Yesterday afternoon Governor Dunleavy introduced his proposed FY2025 budget, which prioritizes Alaskan families, public safety, and education.
This budget continues the Governor’s priorities of public safety and education. It also prioritizes affordability for Alaskan families in housing, food, childcare, and energy. As it has every year since taking office, the Governor’s proposed budget includes a full Permanent Fund Dividend according to the formula in statute.
“We are putting into the budget a full PFD at 2.3 billion is the amount there. Again, the reason for that is it’s in statute. I swear to uphold the Constitution, the statutes of the State of Alaska. We understand that the courts ruled years ago that the legislature may change that,” said Gov. Dunleavy. “And given the fact that since 2020 the inflationary rate is probably close to 20% accumulative inflation over that time, it’s taking a bite out of everybody’s pocketbook.”
The total budget amount is $13.9 billion. Based on forecasts of reduced oil prices and production, this creates a budget deficit of $987 million that will be covered by a draw from the Constitutional Budget Reserve and the Statutory Budget Reserve.
As legislators head for Juneau next month, one big discussion will no doubt center around the topic of education. Most school districts around the state are operating with budget deficits going into FY2025, however the Governor’s budget proposal does not include any increase to the base student allocation (BSA).
Dunleavy says this is because he wants to focus funds on researching the most effective use of fiscal resources in education annually. “The question has always been whether we put money in the BSA and that’s the base student allocation, that’s part of the formula for a funding, or whether we put money into the education world in various forms in various for various purposes.”
Public safety has been the Governor’s top priority since taking office. The FY2025 proposed budget continues prioritizing resources to improve the safety of Alaskans. Within the Department of Public Safety, the governor’s proposed budget funds:
- 10 additional Village Public Safety Officer positions and VPSO salary increases.
- Three new investigators with the Alaska State Troopers focused on crimes against children.
- Four investigators with AST fully dedicated to investigating missing and murdered Indigenous persons.
- Acquisition of a single engine turbine-powered all-weather aircraft (Pilatus PC-12NG) for statewide Public Safety operations and response.
- Replacement of a patrol vessel for Southeast Alaska to respond to emergencies, search and rescue operations, and enforce laws and regulations protecting coastal Alaska communities.
Governor Dunleavy wants Alaska to be the best place in the country to raise a family. Having access to affordable housing, food, childcare, and energy is essential to that end. Quality education is also of first importance.
This budget proposal is the first step in a lengthy, deliberative process. Some areas, including energy, education and childcare will require working together with the Legislature and all Alaskans to find solutions. The Governor’s proposed budget includes:
Education
- Statutory funding for school districts according to the Foundation Program, Pupil Transportation, and School Debt Reimbursement formulas in statute.
- $8.3 million for school construction and major maintenance.
- $5 million for the Alyeska Reading Academy and Institute.
- $1.5 million for Teacher Recruitment, Retention, Certification and Apprenticeship Development.
- $1.5 million for continued Career and Technical Education Initiative.
Food Security
- Funding for 20 permanent, full-time Eligibility Technician positions within the Department of Health to process SNAP applications.
- $5 million to food banks and food pantries across Alaska to increase food security.
Housing
- $25 million for Alaska Housing Finance Corporation Down payment Assistance Grants primarily utilizing AHFC dividends.
- $62.6 million for AHFC annual housing programs.
The Governor’s FY2025 proposed budget also includes investments in infrastructure and economic development providing both immediate and long-term benefits to Alaskans.
Transportation
- Matching funds for Alaska Marine Highway ferry replacement grants using Federal toll credits.
- $2.5 million for Statewide PFAS Fleetwide Equipment Foam Replacement.$915,000 for contracted urban snow removal when unexpected snowfall exceeds existing operational capacity.
Law
- $1.9 million and 10 positions to expand consumer protection investigations, address child protection cases, assist with drug prosecutions and assist with grand jury investigations.
- $2 million to support continued statehood defense efforts across multiple agencies.
Detailed budget information is available at omb.alaska.gov.
You can also view the FY2025 proposed budget visualized proportionate to total expenditure here: FY2025 Governor’s Proposed Budget at a Glance.
