The Latest: Alaska Senate Oks bill on oil-wealth fund draws

JUNEAU, Alaska — The Latest on the extended Alaska legislative session (all times local):

12:35 p.m.

The Alaska Senate has passed a major piece of a plan to address the state’s budget deficit.

The bill calls for limited draws from Alaska Permanent Fund earnings. Money taken out would help pay for state government costs and be used to pay the annual checks residents receive from the oil-wealth fund.

The bill doesn’t specify how the money would be divided among the two needs in the future.

Sen. Bill Wielechowski opposed the bill. He says it doesn’t protect future dividends.

Sen. Anna MacKinnon said no one wants to reduce Alaskans’ dividends, but the state is in unprecedented times.

Lawmakers have proposed for this year a $1,600 dividend, about $1,000 less than if an existing dividend calculation in state law were followed.

The bill still must pass the House.

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10:05 a.m.

Alaska House and Senate negotiators have reached tentative agreement on a major piece of a state fiscal plan.

A conference committee advanced legislation Tuesday calling for limited draws from Alaska Permanent Fund earnings. The money would help pay for state government and pay the annual checks residents receive from the oil-wealth fund.

The bill does not specify how the money would be divided among the two.

The bill keeps in place the existing dividend calculation, but that’s no guarantee a full dividend will be paid in the future.

The calculation has been ignored the past two years, and lawmakers this year propose a $1,600 dividend, about $1,000 less than if the calculation were followed.

The permanent fund bill is one of the last unresolved issues in the extended legislative session.