As the Alaska Legislature continues to grapple with the state’s budget, Juneau is dealing with the direct and indirect impacts of Gov. Mike Dunleavy’s budget vetoes.
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.
The Alaska House Finance Committee has proposed a budget that reduces state spending by less than a third of Gov. Mike Dunleavy’s proposed cuts.
The vote brings the House budget back into agreement with Gov. Mike Dunleavy on the issue. If the amendment makes it into the final budget, it would shift roughly $100 million in spending from the state to municipalities.
The state has been reimbursing municipalities for most bond debt for school bonds issued before the moratorium. It doesn’t have a legal obligation to do that. Local voters are told when they approve bonds that the state’s share is subject to the annual state budget process.