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Legislators

Governor Mike Dunleavy Vetoes Over $122 Million from Alaska's Annual Budget

Strategic Insights

— 2 min read

Alaska Governor Mike Dunleavy made headlines Thursday by vetoing over $122 million from the state's annual budget, with the most significant cuts falling in the education sector. The vetoes, which landed without comment from the governor, targeted education funding, school maintenance projects, and other initiatives, leaving school districts with significant uncertainty. The move marks a precedent-breaking act, as it is the first time in state history that a governor has failed to fully fund the education formula.

Key Takeaways:

  • The governor's vetoes totaled over $122 million, with the majority of the cuts falling in the education sector.
  • Over $50 million was eliminated from the state's per-student education funding formula and tens of millions were intended for major school maintenance projects.
  • The vetoes were driven by depressed oil prices, which have resulted in reduced revenue for the state.
  • The decision to veto education funding has been met with disappointment and concern from lawmakers, with Rep. Rebecca Himschoot stating that the reduction "is nothing short of catastrophic for districts who've already submitted budgets."
  • The state's education funding formula was expected to receive a boost, but the governor's vetoes have reduced funding by over $200 per student.
  • The governor's vetoes also affected other initiatives, including $75,000 for a safe gun storage media campaign, $1.9 million in grants for child care centers, and $37 million intended to fill the state's disaster relief and wildfire-fighting funds.

Statistics:

  • The governor's vetoes totaled over $122 million.
  • Over $50 million was eliminated from the state's per-student education funding formula.
  • Tens of millions were intended for major school maintenance projects.
  • The state's education funding formula was expected to receive a boost, but the governor's vetoes have reduced funding by over $200 per student.
  • The governor eliminated $75,000 for a safe gun storage media campaign.
  • $1.9 million in grants for child care centers were vetoed.
  • $37 million intended to fill the state's disaster relief and wildfire-fighting funds was vetoed.
  • The state's Constitutional Budget Reserve will be used to backfill the higher education fund.

Sources:

  • OMB (Office of Management and Budget): HB53 FY25 & FY26 Veto Summary (pdf), 06.12.2025 (https://omb.alaska.gov/ombfiles/26_budget/PDFs/HB53_FY25_&_FY26_Veto_Summary_06.12.2025.pdf)
  • Office of Management and Budget: FY2026 Fiscal Summary, 06.12.25 (https://omb.alaska.gov/ombfiles/26_budget/PDFs/FY2026_Fiscal_Summary_6.12.25.pdf)
  • Department of Revenue: Revenue Update, June 2025 (https://www.documentcloud.org/documents/25974438-revenue-update-june-2025/)
  • BBC News: Israel begins bombing Iran (https://www.bbc.com/news/live/c93ydeqyq71t)
  • Alaska Beacon: Governor vetoes education funding, $122 million from state budget (https://alaskabeacon.com/2025/06/12/governor-vetoes-education-funding-122-million-from-state-budget)
  • ADN: Governor vetoes education funding, $122 million from state budget (https://www.adn.com/politics/2025/06/12/governor-vetoes-education-funding-122-million-from-state-budget/)
  • KTOO News: State seeks contractors for a second Juneau ferry terminal (https://www.ktoo.org/2025/05/27/state-seeks-contractors-for-a-second-juneau-ferry-terminal/)

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