi Gray-Jackson, D-Anchorage and chair of the committee.

“The engagement letter has been signed and executed, and the attorneys that we hired to move forward with the subpoenas are just waiting for instruction,” she said, speaking to reporters on Saturday.

Curtis said she hopes it doesn’t come to that.

“My plan is to reach out to the agency and basically restart my audit,” she said.

The commissioner of the Alaska Department of Revenue, Adam Crum, is scheduled to resign on Aug. 8, meaning that the audit will take place under a new commissioner.

“I’m hopeful that I can just restart my audit and everything will just proceed,” she said.

Curtis said she can’t provide much information publicly — or even to lawmakers — since the audit process is confidential.

“If they were to provide (the information) right away, it would be a few months,” she said of the timeline to complete her work. “And we also have financial and federal audits that are competing priorities.”

Asked whether the department will provide the information and for a timeline of work, the Department of Revenue forwarded questions to the Office of the Governor. 

“The administration will continue to provide the information necessary for the legislative branch to complete its audits,” said Jeff Turner, the governor’s communications director, in an emailed response.

“Yeah, well, we’ll see,” Curtis said when told about the answer. “I’ll keep my fingers crossed. I want to give them the benefit of the doubt.”

Wielechowski said that under SB 183, state officials could face criminal charges if they refuse to comply. That possibility is a long way off, he said.

“The Legislature is not itching for a fight with the executive branch,” he said. “We just want the information.”

By: James Brooks, Alaska Beacon

Alaska’s governor came to Juneau for last weekend’s special session with a noticeable abrasion on his forehead, the result of skin cancer surgery, he told reporters at a news conference after lawmakers voted to override two of his vetoes.

“I didn’t get beaten up by anybody, or the Legislature — they didn’t beat me up, either,” he told reporters. 

Dunleavy had similar procedures in 2019 and 2023 to deal with basal cell carcinoma, a common form of skin cancer that is known to recur.

Talking to reporters, he joked that as a kid, he didn’t wear sunscreen enough and said that people should use it. 

Jeff Turner, the governor’s communications director, said Tuesday he’s not aware if the governor plans any ongoing or future cancer treatments.

Meeting in special session, Alaska lawmakers have overridden Governor Mike Dunleavy’s veto of more than $50 million in public school funding.

The 45–14 vote hit the exact threshold needed to override a budget veto, restoring what would have been a 5.6% cut to school districts and providing a modest funding boost.

In Juneau, the veto would have had the effect of a $1.4 million loss.

Lawmakers also overrode Dunleavy’s veto of Senate Bill 183, a measure requiring the Department of Revenue to share details of oil tax settlements with legislative auditors. 

The special session was originally called by the governor to press for education reform and create a statewide Department of Agriculture, two ideas lawmakers have already rejected.

Instead, legislative leaders focused solely on the veto overrides and adjourned until August 19.

By: James Brooks and Corinne Smith, Alaska Beacon

Alaska lawmakers are scheduled to meet at 10 a.m. in Juneau for a special session of the Alaska Legislature. You can watch live online on Gavel Alaska. 

Why is the Legislature meeting in a special session?

Gov. Mike Dunleavy called the special session. The official agenda says that it will involve legislation about education policy and a proposed Alaska Department of Agriculture.

Will legislators actually do that?

No.

What are they doing instead?

They’re going to vote on overriding at least some of the vetoes the governor has made since the regular legislative session ended in May. 

No. 1 on the list is the governor’s decision to veto about $51 million in funding for public schools. The No. 2 item is the bill that would require the Alaska Department of Revenue to provide lawmakers with additional information about tax settlements between oil companies and the state. Lawmakers believe the state may be settling tax disputes for far less than they’re worth, costing the state millions.

Some legislators are interested in taking up other vetoes as well, including the governor’s decision to cancel a ban on payday loan lending, his decision to veto money for transportation projects, and his vetoes of bills affecting police dogs and teacher housing, among others.

Will those overrides succeed?

It’s too close to call. The Alaska Constitution says votes from 45 of 60 legislators are needed to override a budget veto. In May, 46 legislators voted in favor of overriding the governor’s decision to veto a bill that increases the state’s public school funding formula. 

That was the first time since 2002 that legislators voted to override the veto of a sitting governor.

It isn’t clear whether everyone who voted in favor of that first override will vote in favor of the second. 

Overriding a policy bill veto, like the one dealing with the tax settlements, takes 40 votes.

Will everyone be there?

Probably not. Some conservative Republicans had said they would stay away from the session in a show of support for the governor’s vetoes. Immediately after calling the special session, Dunleavy asked them to be absent for the first five days because an absence is as good as a “no” vote when it comes to a veto override.

He later changed his position, asking lawmakers to begin meetings about his stated agenda on Sunday, and some Republicans changed course and said they will attend the session, after all. It wasn’t clear whether all have done so, but it isn’t likely to affect the vote total on the potential override.

Sen. Forrest Dunbar, D-Anchorage, is in favor of an override and had been expected to be unavailable because of military service overseas. He ended up getting a special leave of absence and is flying back from Europe. Sen. James Kaufman, R-Anchorage, is flying back from Vietnam to attend. Other legislators have canceled family plans and postponed business trips.

How long will this take?

On the low end, a few hours. On the high end, a few days. Officially, the special session can last for up to 30 days, but legislators have said they won’t use all that time. 

In some previous special sessions, legislators have left Juneau without formally closing the special session, just in case they need to come back. Those special sessions ended after the 30th day.

How much will this special session cost?

Based on historical costs, the estimated cost for a special session is $30,000 per day, according to the Legislative Affairs Agency, the Legislature’s nonpartisan support agency. But that cost depends on the duration and scope of the special session, said Jessica Geary, the agency’s executive director, by email on Tuesday. 

“Many legislators had to change summer travel plans to attend the special session, and many of them purchase their own travel and submit for reimbursement. At this point we don’t have any concrete cost estimates and won’t know until the special session concludes,” she said.

Geary said legislators have up to 60 days to submit reimbursements for expenses like hotel lodging, transportation and airfare, staffing, expenses, and so the agency will have a total cost by October. 

Legislators receive an annual salary of $84,000 per year. The 57 members that live outside of Juneau are entitled to receive a “per diem” amount of $332 per day to cover expenses. 

If lawmakers don’t take up the governor’s ideas, are they dead?

No. Legislators have created a task force to consider education policy changes, including those from the governor. One idea supported by the governor is open enrollment — allowing a student to move between different schools and school districts, regardless of where they live. That will be considered by the task force, which meets Aug. 25.

Legislators are also considering a bill that would create the Alaska Department of Agriculture. That bill is broader than the governor’s initial plans; for example, it would include sea farms (formally known as aquaculture), which are the fastest-growing agricultural sector in Alaska.