In this May 29 file photo, Alaska Gov. Mike Dunleavy speaks to reporters in his office at the state Capitol in Juneau, Alaska. Dunleavy said he hopes to move past the rancor of his first year in office, amid an unsettled dispute with lawmakers over state spending and threat of a recall effort looming large. The Republican will mark a full year in office Tuesday, Dec. 3. (AP Photo | Becky Bohrer)

In this May 29 file photo, Alaska Gov. Mike Dunleavy speaks to reporters in his office at the state Capitol in Juneau, Alaska. Dunleavy said he hopes to move past the rancor of his first year in office, amid an unsettled dispute with lawmakers over state spending and threat of a recall effort looming large. The Republican will mark a full year in office Tuesday, Dec. 3. (AP Photo | Becky Bohrer)

Dunleavy marks 1st year in office amid turmoil

The governor hopes to move past the rancor.

Last December, poor weather scrambled Alaska Gov. Mike Dunleavy’s inaugural plans, a bumpy start to a turbulent year marked by budget disputes and a recall threat.

Dunleavy told The Associated Press recently he hopes to move past the rancor. Whether he can repair strained relationships with legislators and calm the public anger over cuts that fueled the recall push will be telling. Courts will decide whether the recall effort advances.

In this March 26 file photo, protestors unfurl a “Recall Dunleavy” banner as Gov. Mike Dunleavy, upper left, speaks during a roadshow with Americans for Prosperity in 49th State Brewing Company in Anchorage. (Bill Roth | Anchorage Daily News via AP)

In this March 26 file photo, protestors unfurl a “Recall Dunleavy” banner as Gov. Mike Dunleavy, upper left, speaks during a roadshow with Americans for Prosperity in 49th State Brewing Company in Anchorage. (Bill Roth | Anchorage Daily News via AP)

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 Republican, who marks a year in office Tuesday, defended the cuts as a tough decision in the face of budget deficits. Alaska, long reliant on oil, has been using savings and earnings from its oil-wealth fund, the Alaska Permanent Fund, to help fill the gap. New taxes weren’t debated during legislative sessions that lingered into summer, and Dunleavy said new taxes “are not going to solve” the deficit. The state tends to spend money when it comes into money, he said.

He said the question is what Alaskans are willing to accept to resolve the issue, such as further cuts, changes to the annual check they get from Permanent Fund earnings or other revenue measures. He said he plans town halls with Alaskans and regular meetings with lawmakers, some of whom had complained of poor communication by the administration and a singling out of members for positions at odds with Dunleavy’s.

“I think there’s some tension only because there’s different priorities. But the tension gets worse when there’s no understanding on where someone’s coming from,” said Rep. Tammie Wilson, R-North Pole, who said getting information on administration positions had at times been difficult.

Dunleavy said he plans to renew his push for constitutional measures related to a spending cap and giving Alaskans a say on taxes approved by lawmakers and lawmakers a say on taxes approved by citizen initiatives. He did not provide specifics on his new budget proposal, due by mid-December.

“We’re going to continue to do the right thing for Alaska even though it may not be in some circles politically palatable,” he said.

Some speculated former chief of staff Tuckerman Babcock and Donna Arduin, a former budget office director with a national reputation for slashing budgets, held considerable sway with Dunleavy.

“This is my administration, and I take responsibility for the actions,” Dunleavy said.

In this Aug. 13 file photo, Alaska Gov. Mike Dunleavy speaks at a news conference in Anchorage. (AP Photo | Mark Thiessen)

In this Aug. 13 file photo, Alaska Gov. Mike Dunleavy speaks at a news conference in Anchorage. (AP Photo | Mark Thiessen)

Dunleavy said having the right people to implement an agenda is important. He said Babcock and Arduin were the right people at the time.

There have been other changes among his staff. Dunleavy’s press secretary, Matt Shuckerow, left in October. Communications director Mary Ann Pruitt left what was cast as a temporary role Oct. 31, but her PR firm has a contract for communications work through January, she said.

Outgoing Revenue Commissioner Bruce Tangeman said the person in his role should be fully aligned with Dunleavy. Tangeman said with changing political sands, he isn’t sure he would be.

There was public outcry over deep cuts Dunleavy proposed. Amid questions about revenue, there’s a citizen effort underway to put before voters an initiative that would raise taxes on Alaska’s legacy oil fields. Many lawmakers are interested in somehow changing the formula for calculating Permanent Fund dividends.

Dunleavy argued for following a decades-old formula many lawmakers say is at odds with a 2018 law seeking to limit withdrawals from fund earnings.

Republican Senate President Cathy Giessel said she’s had productive conversations with Dunleavy’s new chief of staff, Ben Stevens, a former lawmaker. House Speaker Bryce Edgmon, an independent, said he saw as a good start a recent legislative leadership meeting with Dunleavy.

