Governor Mike Dunleavy signed Alaska’s budget into law Thursday after vetoing $122 million, with education taking the most brutal hit. He removed $50 million from Alaska’s per-student formula and axed funding for critical school maintenance projects statewide.
Legislators said they won’t consider overriding the education budget veto until January, prolonging uncertainty for school leaders. Anchorage Superintendent Jarrett Byrantt warned that districts may face emergency school closures to meet sudden budget shortfalls.
Dunleavy announced his decision without holding a news conference and immediately refused to respond to emailed media questions. In a pre-recorded video, he said falling oil prices forced cuts, claiming Alaska lacks enough revenue to meet obligations.
Unusually, he based the vetoes on a new revenue forecast lawmakers had never seen while crafting the budget earlier this year. The state originally projected a $56.5 million surplus, but the latest forecast estimates a $222 million revenue shortfall.
After the vetoes, the budget reflects a $186 million surplus, but the figure relies on outdated oil estimates. Senate President Gary Stevens said the vetoes were unnecessary, calling the governor’s approach unusual and frustrating.
The education veto reduced the $700 per student increase to $500, impacting urban and rural districts that had already submitted budgets. Representative Jeremy Bynum called the veto expected but larger than anticipated, warning it will strain his district’s schools and operations.
The governor also eliminated money lawmakers redirected from transportation to school maintenance due to prior spending commitments. Smaller vetoes targeted childcare mental health programs and the seafood industry, removing millions in state support.
