Gov. Murkowski, front speaks about the 2004 legislative session during a news conference on the Governor's mansion lawn Wednesday. Members of the legislature republican majority listen in the background. BRIAN WALLACE/ THE JUNEAU EMPIRE

Murkowski also said he would not veto the $82 million in increased education funding approved by the Legislature this session. The governor said he might cut the spending increase in future years if lawmakers do not find a way to fill the fiscal gap.

Republican majority leaders said they are polling their members to call themselves into a special session sometime this summer to address outstanding issues. These include using the Alaska Permanent Fund for state government, increasing the state tobacco tax and making changes to worker's compensation laws.

"There are some issues that were still left on the table that I believe had the requisite support for passage, and as such I think it's incumbent on us to complete our job," said Speaker of the House Pete Kott, R-Eagle River. "To be honest, the clock struck 12 and we had no other alternative than to adjourn (Tuesday) evening."

Kott said he's already received positive feedback from members on calling a special session. "The initial reaction was 'Yes' and 'Heck yes,' " Kott said.

House Minority Leader Ethan Berkowitz, D-Anchorage, the only Democrat who showed up for the governor's press conference, responded: "We're ready to go for a special session any time."

It takes two-thirds-majority approval by lawmakers to call themselves into a special session.

One of the outstanding issues upon adjournment Tuesday night was the House of Representatives' failure to pass a tobacco tax. Murkowski has called the tax a "must-pass measure."

"There's been some disappointments," Murkowski said. "Obviously the tobacco tax was a disappointment."

He introduced a $1 increase to the state tobacco tax this session, which would bring the total tax to $2 per pack. That proposal would have raised about $35.5 million a year.

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The main focus of a special session, however, likely would be on the governor's plan to use the permanent fund under a percent-of-market-value structure to help fund state government.

The 5 percent annual use of the fund would be split between government and dividends. An even 50-50 split would provide more than $600 million annually for state services.

If they do call a special session to address POMV and permanent fund use, lawmakers are likely to act soon. The POMV approach would require an amendment to the state constitution, which needs a two-third majority vote in the House and Senate and a statewide vote by the public this November.

"I think it could be relatively soon," Murkowski said.

The high price of oil this year, just under $40 a barrel in recent weeks, has allowed the state to include the increased spending for education.

"My concern here is that as we revel in the sunshine today in the euphoria of high oil prices that we're leaving a good deal exposure to the whims of OPEC," Murkowski said. "What goes up must come down."

"The increase in education is necessary," he said, but added that he would not continue to fund the increase if oil prices drop and the Legislature fails to establish a fiscal plan to pay for it.

"If we're in a situation this fall where our revenues begin to drop, I clearly will not recommend an $82 million increase unless there is a funding mechanism available," he said.

• Timothy Inklebarger can be reached at timothy.inklebarger@juneauempire.com.