Special Edition: 2025 Budget Proposal!

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Senator Cathy Giessel Newsletter

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December 16, 2023- Governor's Proposed Budget

Dear Friends and Neighbors,

This is the last year that Chef Joe Hickel will be building this amazing gingerbread village in the lobby of the Hotel Captain Cook. Don't miss seeing it. Every year, for decades, we have gone to see the village.

This is a special edition of my newsletter, focused on the 2025 proposed budget. I've been asked questions related to last May's education funding veto.

Education Funding - Last May the Governor reduced, by 50%, the one-time increased funding that the Legislature appropriated for K-12 education.

Will the Legislature vote to override the Governor's veto of education funding last May?

Procedure for Veto Over-ride

The Alaska Constitution, Article 2, section 16, authorizes the legislature to over-ride a Governor's veto in revenue or appropriation bills.

· For this to happen, the legislature must meet in "joint session" (both House and Senate together in one place).

· Joint Sessions can be convened by invitation of the Governor, or one body can invite the other body to meet in joint session. In this scenario, the Senate could invite the House to meet in joint session.

· Key point: The invited body can decline the invitation to meet in joint session.

· The joint session and vote must take place "no later than the fifth day of the next regular or special session of that legislature".

· The joint session would have to occur before the end of the day on January 20th.

The Constitution also requires that the "YES" over-ride vote must be 3/4 of the membership of the legislature.

· 3/4 of the 60 members = 45 YES votes (regardless of how many legislators are present in the room that day).

· This is the highest vote requirement of any state in the U.S. Our Alaska Constitution gives the Alaska Governor more power than any other state governor.

The Governor's Budget

What's in it?

This is a really good article by Nat Herz, summarizing key points: I just reviewed 1,000 pages of Alaska budget documents - so you don't have to. Northern Journal

This summary of key points, by Iris Samuels and Sean Maguire, also give you a quick look: Gov. Dunleavy's budget draft has hundreds of new funding proposals. Here are a few. ADN

My big disappointment about the Governor's budget is that he's still promoting big dividends. This time he wants to spend $2.3 Billion on PFDs. The expected unrestricted revenue for 2025 is only $2.7 Billion. The Permanent Fund itself will transfer $3.7 Billion into the state treasury (making it 62% of our income stream now).

The proposed budget has a $1 Billion deficit that the Governor wishes to fill by taking the money out of savings.

(The Fall 2023 Revenue Sources Book is online. This is an important document and very easy to read. Take a look at it to see where our state funds come from.)

At the same time, education funding is flat and he hasn't proposed anything for upgrades to our transmission grid, which is the only way to get lower cost electricity to citizens.

A budget is said to represent priorities. I see stagnation and no vision for the future in this budget proposal.

I agree with Alaska Public Media, who points out that the Governor's budget is just a proposal. Its the Legislature that has the appropriation authority. I'm grateful to voters who have put some future-minded legislators in place.

Following in this newsletter is more budget information.

The Legislative Finance Division will be putting out an analysis of this budget proposal, probably next week. I'll make sure you get a copy of it.

Items in this Newsletter:

· Alaska Senate Majority Press Release

· Budget News Articles

· Resource Values, Permanent Fund

· Alaska History

Email me

Watch the Governor's Budget Press Conference

Senate Leadership Emphasize Priorities After Governor Dunleavy Releases FY25 Budget Proposal

The Proposed Budget is a Starting Point for the Legislature to Address the Needs of Alaskans

Anchorage, AK – Earlier this afternoon, Governor Mike Dunleavy released his proposed Fiscal Year 2025 budget, which must be submitted to the legislature by December 15 each year. The legislature will convene on January 16, 2024, to consider the proposed budget and other legislative priorities. Senate President Gary Stevens, R-Kodiak, and members of Senate leadership issued the following statements:

“We must continue to emphasize the importance of fiscal stability and a balanced budget that effectively addresses Alaska's most critical needs. This budget is a starting point, and the Senate will work diligently and effectively through our process to achieve the best budget for Alaskans,” said Senate President Gary Stevens. “As stewards of Alaska's financial future, we must engage in bipartisan collaboration to navigate the challenges ahead to protect our financial resources so future generations have opportunities for success.”

"As we start digging into this year's operating budget, our focus will continue to be a balanced budget without having to dip into our significantly low reserves,” said Senator Bert Stedman, R-Sitka. “It's our job to allocate resources wisely while addressing the needs of our communities. As always, this will be a deep and long process to make sound budget decisions that benefit everyone we serve.”

“Through record inflation, the costs of operations continue to grow for our public schools, and many of which are struggling to stay open. Our commitment to securing essential public education resources is still at the forefront of our legislative priorities. Our classrooms must remain open and equipped with the necessary tools for effective learning,” said Senator Bill Wielechowski, D-Anchorage. “Investing in public education is an investment in our community's future. By ensuring adequate funding, we make the critical investment in our students to provide them with the foundation they need to succeed.”

“Addressing Alaska's energy transmission infrastructure and labor shortages must be prioritized this upcoming legislative session. Investing in robust energy transmission not only bolsters our state's resilience to our current supply challenges but is critical for our families, communities, and businesses. Sustainable economic growth can only occur when we have stable government and predictable policies.” said Senator Cathy Giessel, R-Anchorage, Senate Majority Leader. “I think every Alaskan is aware that workforce recruitment and retention are critical to overcoming many of our labor shortage issues. By prioritizing these topics, we will be addressing the most important issues for Alaska families, communities, and businesses.”

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