Facing fiscal low oil prices and fiscal uncertainty, Alaska Gov. Mike Dunleavy has directed all executive branch agencies to implement immediate cost control measures.
Under an executive order issued on May 9, the State of Alaska will implement a statewide freeze on out-of-state travel, hiring, and the development of new regulations. The order is designed to reduce the impact on available funds, streamline government operations, and refocus state efforts on delivering core services that protect the health and safety of Alaskans.
“This is the right thing to do,” Dunleavy said in a prepared statement. “Alaskans expect us to manage their resources wisely. With oil prices dropping and our savings accounts unable to carry us through even one year of full state operations, we have no choice but to act now. We will not stop fighting for better educational outcomes, safer communities, and stronger support for Alaska’s families – but we must do so with discipline and focus.”
In recent years, oil production revenues, which once comprised 90% of Alaska’s unrestricted general fund, have fallen to approximately 40%. While high prices in FY2024 provided temporary relief, a recent decision by OPEC to increase global production has significantly lowered market prices.
Currently, Alaska’s Department of Revenue’s Spring 2025 Forecast anticipates oil prices to average $68 per barrel in FY2026, representing a 20% drop from the prior year and resulting in a revenue shortfall of hundreds of millions of dollars.
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Meanwhile, the state’s primary savings accounts (the Constitutional Budget Reserve, Power Cost Equalization Fund, and Higher Education Investment Fund) hold a combined value that is insufficient to sustain one year of government operations.
According to Dunleavy’s order, there is now a freeze on all out-of-state travel for state employees, regardless of funding source. Exceptions may be granted through a waiver process for essential public safety or mission-critical duties.
The governor also implemented a statewide hiring freeze, affecting all full-time, part-time, seasonal, and non-permanent positions unless they directly support public safety or essential services. Exemptions include law enforcement, 24-hour care facilities, and frontline positions at agencies like OCS and the Division of Public Assistance.
Finally, there is now, also, a freeze on new regulations, allowing state agencies to concentrate on their core missions. This applies to all regulations not already out for public notice.
These actions apply to all executive branch agencies, departments, boards, commissions, and public corporations, and will remain in effect until rescinded.
To read the full administrative order, click here gov.alaska.gov/admin-orders.
16 Comments
Me thinks Dunleavy pretends to be Elon Musk. But that is OK. Dunleavy needs a hero to copy!!!!
We. need an Elon Musk up here! He could start in the ASD.
Dunleavy’ needs to get out that RED pen and make the big cuts.
These lame legislators in Juneau, they just keep spending and spending.
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Whoa Nelly!! The last time Dunleavy had a fit on spending, he fired every board member on every board that didn’t like his ideas of pay raises for the governor and the legislature. Then raised the pay of the legislators and himself, of course, and then hired new board members . Guess he told them off, didn’t he? I’m breathless to see what he will do with that red pen. Who is going to get fired to raise their pay, again? Will Dunleavy save the state money? No!! Will he save money for the residents of the state? No!!!
It’s sad when $68 a barrel Alaska. ant make a go of it! It wasn’t that long ago where if we could maintain $15 a barrel we wouldn’t get rich or put any in tge coffers but we could survive. Look at all the greed we have come up with. A good example is schools. ASD is down i heard to 65% compacity and they are holding Juneau captive for BSA. I thing Governor Dunleavy needs to call for an audit! Let’s really see where/why the need so much money. I know where I’d start doing an Elon Musk to them if I had the authority to! It’s not teachers either!
Neil–ASD and all of the other school districts in the state are audited annually by CPAs. Every school district also publishes their budgets online for the public to review. The information you are seeking already is available.
Austerity would be unnecessary if we eliminated the PFD, ended SB 21 and demanded Hilcorp pay what they owe us.
Manny–If we just rescinded SB21 and revised the Hilcorp loophole, we would not have to eliminate the PFD.
Louise. Sounds good to me.
DUNLEAVYS TRYING HIS DAMNDEST TO APPEAR RESPONSIBLE! ISN’T IT ALOT LATE? WHAT ABOUT STUPID CARBON CRAP? OR YOUR INOVATIVE TALAPIA FISH FARMING? OR YOUR ESSENTIAL AGRICULTURAL DEPARTMENT? OR ON ANOTHER NOTE, DOES THIS MEAN ADAM CRUM IS GOING TO BE RESTRICTED FROM TAKING MORE UNAUTHORIZED TIME OFF TO RELAX ON THE BEACH IN HAWAII? MUST BE NICE HAVING A REMOTE OFFICE IN PARADISE, MAKING PHONE CALLS ,FIRING SUBORDINATES OVER THE PHONE IN BETWEEN SIPS OF HIS MARGARITA! DUNLEAVYS GROOMED HIM WELL TO BE OUR NEXT GOVERNOR!
THINK IM JOKING?
Funny how the timing coincided with the OPEC increase in output and the tariffs. And as usual, it was Alaska holding the bag. The economy needs more diversification.
If only there was some industry other than oil that could increase Alaska’s revenues, like mining. Too bad the federal government controls the permitting of mining in Alaska instead of Alaskans.
The right thing to do, Governor? How about stopping payments for abortions of unborn Alaskans?
ADVISING THIS GOVERNOR WITH SENSIBLE IDEAS WILL NEVER GET A HEARING! THE HEALTH AND HUMAN perverversion department still pays for transmission replacements in our youth! THE ISSUE HERE IS NOT WHETHER WE HAVE MONEY DUE TO THE PRICE OF OIL. THE ISSUE IS CLEARLY A SPIRITUALLY DEPRAVED ADMINISTRATION LED BY A SPIRITUALLY DEPRAVED MAN! DUNLEAVY HAS REJECTED THE GOD OF THE BIBLE AND SO HAS HIS CLOSEST ADVISERS! THE IDEAS, POLICIES, CONTRADICTIONS, CONFUSION, AND HYPOCRISY THAT CONTINUE TO COME FROM THIS ADMINISTRATION ARE THE UNEDIBLE FRUIT THAT WE ARE ALL GETTING SICK OF!
IM NO SUPPORTER OF MURKOWSKI, WHO HAS ONE VOTE. DUNLEAVY ON THE OTHER HAND CONTROLS MULTIPLE DEPARTMENTS WITH THOUSANDS OF PERSONAL! OUR STATE HAD BETTER DO A CLOSE EVALUATION OF THE CONSERVATIVES WE KEEP ELEVATING TO LEAD US!