Alaska lawmakers are gearing up for a challenging legislative session as they confront a combination of limited revenue projections and a strained relationship with outgoing Governor Mike Dunleavy. With the governor entering his final year in office, many legislators have mixed expectations about what can be achieved in the coming months.
Dunleavy’s administration has been marked by ongoing criticism regarding his engagement with lawmakers in Juneau. Senator Forrest Dunbar, a Democrat from Anchorage, expressed skepticism about the prospects for significant reforms, pointing to the low oil prices and the governor’s limited political goodwill. “I think we’re just doing the best we can to stop bad things from happening,” Representative Andrew Gray said during a recent podcast, indicating that the chances for meaningful legislation are “extraordinarily slim.”
Despite these challenges, lawmakers are not planning to wait for a new governor to address pressing issues. In the previous session, legislative leaders prioritized increasing the education budget significantly for the first time in Dunleavy’s tenure. They successfully mustered the votes necessary to override the governor’s vetoes, signaling a shift in strategy. “A lot of times when people talk about gridlock, they’re referring to the legislative bodies themselves,” said Senate Majority Leader Cathy Giessel. “In our Legislature, that isn’t true.”
The ongoing tension between the legislature and the governor complicates the political landscape. Giessel noted that Dunleavy’s veto record has led to a lack of trust among lawmakers. “When we offer something — he vetoes,” she added, highlighting the difficulties of navigating the governor’s expectations.
Dunleavy’s spokesperson, Jeff Turner, defended the governor’s record, asserting that he has maintained regular communication with legislators. “The Governor has also worked with many legislators on passing a number of bills during his tenure,” Turner stated.
As the session approaches, one key question is whether lawmakers can find common ground on revenue generation. Both legislators and Dunleavy agree that Alaska needs to increase its revenue to meet fiscal obligations, but there is little consensus on how to achieve this. Dunleavy’s recent budget proposal calls for spending approximately $1.8 billion from the state’s $3 billion savings account, putting additional pressure on lawmakers to shore up revenue in the short term.
Some minority party members, such as Representative Justin Ruffridge, expressed hope that Dunleavy’s final year could still yield legislative accomplishments. “We should at least make an attempt at advancing legislative policies,” he said, acknowledging the challenges posed by dwindling revenue.
Giessel has identified increasing state revenue as a priority for the upcoming session. She mentioned the potential for applying the corporate income tax to privately held corporations, such as Hilcorp, which could provide significant annual revenue for the state. “If he were to veto additional logical, balanced tax provisions, that simply adds to his legacy,” she cautioned.
As the legislature convenes in Juneau, one of the first items on the agenda will be whether to override Dunleavy’s veto of a bill that applies the state’s corporate income tax to online companies. Giessel emphasized the urgency of closing loopholes that allow corporations to operate without contributing to state taxes. However, achieving the necessary votes to override the governor’s veto will be a challenging task that requires bipartisan support.
Lawmakers recognize that they can no longer afford to postpone critical decisions. “We don’t have the room anymore to say, ‘Well, we can limp through another year,’” Giessel remarked, underscoring the need for proactive measures.
As the session unfolds, the balance of power and the willingness of lawmakers to collaborate, despite their differences with the governor, will determine the trajectory of Alaska’s legislative agenda in these final months of Dunleavy’s administration.
