Gov. Mike Dunleavy signed the 2024 budget on Sunday, vetoing about $202 million in spending, which includes about $145 million in operating budget spending and $56 million in capital budget items for 2024, a fiscal year that begins July 1.
Since 2019, Dunleavy has kept the budget increases to about 1% per year, or a 4.5% increase overall since he has been governor.
When the governor proposed the budget, he asked for a full statutory Permanent Fund dividend for Alaskans, which would have been around $3,900. He didn’t get that from the Legislature, which cut the dividend by about two-thirds of what Alaska Statute calls for in the formula. The dividend is now set at about $1,300.000
The governor can’t add money back to the budget he received from the House and Senate just last week, he can only make cuts.
He cut about half of the additional spending for education that was put into the budget. The increase in education spending was $175 million, or about $680 per student. The veto is about $87 million, which leaves a per-student increase of about $340.
The vetoes resulted from a thorough evaluation and consistent application of the priorities of the Dunleavy Administration to grow savings and ensure fiscal stability, the governor’s office said.
“This budget is a responsible path for Alaska’s financial future,” said Dunleavy. “Budgets should reflect the values of Alaskans; the FY24 budget accomplishes that. We continue to invest in public safety, public education, and economic development. While this is a responsible budget for FY24, I look forward to working with lawmakers and Alaskans to establish a long-term, sustainable fiscal plan.”
From FY19 to FY24, there’s been an $81 million increase and 187 new positions in the Department of Public Safety.
Also in that timeframe, the state has seen a $75 million increase in support for the Department of Corrections, a 45% increase in criminal prosecution support, a $65 million increase to Department of Education, and a $194 million increase in the capital budget, which includes priority items like $5 million for marketing Alaska business.
The Dunleavy Administration’s fifth state budget highlights:
Public Safety
Protecting Alaskans has been Governor Dunleavy’s top public policy priority since taking office in December 2018. His public safety budget reflects his unwavering commitment to protecting all Alaskans from crime.
- An operating budget UGF increase from FY23 of $26 million
- 34 new positions total, 31 full-time permanent positions, and three new non-permanent positions
- A capital budget of $13.5 million for
- Criminal Justice Information Systems (CJIS) modernization
- Fairbanks post remodel and expansion
- Training academy maintenance and updates
- Investigative and forensic electronic equipment
- Patrol vessel and motor replacement
- Classroom and offices in the Department of Public Safety Bethel Hangar.
Public Education
- Increased funding for the Alaska Reads Act
- $87.4 million in additional K-12 funding outside of the formula.
- An increase to the Alaska Native Science and Engineering Program partnership of $5 million.
- $1.5 million for Career and Technical Education Incentive Grants
- $1.5 million for Teacher Recruitment, Retention, and Certification Support
- $1.5 million for the Head Start Program to Provide Grantees with Additional Matching Funds
- $19.6 million for School Major Maintenance
Economic Development
- $5 million capital appropriation to Commerce for Statewide Marketing and Economic Development Initiative
- $5 million one-time increment for Alaska Seafood Marketing Institute
- $2.5 million one-time increment for Tourism Marketing
Veto list:
Click here for Office of Management and Budget FY24 budget documents.
In terms of capital budget items, the governor preserved the repair line item for the Palmer Library, which suffered a collapsed room last winter due to snow and ice.
