Defines the values of Governor Dunleavy for the second period and beyond
Governor Mike Dunleavy’s FY2024 (FY24) budget begins his second term in office by charting a new course for Alaska on resource development, energy production, public health, and economic growth. It fully funds public education, the Alaska Marine Express system, and the energy cost offset while still retiring with millions of dollars in debt. The budget also continues to invest in public safety and enhances incoming federal infrastructure funds to the extent possible. Funding is also included for a bold new initiative to market Alaska as more than just a tourist destination – a destination for US and international businesses looking for new opportunities to grow their bottom line and diversify the state’s economy.
The Governor’s commitment to a legal framework for budget compensation is represented by this budget. His FY24 budget calls for full statutory PFD payments in 2023 for every eligible Alaska.
As a result of Governor Dunleavy’s commitment not to dramatically increase government spending, the FY24 budget has 4% reduction In the UGF operating budget compared to the operating budget for fiscal year 2019.
“This budget is a starting point for discussions about what Alaska will look like over the next four years and the next 50 years.” said Governor Dunleavy. “The budget we send to the next legislature depends on the progress we made together in my first term with practical investments that make Alaska safer and increase our self-reliance through sustainable energy production, food security, and more. Alaska’s future is bright, if we continue to work together on policies that that will make the most positive impact in our lives and create new opportunities for the next generation of Alaskans.”
Governor Dunleavy’s budget plan for fiscal year 24 includes:
- $5 million for a new marketing campaign to promote Alaska as an opportunity for national and international businesses
- A joint initiative of the governor’s office and the Alaska Department of Commerce, Community, and Economic Development
- Inform and educate business leaders that Alaska is much more than a tourist destination
- Diversify and expand Alaska’s economy and create new jobs for Alaskans
“I’m so excited that this year’s budget gives DCCED $5 million to promote Alaska: our resources, our people, and our opportunities. We have the highest standards in resource development safety and environmental protection. The quality of life and recreation opportunities in our state is unparalleled—it’s time to get out there and tell that story.” said Commissioner for the Coordination of Development and International Cooperation Julie Sandy.
- Keeping Alaskans safe remains Governor Dunleavy’s first public policy priority
- Invests $3.3 million in 30 new technical and administrative support staff positions for the Department of Public Safety
- Criminal justice technicians, forensic technicians, and fingerprint technicians
- Director of VPSO Policies and Programs to improve rural public safety response and outcomes
- New mental health doctor to expand wellness program
- Support personnel allow troops to perform the job they are trained to do – investigating criminal activity and apprehending criminals
Alaska State Defense Force
- $2.5 million to modernize the ASDF into a full-time professional organization for emergency response and disaster assistance within the DMVA
- Establishes a rapid response team within the communities in the event of a disaster or emergency
- Complements and enhances existing statewide emergency response capabilities
- Enabling legislation will be introduced for the 2023 legislative session
2023 PFD Payment – Follow the law or change the law.
- $2.4 billion for a fully legal equilibrium program for every Alaskan qualifier
- $3,800 estimated PFD in Fall 2023
- It adheres to the basic system of the financing formula in force since the distribution of the first financing plan in 1982
General health and wellness
- $9.5 million for the Healthy Families Initiative
o Alaska End Tuberculosis (DOH) Plan
o Elimination of congenital syphilis (DOH)
o Extended Medicaid Coverage After Childbirth (DOH)
o Recruitment and retention of Alaska Health Professionals (DOH)
- $1.2 million to strengthen domestic violence and sexual assault prevention and community intervention (DPS) programs
- $523,000 to establish a Health Savings Office (DOH)
- $800,000 for API capacitation and prison restoration (FCS)
- $205,000 to establish a Vulnerable Alaskan Residents (FCS) Complex Placement and Coordination Unit
- $2 million to expand the UAA WWAMI program
“Strong families are the foundation of a healthy society and a vibrant economy,” said Health Commissioner Heidi Hedberg. The Healthy Families initiative is built on three pillars: healthy beginnings, improved access to healthcare and healthy communities. This is a 4-year whole government plan that will emphasize improved cooperation and coordination across our state. It will focus on making Alaska the best, healthiest place to raise a family and the best place to work.”
- $285,000 to restore Yukon-Kuskokwim Fisheries Management and Evaluation Programs
- $800,000 for the restoration and maintenance of Bristol Bay Science and Research Institute projects
- $10 million in state defense capital budget funds and our constitutional right to develop Alaska’s resources through the assistance of outside advisors and expertise for the State Defense Initiative
- Includes wildlife research and science (DF&G) funding
“We must continue the good work of defending the state as the federal government continues to refuse to recognize the rights of the state through its aggressive policies,” Alaska Attorney General Trigg Taylor said. “Without the ability to manage our lands and natural resources, we lose Alaska’s ability to determine Alaska’s future.”
- $1 million for the DEED Alaska Native Science and Engineering Program Partnership
- $6.4 million in funding for the second year of the Alaska Act reads
- $620,000 for the Silvertip Road Maintenance Station on the Kenai Peninsula
- $794,000 for the two maintenance stations of Lake Shetna and Birch Lake
- $200,000 to maintain the Snow Country Road
- $127 Million State Match to Secure $1.25 Billion in Federal IIJA Funding for Statewide Transportation Infrastructure
- $13.6 million for operations of the Alaskan Seaway System
“In this budget, Alaskans see the full benefits of bipartisan infrastructure funding. It’s time as a state to invest in our communities — by preserving our highways, investing in our transportation network to increase safety, supporting business and industry, and making our roads, bridges, airports, and highways more durable. This budget allows us to accept those federal dollars, while matching the state to invest in all modes of transportation infrastructure across Alaska,” said DOT and PF Commissioner Ryan Anderson.
Highlights of the capital budget
- $25 million matching state to obtain $222 million in federal funding for village water and waste water infrastructure projects
- $2.1 million to improve the Dalton Expressway
- $22 million to repair Alaska Sea Highway vessels and shoreline facilities
- $5.7 million for renovations to the Alaska State Trooper Post in Fairbanks
- $5 million for rural occupational housing
- $4 million for sanitation and renovations to bathrooms at Alaska State Parks and a new public use cabin
- $2.75 million for critical mineral mapping
- $1.1 million to build the Fairbanks Veterans Cemetery
- $10 million for the UA Drone Program
- $4.5 million for food security programs (Animal Bank, Salmon Program, Arctic Fisheries, and Fisheries Department Sonar Replacement in the Central Region)
- $3 million for three-phase power extensions and upgrades for Delta Farm and Al-Taawon
- $2 million pilot program for a new daycare facility in Mat Su Valley
- $25 million for energy projects (rural power system upgrades, bulk fuel upgrades, grid resilience, and energy efficiency projects)
The total FY24 budget is $4.8 billion in unrestricted public funds. The capital budget is down $460 million from FY23. Due to lower-than-expected oil prices, the budget calls for a modest drawing from the Constitutional Budget Reserve (CBR) of $245 million, and $20 million from the Statutory Budget Reserve (SBR). The combined balance of the SBR and CBR accounts is $2.1 billion.
I understand that the state budget is a negotiation between legislators and an administrator. We are very willing to have meaningful discussions with lawmakers about funding for education and how inflation is straining service delivery and programs across the state, so I look forward to working together to craft a spending plan that meets the needs of the largest number of Alaskans. possible,” added Governor Dunleavy.
Click here to view Office of Management and Budget documents.
Click here for our FY24 budget FAQ sheet.