Gov. Mike Dunleavy explains details of his proposed state budget for next year during a press conference Dec. 12, 2014, at the Alaska State Capitol. (Mark Sabbatini / Juneau Empire file photo)

Gov. Mike Dunleavy explains details of his proposed state budget for next year during a press conference Dec. 12, 2014, at the Alaska State Capitol. (Mark Sabbatini / Juneau Empire file photo)

Opinion: Governor fails at leadership in his proposed budget

It looks like he is sticking with the irresponsible approach

Gov. Mike Dunleavy has a choice for his final two years on the job: He can continue talking about how state law requires him to include an outrageously large Alaska Permanent Fund dividend in the budget — even though it would dig a deep budget hole which, thankfully, legislators will never approve — or he can help solve the problem.

It looks like he is sticking with the irresponsible approach.

He proposed a budget last week that is politically popular with his supporters but which he knows the state cannot afford without drawing down its remaining reserves to dangerous levels. He says the Legislature needs to do something about it.

He offers no specific solutions other than hoping for more oil wells in the years ahead, far too late to solve the problem for the next budget year that starts July 1, or the one after that or the one after that. Besides, future oil revenues are as bankable as political promises, which is to say they’re not.

ADVERTISEMENT
0 seconds of 0 secondsVolume 0%
Press shift question mark to access a list of keyboard shortcuts
00:00
00:00
00:00
 

The governor’s proposed budget for next year shows a $1.5 billion deficit — and that’s even before lawmakers consider an increase in state aid to local school districts, which communities, including Wrangell, desperately need.

Yes, five years ago Dunleavy tossed out several proposed constitutional amendments that he packaged as a long-range fiscal plan to balance state finances. They wouldn’t have solved the problem, but at least it was an effort. The poorly crafted and flawed package went nowhere in the Legislature.

Since then, nothing. No proposed legislation from the governor to revise the dividend calculation, no constitutional amendments, nothing but talk. And, unlike education funding, talk is cheap. It’s like he gave up and decided legislators could take the public heat for what needs to get done and he could retire as a champion of the PFD.

And while talk is cheap, a chart on the governor’s budget page is misleading. The cost of the governor’s proposed $3,800 dividend is nowhere to be seen on his spending chart, as if it magically doesn’t exist as the single-largest expenditure by far in his proposed budget. Hiding the truth is worse than cheap talk — it’s dishonest.

The honest truth is that the state could pay a $1,200 dividend, provide a reasonable increase in funding to education and balance the budget — without drawing down savings. The governor could take the lead in proposing and pushing for a change in the dividend formula in law to help solve the spending problem.

But Dunleavy didn’t propose any of that last week. Instead, he did nothing but the minimum that state law requires, which is to present a budget. The law doesn’t require that the budget make sense.

This editorial was originally published by the Wrangell Sentinel.

More in Opinion

Deena Bishop, commissioner of the Department of Education and Early Development, discusses the status of school districts’ finances during a press conference with Gov. Mike Dunleavy at the Alaska State Capitol on Thursday, April 17, 2025. (Jasz Garrett / Juneau Empire)
Opinion: The fight to improve public education has just begun

We owe our children more than what the system is currently offering

President Donald Trump and President Vladimir Putin of Russia at a joint news conference in Helsinki, Finland, July 16, 2018. (Doug Mills/The New York Times file photo)
Opinion: Mistaking flattery for respect

Flattery played a role in Trump’s One Big Beautiful Bill.

(Juneau Empire file photo)
Opinion: Life is harder when you outlive your support group

Long-time friends are more important than ever to help us cope, to remind us we are not alone and that others feel the same way.

Deven Mitchell is the executive director and chief executive officer of the Alaska Permanent Fund Corp. (Photo courtesy of the Alaska Permanent Fund Corp.)
Opinion: The key to a stronger fund: Diversification

Diversification is a means of stabilizing returns and mitigating risk.

A silver salmon is weighed at Three Bears in Kenai, Alaska. Evelyn McCoy, customer service PIC at Three Bears, looks on. (Photo by Jeff Helminiak/Peninsula Clarion)
Opinion: Will coho salmon be the next to disappear in the Kenai River?

Did we not learn anything from the disappearance of the kings from the Kenai River?

Jonathan Flora is a lifelong commercial fisherman and dockworker from Homer, Alaska.
Point of View: Not fishing for favors — Alaskans need basic health care access

We ask our elected officials to oppose this bill that puts our health and livelihoods in danger.

Alex Koplin. (courtesy photo)
Opinion: Public schools do much more than just teach the three Rs

Isn’t it worth spending the money to provide a quality education for each student that enters our schools?

Gov. Mike Dunleavy speaks to reporters at the Alaska State Capitol on Thursday, April 17, 2025. (Jasz Garrett / Juneau Empire file photo)
Letter to the Editor: Law enforcement officers helped ensure smooth, secure energy conference

Their visible commitment to public safety allowed attendees to focus fully on collaboration, learning, and the important conversations shaping our path forward.

Laurie Craig / Juneau Empire file photo
The present-day KTOO public broadcasting building, built in 1959 for the U.S. Army’s Alaska Communications System Signal Corps, is located on filled tidelands near Juneau’s subport. Today vehicles on Egan Drive pass by the concrete structure with satellite dishes on the roof that receive signals from NPR, PBS and other sources.
My Turn: Stand for the community radio, not culture war optics

Alaskans are different and we pride ourselves on that. If my vehicle… Continue reading

U.S. Sen. Dan Sullivan (R-Alaska) delivers his annual speech to the Alaska Legislature on Thursday, March 20, 2025. (Jasz Garrett / Juneau Empire file photo)
Opinion: Sullivan, Trump and the rule of lawlessness

In September 2023, U.S. Sen. Dan Sullivan established his own Alaska Federal… Continue reading

UAA Provost Denise Runge photographed outside the Administration and Humanities Building at the University of Alaskas Anchorage. (courtesy photo)
Opinion: UAA’s College of Health — Empowering Alaska’s future, one nurse at a time

At the University of Alaska Anchorage, we understand the health of our… Continue reading

U.S. Rep. Nick Begich III, R-Alaska, address a joint session of the Alaska Legislature on Thursday, Feb. 20, 2025. (Mark Sabbatini / Juneau Empire file photo)
Opinion: A noncongressman for Alaska?

It’s right to ask whether Nick Begich is a noncongressman for Alaska.… Continue reading

You're browsing in private mode.
Please sign in or subscribe to continue reading articles in this mode.

Peninsula Clarion relies on subscription revenue to provide local content for our readers.

Subscribe

Already a subscriber? Please sign in