Dunleavy signs capital budget into law, vetoes funds

Sweep is reversed and capital budget is passed but $34 million is vetoed

Gov. Mike Dunleavy at the signing ceremony at the Alaska Association of General Contractors in Anchorage on August 8, 2019 (Courtesy photo)

Gov. Mike Dunleavy at the signing ceremony at the Alaska Association of General Contractors in Anchorage on August 8, 2019 (Courtesy photo)

Gov. Mike Dunleavy signed Senate Bill 2002 into law Thursday afternoon during a press conference at the offices of the Associated General Contractors of Alaska in Anchorage.

According to a press release from the governor’s office, the bill, “properly captures nearly $1 billion in federal transportation and infrastructure funding, provides necessary resources to enact public safety legislation, and reinstates funding for various programs such as the Alaska Performance Scholarship, WWAMI and Power Cost Equalization.”

While the bill does provide funding for a number of state programs, the governor vetoed $34,732,800 in total from the appropriations made in the bill.

Among the items vetoed were $10 million for statewide addiction treatment facilities, $500,000 for emergency medical services for Code Blue Project — the program meant to provide medical equipment for rural areas — and $1 million for public and community transportation.

A document from the governor’s office detailing his vetoes from SB 2002

A document from the governor’s office detailing his vetoes from SB 2002

Dunleavy said at the signing that he knew that cuts would be difficult for many groups in Alaska, but he was determined to put the state on a path of fiscal sustainability. Pretending the state was not running a budget deficit was doing harm to the state, he said.

Dunleavy made reference to the decrease in the price of oil that has taken place over the past several years and said without that revenue the state was no longer able to spend in the way it had in the past.

He said that, “the intent of the vetoes was not to harm Alaskans, nothing could be further from the truth.”

Dunleavy said part of his intent with the vetoes was to force a difficult but necessary conversation about the state’s fiscal future.

Dunleavy said that when he ran for governor he meant to, “restore and protect the PFD, promote public safety, and put the state on a plan for fiscal sustainability.”

Gov. Mike Dunleavy at the signing ceremony at the Alaska Association of General Contractors in Anchorage on August 8, 2019 (Courtesy photo)

Gov. Mike Dunleavy at the signing ceremony at the Alaska Association of General Contractors in Anchorage on August 8, 2019 (Courtesy photo)

In addition to signing this bill, the governor said his administration will be taking action that will impact a large number of Alaskans in the near future. This was mostly likely a reference to HB 2001, the other bill before the governor, which contains additional funding and an Alaska Permanent Fund dividend.

However, HB 2001 allocated only $1,600 for the PFD, which Dunleavy has publicly opposed.

It is possible that the Legislature could call itself into yet another special session with a two-thirds (40 votes) and attempt to override the governor’s vetoes.

On Twitter, some legislators responded to the governor’s vetoes within minutes of the announcement. The $10 million in cuts to addiction treatment facilities got specific attention.

Reps. Sara Hannan, D-Juneau, and Ivy Sponholz, D-Anchorage, both expressed dismay at the announcement.

In a July 31 letter to the governor, Senate President Cathy Giessel, R-Anchorage, and House Speaker Bryce Edgmon, I-Dillingham, suggested that the governor call yet another special session. It is unclear if there will be another session.

A document from the governor’s office detailing his vetoes from SB 2002

A document from the governor’s office detailing his vetoes from SB 2002

If a special session is called, the Legislature will have five days from when it gavels in to override the vetoes.

The Legislature does not have a time line to call itself into special session. If no special session is called, the five day clock will begin at the start of the regular session in January.


• Contact reporter Peter Segall at 523-2228 or psegall@juneauempire.com.


Dunleavy signs capital budget into law, vetoes funds

More in News

Kenai City Manager Paul Ostrander sits inside Kenai City Hall on Thursday, Sept. 29, 2022. (Ashlyn O’Hara/Peninsula Clarion file)
Ostrander named to Rasmuson board

The former Kenai city manager is filling a seat vacated by former Kenai Peninsula Borough Mayor Mike Navarre

Joe Gilman is named Person of the Year during the 65th Annual Soldotna Chamber Awards Celebration at the Soldotna Regional Sports Complex on Wednesday. (Jake Dye/Peninsula Clarion)
Gilman, PCHS take top honors at 65th Soldotna Chamber Awards

A dozen awards were presented during the ceremony in the Soldotna Regional Sports Complex conference rooms

Alaska State Troopers logo.
Troopers respond to car partially submerged in Kenai River

Troopers were called to report a man walking on the Sterling Highway and “wandering into traffic”

Seward City Hall is seen under cloudy skies in Seward, Alaska, on Thursday, Nov. 7, 2024. (Jake Dye/Peninsula Clarion)
Seward council approves 2025 and 2026 budget

The move comes after a series of public hearings

Alaska State Troopers logo.
4 arrested for alleged sale of drugs in Seward

A dispatch first published in September has been updated twice with additional charges for drug sales dating back to 2020

Lisa Parker, vice mayor of Soldotna, celebrates after throwing the ceremonial first pitch before a game between the Peninsula Oilers and the Mat-Su Miners on Tuesday, July 4, 2023, at Coral Seymour Memorial Park in Kenai, Alaska. (Jake Dye/Peninsula Clarion)
Soldotna vice mayor elected head of Alaska Municipal League

The league is a nonprofit and nonpartisan organization representing 165 of Alaska’s cities, boroughs and municipalities

Soldotna Chamber of Commerce Executive Director Maddy Olsen speaks during a color run held as part of during the Levitt AMP Soldotna Music Series on Wednesday, June 7, 2023, at the Kenai National Wildlife Refuge Visitor’s Center in Soldotna, Alaska. (Jake Dye/Peninsula Clarion)
Olsen resigns as director of Soldotna Chamber of Commerce

She has served at the helm of the chamber since February 2023

Alaska State Troopers logo.
Sterling liquor store burgled, troopers say

Troopers were called around 3 a.m. Sunday

Most Read