For lower-income Alaskans and those living in high-cost rural areas, the dividend can be an important source of income.

“that we need to do something and we need to do something major.” What that ends up being remains unclear.

The major debate at this point appears to be around using earnings from the Alaska Permanent Fund, what tax bills to pass, if any, and how far to push changes to oil taxes and credits.

Bills to reinstitute a personal state income tax for the first time since 1980 and proposals from Mr. Walker to raise taxes on motor fuels and on various industries, including oil, fishing and mining.

The governor has warned that legislators could face a special session if they do not come up with a fiscal plan before the regular session ends on April 17.

Gunnar Knapp, an economics professor, has told lawmakers that Alaska is probably facing a recession and that the economy will take a hit no matter what they do.

state political leaders are struggling to get on the same page, with legislators split on options like taxes, the depth of budget cuts and tinkering with the annual dividend most Alaskans receive for living here.

The collapse in oil prices has left oil-reliant Alaska with a multibillion-dollar budget deficit and few palatable options for digging its way out.