there will likely be a need for increased spending<\/a> in that area.<\/p>\nThere were more than $8 million in cuts to the Alaska Marine Highway System which the governor said were made in anticipation of recommendations from a working group that released its report in October. Dunleavy said his office was still processing the other bills sent by the Legislature and it was his understanding there was legislation regarding the AMHS within those bills.<\/p>\n
The budget also creates a new 18-month schedule for AMHS, according to a release from the governor’s office.<\/p>\n
Among other vetoes shown in a summary provided by the Office of Management and Budget that drew strong reactions were $3.4 million from front line social workers for Alaska Tribal Child Welfare Compact; $1.25 million for public health nursing; $17.5 million in reduced Medicaid spending.<\/p>\n
In a release, the governor’s office noted in some instances, vetoes were due to unfilled positions or funding being available from other sources. During the news conference, Dunleavy noted in some instances he expected federal relief funds to fill in cuts.<\/p>\n
In a letter, the Alaska Municipal League said it was disappointed by the governor’s vetoes, citing cuts to community assistance grants, municipal harbor grants and school construction and major maintenance grants.<\/p>\n
“At some point the State’s Constitutional obligation to public education will have to mean something, and failure to meet it result in consequences,” AML said.<\/p>\n
Dunleavy said school districts and local municipalities had received federal relief funding for the past two years and the state’s schools were in good shape in terms of funding.<\/p>\n
Though critical of the Legislature, Dunleavy called on lawmakers to come together and find compromise solutions that benefited all Alaskans. The governor said his amendments sent to the Legislature were an attempt to begin conversations about how to resolve Alaska’s fiscal deficit and that his office was committed to aiding in those discussions.<\/p>\n
In the past lawmakers were critical some of Dunleavy’s proposals and questioned the underlying financial assumptions in the projections presented by the administration. New projections were being produced, the governor said Thursday, which will help lawmakers craft proposals for the August session.<\/p>\n
Following the governor’s vetoes announcement, Senate Democrats released statements accusing the governor of partisanship and divisive tactics.<\/p>\n
Senate Minority Leader Tom Begich, D-Anchorage, said he was deeply disappointed by the vetoes, saying many of the items that were cut had bipartisan support in the Legislature.<\/p>\n
“Alaskans deserve both: a dependable PFD and safe, educated kids living in a prosperous state. Too bad this governor seems to think it’s one or the other,” said Sen. Jesse Kiehl, D-Juneau.<\/p>\n
In a statement, House Speaker Louise Stutes, R-Kodiak, said a $1,000 had bipartisan support and the governor’s vetoes created fiscal uncertainty as the state was trying to recover from the pandemic.<\/p>\n
“We must protect the fund from overspending that mortgages our future by paying large dividends today at the expense of essential services, our economy, and our children’s future opportunities,” Stutes said.<\/p>\n
High stock prices, a rising price of oil and the end of pension payments meant the state would be in a stronger position financially, Dunleavy said, and may not need a broad-based tax for additional revenue.<\/p>\n
• Contact reporter Peter Segall at psegall@juneauempire.com. Follow him on Twitter at @SegallJnuEmpire.<\/em><\/p>\nSee a summary of the vetoes below: <\/strong><\/ins><\/p>\n