Edgmon and Giessel stood against the administration on what they saw as separation of powers issues, including disputes over school funding and a special session location.

State GOP chair Glenn Clary said the party, which plans a “unity gala” Dec. 6, wants to repair relationships between Republican lawmakers and Dunleavy’s office.

He said there are “major personalities” at play.

“People just need to understand that you can agree to disagree, but you don’t have to be disagreeable,” Clary said.

Dunleavy expressed frustration that positive economic signs after three years of recession aren’t getting enough attention. Figures appear to show budget cuts didn’t “destroy the economy,” as he said some feared.

Dunleavy moderated or relented on some vetoes, including the level of cut to the University of Alaska.

Mouhcine Guettabi, an associate professor of economics at the Institute of Social and Economic Research at the University of Alaska Anchorage, said the economy is out of recession but the recovery has been uneven. Federal figures indicate the 6.2% preliminary unemployment rate is the lowest it’s been for Alaska over a span dating to 1976.

Guettabi said the unemployment figure is driven in part by jobs gains but also by people leaving the labor force. The national unemployment rate for October was 3.6%.

He said he doesn’t think the economy growing means that cuts have no consequences but it’s unclear what impact they may have on economic gains.

Ongoing debate over fiscal issues, including what to do with the dividend, is expected to resume in January, during an election year for most legislators. If the recall advances, it would go to a second signature-gathering phase.

Claire Pywell, manager of the recall campaign, said supporters want an opportunity to vote on whether to fire or retain the governor.

Dunleavy said he wants people to understand the state’s fiscal situation. He said he has faith in the people of Alaska and the court system.

“So, like I said, I’ve got to put my faith in the people of Alaska and the court system to do the right thing. I’m going to do the right thing, and we’ll see where it ends up,” he said.


• This is an Associated Press report by Becky Bohrer.


More in News

The Norwegian Bliss arrives in Juneau on Monday, April 14, 2025. (Jasz Garrett / Juneau Empire file photo)
Ships in port for the week of April 20

This information comes from the Cruise Line Agencies of Alaska’s 2024 schedule.… Continue reading

Rep. Andi Story (D-Juneau), co-chair of the House Education Committee, speaks in favor of overriding Gov. Mike Dunleavy’s veto of an education funding bill during a joint session of the Alaska Legislature on Tuesday. (Mark Sabbatini / Juneau Empire)
Legislature fails to override Dunleavy’s veto of $1,000 increase in per-student education spending

Lawmakers supporting veto note state’s financial shortfall, suggest smaller BSA increase or new revenue.

Sarah Palin arriving at the U.S. District Court for the Southern District of New York on Tuesday, April 22, 2025. (Andres Kudacki / For The New York Times)
Jury rules against Palin in libel case against the New York Times

After two hours of deliberation, claim rejected she was defamed in newspaper’s 2017 editorial.

The Norwegian Bliss cruise ship docks in downtown Juneau on Monday, April 21, 2025. (Mark Sabbatini / Juneau Empire)
Ballot petition to restrict daily and annual cruise passengers in Juneau certified for signatures

Opponent of measure argues it violates due process, free travel and other constitutional rights.

Workers process pollock. (Photo provided by Thompson and Co. PR on behalf of the Alaska Pollock Fishery Alliance)
Murkowski and other US lawmakers seek guest worker visa exception for seafood industry

Legislation would exempt seafood companies from a cap on the number of H-2B visa workers.

(Michael Penn / Juneau Empire file photo)
Police calls for Sunday, April 20, 2025

This report contains public information from law enforcement and public safety agencies.

Will Muldoon’s official campaign profile photo as a Juneau Board of Education candidate in the 2024 municipal election. Muldoon resigned from the board on Monday. (City and Borough of Juneau photo)
Former write-in candidate Will Muldoon resigns from Juneau Board of Education

Muldoon, first write-in to win local election in 29 years in 2021, won easily reelection last fall.

Dancers exit the main conference room at Elizabeth Peratrovich Hall as part of the opening ceremonies for the Central Council of the Tlingit and Haida Indian Tribes of Alaska’s 90th Tribal Assembly on Wednesday, April 16, 2025. (Mark Sabbatini / Juneau Empire)
Tlingit and Haida votes to give smaller Southeast communities more representation at tribal assembly

Change during constitutional convention significantly shrinks delegations in Anchorage and Seattle.

Lee Hart puts her jacket back on while talking with security officer Rayme Vinson after going through the new security screening process at the Alaska State Capitol on Monday morning. (Mark Sabbatini / Juneau Empire)
TSA-style security screenings now required for visitors at Alaska State Capitol

Lawmakers, family, staff and other with keycards can bypass scans that began Monday.

Most Read