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Governor Dunleavy Cuts Historic BSA Funding with Budget Line-Item Vetoes
No Governor in Alaska History Has Made Targeted Line-Item Vetoes to the Base Student Allocation Statutory Formula
ANCHORAGE, AK – This evening, Governor Mike Dunleavy announced his line-item vetoes to the FY 2026 Operating Budget, which included a $200 targeted reduction per student to the Base Student Allocation (BSA), an action no other Alaska Governor has done in state history. Earlier this year, through bipartisanship of both the House and the Senate, the Alaska legislature overrode Governor Dunleavy’s veto of House Bill 57, which increased the BSA formula by $700, increased pupil transportation by 10%, simplified the charter school renewal process, and created a legislative Task Force on Public Education to look at funding and policies.
In December 2024, Governor Dunleavy submitted his proposed FY 2026 budget to the legislature that included a projected $1.5 billion deficit, with no proposals to close the gap. The legislature responded by making difficult but necessary decisions to pass a balanced and responsible budget at $68 per barrel of oil that prioritized essential services, including public education.
“This year, the legislature took significant and difficult steps to ensure we were able to produce a balanced budget while still being able to provide critical school funding at lower oil prices,” said Senate President Gary Stevens, R-Kodiak. “This is a blow to Alaska families, students, and our schools. If we are to attract and keep families in Alaska, we must have a strong education system. Today’s action undermines that collective goal.”
“Alaska’s public schools are in urgent need of resources. We have heard this for the past three years, and telling our schools to do more with less, even as the legislature takes significant steps to ensure a balanced budget, continues to create instability in our public education system,” said Senator Löki Tobin, D-Anchorage, Senate Education Committee Chair. “This veto will negatively impact every single student in Alaska's public schools, including those in traditional brick-and-mortar schools, as well as all students in homeschool and correspondence programs.”
Earlier this year, the legislature passed House Bill 69, which was a straightforward BSA increase of $1000, but Governor Dunleavy vetoed it. In a subsequent effort, lawmakers passed House Bill 57, a compromise that included many of the Governor’s policy initiatives to support charter schools and regulate cell phone use in schools.
“The Governor’s decision to veto BSA funding directly contradicts what parents, educators, and communities have been asking for. The legislature negotiated and acted in good faith, incorporating many of his priorities into House Bill 57,” said Senator Bill Wielechowski, D-Anchorage, Senate Rules Chair. “This unprecedented action escalates a level of unpredictability that makes it harder for schools to plan and for students to significantly improve during their educational journey.”
In addition to vetoing the Base Student Allocation, Governor Dunleavy reduced funding for a range of vital public services in the FY 2026 budget. These cuts include millions in deferred maintenance for public schools across the state, resources for disaster relief, support for the struggling seafood industry through the Alaska Seafood Marketing Institute, and investments in childcare, a sector already under strain. Each of these items had broad, bipartisan support in the legislature and were aimed at addressing long-standing challenges faced by Alaskan families, communities, and businesses.
“These vetoes don’t just affect today, their impact will echo for years. We’ll see the consequences in our workforce, in our local small businesses, and across Alaska’s economy. Cutting school funding, along with the other vetoes, shows a troubling lack of vision for our state’s future," said Senator Cathy Giessel, R-Anchorage, Senate Majority Leader. “Alaska suffers when there’s no leadership willing to work across party lines with a long-term plan to move us forward.”
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