(SitNews) Juneau, Alaska - Governor Mike Dunleavy released the Fiscal Year 2023 (FY23) budget yesterday, continuing his commitment to invest in the priorities most important to Alaskans such as public safety, education, infrastructure development and the PFD.  The budget was prepared with input from all state departments and continues the trend of smaller government with a 7% decrease in overall state spending compared to the FY19 budget.

“The budget is more than a collection of numbers and financial data, it reflects both the values and aspirations of the Alaskans it was created for,” said Governor Dunleavy.

Dunlevy said, “Keeping Alaskans safe, educating our children for the challenges ahead, developing infrastructure and creating jobs are the policy goals built into the spending plan. It also continues the focus on funding the PFD in a manner consistent with Alaskans’ expectations. The 2022 PFD, based on the 50/50 Permanent Fund constitutional amendment, will distribute more than $2,500 to every eligible Alaskan, without imposing new taxes. There is also funding to complete the overdue 2021 payment. This approach to the PFD will eventually involve the people through a constitutional amendment that protects it for future generations.” 

Alaska House Speaker Louise Stutes (R-Kodiak) released a prepared statement following the Governor's budget announcement yesterday.

Stutes wrote, “The Alaska House Majority certainly supports a number of the priorities and projects discussed by the Governor today. However, we need to carefully review his budget proposal to ensure that it pencils out, uses federal funds wisely, and that the new revenue projections are realistic."

"It is important to remember that a slight rise in the price of oil, changes in the stock market, and one-time funding from Washington do not fundamentally change Alaska's fiscal reality. We need to make the tough decisions on a fiscal plan in order to provide sustainability in budgeting and the PFD." wrote Stutes.

She concluded her prepared statement saying, "We look forward to working with the Governor and our colleagues in the Legislature in the coming session to get the job done for Alaskans.”

Governor Dunleavy’s FY23 budget package includes:

2022 PFD Payment & 2021 PFD Remainder Payment

• $1.7 billion for a 2022 PFD payment of $2,564 to all eligible Alaskans. The amount reflects the Governor’s proposed 50/50 dividend plan
• $795.6 million to fund the remainder of the 2021 PFD using the 50/50 plan
• Does not exceed the 5% POMV draw for the 2022 PFD or the 2021 remainder PFD (estimated at $1,200 for every eligible Alaskan)

Public Safety

• $2.9 million for an increase of 10 new Village Public Safety Officer positions and to give existing VPSO’s a 5% raise – with the overall goal of increasing VPSOs to 100
• 15 new Alaska State Trooper positions (appropriation will be worked out with lawmakers during the 2022 session)     
• $5.1 million to purchase new equipment for body cams, vehicle cams for law enforcement
• $750 thousand to fully fund new state criminal prosecutor positions in the Department of Law 
• $1.0 million for additional support staff in the Alaska Department of Corrections to support correctional officers
• $1.8 million in supplemental funding to the Alaska Court System for audio/video equipment to resume jury trials and a full five-day work week
• $1.4 million to expand booking capacity at Hiland Correctional Center
• $6.3 million for domestic violence and sexual assault prevention programs

The Alaska Department of Public Safety and the Alaska State Troopers are committed to meeting our mission of ensuring public safety and enforcing fishing and hunting laws across Alaska. Public safety is job number one for the Dunleavy Administration, and this new initiative is evidence of that,” stated Alaska Department of Public Safety Commissioner James Cockrell. 

Cockrell said, “These additional resources to address the high rates of domestic violence, sexual assault, human sex trafficking, MMIP, and other important issues impacting Alaskans are welcomed in our efforts to make Alaska a safer place to live, work, and raise a family.”

