In a rare public rebuke, Sen. Rob Yundt of Wasilla took aim at Gov. Mike Dunleavy on Wednesday, criticizing him on the Senate floor and blaming his administration for Alaska’s ongoing budget woes.
Yundt, a Republican who made waves by introducing a state income tax proposal shortly after taking office, accused Dunleavy of presenting an unbalanced operating budget.
“Your budget reflects your priorities,” Yundt said during his speech. “A billion and a half dollars upside down. It shouldn’t even be legal.”
Yundt didn’t stop at budgetary critique — he also turned to the looming 2026 election, warning the two Republican candidates already in the race for governor to take note of the fiscal challenges.
While Dunleavy’s proposed budget does rely on $1.5 billion in reserve funds, the authority over state spending rests with the Legislature as the appropriating body. All Dunleavy can do now is veto spending — he cannot add it back at this stage.
Under current law, a full Permanent Fund dividend (PFD) is required, and Dunleavy has continued to budget accordingly. The Legislature, however, has resisted changing the statute — a point of tension since 2016, when Gov. Bill Walker vetoed half of the dividend.
Earlier this week, Dunleavy sent a letter to the Finance committees of the House and Senate, removing all but two of his budget amendments for the year, in order to take pressure off the budget.
Yundt, while critical of the governor, has not offered legislation to repair the broken dividend law that the Legislature has refused to follow since 2017. Nor has he suggested cuts to spending.
The Yundt floor speech comes after he has developed a reputation in Juneau as an ally of the Democrat-led majority, spending hours with the Democrat leaders, both during daytime and after hours, and burning bridges of trust with his fellow Republicans.
He attacked this writer earlier this session, with this statement:
Now, Yundt has attacked the de facto head of the Alaska Republican Party — the sitting governor– throwing political punches right and left as he expresses his “frustration.”
