Dunleavy uses veto pen to cut $232 million from FY 25 budget, PFD finalized

(The Center Square) – Alaska Gov. Mike Dunleavy vetoed a combined $232 million from the operating and capital budgets.

After the $105.7 million in cuts from the operating budget, it totals $12.2 billion. The capital budget is $3.5 billion after $126.3 million in vetoes.

Alaskans will receive a permanent fund dividend of $1,718, according to information from the governor’s office.

Dunleavy accepted an increase in the base student allocation that he vetoed earlier in the year in the budget. The $680 per student is a one-time increase, according to information from the governor’s office.

The most significant cut is to the community assistance fund, which Dunleavy said he vetoed to “preserve general funds for savings and fiscal stability. Thirty-thousand dollars in payments set to be doled out this month are not affected, the governor said.

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The budget includes $87.5 million for the University of Alaska operations and deferred maintenance.

Ten additional village public safety officers will be hired at a combined cost of $3.5 million. The governor also kept $9.5 million to replace a patrol vessel for southeast Alaska that responds to emergencies and protects the state’s coastline.

“The framers of Alaska’s Constitution codified a strong chief executive to ensure responsible budgeting,” Dunleavy said. “This budget reflects their intentions. By maintaining focus and fiscal discipline, this budget increases funding where it is needed most while at the same time reducing total Unrestricted General Fund spending.”

The Alaska House Majority said in a news release it looks forward to reviewing the governor’s plan.

“The House Majority caucuses priorities aligned with the Governor’s office on the importance of education funding through a one-time $680 BSA increase as well as funding to transportation and major maintenance funding,” said House Speaker Cathy Tilton, R-Wasilla. “Additionally, it is great to see funding remained for critical departments like Public Safety, Corrections, and Health.” Speaker Tilton added, “Energy remains an important issue for all Alaskans so it’s good to see that funding of $353 million for critical infrastructure and energy such as the Electrical Emergency program, upgrades to rural energy systems and electrical grid resilience and reliability systems was maintained.”

The House Majority said it will comment further in the next few days.

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