Gov. Mike Dunleavy says the cuts were necessary to balance the budget by next year, while still paying full permanent fund dividends under the formula in state law.
A new debate centers around whether Gov. Mike Dunleavy has the power to veto money that state lawmakers set aside for schools last year, for the upcoming school year — a practice called “forward funding.”
As Alaska Gov. Mike Dunleavy made his case for drastic changes to the state’s budget, a crowd outside railed against cuts to services like education, health care and the ferry system.
The plan looks at what the state would spend over the next 10 years if the Legislature adopts all of Dunleavy’s spending proposals — and if lawmakers and Alaskans amend the state constitution to limit spending.
Alaska lawmakers got some answers this week about the effects of potential budget cuts, but they still face a lot of uncertainty as they weigh funding for government services and permanent fund dividends — or whether to reopen a debate on taxes.
Anchorage Republican Sen. Natasha von Imhof said that to maintain Dunleavy’s commitment to full permanent fund dividends — without having an income tax — would require cuts on the scale he’s proposed.
Dunleavy says his budget would ensure that the money the state spends matches the money it brings in — without new taxes, PFD cuts or drawing down savings.
Gov. Michael Dunleavy has proposed pulling back $3 million in unspent money for the Village Public Safety Officer program. Some Alaska lawmakers expressed dismay at the proposed cuts.
While school districts may have already spent money they counted on the state sending them later, the state’s new budget director says they shouldn’t have.
Donna Arduin has worked on cutting spending for governors in several other states. She’s expected to propose deep cuts to address the $1.6 billion hole in Alaska’s budget.