Dunleavy budget includes $2,564 PFD, plus rest of unpaid 2021 PFD, but spending plan still lower than last year

By
Suzanne Downing
-
22

Alaska Gov. Mike Dunleavy on Wednesday introduced his budget for the fiscal year that will end June 30,2023. 

The FY23 budget package includes:

  • A $24 million increase in funding for public safety over last year, including adding Troopers and VPSOs and advancing 5 programs in the People First Initiative to protect Alaska’s most vulnerable.
  • Fully funds K-12 education, as it has every year since the Dunleavy Administration
  • Funds 100% school bond debt reimbursement ($79 M), resulting in property tax relief for residents
  • A $310 million G.O. Bond package to invest in Alaska’s infrastructure and build the economy
  • A $2,564 PFD payment, according to the Governor’s 50/50 Plan, for eligible Alaskans in 2022 without new taxes or an overdraw on the Permanent Fund Earnings Reserve.
  • Paying the $1,250 balance of the 50/50 dividend for 2021, through the supplemental budget.

2022 PFD Payment & 2021 PFD Remainder Payment

  • $1.7 billion for a 2022 PFD payment of $2,564 to all eligible Alaskans. The amount reflects the Governor’s proposed 50/50 dividend plan
  • $795.6 million to fund the remainder of the 2021 PFD using the 50/50 plan
  • Does not exceed the 5% POMV draw for the 2022 PFD or the 2021 remainder PFD (estimated at $1,200 for every eligible Alaskan)

Public Safety

  • $2.9 million for an increase of 10 new Village Public Safety Officer positions and to give existing VPSO’s a 5% raise – with the overall goal of increasing VPSOs to 100
  • 15 new Alaska State Trooper positions (appropriation will be worked out with lawmakers during the 2022 session)     
  • $5.1 million to purchase new equipment for body cams, vehicle cams for law enforcement
  • $750 thousand to fully fund new state criminal prosecutor positions in the Department of Law 
  • $1.0 million for additional support staff in the Alaska Department of Corrections to support correctional officers
  • $1.8 million in supplemental funding to the Alaska Court System for audio/video equipment to resume jury trials and a full five-day work week 
  • $1.4 million to expand booking capacity at Hiland Correctional Center
  • $6.3 million for domestic violence and sexual assault prevention programs

“The Alaska Department of Public Safety and the Alaska State Troopers are committed to meeting our mission of ensuring public safety and enforcing fishing and hunting laws across Alaska. Public safety is job number one for the Dunleavy Administration, and this new initiative is evidence of that,” stated Alaska Department of Public Safety Commissioner James Cockrell. “These additional resources to address the high rates of domestic violence, sexual assault, human sex trafficking, MMIP, and other important issues impacting Alaskans are welcomed in our efforts to make Alaska a safer place to live, work, and raise a family.”

Statehood Defense

  • $10 million increase for the Statehood Defense program
  • Funding allows Alaska to fight President Biden’s effort to shut down state’s resource-based economy

General Obligation Transportation and Infrastructure Bond – $310 million

Ports and Harbors:

  • $175 million – Knik Arm Port Infrastructure
  • $10 million – Port of Nome Deep Draft Port project
  • $8.3 million – Craig Harbor improvements
  • $5 million – Seward Freight Dock Expansion and Corridor Improvements

Surface Transportation:

  • $25 million – Juneau Access Project
  • $22 million – Northern Access to University Medical District

Airports:

  • $14.1 million – Wasilla Airport Runway and Terminal
  • $7.5 million – Ketchikan International Airport Terminal
  • $6.5 million – Warren “Bud” Woods Palmer Municipal Airport Taxiway Construction

Education, Public Safety & Community Infrastructure Projects:

  • $18.5 million – University of Alaska Fairbanks – Bartlett Hall and Moore Hall Modernization and Renewal
  • $5 million – Nenana Fire Hall
  • $5 million – Craig Mariculture Infrastructure
  • $6.5 million – Kenai River Bluff Stabilization

Transportation

  • $200 to $250 million to replace the Tustumena with federal highway funds
  • New AMHS budget creates an unconstrained sailing schedule allowing all AMHS vessels to operate by maximizing the use of federal transportation dollars
  • The All-Alaska Highway Safety Initiative – targets improvements to bring down crash rates beginning with the 15-mile section of the Seward Highway between Potter Marsh and Bird Creek

“This budget invests in transportation for Alaska, improving safety, supporting our economy, connecting our communities and providing jobs. A safe and efficient transportation network benefits us all, our families, businesses, and industries,” said Department of Transportation and Public Facilities Commissioner Ryan Anderson.

Resource Development

  • $4.9 million for State primacy over federal wetland permitting under the Clean Water Act
  • $830 thousand for hazardous waste mitigation under the federal Resource Conservation and Recovery Act

K-12 Education

  • 100% school bond debt reimbursement ($79M) to 18 local governments for school construction bonds passed in 2014 and earlier ($79M) 
  • Full funding for the Base Student Allocation formula
  • Full funding for school construction and maintenance in Regional Education Attendance Areas
  • $54.9 million to replace the Napakiak school, due to the erosion from the Kuskokwim River

Energy

  • Full funding for the Power Cost Equalization program
  • $1.5 million for Electric Vehicle Infrastructure
  • $2.5 million to fund an AEA Strategic Plan for Railbelt Assets to improve power transmission and make the grid more reliable and resilient
  • $17 million for the Rural Power System Upgrades program
  • $5.5 million for the Bulk Fuel Upgrades program

University of Alaska

  • Year three of the UA Compact is nullified
  • $22.8 million in federal ARPA funds for new UAF research programs on critical minerals, heavy oil and unmanned aircraft
  • $94 million in federal grant funds for the UAF Seward Marine Center

Capital Budget Highlights

  • $5 million for a tourism marketing campaign to bring more tourists to Alaska
  • $72.3 million total, $19.5 million UGF for clean water systems in rural communities
  • $6.9 million allocated for maintenance at the Palmer wastewater treatment plant

The FY23 operating, mental health and capital budget totals $4.6 billion in Unrestricted General Funds (UGF), $912 million in Designated General Funds (DGF), $792 Other State Funds, and $4.6 billion in federal funding with the total of all funds at $10.9 billion

“Alaska’s improved revenue outlook means we have the freedom to continue strengthening essential state services and programs that make meaningful differences in the quality of life for all Alaskans,” Dunleavy said. “I look forward to speaking with Alaskans over the coming months about how it will move Alaska forward and working with members of the Alaska Legislature on passing this budget and a sustainable, affordable budget plan that includes a 50/50 constitutional amendment to preserve and protect the PFD. If we all are willing to compromise, and learn from each other, we can make 2022 the year that Alaska made the tough, but correct decisions.”  

With an emphasis on public safety, a fair and substantial PFD, education and infrastructure as his budget priorities, the Governor’s proposed budget still continues the trend of less state spending since he came into office. This budget puts Alaska on track to rebuild and thrive in fiscal year 2023 and into the future.