Governor vetoes massive spending increase and House and Senate set up a veto override vote

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Gov. Mike Dunleavy wanted a smidgen of accountability in the state’s education spending. He didn’t get it from the House and Senate Democrats, who did the bidding of education industry unions and stripped all accountability from the education spending bill, House Bill 69.

On Thursday Dunleavy vetoed HB 69, as he had repeatedly warned the Legislature that he would do. The Democrat-led House and Senate have scheduled a joint meeting for Tuesday at 1 pm or 2 pm to try to override the veto.

There were two reasons for the veto, Dunleavy told reporters at a Thursday press availability. One is that the revenue situation has deteriorated a lot since he first offered his proposed budget back in December. The price of oil is significantly lower, under $70 a barrel. Alaska Department of Revenue’s Fall 2024 forecast, released in December, projected an annual average Alaska North Slope crude oil price of $73.86 per barrel for the fiscal year 2025. 

“And the second reason for the veto is that there is no policy in the bill,” Dunleavy said.

“For years, I’ve been clear: I support increased education funding, but it must be tied to meaningful reforms that improve student outcomes and give families more choice,” Dunleavy said. “This bill spends money at a level the state doesn’t have and offers no plan to improve how that money helps our students. I agree with leadership of the Senate Finance Committee who voted against this bill on the floor: We can increase funding for our schools, but HB69’s funding increase is not realistic at this time.”

Dunleavy said he will now introduce a new education bill that includes a $560 Base Student Allocation increase, additional targeted funding and policy reforms.

The total cost of his proposed new legislation is comparable to a $700 BSA increase, he said. The bill will include:

  • Charter School Reforms: Year-round application windows, faster appeal timelines, streamlined renewals, and protections against unjustified closures—all to make it easier to open and maintain high-quality charter schools.
  • Reading Incentive Grants: $21.9 million in performance-based funding to reward reading proficiency and growth for students in grades K–6.
  • Correspondence Program Fix: A $13.6 million adjustment to ensure equitable funding for public correspondence students, while preserving flexibility and parental control.
  • School Choice Protections: Transparency and accountability in open enrollment, ensuring families have access to the public school that best meets their child’s needs.

There is more than a month remaining in the regular legislative session, Dunleavy pointed out, plenty of time for the Legislature to work with him to get the policies in place that he is prioritizing. Most legislators will be gone from Juneau on Thursday afternoon, as they head home for the Easter weekend.

Sen. Scott Kawasaki of Fairbanks wrote on X that a “veto override is warranted.” But it’s unclear if there are the 40 votes available to get it done.

Watch Dunleavy’s press conference and see how he answers the reporters’ questions at this link.

18 COMMENTS

  1. Any one of my representatives that votes to override the governor’s veto, will not receive another vote from me or my spouse (teacher). Fiscal responsibility. Accountability. Work with the governor and come up with a bill that actually helps kids instead of funding a system that produces the lowest academic outcomes in the nation.

    • Alaska is now 49th of 50 in education . We probably spend more money per capita on education and the system produces the least outcome . It’s time to overhaul the entire system . Raised three kids with out public education funds . We are not getting our moneys worth .

    • The state owns most of the Frontier Building on 36th in Anchorage. At least 50 percent of the population is within an hours drive, with a similar number of legislators. Move the legislature to Anchorage and drop the per diem for all reps from Whittier to Willow. Side benefit is that most of the remaining legislators have to change planes in Anchorage in order to get to Juneau. House the remainder at Camp Carroll on Fort Rich during the session and cut their per diem by half.

    • Move the legislature to the road system. If we accomplish that task the majority of Alaskans can talk face to face with our lawmakers during the session.

  2. I pray the governor’s veto holds, what he is offering is a great alternative with some accountability and less money, which makes it affordable for us Alaskans

    • I’m often Dunleavy s biggest critic – but BIG hats off for him vetoing this garbage.
      Me too – any republican that votes to override this needs to run out of the state.

  3. “Most legislators will be gone from Juneau on Thursday afternoon.” Got to catch that afternoon AK Airlines 2:03 p.m. flight to Anchorage, otherwise they will be stuck in Juneau until the 8:40 p.m. flight.

    Must be nice to have a long weekend while the rest of their constituents have to work through Thursday AND all of Friday.

  4. Agree with all of the above comments! Additionally, the legislators have enough time in the regular session to get a reasonable bill together and passed. If they don’t and there is a special session(because I heard those words already!) it needs to be on the roadway so constituents can hold them accountable face to face!!

  5. Whichever Republicans vote to override Dunleavy’s veto should be very cautious. That vote alone will make it our duty and honor to make sure you lose any future campaigns and elections you enter. Alaska conservatives do not support traitors.

    • Respectful, I would also apply that sentiment to democrats who vote to override. While currently in office, they are not immune to defeat in future elections. Cheers –

  6. If you want positive results in any school district in this great State of Alaska, put a ban on cell phones during school hours and especially during class times. The NEA union pushes their use. Teachers shouldn’t have to be the “Cell Phone Police.” I don’t want to touch a student’s disgusting, $1,500 phone. I’m trying to teach them something! Parents push back on this subject because they have to be in touch with their kids. Remember when cell phones didn’t exist? You called the school. People answered and they called their kid out of class to come to the office. Remember that? I’m from Generation X, and I have an 8 year old. I’m pretty sure he’s safe in school. Nobody enters the school because the doors are locked 24/7, even when you are picking him up. You’re probably not far from where I’m at if you’re reading Must Read Alaska. What in the heck is going on? A ban on cell phones in schools equals better test scores, which equals bigger Alaska Permanent Fund Dividends….period! Or it doesn’t, let’s just go with the status quo. I heard that Walmart is hiring.

  7. Alaskans get out and vote-quit complaining if you don’t vote. The voter turn out is abhorrent and the biggest complainers don’t vote. You know exactly who you are. You want change then get off you lazy butt and cast your ballot

  8. I’d have much more respect for the big goof if he’d vetoed it entirely without offering up a still-outrageous $560 Base Student Allocation increase.

    If a beggar comes around demanding a ribeye, he won’t just go away if you offer him a bacon double cheeseburger when he should be told to get his act together and have the door slammed in his face instead.

  9. What pet projects are they giving up to get this passed? NONE!
    Drop your silly games, give the Alaska citizens their full PFD, do away with handouts and special projects, get rid of IADEA, stop getting yourself pay raises and maintain the roads you have before building new ones.
    Oh- and hold the educators accountable and reduce the size of their administrations.

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