Thursday was the day for the budget signing in the Governor’s Office. Gov. Mike Dunleavy vetoed some $122 million out of the budget given to him by the leftist-controlled Alaska Legislature. The vetoes were surgical. The full spending, excluding federal receipts, will be about $5.3 billion.
View all the budget documents at this link.
Before releasing the details of the cuts, he said “We don’t have enough money to pay for all of our obligations,” he said, because of the price of oil dropping and thus, revenue diminishing. “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.”
He said his office had already predicted lower revenues and had presented amendments to the Legislature earlier this year to reduce the ask of the appropriating body. He also said that the price of oil and revenue may change and he and the Legislature can make adjustments next year in the supplemental budget if conditions improve.
Indeed, when Israel bombed Iran on Thursday night, the early markets showed a marked pop upward of oil prices, which are notoriously volatile.
Notably, the Base Student Allocation increase, which was set at $700 for the coming year, was reduced to $500, about a 28% decrease. That saved $50 million. The Anchorage School Board, having been tipped off about the cut, held an emergency board meeting on Thursday, at which it was announced this will cost the district about $4.3 million. Superintendent Jharrett Bryantt said he wants to take Gov. Dunleavy to court over the cut.
Also, the Legislature’s designated cut to the Alaska Industrial Development and Export Authority did not stand. Dunleavy instead will use funds from the Higher Education Investment Fund and attempt to replenish that fund in a supplemental appropriation next year.
The Alaska Travel Industry Association was trimmed by $2.5 million and the Alaska Seafood Marketing Institute’s budget was cut by 50%.
The governor also cut funding to the Alaska Children’s Trust. Last month the ACT announced it will be sponsoring the creation of a new nonprofit: “Alaskans for Trans Kids.”
The Alaska House Democrat-led majority issued a press release saying it will override the vetoes in January, when the Legislature convenes again.
