Alaska Gov. Mike Dunleavy talks to reporters during a news conference on Monday, May 19, 2025. (Photo by James Brooks/Alaska Beacon)
Gov. Mike Dunleavy vetoed more than $122 million from Alaska’s annual budget plan before signing it into law Thursday.
The governor’s vetoes fell heaviest on education, as Dunleavy eliminated more than $50 million from the state’s per-student education funding formula and tens of millions intended for school maintenance.
It’s the first time in state history that a governor has failed to fully fund the education formula, a precedent-breaking act akin to former Gov. Bill Walker’s decision in 2016 to veto part of the Permanent Fund dividend, which until then had been decided by a previously sacrosanct formula.
Dunleavy also vetoed budget language designed to prevent excess spending from the state’s Higher Education Investment Fund, which is ordinarily intended to pay for high school students’ scholarships. The governor chose to take money from the fund rather than the reserves of the state’s investment bank, the Alaska Industrial Development and Export Authority.
The governor announced his vetoes without a news conference or lengthy statement, instead releasing a prerecorded video earlier on Thursday stating that the vetoes, which cover both the state’s annual operating budget bill and the capital budget bill, were required by the state’s fiscal situation.
Oil prices have fallen significantly over the past year, leading to dwindling state revenue. The governor’s vetoes relied on a new state revenue forecast unavailable to lawmakers when they drafted the budget.
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