(January 28, 2019) Juneau, Alaska – Today, the Dunleavy administration transmitted two supplemental bills to the Legislature, addressing shortfalls in the State’s operating and capital budgets for Fiscal Year 2019 (FY19) and a separate disaster bill responsive to fire suppression needs, the Southcentral Earthquake Disaster, and subsequent recovery efforts.
The increases in the FY19 supplemental are offset by savings from efficiencies and reductions to appropriations that the State cannot afford.
“I took office with a promise to reduce State spending, put public safety first, and renew trust in government. To that end, I am presenting a supplemental bill for the Legislature’s consideration that returns money to the general fund,” said Governor Michael J. Dunleavy.
“Working collaboratively with Departments, we have prioritized FY19 spending to align expenditures and revenues while meeting the State’s statutory obligations,” said OMB Director Donna Arduin. “We took on the responsibility of balancing the budget without additional supplemental requests.”
The Office of Management and Budget, Departments, and public corporations worked to identify unspent funds that are redeployed in this proposal to meet the State’s immediate needs. Provisions include:
- A $5 million transfer of unused funds from the Alaska Gasline Development Corporation (AGDC) back to the General Fund.
- Final loan payments for the Whittier Tunnel Project, reducing the State’s debt obligation.
- Increased funding to maintain and renovate trooper housing in rural Alaska and a 7.5% salary increase for Alaska State Trooper retention and recruitment efforts.
The disaster bill includes a special appropriation to aid in recovery efforts associated with the Southcentral Earthquake, including initial State match to meet federal funding requirements.
“Days before I took office, Alaska was hit by the second-largest earthquake in our history. In the two short months that have followed, roads have been repaired, cleanup efforts have been organized, and emergency responders have secured the safety of impacted Alaskans. The total costs of the earthquake response cannot be accurately calculated yet. The full damage to highways may not be known until spring,” wrote Governor Dunleavy when submitting the Disaster Supplemental.
For detailed information on the FY19 Supplemental Budget, click here.
For a detailed summary, click here.