On Thursday evening, Gov. Mike Dunleavy announced a number of line item vetoes totaling $215 million to the budget passed by the Alaska legislature, which aims to protect essential state services and maximizes the use of federal funds. Dunleavy also vetoed the $525 permanent fund dividend. Dunleavy’s position is based on his intent of the budget as proposed earlier this year, which included reduced spending without cutting jobs and invest in public safety and maintaining essential state service.
By vetoing the $525 permanent fund, he hopes to increase the pressure on lawmakers to come up with a solution. Dunleavy also announced multiple other cuts, which include nearly $8.5 million to the operating budget for the Alaska Marine Highway System, the FY22 50% deposit, implementing Real ID in 100 rural communities, trade promotion funding for the Alaska Seafood Marketing Institute and filling gap in Turnagain Arm Trail Connection System from Girdwood to Anchorage, among others.
Other highlights from the press conference include:
- Increasing funding for public safety and programs to reduce domestic violence and sexual assault.
- Establishing an 18 month schedule for the Alaska Marine Highway System.
- Protecting education funding.
- Creating the Statehood Defense Fund to defend Alaska from federal intrusion to halt natural resource production and take away our Second Amendment rights.
Ahead of the press conference, Dunleavy said, “The budget that emerged from the legislative conference committee was not well received by the majority of Alaskans due to a perceived lack of transparency and an arbitrary PFD amount that doesn’t come close to assisting Alaskans who are still recovering from the pandemic. We significantly reduced spending without cutting jobs while still making smart investments in public safety and maintaining all essential state services. In other words, it reflects the original intent of the budget my administration proposed earlier this year. Stabilize the economy and get Alaskans back to work without raising taxes.”
Dunleavy also vetoed $2.0 million in per diem for the Alaska Legislature’s FY22 budget. Dunleavy’s office said that lawmakers need to finish up the work on protections for the permanent fund and the PFD before paying themselves.
Alaska legislators are scheduled to meet later this year. The special session is scheduled for August, which includes a constitutional amendment to establish an appropriation limit, constitutional amendment to prohibit new state taxes without voter approval, appropriations of federal relief funds , including ARP funds and potential measures to increase state revenues. It’s scheduled for August 2 at 10:00 a.m.
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