In an administrative order signed Friday, Gov. Mike Dunleavy ordered a hiring freeze and travel restrictions across most state departments.
The order, effective immediately, freezes out-of-state travel, hiring, and the development of new regulations across all executive branch agencies.
The last time that Alaska state government had a hiring freeze was in March of 2020, implemented after a sharp drop in oil prices.
The fiscal directive comes as Alaska grapples with declining oil prices and production — factors that have significantly reduced one of the state’s primary source of revenue. According to Dunleavy’s order, oil prices averaged nearly $85 per barrel in fiscal year 2024, buoyed in part by geopolitical instability stemming from Russia’s invasion of Ukraine. However, recent decisions by the Organization of Petroleum Exporting Countries to increase production have driven oil prices down. The Alaska Department of Revenue’s spring forecast projects a drop to $68 per barrel in FY 2026, translating to hundreds of millions of dollars in lost revenue for the state’s general fund.
In the 1980s, oil production funded nearly 90% of Alaska’s unrestricted general fund revenues. Today, it accounts for roughly 40%. Despite having reserve accounts, including a $2.8 billion Constitutional Budget Reserve, a $1 billion Power Cost Equalization Endowment Fund, and a $407 million Higher Education Investment Fund, the Governor’s Office stated that the combined value of these accounts would not sustain state operations for a full year.
“This order is a necessary step to preserve Alaska’s fiscal stability and ensure the continuity of essential government services,” the directive states. It outlines an effort to refocus agency operations on “core mission objectives” and streamline government expenditures.
- Travel: All out-of-state travel by state employees is now prohibited, regardless of the funding source. Waivers may be granted by the Governor’s Office in cases where travel is essential to public safety or critical state responsibilities. In-state travel must be limited to essential business, with agencies encouraged to use remote communication tools.
- Hiring: A freeze is now in place for all hiring across state agencies.
- The hiring freeze applies to:
- • All full-time, part-time, non-permanent, and seasonal positions in bargaining units and in the partially exempt and exempt service.
- • Requests to establish new positions.
- • Requests to extend non-permanent positions.
- • Positions that provide administrative support and maintenance to the exempted agencies set forth below.
- Exempted Agencies:
- • The hiring freeze does not apply to positions essential to protect Alaska citizens. This category includes Alaska State Troopers, corrections and probation officers, airport police and fire officers, Office of Children Services, Division of Public Assistance, and employees that provide patient, resident, or food services at 24-hour institutions.
- For purposes of this order, the following are considered 24-hour institutions:
- • Correctional Facilities
- • Juvenile Justice Facilities
- • Alaska Military Youth Academy
- • Pioneer Homes
- • Alaska Psychiatric Institute
- • Alaska Vocational Technical Center
- • Mt. Edgecumbe High School
- Regulations: Agencies are barred from introducing new regulations unless already posted for public comment. Waivers may be requested in cases where regulations are necessary for public safety or essential services.
The order applies to all executive branch agencies, including departments, boards, commissions, and public corporations. It will remain in effect until officially rescinded.
The order is a preventive measure to avoid deeper financial challenges in the future.
Or how about this instead: Pay a little state income or sales tax to support your state like everyone else in the country. That might help.
Funny how you political parasites can’t ever be reasonable and make better spending decisions, it is always about squeezing the working folks for more money. How about no.
When a mosquito lands on my skin, I don’t just let it suck me until I am dry, I swat it.
Same goes for you Whidbey.
You mean like other bloated government states?
Or…
Stop spending like drunken sailors
SILENCE, Whidbey.
Or just live within our means. What a concept.
No.
OK Dog, I would agree with you if you would go along with state employees being required to use a time clock and account at the end of every week what they accomplished the week prior.
There Dog goes again being the court jester of Alaska. Thanks for the laughter!
DOGE ALASKA
Good thing Dunleavy reached out to those fired federal employees.
Good work Governor!
The legislators are padding their pockets.
Now go after them!
Living here is expensive enough. We do NOT need an income tax. With Los Anchorage taxes now and coming. The etsy tax should be vetoed. Bottom line is to real in the huge government in all of Alaska, President Trump has opened us up again and new revenue will be coming in. We just need smarter people in charge of the purse.