JUNEAU, Alaska (AP) - The state of Alaska has begun preparing for a potential government shutdown with the start of a new fiscal year just over three weeks away and lawmakers have yet to come to terms on a budget.
Gov. Bill Walker on Thursday characterized a shutdown as unlikely. “But each day that goes by, we become more and more concerned that it could take place,” he told reporters. He said the state needs to be prepared.
On Thursday, state agencies outlined services that could be delayed or halted if lawmakers fail to pass a budget before the new fiscal year starts on July 1. Services included Alaska’s ferry system, an important artery for smaller coastal communities; oversight of cruise ships in Alaska waters; early education and Head Start programs; and issuance of subsistence permits. A shutdown also would coincide with the peak of the Bristol Bay sockeye season.
Some agencies said they expected to maintain certain services to comply with health and safety mandates. The state said the Department of Law is looking at what money could be spent to continue “vital” state services if a budget is not passed.
Notices were sent last week to thousands of state workers warning of potential layoffs if the budget isn’t settled.
Attorney General Jahna Lindemuth said a shutdown would create a “constitutional crisis.”
“Our constitution clearly says the power to determine where and how to spend money lies with the legislature,” Lindemuth said in a release. “In the face of the legislature not upholding its constitutional duty, where does that leave state services and programs? That’s the question we are working to answer by evaluating every program or service provided by the State.”
Legislative leaders have said they don’t want to see a government shutdown but have yet to agree on a budget and plan for addressing Alaska’s deficit. In a typical year, lawmakers would have settled on a budget in April.
If there is a shutdown, state liabilities could stack up, including contracts that don’t get paid and laws that aren’t fulfilled, which could create legal liabilities, the Department of Law said.
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