Governor Dunleavy's Budget Package
Governor Dunleavy's proposed a $5 billion recovery budget package:
· $1,916 one-time PFD early in the 2021 session. ($1.2 billion)
· Full 2021 PFD
· $3.4 billion to pay for both PFDs
· $300 million to $350 million proposed GEO bond
· $1.4 billion capital budget
· Draws $6.3 billion from the ERA
$200.6 million cut to agency operations:
· $140 million cut to Health and Social Services
· $27 million cut to education. (Due to enrollment changes)
· $20 million cut to the University system. (Part of the 3-year compact)
· $16 million cut to Transportation
Department of Health and Social Services (FY 22):
· $3.41 billion in total funding
· 4% decrease compared to the FY 2021 authorized budget
· $35 million cut to Medicaid
· No change to the funding for adult preventative dental services under Medicaid
Governor Dunleavy's budget proposal calls for closing 6 DMVA offices:
· Eagle River
· Tok
· Valdez
· Homer
· Haines
· Delta Junction
Governor Dunleavy wants the Alaska Legislature to fast-track the one-time PFD payment and the GO bond package.
FY 22 operating, mental health, and capital budgets:
· Fully funds public education with no changes to the funding formula
· $13.5 million increase for public safety
· Funds the Alaska Psychiatric Institute to operate at full capacity
· Restores school construction financing to FY20 level
· $60 million to pay oil tax credits. (AIDEA funding)
· $294 million in cuts in FY 22. (UGF) ($180 million less than the approved FY21 budget)
· $ 20 million cut to the University of Alaska. (Final year of the 3-year compact)
Express Capital Budget:
· Funding the rest of the 2020 PFD - $1,916 per eligible Alaskan
· $4 million to address the sexual assault case backlog
· $26 million to fisheries, wildlife, and resource projects
· $24 million in construction and maintenance projects
· $4 million for statehood defense
Separately, Governor Dunleavy is proposing 3 constitutional amendments:
· Cap government spending
· Require a vote of the people to pass new taxes
· Protect the Permanent Fund
The Governor is proposing a change to the established divided formula:
· 50/50 split and an advisory vote of the people in the spring.