(SitNews) Juneau, Alaska - The Dunleavy administration transmitted two supplemental bills to the Legislature on Monday to address 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.

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Governor Michael J. Dunleavy said, “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.”

Quoting a news release from the Governor's office, the increases in the FY19 supplemental are offset by savings from efficiencies and reductions to appropriations that the State cannot afford. 

Alaska Office of Management & Budget Director Donna Arduin said Monday regarding the Governor's supplemental bills, “Working collaboratively with Departments, we have prioritized FY19 spending to align expenditures and revenues while meeting the State’s statutory obligations.” 

Arduin said, “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.

According to Senate Democratic Leader Tom Begich (D-Anchorage), Governor Dunleavy's FY 19 Supplemental Budget introduced Monday would cut the $20 million from education that passed with overwhelming bipartisan support during the 2018 session. According to a news release from Senate Democratic Leader Tom Begich (D-Anchorage), the nonpartisan Legislative Finance Division noted public school funding was roughly $25 million less in 2018 than in 2015. If the effects of inflation were considered, the loss to public education was more than $90 million.

Senate Begich issued the following response to the Governor's bills,  "Last year, the Senate and House put aside partisanship and crafted an education budget that responded to public demand for increased education resources. Local schools and communities have been hit hard with the high cost of energy and the lack of inflation-proofing of our funding formula. The actions of the Governor send our education system backward, something our schools can't afford.

"This week, the Senate Majority released their annual survey of Alaskans, and it underscores the need for increased education funding. Over 51 percent of Alaskans identified education funding as too low, and only 14 percent thought it was too high. Governor Dunleavy campaigned as the education Governor, among other things. This tells me he doesn't take his own words seriously. This is not how you build public trust," said Begich.

Begich said, "Alaska's education system is ranked second to worst in the nation when we should be second to none. The Senate Democrats, working with our Senate Majority colleagues and the House, will continue to push for a strong education system from Pre-K through UA; one that will create opportunities for every student and stability for our parents, teachers, and staff."

Tuesday, the Senate Finance Committee received a presentation from Office of Management and Budget (OMB) Director, Donna Arduin, on Governor Michael Dunleavy's FY 19 supplemental budget. Major cuts to the bipartisan budget passed in the 2018 legislative session include $20 million in education, $3 million to Village Public Safety Officers (VPSOs), $2 million in school bond debt reimbursement, and $1.2 million in broadband grants. 

"Schools across this state have a desperate need for these resources. These funds were promised through our budgeting process in 2018 and I intend to honor them," said Senator Scott Kawasaki (D-Fairbanks). "Governor Dunleavy campaigned on being the education Governor and this is an unacceptable attack on our public education system. He is clearly not fulfilling his campaign promises to Alaskans." 

During questioning of the $20 million cut to education in Senate Finance this morning, the OMB Director noted that the money had not been disbursed by the state and said, "It is my contention that school districts and other entities seeking money or expecting money from the state should not be anticipating spending money that has not been allocated to them." Contrary to her belief, the Legislature agreed and appropriated these education dollars in May of 2018. 

"School districts throughout the state plan their budget in the spring and finalize those budgets after we conclude our budget process, and this is a direct threat to Alaskans' trust in government," said Sen. Kawasaki. "For the Director of OMB to conclude 'if they haven't spent it, it's fair game to take it' only halfway through the school year is short-sighted. Today she displayed her lack of knowledge with Alaska and how we conduct business and honor our word."

In addition to the appropriations to VPSOs in the FY 19 budget, lawmakers included legislative intent to disburse funding for recruitment and retention of VPSOs. 

"VPSOs are the first line of defense for tens of thousands of rural Alaskans. That money was appropriated last year to help recruit and retain highly qualified public safety officials, and I haven't seen anything from this administration that has encouraged that desire," said Senator Donny Olson (D-Golovin). "Pulling the rug out from underneath safe communities in rural Alaska is unacceptable. My constituents depend on these officers. I anticipate this is just the start of the broken promises of the Dunleavy Administration."

Other unspent funds identified that are redeployed in this supplemental bills proposal to meet the State’s immediate needs 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.

Governor Dunleavy when submitting the Disaster Supplemental wrote, “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.” 

On the Web:

FY19 Supplemental Budget, click here.

For a detailed summary, click here.

 

Source of News:

Alaska Senate Democrats
www.akleg.gov

Office of Gov. Mike Dunleavy
www.gov.alaska.gov

Senate Democratic Leader Tom Begich
www.gov.alaska.gov

 

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