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Governor Dunleavy signs Alaska budget, vetoes over $230 million in spending • Alaska Beacon
Alaska Gov. Mike Dunleavy signed the state budget into law Friday while vetoing more than $230 million in operating and capital spending.
The total operation budget funding for state agencies is $12.2 billion, including $914 million for Permanent Fund dividends, while the capital budget, money earmarked for construction and repair of roads, buildings and other infrastructure projects, is 3.5 billion dollars. The expenditure portion of the Permanent Fund, oil royalties and taxes was $5.9 billion for the operating budget and $250 million for the capital budget, with most of the remainder covered by federal money.
In a press release, Dunleavy highlighted the power given to the governor in the state constitution to veto individual items.
“The framers of the Alaska Constitution codified a strong chief executive to ensure a responsible budget,” he said. “This budget reflects their intentions.”
Permanent Fund dividends this fall will be approximately $1,718 per resident, according to the governor’s office, slightly higher than the Legislature estimated at US$1,655.
Dunleavy did not veto a single $175 million increase in school funding, after vetoing half of a similar increase last year.
The decision drew praise from Anchorage School District leaders, who said in a statement that they are “grateful the Alaska State Legislature made education funding a priority this past legislative session. Today’s Governor’s approval of this one-time investment is much needed, however, school districts also urgently need a long-term solution.”
The biggest veto was $20 million to replenish the Community Assistance Fund, which helps municipalities with their budgets. Other the vetoes included US$11.9 million to comply with a payment mandatory by the federal government for school districts that the state is in dispute; $11.2 million to help schools with broadband, about a third of what the Legislature budgeted; $10 million for ferry operations, which the governor’s office said would be reevaluated after the ferry system receives federal grant money; and $10 million for seafood marketing. Smaller vetoes included $1.2 million for rural public radio stations.
The budget signing announcement highlighted several areas of increased spending flatincluding $87.5 million for university operations and maintenance deferred from previous years; $62.8 million for major school maintenance; $53.2 million for Alaska Housing Finance Corp. programs for homebuyers, owners and renters; and $3.5 million for 10 more village public safety officers and VPSO pay raises.
The constitution requires the governor to provide an explicit reason for his budget vetoes. For the majority, Dunleavy said they should “preserve general funds for fiscal stability.” If the State spends less than it collects, this money will be deposited in the Constitutional Budget Reserve, a fund that has been depleted over the last decade to balance the budget.
Cuts to education
While Dunleavy’s veto pen did not touch the one-time increase for education, which equates to $680 per student in the state’s funding formula, he did reduce funding for high speed internet for rural schools and give a boost to the state Start at the front programs in half.
Dunleavy also vetoed $5.4 million of the $20 million earmarked to grow the graduate program at the University of Alaska Fairbanks so it can achieve the status of a top-tier institution. research university. The amount was the state’s general fund contribution – he did not veto the rest of the money, which would be paid for by the university’s federal funding and money it raises from other sources.
The University of Alaska praised its approval of a $331.3 million state appropriation. Combined with other sources, the state university’s operating budget for next year is just under $934.5 million.
Senior reporter Claire Stremple contributed to this article.
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