Alaska Democratic lawmakers and their RINO allies are seething after Gov. Mike Dunleavy announced he had to cut more than $122 million from their impossibly large spending bill, one which the state cannot afford given declining oil revenues.
The cuts include more than $50 million from proposed increases to education, and millions more in school upgrades.
While left-leaning legislators, teachers’ unions and liberal activist groups have decried Dunleavy’s cuts, the governor has maintained that the state simply cannot afford their spending hikes.
“The Spring Revenue Forecast projected $68 per barrel oil in FY2026,” Dunleavy explained in announcing the budget update on June 12. “However, market dynamics have changed since March. The state has experienced lower oil prices, and oil price outlooks continue to fluctuate. In an updated revenue outlook, the Alaska Department of Revenue projects general fund revenue may be $222 million lower than was projected in the Spring Revenue Forecast.”
Among the cuts are a $200 reduction in lawmakers $700/year increase to per student spending next year, which still amounts to a $500 increase in the annual per/pupil allotment. Originally, lawmakers passed a $1,000 increase to per-pupil spending.
Districts that just assumed the governor would rubberstamp the legislature’s unsustainable jump in educational expenditures are now forced to go back and adjust their budgets to reflect the fiscal reality, a task that has spurred some to denounce the vetoes.
Anchorage School District Superintendent Jharrett Bryantt called in an “educational emergency,” and claimed the district may need to close more schools, something it has been doing anyhow, amid rapidly declining enrollment due to a shrinking childhood population and surging interest in home and private school options.
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Dunleavy defended the cuts as the only responsible thing to do.
“The oil situation has deteriorated. The price of oil has gone down,” he observed in a video statement on the budget. “Basically, we don’t have enough money to pay for all of our obligations. So as a result of that, you’re going to see some reductions in this year’s budget. It’s not an easy thing to do. It’s certainly not a fun thing to do, but it’s necessary.”
Even with the governor’s cuts, the state is still expected to spend tens of millions more than it takes in.
Despite foreboding revenue projections, the Democrat-lead majorities in the State Legislature pressed forward with extravagant budget increases, hoping the governor would just go along. It’s unclear whether they will attempt to override him, which requires a ¾ vote of the 60-member Legislature.
Addition cuts announced by the governor dealt with day care programs, disaster prevention planning, teacher incentives, and social outreach and educational programs, among others.
If oil revenues improve, however, lawmakers may try to insert added spending in the annual supplemental budget this coming January.
To read more details on the budget
All budget documents are published on the Office of Management and Budget website. Additionally, find the DOR Revenue update here.
16 Comments
Wash, rince, repeat. NEA, etc. demand a thousand, get five hundred and start the next cycle. “Responsible thing to do” guv, only spend what you have. Guv Walker started the Medicaid unlimited program,and you allow it to continue by stealing OUR PDF. School, K-16 spending is higher than Mt McKinley, and you know more money is not the solution to improvement. A fundamental system overhaul is needed. But that would require persons with integrity, not lobbyist led lackeys. State employees that get necessary jobs done are needed, not political policy perps.
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NEA and their cohort unions should not be allowed to use our tax dollars for their leftist lobby efforts. They should not be allowed to lobby at all. No public employee union should be using indirect taxpayer dollars to lobby or fund candidates. This is so ludicrous. Essentially conservatives who pay taxes are being forced to fund leftist candidates through the unions via teachers and other public employees who pay union dues. As for the budget, democrats seem to be only good at spending. Not saving. Or budgeting. Th ratio is too high of elected officials who have had no private sector experience having only been public employees. Most of those seem to be Democrat.
The red pen, Dunleavy needed to cut more. We will see if these Rino’s, go along with these leftist democrats to override the vetoes
If cuts were made to the capital and operating budgets, then this “cut” was only 1.96% of the total. Capital and Operating budgets, including money for next fiscal year and changes to the current fiscal year, spend $6.2 billion. If federal funding and things like fees, college tuition and other money is included, the budget bills spend $16.3 billion.
In that light, this makes the 122 million dollars vetoed by the Governor even a smaller percentage of the whole. Hardly budget “cuts to the bone”. More needs to be cut from this budget by the Governor, but it is what it is and not up for further discussion. Better luck next time. Count on more taken from your PFD than the 85% share the State took from you this time around.
Eliminating the PFD is long overdue. We waste so much time every year volleying tired claims.
don’t be fooled, dunleavy is useless!!!
Speaking only for myself and not the Anchorage School Board or District.
I encourage readers to watch the Thursday June 12 emergency Anchorage School Board meeting. At that meeting, I proposed budget reductions that would absorb the $4.3 million veto impact on ASD without increasing class sizes or emergency school closings. My proposal was to reinstate the reduction in Assistant Principals (contained in the original budget passed in February) and eliminate a non-instructional planning period in middle schools that costs over $3 million. It was rejected by a 1 – 6 vote. I explained that delaying would cost months of lost opportunities for reductions making the needed cuts much more difficult in the Board adopted delay to December. Unfortunately, news reports failed to mention my proposal.
Dave Donley
Thank you, Governor. Thank you for not signing this pipe-dream budget. Thank you for not putting Alaskans into the poor house and democrats looking for an excuse to fire up the revenue gathering machine called “state income tax”. it’s sad the quality of product politicians (scam artists) put together and call it “responsible spending”. Perhaps we could move the capital to Sacramento, california. They would feel better at home there than they would here . /s
dunleavys been destroying this state while fooling people with empty promises! A fraud is at the helm!
nice
Great work Governor. If we don’t have it, don’t spend it. Our public schools and our legislature both lack in education and common since.
“GREAT WORK” YOUR NUTS!!!
My little town has no art program, no library or librarian, no theater now. Last year though a gazillion was spent on astroturfing the soccer field (sports trumps academia every time).
There’s money out there – phase out the PFD, repeal SB21 or create an income tax, but the governor doesn’t have the crackers to take bold action to improve Alaska.
THE STATE OF ALASKA HAS BEEN IN A FORCED EDUACATION CAMP LEARNING “MANAGEMENT FOR DECLINE “! PROFESSOR DUNLEAVY, WHO IS AN EXPERT ON HOW TO LOSE EVERYTHING EVENTUALLY, HAS HAD YEARS OF PROVEN INCOMPETENCE!
REVOLUTION, REFORMATION, REVIVAL
PRAY…………….PREPARE…………PROCEED!