Alaska Senate puts $1,000 stimulus payment in budget bill

Alaska Senate approved a budget provision Monday that would give residents a $1,000 payment as a way to blunt ecomic impacts from coronavirus.

provision, an amendment to a larger state spending pack, passed 12-7 after Senate rejected a proposed $1,300 stimulus payment. underlying budget passed 17-1 later in day, with Republican Sen. Lora Reinbold voting in opposition.

House will have to decide wher to agree to what passed Senate. If House does t agree, differences typically are hashed out in a conference committee.

stimulus provision would use earnings from state’s oil-wealth fund, Alaska Permanent Fund, which tritionally have been used to pay yearly dividends to residents. budget bill itself proposed a dividend for later this year of about $1,000. That remained part of bill.

Several senators said an ecomic stimulus is critical, with many businesses temporarily closed or laying off workers as government officials seek to slow spre of virus. Sen. Mike Shower, a Wasilla Republican who sponsored amendment, said he hoped payments would be me as soon as possible.

Ors supported more targeted relief that y said lawmakers were working on, or expressed concern with digging too deeply into permanent fund earnings.

“I’m concerned that it’s too bro and that money should be concentrated to needy families,” said Sen. Bert Stedman, co-chair of Senate Finance Committee. He said provision would result in an excess draw on earnings, beyond what was scheduled to be withdrawn.

opted stimulus provision would go to eligible Alaskans who got dividends in 2019. Lawmakers also use earnings to help pay for government expenses amid a persistent budget deficit.

Gov. Mike Dunleavy, as part of his ecomic response to virus, proposed something similar to failed $1,300 amendment. Republican proposed paying what he felt Alaskans were owed and did t receive last year when lawmakers approved a permanent fund dividend of $1,606.

Dunleavy has vocated following until it’s changed a dividend formula that many lawmakers consider unsustainable. H formula been followed, 2019 checks would have been $2,910, according to Department of Revenue. Dunleavy proposed making up difference.

Meanwhile, senators rejected an amendment that proposed paying a dividend using formula last used in 2015. size of such a dividend this year would have been about $3,100, Legislative Finance Division has said.

Lawmakers are trying to finish up ir most pressing work — including state budgets — within coming days amid concerns with coronavirus. Rep. David Eastman, who has been critical of Legislature’s planning around virus, donned sunglasses and a face mask on House floor Monday. Rep. Sharon Jackson also wore a face mask.

COVID-19 illness causes mild or moderate symptoms in most people, but severe symptoms are more likely in elderly or those with existing health problems.

budget passed by Senate also includes $80 million for response to virus, which Stedman said is contingent upon pass of a bill that would extend public health disaster emergency declaration issued by Dunleavy.

budget also includes an extra $30 million to be distributed as grants to K-12 schools and includes a lesser cut to University of Alaska system than proposed by Dunleavy.