Statehood Defense

• $10 million increase for the Statehood Defense program
• Alaska must fight President Biden’s effort to shut down our resource-based economy

General Obligation Transportation and Infrastructure Bond – $310 million

Ports and Harbors:

• $175 million – Knik Arm Port Infrastructure
• $10 million – Port of Nome Deep Draft Port project
• $8.3 million – Craig Harbor improvements
• $5 million – Seward Freight Dock Expansion and Corridor Improvements

Surface Transportation:

• $25 million – Juneau Access Project
• $22 million – Northern Access to University Medical District

Airports:

• $14.1 million – Wasilla Airport Runway and Terminal
• $7.5 million – Ketchikan International Airport Terminal
• $6.5 million – Warren “Bud” Woods Palmer Municipal Airport Taxiway Construction

Education, Public Safety & Community Infrastructure Projects:

• $18.5 million – University of Alaska Fairbanks – Bartlett Hall and Moore Hall Modernization and Renewal
• $5 million – Nenana Fire Hall
• $5 million – Craig Mariculture Infrastructure
• $6.5 million – Kenai River Bluff Stabilization

Transportation

• $200 to $250 million to replace the Tustumena with federal highway funds
• New AMHS budget creates an unconstrained sailing schedule allowing all AMHS vessels to operate by maximizing the use of federal transportation dollars
• The All-Alaska Highway Safety Initiative – targets improvements to bring down crash rates beginning with the 15-mile section of the Seward Highway between Potter Marsh and Bird Creek

“This budget invests in transportation for Alaska, improving safety, supporting our economy, connecting our communities and providing jobs. A safe and efficient transportation network benefits us all, our families, businesses, and industries,” said Department of Transportation and Public Facilities Commissioner Ryan Anderson.

Resource Development

• $4.9 million for State primacy over federal wetland permitting under the Clean Water Act
• $830 thousand for hazardous waste mitigation under the federal Resource Conservation and Recovery Act

K-12 Education 

• 100% school bond debt reimbursement ($79M) to 18 local governments for school construction bonds passed in 2014 and earlier ($79M)
• FULL funding for the Base Student Allocation formula
• FULL funding for school construction and maintenance in Regional Education Attendance Areas
• $54.9 million to replace the Napakiak school, due to the erosion from the Kuskokwim River

Energy

• FULL funding for the Power Cost Equalization program
• $1.5 million for Electric Vehicle Infrastructure
• $2.5 million to fund an AEA Strategic Plan for Railbelt Assets to improve power transmission and make the grid more reliable and resilient
• $17 million for the Rural Power System Upgrades program
• $5.5 million for the Bulk Fuel Upgrades program

University of Alaska

• Year three of the UA Compact is nullified
• $22.8 million in federal ARPA funds for new UAF research programs on critical minerals, heavy oil and unmanned aircraft
• $94 million in federal grant funds for the UAF Seward Marine Center

Capital Budget Highlights

• $5 million for a tourism marketing campaign to bring more tourists to Alaska
• $72.3 million total, $19.5 million UGF for clean water systems in rural communities
• $6.9 million allocated for maintenance at the Palmer wastewater treatment plant

The FY23 operating, mental health and capital budget totals $4.6 billion in Unrestricted General Funds (UGF), $912 million in Designated General Funds (DGF), $792 million in Other State Funds, and $4.6 billion in Federal Funding with the total of all funds at $10.9 billion.

Governor Dunleavy added, “Alaska’s improved revenue outlook means we have the freedom to continue strengthening essential state services and programs that make meaningful differences in the quality of life for all Alaskans. I look forward to speaking with Alaskans over the coming months about how it will move Alaska forward and working with members of the Alaska Legislature on passing this budget and a sustainable, affordable budget plan that includes a 50/50 constitutional amendment to preserve and protect the PFD. If we all are willing to compromise, and learn from each other, we can make 2022 the year that Alaska made the tough, but correct decisions.”  

With an emphasis on public safety, a fair and substantial PFD, education and infrastructure as his budget priorities, the Governor’s proposed budget still continues the trend of less state spending since he came into office. This budget puts Alaska on track to rebuild and thrive in fiscal year 2023 and into the future.



On the Web:

FY23 budget FAQ sheet.

Additional budget documents on the OMB website.

State of Alaska - Office of Management and Budget Fiscal Year 2023 Fiscal Summary - December 15, 2021 (pdf)

Source of News:

Office of Gov. Michael Dunleavy
www.gov.alaska.gov

Office of Alaska House Speaker Louise Stutes
www.akleg.gov

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