Gov. Mike Dunleavy issued a formal message to both chambers of the Alaska Legislature on Friday, urging lawmakers from both parties to work with his administration on a comprehensive fiscal strategy aimed at addressing the state’s long-standing budgetary challenges.
In his letter to the House and Senate, read into the record, Dunleavy emphasized the urgency of developing a durable, long-term fiscal plan.
With Alaska facing ongoing revenue uncertainty, particularly from declining oil prices, and the 2026 election cycle on the horizon, the governor warned that the opportunity for bipartisan cooperation on a sustainable fiscal framework may be slipping away.
Several tax-related proposals have surfaced during the current legislative session. Dunleavy reiterated his stance on fiscal policy.
“As I have consistently stated since my first term, a truly durable fiscal plan must include revenues, but it also requires clear guardrails: spending limits, statutory and regulatory reviews, and policies that make Alaska the most competitive state in the nation for investment and new business growth,” he wrote.
“Equally important is the need to evaluate all current state spending and government functions-not only for efficiency, but for their relevance and long-term impact. Any serious effort to stabilize Alaska’s fiscal future must also focus on diversifying our economy and creating new industries, which in tum broadens the economic base for potential revenue,” Dunleavy wrote.
“As such, I cannot support standalone tax measures. I am issuing this message to reaffirm my long standing position as Governor: the Legislature and the Executive Branch must establish a joint team to develop a comprehensive, sustainable long-term fiscal plan that ensures stability and fosters economic growth,” he wrote.
Dunleavy called on legislative leaders to form a joint working group with the executive branch after the session to begin crafting legislation around what he described as the “core components” of a sound fiscal policy. “By transmittal of this message, I am formally requesting legislative leadership join me in convening a joint team to begin this process,” he wrote.
