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Dunleavy Signs Narrow Capital Budget, Urges Legislature to Complete Unfinished Business

Jul 10, 2019

July 10, 2019 (Wasilla) – Alaska Governor Michael J. Dunleavy today transmitted a narrow Fiscal Year 2020 capital budget, sending a message to the Legislature that – by failing to capture more than a billion dollars in federal infrastructure dollars and to provide an adequate funding source – their work constitutes an incomplete.

“Unfortunately, the capital budget I received back from the legislature lacked the support needed to fully fund projects and programs critical to the development of Alaska,” wrote Governor Dunleavy in a letter to the Legislature today. “I look forward to a swift resolution on the 2019 Permanent Fund Dividend, so the legislature can quickly move on to fully funding a capital budget to support jobs and families across Alaska, and ensure Federal funds are not forfeited and critical road, infrastructure, and life, health safety projects receive funding.”

The FY 2020 capital budget totals nearly $1.202 billion, including $58.4 million in general funds; however, lacks the proper funding sources due to the legislature’s inability to reach consensus. Nearly $1 billion in federal funding remains at stake until the legislature appropriates state matching funds, leaving future statewide transportation and infrastructure projects on hold indefinitely.

In a transmittal letter to the legislature, Governor Dunleavy urges the legislature to provide a fully funded capital budget using appropriate funding sources once the statutory dividend is approved, click here to read.

Governor Dunleavy called the legislature into a second special session on July 8th in Wasilla to pay a full statutory PFD. Governor Dunleavy has committed to expanding the call to include a capital budget once the Legislature can resolve where it will conduct business.

For additional information – including background documents, transmittal letters, and change records – on the enacted Fiscal Year 2020 capital budget, click here.