Dunleavy signs capital budget into law, vetoes funds

Sweep is reversed and capital budget is passed but $34 million is vetoed

Dunleavy signs capital budget into law, vetoes funds

Gov. Mike Dunleavy signed Senate Bill 2002 into law Thursday afternoon during a press conference at the offices of the Associated General Contractors of Alaska in Anchorage.

According to a press release from the governor’s office, the bill, “properly captures nearly $1 billion in federal transportation and infrastructure funding, provides necessary resources to enact public safety legislation, and reinstates funding for various programs such as the Alaska Performance Scholarship, WWAMI and Power Cost Equalization.”

While the bill does provide funding for a number of state programs, the governor vetoed $34,732,800 in total from the appropriations made in the bill.

Among the items vetoed were $10 million for statewide addiction treatment facilities, $500,000 for emergency medical services for Code Blue Project — the program meant to provide medical equipment for rural areas — and $1 million for public and community transportation.

A document from the governor’s office detailing his vetoes from SB 2002

A document from the governor’s office detailing his vetoes from SB 2002

Dunleavy said at the signing that he knew that cuts would be difficult for many groups in Alaska, but he was determined to put the state on a path of fiscal sustainability. Pretending the state was not running a budget deficit was doing harm to the state, he said.

Dunleavy made reference to the decrease in the price of oil that has taken place over the past several years and said without that revenue the state was no longer able to spend in the way it had in the past.

He said that, “the intent of the vetoes was not to harm Alaskans, nothing could be further from the truth.”

Dunleavy said part of his intent with the vetoes was to force a difficult but necessary conversation about the state’s fiscal future.

Dunleavy said that when he ran for governor he meant to, “restore and protect the PFD, promote public safety, and put the state on a plan for fiscal sustainability.”

Gov. Mike Dunleavy at the signing ceremony at the Alaska Association of General Contractors in Anchorage on August 8, 2019 (Courtesy photo)

Gov. Mike Dunleavy at the signing ceremony at the Alaska Association of General Contractors in Anchorage on August 8, 2019 (Courtesy photo)

In addition to signing this bill, the governor said his administration will be taking action that will impact a large number of Alaskans in the near future. This was mostly likely a reference to HB 2001, the other bill before the governor which contains additional funding and a Permanent Fund Dividend.

However, HB 2001 allocated only $1,600 for the PFD which Dunleavy has publicly opposed.

It is possible that the legislature could call itself into yet another special session with a two-thirds (40 votes) and attempt to override the governor’s vetoes.

On Twitter, some legislators responded to the governor’s vetoes within minutes of the announcement. The $10 million in cuts to addiction treatment facilities got specific attention.

Reps. Sara Hannan, D-Juneau, and Ivy Sponholz, D-Anchorage, both expressed dismay at the announcement.

In a July 31 letter to the governor, Senate President Cathy Giessel, R-Anchorage, and House Speaker Bryce Edgmon, I-Dillingham, suggested that the governor call yet another special session. It is unclear if there will be another session.

A document from the governor’s office detailing his vetoes from SB 2002

A document from the governor’s office detailing his vetoes from SB 2002

If a special session is called, the legislature will have five days from when it gavels in to override the vetoes.

The legislature does not have a timeline to call itself into special session. If no special session is called, the five day clock will begin at the start of the regular session in January.

As of this writing the Legislature has not had time to officially respond to the governor’s action.


• Contact reporter Peter Segall at 523-2228 or psegall@juneauempire.com.


More in News

Jasmine Chavez, a crew member aboard the Quantum of the Seas cruise ship, waves to her family during a cell phone conversation after disembarking from the ship at Marine Park on May 10. (Mark Sabbatini / Juneau Empire file photo)
Ships in port for the week of Sept. 7

Here’s what to expect this week.

Workers at the Alaska Division of Elections’ State Review Board consider ballots on Tuesday, Aug. 27, 2024, at the division’s headquarters in Juneau. At background is the Alaska State Capitol. (James Brooks/Alaska Beacon)
After Alaska’s primary election, here’s how the state’s legislative races are shaping up

Senate’s bipartisan coalition appears likely to continue, but control of the state House is a tossup.

Nutaaq Doreen Simmonds (left) and Xáalnook Erin Tripp star in the play “Cold Case,” focusing on issues involving Missing and Murdered Indigenous Persons, which is now performing at Perseverance Theatre. (Akiko Nishijima Rotch / Perseverance Theatre)
Perseverance’s ‘Cold Case’ tops NYT’s list of ‘15 Shows to See on Stages Around the U.S. This Fall’

Award-winning play about Missing and Murdered Indigenous Persons showing in Juneau until Sept. 22.

Police and other emergency officials treat Steven Kissack after he was fatally shot on Front Street on Monday, July 15, 2024. (Mark Sabbatini / Juneau Empire file photo)
UPDATE: Bodycam footage of Steven Kissack shooting, results of state investigation scheduled for release Tuesday

Videos, originally scheduled for Friday release, delayed until JPD gets state report, police chief says.

Workers construct a greenhouse behind the Edward K. Thomas building during the summer of 2021. The greenhouse is part of a food sovereignty project by the Central Council of the Tlingit and Haida Indian Tribes of Alaska, which this week received a $15 million grant from the U.S. Environmental Protection agency to establish or expand composting operations in five Southast Alaska communities including Juneau. (Central Council of the Tlingit and Haida Indian Tribes of Alaska photo)
Tlingit and Haida gets $15M EPA grant for composting operations in five Southeast Alaska communities

Funds will establish or expand programs in Juneau, Wrangell, Hoonah, Petersburg and Yakutat.

Mark Sabbatini / Juneau Empire file photo
State Rep. Andi Story, D-Juneau, speaks during a rally on behalf of Alaska residents with disabilities at the Alaska State Capitol on March 1, 2023.
Bills by Juneau legislator adding official Indigenous state languages, upgrading dock safety become law

Safety bill by Rep. Story also contains provision by Sen. Kiehl expanding disaster aid eligibility.

Nutaaq Doreen Simmonds (foreground) and Xáalnook Erin Tripp star in the play “Cold Case,” focusing on a story involving Missing and Murdered Indigenous Persons, which is scheduled to make its stage debut Friday at Perseverance Theatre. (Akiko Nishijima Rotch / Perseverance Theatre)
Play revealing unseen struggles of Missing and Murdered Indigenous Persons debuts at Perseverance Theatre

“Cold Case” features story of rural Iñupiaq woman trying to recover aunt’s body from Anchorage.

James Montiver holds Cassie, and William Montiver holds Alani behind them, members of the Ketchikan Fire Department that helped rescue the dogs on Sunday, Sept. 1, 2024. (Christopher Mullen / Ketchikan Daily News)
Dogs saved after seven days in Ketchikan landslide

Ketchikan Fire Department firefighters with heroic efforts Sunday brought joy and some… Continue reading

Most Read