Alaska budget woes prod debate over oil-wealth fund checks

Lawmakers had long limited use of earnings to such things as fortifying the fund and paying dividends based on an average of fund income over five years.But last year, after going through billions of dollars in savings and at odds over taxes and further budget cuts, lawmakers began using earnings to help pay for government and sought to restrict what could be withdrawn for dividends and government.Alaska has no state sales or personal income taxes.Dunleavy, a Republican, says a longstanding dividend calculation that hasn’t been followed for three years should be followed until it’s changed. He sees no conflict between paying a dividend and taxing residents.While some Democrats want to debate oil taxes and whether companies are paying enough, Dunleavy has focused on cutting a budget he considers unsustainable.There would not be an “honest discussion” about spending if tax bills also were being introduced, said Dunleavy’s revenue commissioner, Bruce Tangeman.Dunleavy vetoed more than $400 million, riling critics who say it’s too much, too fast and prompting public outrage that is fueling a recall attempt.