After five month of challenging work, the House and Senate passed the Operating budget late last night.

This budget is not one that I am celebrating—it’s an austerity budget—but it ensures that we avert a possible government shut down and protects K-12 and pre-K education.

It is important to point out that we restored the Senate Majority’s cuts to Alaska’s Pioneer Homes, public education and the University. We ensured that public safety, our courts and airports, fish and game and other essential government services will continue to operate on July 1st. More budget details are available here.

However, let us be clear: this is not a fiscal plan.

A budget isn’t a fiscal plan? Why not?

In State government, the budget is a spending plan, not a fiscal plan. The budget defines what we spend on necessary state services like public safety, transportation, public education and the University. Our constitution doesn’t allow us to pass unfunded budgets, the legislature has to state where the funds will come from if there isn’t have enough projected revenue from oil tax revenue and the federal government to fund it.  

So to ensure the budget could be passed last night, both the House and the Senate approved draws from the Constitutional Budget Reserve (our savings) of about $2.7 billion dollars last night. Yes, the legislature passed a $2.7 billion draw from our savings to fund the budget because both houses of the legislature have not been able to agree upon a comprehensive fiscal plan.