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.
Have they stopped laughing yet?
This will be rich. The (D)ems will say no to everything Dunleavy discusses. They know they can run out the clock and would rather soak in sewage up to their necks that work with Dunleavy. And quite a few Republicans will defect and do what the other side of the aisle says.
VETO all the bills until they realize Alaskans aren’t playing around!
You tell me 1 bill right now that is so important that we need it! We are waiting.
Here’s a fiscal plan. Stop giving away the oil, like before SB-21. When we collect a fair share of our oil wealth we don’t need to steal dividends or impose taxes on the little guy.
https://mustreadalaska.com/conocophillips-alaska-paid-251-million-in-taxes-to-state-of-alaska-in-first-quarter-of-2025/
I certainly hope you realize that there is another way to balance our budget and that “we don’t need to steal dividends or impose taxes” other than taxing the industry that funds our government. If you aren’t aware, it is possible to actually stop spending every last dollar and, as you call it “steal dividends” from every last Alaskan man woman and child. We don’t even need to raise taxes on you, me, or every other little guy out there to do that…we don’t even need to tax the oil companies more, we can just stop spending at the inflated amounts we have been spending when oil prices and oil taxes were at record highs. Isn’t that what you’d do with your household spending if your income dropped?
That is good news from conocophilips and hope they do keep continuing to invest in Alaska. One take away from that article. Erec Isaacson crediting the state’s fiscal policy for enabling continued investment. Funny how that same fiscal policy cannot work for Hilcorp. Pretty clear when the Dunleavy administration approved the Hilcorp purchase of BP they had no concept of a comprehensive fiscal strategy. They gave away 100s of million of dollars without any negotiation. what a simple solution. Just cut spending. Guess what the feds are saying the same thing. It is pretty clear greater financial responsibility is going to be passed on to the states. Good luck eliminating disaster relief.
You do understand the oil belongs to Alaskans? You do understand Alaska has paid billions and billions in corporate welfare? Would you propose reducing spending there, Steve?
You also realize we have a $2 billion dollar deficit this year? Tell us how you’d cut the budget to make up for this deficit? Would you eliminate Alaskans dividends? That would save $700 million or so. If you’d eliminate dividends you’d only have another $1.3 billion to cut from the budget.
Or…we could get a fair return for OUR oil.
Go ahead, Steve, tell us what you’d cut. Or be forever cast as a non serious troll.
Yep the oil belongs to the people of Alaska, we lease land to allow oil companies to find and develop oil and when they do we get our royalty share on top of all the other various taxes…that’s all oil production 101.
I know there is a small group of ignorant people who believe that not taxing something is the exact same as handing out money, it’s not the same thing at all. The cliffs notes version is that one involves taking while the other involves giving.
This link https://mustreadalaska.com/video-sen-yundt-body-slams-governor-on-budget-saying-it-shouldnt-even-be-legal/ will provide some of answers to many of your questions about what I would do, essentially cut spending to realistic levels. We more than tripled spending when oil and oil taxes were at record prices, then we spent our reserves and we are in the process of spending the PFD of every Alaskan man, woman, and child to support that spending. The problem is spending money and you foolishly want to give them more money to spend.
Do you have the ability to explain what you think our “fair return” or “fair share” is, or is it just more and more and more and more?
Steve, you have now established yourself as a troll. You had the chance to explain where you’d cut the budget, and you have failed to engage in a way that would be credible.
Go it, you are incapable of explaining your idea of what a fair return” or “fair share” is, just like the rest of those demanding something they cannot explain but just want more of. You cannot even address the spending problem because you just want more to feed the beast.
It’s always entertaining seeing who calls other trolls, the majority of the time it’s not hard to figure out who is doing the trolling.
I asked you specific questions, and you deflect because you can’t engage in a credible way.
You are like all those others who scream about wanting less spending. But when you are asked for specifics, all we get is crickets.
On the contrary I’ve been making plenty of noise, no crickets here.
Oh and here’s the specific quote I directed you towards and you either failed to read or failed to comprehend.
“I always enjoy those who put precondition on what and where I’m allowed to want government spending cuts. You want specifics, I’d specifically cut from each and every budget. You want a specific amount, 5.328% to start, the next month 6.719%, the next month 6.424%, the next month 3.597%, the next month 9.274%…do you get how absurd whatever point you are trying to make is? Yes, I’d cut it all. What percentage, well that depends, some departments 100%, some 50% others 5%, some might even get and increase.
We more than tripled spending in a few short years when oil prices were at record highs along with oil taxation and government spending never had a commensurate drop when oil prices and taxation dropped, you simply cannot address that fact because it doesn’t suit your narrative…you just want more revenue since the reserves weren’t enough and the PFD isn’t enough, the beast must be fed. More revenue more spending, which requires more revenue for more spending…ad nauseam.”
You and those like you cannot answer simple questions and are force to continue repeating the same tired lines about specific cuts a specific person would make, while simultaneously ignoring the fact that spending has ballooned out of proportion…and yet you want more of your “fair return” or “fair share” but you still can’t answer what that is.
Crafty move, Governor D.
.
Now The Giessel’s people, especially the education industry, have to document on paper, say out loud, what good things will happen when productive Alaskans are stiffed with sales and income taxes, and their PFD’s go away.
.
Might even buy enough time to figure out how to regain control of grand jury and election systems, which should topple this house of cards pretty quickly.
Any honest strategy must begin with a real reduction in the annual spend. Oil production dropped by 80 percent and nothing replaced that income into the state. Finding $1.5 billion in reductions would be relatively easy, and it would actually help the private sector in many cases. Right now, state and municipal government, with its 37.5 hour week (OT after that!), multiple (and growing) paid holidays, 6 weeks of paid vacation, airline miles, etc., displaces the private sector. That is part of the reason people choose food stamps over jobs, which is unhealthy for both the economy and for those people. Fentanyl use is one indicator of what excess government generates.
How about by the end of the week the legislators have to give us five things they’ve accomplished this week. alaskans will do an assessment and determine whether they get to keep their jobs.