State lawmakers finalized a $5.9 billion budget on Sunday, setting the Alaska Permanent Fund dividend for 2025 at $1000. Six House and Senate negotiators reached the deal, which will fund government services from July 1 through June 30 of next year.
The legislature expects to vote on the finalized document on Tuesday before sending it to Governor Mike Dunleavy. He holds the authority to veto or reduce line items but cannot raise funding amounts.
Lawmakers face a hard deadline with the legislative session ending on Wednesday. The $1,000 dividend sparked less debate than in previous years. Representative DeLena Johnson, a Republican from Palmer, admitted she used a $1,400 payout but accepted the lower amount as a compromise.
Alaska’s declining oil and gas revenue is forcing legislators to slash various programs. Lawmakers shaped the budget to avoid a $2.1 billion deficit first proposed by Dunleavy last December, including a $3,900 dividend.
Instead, the current plan results in a modest $55 million surplus. However, legislators expect the surplus to disappear due to falling oil prices and potential federal funding cuts. Republicans in Congress are targeting reductions in disaster aid and food assistance programs.
The budget compromise avoids draining the Constitutional Budget Reserve except for shortfalls in the current fiscal year. If lawmakers cannot secure 30 House votes for that draw, money may come from AIDEA or the state’s education trust fund.
Some additions survived the negotiations. These include $13.7 million for child care, $5.7 million for early learning, and 15 staff positions to speed up public assistance processing. However, the budget excluded a $1 million food bank grant and rejected funding for public radio.
Plans to restore the Talkeetna trooper post failed despite support from some committee members. The final draft also dropped anti-transgender language but retained a controversial paragraph that restricts abortion services, a recurring inclusion that reduces Medicaid funds slightly.
